The Dow Jones Industrial Average rallied even as small caps led the day. Boeing (BA) was one of the top blue chips as it fought to pull out of a dive. Virgin Galactic (SPCE) was falling again after Jeff Bezos blasted into space. Meanwhile, meme stock AMC Entertainment (AMC) was surging.
Nasdaq Gains, Small Caps Lead
The Nasdaq lagged the other major indexes, but still turned in a gain of 1.5%. Leaderboard stock DocuSign (DOCU) was the top performer here, rising almost 5%.
The S&P 500 was faring slightly better, rising 1.6%. Hospital operator HCA Healthcare (HCA) was by far the biggest winner here, rising almost 15%. It gapped up on a strong earnings report.
The S&P sectors were all green, with financials and industrials leading. Consumer staples were faring worst.
U.S. Stock Market Today Overview
Last Update: 1:18 PM ET 7/20/2021
Small caps were rallying strongest after a painful Monday, with the Russell 2000 rising almost 3% Tuesday afternoon.
Growth stocks were also making strong gains in the bullish session. The Innovator IBD 50 ETF (FFTY) was up around 2.4%.
Dow Jones Surges As Boeing Stock Fights Back
The Dow Jones Industrial Average was faring best out of the major indexes, rising 1.7%.
Boeing stock was one of the top performers as it tried to climb out of a downtrend. It posted a more than 3% gain. Boeing is trying to close in on its 200-day line, and remains shy of the 50-day moving average.
American Express (AXP) was the top performer on the index however, rising almost 4%. The payments stock is rebounding from its 10-week line.
Virgin Galactic Dives As Jeff Bezos Blasts Off
Virgin Galactic stock was dipping once again Tuesday, with Monday’s solid gain now seeming a brief respite. It gave up 5% and is looking for support at the 200-day moving average.
It fell back to losing ways as Amazon.com (AMZN) founder Jeff Bezos made headlines by blasting into space in his Blue Origin company’s first manned flight. His crew included the firm’s first paying customer.
“I am unbelievably good,” Bezos boasted from his space capsule after it made a safe landing.
Blue Origin said that it has nearly $100 million in commercial sales for flights on the New Shepard rocket. Two more commercial flights are expected this year, but Bezos said he’s not sure how many will happen in 2022 but that “demand is very, very high.”
Meanwhile, Virgin Galactic predicts it will start commercial service in early 2022. And while the July 11 flight with Branson was Virgin Galactic’s first with a full crew, none of the passengers were paying customers.
SPCE stock has a lot of ground to make up after it plunged around 39% last week. Its troubles came after the firm revealed in a regulatory filing that it plans to sell up to $500 million in stock. This caused Virgin Galactic stock to fall hard, even though it came on the heels of the firm making its first fully crewed flight.
AMC Stock Surges, GME Stock Gains
Meme stocks were looking to change their fortunes after steep drawdowns.
AMC stock, the hottest property in the meme stock stable, soared around 13%. This saw the stock move close to its 50-day moving average.
However, this comes on the back of a period of painful losses. AMC stock tumbled 24% last week, which was its fourth down week in a row. Despite its brutal drawback, the stock still has a perfect Relative Strength Rating of 99.
GameStop was also making up ground, managing to rise almost 6%. This saw it reach the 10-day moving average, but it remains shy of the 50-day line.
GME stock has now fallen more than 60% from its high of 483, which it reached in January.
These Stocks Pass Buy Points
Tenet Healthcare managed to break out of a flat base, MarketSmith analysis shows. The ideal buy point for THC stock is 70.85, and it is currently a hair below this mark. Tenet appeared to be rising in sympathy with hospital operator HCA.
A positive sign for the move is that the relative strength line has just hit a new high. Stock market performance is actually the hospital operator’s strongest suit at the moment, with its Relative Strength Rating coming in at 96 out of 99.
Thermo Fisher Scientific cleared a handle buy point at 524.36. Unlike THC stock, earnings are the big strength here. However, Thermo Fisher’s earnings are due in eight days, so investors should exercise caution before buying.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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