Banking

Dow Jones Leads As Bank Stocks Rally, But Nasdaq Slips After Hitting New High

Stocks were mixed early Tuesday, as the Dow Jones Industrial Average rallied 150 points while the Nasdaq slipped after inching up to another record high.




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The Dow Jones industrials rose 0.4%, the S&P 500 climbed 0.2%. The Nasdaq rose briefly Tuesday, touching a new high before edging 0.1% lower in the stock market today. Small caps tracked by the Russell 2000 were up 0.2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Monday.

Among exchange traded funds on Tuesday, Innovator IBD 50 (FFTY) slipped 0.5%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) dipped 0.1%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

Cumulative Covid-19 cases worldwide have surpassed 182 million, with over 3.9 million deaths, according to Worldometer. In the U.S., cases are approaching 35 million with nearly 620,000 deaths, although the number of new cases and deaths in the U.S. has slowed dramatically.

Dow Jones Winners And Losers

Walgreens Boots Alliance (WBA) gained 1.2% in heavy volume, on track to extend its win streak to five. Shares continue to form a flat base with a 57.15 buy point, according to MarketSmith chart analysis. Analysts expect Walgreens to earn $1.15 a share on $33.49 billion in revenue when it reports fiscal Q3 results on Thursday. That would mark a 39% jump in EPS and a 3% slip in sales.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34418.90 +135.63 +0.40
S&P 500 (0S&P5) 4297.71 +7.10 +0.17
Nasdaq (0NDQC ) 14491.51 -9.00 -0.06
Russell 2000 (IWM) 231.02 +0.58 +0.25
IBD 50 (FFTY) 46.08 -0.25 -0.54
Last Update: 10:22 AM ET 6/29/2021

Nike (NKE) also rose 1.2% in fast turnover. The gain put the stock just beyond the buy range from a 148.05 buy point cleared Friday. Shares gapped up and soared 15.5% that day, after the athletic shoe and apparel giant crushed fiscal Q4 estimates and gave upbeat guidance. Nike stock’s buy zone goes up to 155.45.

Among other blue chip gainers, Home Depot (HD), Boeing (BA) and Goldman Sachs (GS) were up about 1% apiece.

Boeing lifted 1.2% on news that United Airlines (UAL) ordered 200 Boeing 737 Max aircraft, including 150 737-10s — the largest version of the jet. That puts United orders of 737 aircraft at 380, of which 30 have been delivered. Boeing stock is about 13% away from a 278.67 consolidation buy point.

Goldman Sachs on Monday announced it will hike its dividend to $2 a share, from $1.25. Shares are nearly extended from a 346.95 buy point of a seven-week cup base.

But Intel (INTC) fell 2% in heavy trade to give back most of Monday’s gain. The chipmaker’s stock fell below its 50-day moving average after regaining it on Monday. It’s near the bottom of a 22%-deep consolidation with a 68.59 buy point.

American Express (AXP) and Disney (DIS) each edged about 0.5% lower.

Outside The Dow

Database software, oil and gas, and drugstore retail stocks led the upside among IBD’s 197 industry groups. Consumer electronics retailers, travel bookers and automaker stocks lagged.

In the investment bank group, Morgan Stanley (MS) gapped up and rose nearly 4% in heavy volume. The bank doubled its quarterly dividend to 70 cents a share and launched a $12 billion share buyback initiative.

Five of the six biggest U.S. banks boosted their dividend payouts late Monday, following strong results from the Federal Reserve’s annual stress test, which were announced last week.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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