Stocks rallied Friday after Fed chief Jerome Powell’s speech, as the Dow Jones Industrial Average jumped more than 250 points and the Nasdaq hit a new high.
The Nasdaq rallied 1.2%, the S&P 500 rose 0.9% and the Dow Jones industrials gained 0.7% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 2.9%. Volume was lower on both major exchanges vs. the same time Thursday.
In his widely anticipated speech, Fed chief Jerome Powell indicated he is among policy committee members inclined to start tapering asset purchases this year. That suggests a strong chance the Fed will announce a policy change at its Sept. 21-22 meeting. But the stock market extended its gains following his speech.
Powell noted “more progress” since the last policy meeting, with July’s employment report showing a 943,000 jobs increase as the unemployment rate fell to 5.4%. However, he said the Fed will continue to assess incoming data and evolving risks, amid the further spread of the delta Covid variant.
U.S. Stock Market Today Overview
Last Update: 1:32 PM ET 8/27/2021
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased.
But cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.
Cumulative Covid-19 cases worldwide are approaching 216 million, with nearly 4.5 million deaths, according to Worldometer. In the U.S., cases have topped 39 million with close to 652,000 deaths.
Growth Stocks To Watch
Late Thursday, the software maker reported adjusted earnings of $1.23 a share on revenue of $1.26 billion. Analysts expected EPS of 78 cents on revenue of $1.24 billion. Subscription revenue rose 19.5% to $1.11 billion, topping estimates for $1.09 billion.
Bill.com (BILL) surged 28% in heavy volume to a new high. It’s now more than 45% extended from a 192.99 buy point of a cup with handle. Investors could lock in some gains, since the stock has triggered the 20%-25% profit-taking rule.
The stock got early airplay on Friday’s IBD live show.
Late Thursday, the financial software maker delivered another strong quarter of sales growth and gave bullish revenue guidance for the current quarter. Bill.com reported an adjusted loss of 7 cents a share, but revenue growth accelerated sharply from the prior quarter, up 86% to $78.3 million.
But Marvell Technology (MRVL) fell 3%, giving up some of the week’s big gains. After the close Thursday, the data-center chip maker beat Wall Street’s estimates for its fiscal second quarter and guided modestly higher for the current period.
Peloton (PTON) gapped down and sank more than 7% in heavy trade. Late Thursday, the fitness gear maker reported a much-deeper-than-expected fiscal Q4 loss, offered up a weak outlook for its fiscal first quarter and said it would cut the price of one of its bikes. Peloton stock is more than 35% off its 52-week high.
Dow Jones Movers
Boeing (BA) and Chevron (CVX) added more than 2% apiece. Boeing stock has been stuck below its 50-day moving average and 200-day line for most of the past two weeks. Chevron remains below its 50-day but looks set to retake its 200-day.
Follow Nancy Gondo on Twitter at @IBD_NGondo
YOU MAY ALSO LIKE: