The stock market climbed modestly early Thursday after the labor market saw continued improvement, and oil prices reached the highest level since 2018.
The S&P 500 climbed to a new high, adding 0.3%. The Nasdaq composite was off session highs with a 0.1% increase.
The Nasdaq just completed a solid month of June in which it rose 5.5% — its best month since December. The second quarter marked the S&P 500’s largest five-quarter percentage gain since the second quarter of 1936, according to Dow Jones. It’s the longest winning streak since the fourth quarter of 2017.
The Dow Jones Industrial Average and small-cap Russell 2000 added 0.2%. Volume was lower on the Nasdaq and higher on the NYSE compared with the same time on Wednesday.
U.S. Stock Market Today Overview
Last Update: 10:12 AM ET 7/1/2021
U.S. crude oil prices jumped more than 3% to $75.77 a barrel, topping $75 for the first time since October 2018. The OPEC+ group is meeting to decide how to meet fast-rebounding demand for oil. Saudi Arabia and Russia reportedly have a tentative agreement to raise output by 2 million barrels a day. Energy Select Sector SPDR ETF (XLE) rose nearly 2% and is 4% from new highs. Cimarex Energy (XEC) topped a 75.02 buy point, but soon dropped back below it.
Micron Technology (MU) dove more than 5% after the company reported results for its May-ended quarter. Micron beat expectations and raised its guidance. The stock is still forming a base, but slid below the 50-day moving average with today’s sell-off.
Didi (DIDI), which went public Wednesday, surged more than 10%. It went public at 14 a share. The Chinese ride-hailing service’s IPO valued the company at more than $67 billion. Apple (AAPL) still can’t get its breakout going. The stock is trading near the 137.17 buy point but is largely flat this week. Volume also has been pale.
IBD 50 Lower Despite Stock Market Gains
Innovator IBD 50 ETF (FFTY) fell 1.2% after a few components fell sharply.
Novocure (NVCR) plunged 13% in heavy trading after the company announced trial results of its Hepanova liver cancer treatment. Novocure’s loss triggers a sell signal after shares fell more than 8% from a 220.58 buy point.
Global-E Online (GLBE) fell nearly 5% and broke below the 10-day moving average for the first time since it went public May 12 and went on an impressive run. Cricut (CRCT), another fast-rising new issue, dropped nearly 5%.
But Smith & Wesson Brands (SWBI) led the IBD 50 with an 11% leap to new highs. The firearms maker has been soaring since its quarterly results beat expectations June 17. The stock is too extended from its 22.60 buy point and perhaps prone to a pullback.
Claims for jobless benefits fell to 364,000 last week, a new pandemic low, the Labor Department reported early today. The four-week moving average fell by 6,000 from the previous week, another pandemic low. Jobless claims remain above pre-pandemic levels.
At 9:45 a.m. ET, IHS Markit released its purchasing managers index, which came in at 62.1, equal to May’s reading, but below the initial ‘flash’ estimate of 62.6.
“June saw surging demand drive another sharp rise in manufacturing output, with both new orders and production growing at some of the fastest rates recorded since the survey began in 2007,” Chris Williamson, Chief Business Economist at IHS Markit, noted in the news release. “The strength of the upturn continued to be impeded by capacity constraints and shortages of both materials and labor, however, meaning concerns over prices have continued to build.”
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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