The stock market was narrowly mixed Monday morning as Wall Street prepared for the first of hundreds of earnings reports for the second quarter. An IBD 50 company gave a bullish forecast this morning, but Virgin Galactic (SPCE) plummeted despite a historic flight to space.
The Nasdaq composite was down 0.1%. The S&P 500 rose 0.2%, good for another record high.
The Dow Jones Industrial Average rose 0.3%. Disney (DIS) climbed less than 1% and is trying to add some room above its 50-day moving average, which is sloping downward. The company’s “Black Widow” took in $80 million in the domestic box office in its opening weekend. The Marvel movie, whose premier was delayed 15 months, also had international box office receipts of $78 million.
While indexes were mixed, trading was tilting more toward sellers. Declining stocks led gainers by 12-to-7 on the Nasdaq and by 6-to-5 on the NYSE. Volume was higher on the Nasdaq and lower on the NYSE compared with the same time on Friday.
U.S. Stock Market Today Overview
Last Update: 10:16 AM ET 7/12/2021
Small caps were weaker, with the Russell 2000 off 0.6%. Financials, real estate, consumer discretionary and health care showed better gains. Financial Select Sector SPDR (XLF) rose 0.7%. Utilities and transportation were down about 0.4%.
Virgin Atlantic Stock Plunges
Shares of Virgin Atlantic plunged 15% in heavy trading after the company disclosed plans to sell up to $500 million in stock. The company on Sunday successfully launched founder Richard Branson and crew members into space, a milestone for commercial service into space. Virgin Galactic stock is recovering from a severe 77% decline that started with the stock’s peak in February.
Innovator IBD 50 ETF (FFTY) climbed 0.5%.
InMode (INMD) led the IBD 50 with an increase of nearly 6% to new highs. The stock, which is also in IBD Leaderboard, is now extended from support at the 10-week moving average. InMode early today forecast second-quarter revenue of $86.5 million to $87.0 million, and earnings of $1 to $1.01 a share. Those numbers would be above views. InMode will report earnings July 28 before the open.
Industrial company Albemarle (ALB) broke out of a cup-with-handle base in heavy trading. shares are already extended from the 177.68 buy point.
Restaurant Stocks In Play
But the company faces cost pressures as the price of coffee surges. Brazil, the world’s biggest coffee producer, is going through one of its worst droughts in almost a century, The Wall Street Journal reported. In June, prices for arabica coffee beans hit the highest level since 2016.
This week kicks off second-quarter earnings season, which is expected to give the S&P 500 one of its best quarterly gains ever. The consensus estimate for Q2 is a 64% surge, which would be the best quarter since Q4 of 2009, according to FactSet. Analysts have been boosting earnings estimates for S&P 500 companies, up 7.2% from March 31 to June 30. That’s the largest quarterly increase in the S&P 500 estimates since FactSet began tracking this metric in 2002.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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