Banking

Dow Jones Up 162 Points As Senate Passes Infrastructure Bill; Oil Prices Recover While Steel Gets A Boost

The Dow Jones Industrial Average rose in today’s stock market and notched an all-time high in afternoon trading. Meanwhile, the Nasdaq traded lower on Tuesday as stocks were mixed across the board.




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Dow Jones In The Stock Market Today

The Nasdaq fell roughly 0.5%, while the S&P 500 edged 0.1% higher and hit a new high of 4,445.21. The Dow Jones industrials led on the upside with a gain of 0.5% and the Russell 2000 index rose 0.2%. Early data showed volume was lower on the Nasdaq and higher on the NYSE vs. the close on Monday.

The indexes were mixed Tuesday. Tech stocks were hindered amid rising coronavirus cases and reinstated travel restrictions in China, which were announced earlier this week. Meanwhile, blue-chip stocks held solid gains after the U.S. Senate passed a roughly $1 trillion infrastructure package. The bill has broad bipartisan support and includes $550 billion for transportation, broadband and utilities.

Elsewhere, U.S. West Texas intermediate crude oil futures recovered on Tuesday, after sinking as much as 4% Monday to a low of around $65 per barrel. The decline came after a 7.5% weekly drop last week. In afternoon trading on Tuesday, crude oil futures were up roughly 3% to around $68.45 a barrel.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35264.60 +162.75 +0.46
S&P 500 (0S&P5) 4436.82 +4.47 +0.10
Nasdaq (0NDQC ) 14788.09 -72.09 -0.49
Russell 2000 (IWM) 222.56 +0.40 +0.18
IBD 50 (FFTY) 46.13 -0.37 -0.80
Last Update: 4:20 PM ET 8/10/2021

Stocks outperforming in the Dow Jones on Tuesday included Dow Inc. (DOW), Caterpillar (CAT) and Goldman Sachs (GS), up more than 2% each. Goldman Sachs remains inside a key buy range from a 393.36 flat base entry. The buy zone tops out at 413.03. The bank maintains strong IBD Ratings with a 90 RS Rating and a 96 Composite.

Walmart (WMT) was also up over 2% in heavy volume. Shares remain inside the buy zone of a flat base’s 144.68 entry. The 5% buy zone tops out at 151.91. The discount retailer is set to reports quarterly results Aug. 17. According to IBD data, analysts expect year-over-year declines of 1% for both earnings and sales.

Bank of America kept its buy rating and 185 price target on Walmart stock. The analyst firm noted anticipated merchandise strength as well as back-to-school sales, among other catalysts.

Disney (DIS) traded around 0.2% higher on Tuesday. The firm reports quarterly results Thursday after the market closes. Disney stock has been consolidating for nearly five months but is hitting resistance at its 10-week line. This is an important sign of weakness. Shares remain roughly 13% away from the 203.12 buy point.

Growth Stocks In The News

As for growth stocks, the Innovator IBD 50 ETF (FFTY) fell 0.8%, beating the major indexes on the downside. The ETF continues to hold above its 50-day line. Stocks leading the upside in the index included SiTime (SITM) and Cleveland-Cliffs (CLF), with gains of roughly 5.4% and 5%, respectively.

A fair number of growth stocks also scored breakouts, including Under Armour (UA), Capital One (COF), United States Steel (X) and Atkore (ATKR). Skyline Champion (SKY) soared to a new high.

Under Armour broke out past a 21.92 cup-base buy point and remains inside the buy zone, which tops out at 23.01. The athletic apparel company has been on a tear after reporting better-than-expected earnings and sales on Aug. 3. Shares gained over 20% last week in heavy volume.

Elsewhere, shares of Capital One broke out from a flat base with a 168.10 buy point. The stock remains inside the buy area after rising 2.7% in afternoon trading. The banking and credit card company also reported strong earnings near the end of July, which boosted shares into the buy zone.

United States Steel broke out from a double-bottom base with a 28.89 buy point. The stock remains just below the buy area after jumping over 4.7%. Commodities like steel are on a tear this year, thanks to the massive U.S. government spending plan to rebuild infrastructure. Additionally, as economies reopen from the pandemic, demand is expected to rise.

Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.

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