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Dow Jones Today, Futures Seek Balance After Rebound; Earnings Lift Chipotle, ASML Holdings; Will China Floods Hurt Apple? – Investor's Business Daily

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Stocks jumped into early gains Wednesday, as markets moved to extend Tuesday’s bullish rebound. Chipotle Mexican Grill, ASML Holdings and Travelzoo led the names rallying on earnings news, while Netflix skidded after its report. On the Dow Jones today, Boeing and Coca-Cola led as more than 20% of the index rose more than 2%.




X



Dow Jones Industrial Average scrambled 0.8% higher, up more than 250 points, with Coca-Cola (KO) out front in early trade. The S&P 500 rallied 0.6%, confirming Tuesday’s rebound from 50-day support.

The Nasdaq Composite strengthened to a 0.4% advance, held back partly by Apple (AAPL), which sagged under uncertain impact from flooding in China. ASML Holdings (ASML) and Nvidia (NVDA), both IBD Leaderboard listings ran at the head of the Nasdaq 100.

Nvidia rallied after Oppenheimer adjusted its price target to 235, after the stock’s 4-for-1 split on Tuesday. The new price target is 23% above where shares traded early Wednesday. Nvidia is in a buy zone following a rebound from 10-week support.

Chipotle Mexican Grill (CMG) ran hot on the S&P 500, rising more than 8% after reporting results late Tuesday. Halliburton (HAL) rallied 3.8% after its earnings report, and as Goldman Sachs upgraded the stock to buy, from neutral.

Vaccine maker and IBD 50 stock Moderna (MRNA) dropped 3.1%, entering its first day as an S&P 500 listing.

Netflix (NFLX) plowed 4.2% lower after its Q2 report late Tuesday topped views for subscriber growth, but missed the mark on earnings.

Beyond earnings, NeutroMetrix (NURO) spiked 88% in opening trade. The stock soared 210% on Monday, after the Food and Drug Administration conferred “breakthrough designation” status to the company’s Quell Device for treating fibromyalgia in adults.

Dow Jones Today: Coke, Verizon, J&J Earnings

Boeing (BA) and Coca-Cola set the pace on the Dow Jones today, up 2.8% and 2.3%, respectively. Apple stock dropped 0.7%, possibly affected by concerns over flooding in central China. CNBC reported that contract manufacturer Foxconn, Apple’s largest supplier, affirmed that its massive Zhengzhou assembly plant had not so far been affected by the floods. The city of 10 million has reportedly seen intensive flooding.

Coke stock scaled up 2% after scoring a solid sales and earnings beat, and raising its full-year earnings guidance above analyst views. The premarket gain suggested a starting bell breakout past a 56.58 buy point in a five-week flat base.

J&J reversed its premarket gains on the Dow Jones today and dropped 0.3%, despite easily clearing second-quarter expectations and raising full-year earnings and revenue guidance above analyst views. The stock ended Tuesday just below a 171.28 entry in a nine-week cup-with-handle base.

Global Stock Markets

Action was mixed across worldwide markets on Wednesday. Hong Kong’s Hang Seng Index closed 0.1% lower, extending its slide to three days as widespread floods displaced an estimated 200,000 people in central China. In Japan, Tokyo’s Nikkei 225 climbed 0.6%, ending a five-session decline just as the Summer Olympic Games are about to get underway.


Stock Market ETF Strategy And How To Invest In The Current Uptrend


Stocks moved higher in Europe. In afternoon trade, London’s FTSE 100 climbed 1.6% gain. The CAC-40 in Paris rallied 1.4%. Frankfurt’s DAX traded 1% higher.

Vital Signs: Bond Yields, Oil Prices, Bitcoin

Bonds eased, sending yields higher after a sharp reversal on Tuesday. The 10-year yield rose to 1.26% early Wednesday, after settling just below 1.21% on Tuesday. Yields on Tuesday briefly fell to their lowest level since Feb. 2, and are now below support at their 200-day moving average.

The last time the 10-year yield broke below the 200-day support line was in December 2018. That began a nine-month slide that ended just ahead of the Covid-19 pandemic.


IBD 50 Stocks To Watch: A Marijuana Stock With A Buy Point And A Dividend


Oil prices bounced Wednesday, with U.S. benchmark West Texas Intermediate up 1.6% to $68.27 a barrel. WTI reversed from early losses on Tuesday, following Monday’s 7.5% dive — the worst single-day drop since September. Prices began to slide after the Organization of Petroleum Exporting Countries and partners led by Russia, typically called OPEC+, agreed Sunday to a strategy to return production to pre-pandemic levels by 2022.

Monday’s loss left oil prices tracking toward a third-straight weekly decline, on the heels of a six-week rally. Prices on July 6 reached $76.98, their highest level since October 2014.

Bitcoin rallied 6% to above $31,500, after dipping to $29,327 on Tuesday. The cryptocurrency had traded above $36,000 in late June, and touched a record high near $65,000 in April.

Earnings News: ASML, ISRG, Chipotle

In addition to the three blue chips reporting earnings on the Dow Jones today, Travelzoo (TZOO), Lithia & Driveway (LAD), Harley Davidson (HOG), Interpublic Group (IPG) and Qualtrics International (XM) all surged higher after their reports.

ASML Holdings sparked 2.7% higher to trade high on the Nasdaq 100. The Netherlands-based chip equipment maker reported mixed second-quarter results, but raised its third-quarter revenue guidance. The stock is technically in a buy zone on a rebound from support. But IBD Leaderboard cautions that “Investors should not think of buying unless the stock regains the (705.90) buy point.”

Intuitive Surgical reversed its premarket advance and dropped 3%, despite reporting triple-digit earnings growth and a double-digit sales increase for its second quarter. Shares are extended from a late-June breakout from a base-on-base pattern.

Chipotle bolted 8.8% higher after easily topping analysts’ second-quarter profit targets. The gain sent shares beyond a buy range above a 1,579.62 buy point in what IBD MarketSmith analysis charts as an 11-week cup base. Chipotle initially topped the entry on July 7, then pulled back for a test of support at its 21-day exponential moving average.

After the close, Texas Instruments (TXN), Discover Financial (DFS), Whirlpool (WHR) and Mastercard (MC) are among the companies scheduled to report.

Nasdaq, S&P 500, Dow Jones Today

Results on Tuesday told a strong story of support across the three big benchmarks. The Nasdaq retook support at its 21-day exponential moving average. The S&P 500 rebounded gracefully from a test of support at its 50-day line. And the Dow industrials regained 50-day support, ending the session just even with the index’s 21-day line.

As a result, ETFs tracking the Dow Jones today are back near buy points. The SPDR Dow Jones Industrial Average ETF Trust (DIA) is 1% below its 348.75 entry. The leveraged ProShares Ultra Industrials (UXI) is 3% below its buy point at 34.07.

In addition, the SPDR S&P 500 ETF Trust (SPY) is in a buy zone on its rebound from its 50-day/10-week moving average.

Small caps skipped the support story. But both the Russell 2000 and the S&P Smallcap 600 turned in big gains for the day, rallying 3% and 2.9%, respectively. In both cases, that ended five-day declines. But both indexes remain well below recent highs and have repair work to do.

Market Status: Uptrend Under Pressure

Tuesday’s gains were a bullish follow up to Monday’s dive, with money flowing back into a broad range of sectors. However, a glance at IBD’s Market Pulse shows the stock market’s status remains “Uptrend Under Pressure.”

That leaves the door open to purchases of leading stocks breaking out past buy points. But it also cautions investors that the market remains volatile, with a number of indicators suggesting possible further consolidation.


For more detailed analysis of the current stock market and its status, study the Big Picture.


With earnings season fully underway, there are bound to be the usual quarterly successes and failures. HCA Healthcare (HCA) and AutoNation (AN) are among this week’s winners.

It is a good time to study up on pyramiding, and on earnings season options trades. These offer different approaches to limiting exposure while making purchases during earnings season.

Find Alan R. Elliott on Twitter @IBD_Aelliott

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COVID-19: Ottawa reports seven new cases, fatal cases decline sharply in July – Ottawa Citizen

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Vaccinations have slowed considerably in the capital since the peak week in early July when nearly 133,000 doses were administered.

