The stock market today held bullish gains in the late afternoon, one day after the S&P 500 and Nasdaq composite notched fresh distribution days, marking a session of sharp losses in higher volume. Top gainers in the Dow Jones today included American Express (AXP), Honeywell (HON) and Boeing (BA), with gains of more than 3%.
Bitcoin broke below the $30,000 level, a key long-term support level, which could usher in even lower prices. Bitcoin was trading around $29,650, down more than 3%.
Dow Jones Today
After falling below its 50-day moving average Monday, the Dow Jones Industrial Average moved back above the 50-day line Tuesday, rising 1.7%. The S&P 500 rallied 1.6% as it makes a nice stand at its 50-day line. The Nasdaq composite picked up 1.7% and the iShares Russell 2000 ETF (IWM) surged 3.1% after coming close to its 200-day moving average Monday.
U.S. Stock Market Today Overview
Last Update: 2:50 PM ET 7/20/2021
The stock market continues to focus on the 10-year Treasury yield, which hit a low of 1.13% earlier in the session. But the yield rebounded to 1.21% in afternoon trading as money flowed out of bonds and into stocks.
When the 10-year yield hit a high of 1.76% in March, the bond market was concerned about inflation. Now, the bond market is concerned about the possibility of an economic slowdown as coronavirus cases rise due to the spread of the Delta variant.
IBM (IBM) led the Dow Jones early in the session after the company reported Q2 earnings, but a 5% intraday gain faded to 1.8% after IBM got turned away at its 50-day moving average.
Outside The Dow Jones
Growth stocks were solidly higher, helping lift the Innovator IBD 50 ETF (FFTY) to a gain of 2.6%. Top gainers in the IBD 50 index of leading growth stocks included Skyline Champion (SKY), which offers manufactured and modular homes. It’s making a solid first test of its 10-week moving average after a breakout from a short consolidation in late May.
Inside the MarketSmith Growth 250, hospital operator HCA Healthcare (HCA) was near session highs after gapping up on earnings. Headed into Monday, HCA was just above a 217.46 buy point, but the stock looks extended now. Group peer Tenet Healthcare (THC) was up 8% and topped a 70.85 buy point. Results are due Wednesday after the close.
AutoNation (AN) followed through nicely after Monday’s breakout over a 107.09 proper buy point. Group peer Carvana (CVNA) added 4%. The stock is just below a 329.20 entry. CarMax (KMX) rallied 4% and is just below a 137.63 entry in a 12-week cup with handle.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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