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Ottawa is reporting seven new laboratory-confirmed COVID-19 cases Monday as severe cases, hospitalizations and fatal outcomes continue to sharply decline in Ottawa while vaccination rates gradually climb.

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No deaths have been reported since early July, and there were two COVID-related deaths in the city during the month, while there were 14 deaths in June and 56 deaths in May. There have been 593 COVID-related deaths in the city since the beginning of the pandemic and 27,827 total cases.

There are currently no patients in local hospitals or in intensive care wards. Of Ottawa’s total cases, 27,184 people have now recovered.

There have been 49 cases in the last seven days at a rate of 4.6 cases per 100,000 population. That key indicator has remained relatively flat this week.

The virus reproduction rate, which measures the number of secondary cases generated by each COVID-19 case in the community, has a weekly R(t) value of 1.15. Any number above 1.0 indicates the virus is spreading in the community, while any value below that threshold indicates it is receding.

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The R(t) value was below that threshold during May and June, but has remained above 1.0 since mid-July. There has also been a slight rise in the viral signal in Ottawa’s wastewater over the last seven days, which typically signals a corresponding rise in daily case counts.

Ottawa’s test positivity average is 0.5 per cent for the past week.

Vaccinations have slowed considerably in the capital since the peak week in early July when nearly 133,000 doses were administered. There were 33,212 doses administered in Ottawa last week and 104,906 the week before.

Vaccinations so far in August have followed a similarly slowing pace with 4,277 doses administered on Sunday.

The city continues to outpace the provincial vaccination rate with 1,450,733 doses administered, with 799,882 first doses and 650,851 second doses administered. That represents 83 per cent of the eligible population (12-plus) with one dose and 72 per cent of eligible residents with both doses.

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Public Health Ontario did not release provincial data on the Civic Holiday Monday, and said the compiled data will be available during the regular morning update Tuesday.

There were 154 new cases in Quebec reported in the past 24 hours and no deaths in the province.

There are 61 patients in Quebec hospitals, one more admission since Friday, with 17 patients in ICU.

Another 38,883 vaccine doses were administered in the past 24 hours, and according to Monday’s provincial update, a total of 11,330,968 vaccine doses have been administered in Quebec, representing 74 per cent of the population.

Ontario reported 218 new cases on Sunday and two deaths, and as of the last update, the province had reported 550,654 total cases and 9,347 deaths. There were 78 patients in hospital and another 110 in ICU, with 78 requiring a ventilator.

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COVID-19 BY THE NUMBERS

Ottawa

(Reported Monday)

7: New cases

27,827: Total cases

0: New deaths

593: Total deaths

50: Active cases

0: In hospital

0: In ICU

4.6: Rolling seven-day average of cases per 100,000 people

0.5: Per cent test positivity, previous seven days

1.15: Estimated R(t), seven-day average. A number greater than one indicates the virus is spreading.

Ontario

(Reported Sunday. Due to Civic holiday, Monday’s data will be included in Tuesday’s update.)

218: New confirmed cases

550,654: Total cases

2: New deaths

9,347: Total deaths

78: Currently in hospital

*110: In intensive care

*78: On a ventilator

(*Note: Ontario Public Health statistics of ICU hospitalizations and ventilator cases contain some patients who no longer test positive for COVID-19, but who are being treated for conditions caused by the virus.)

60,583: Daily doses administered

19,519,781: Total doses administered

14,122: Tests conducted in previous 24 hours

1.4: Per cent positivity in cases

1.0: Estimated reproductive number, R(t). A number lower than one indicates the virus is receding.

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    Some federal public service ‘pathfinders’ start returning to Ottawa-area workplaces Tuesday

  2. Composite image by Nicole Feriancek/ Postmedia. Photos L-R: Luis ACOSTA / AFP, Maddie Meyer/Getty Images, JEFF PACHOUD/AFP

    An unofficial ranking of the best and worst face masks at the Tokyo Olympics

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Russia Boosts July Oil Production As OPEC Allies Pump More – OilPrice.com

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Russia Boosts July Oil Production As OPEC+ Allies Pump More | OilPrice.com


Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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Russia saw its oil production rise for the first time in three months in July as OPEC+ continued to ease the production cuts and planned maintenance at some Russian oilfields ended.

Russia’s crude oil and condensate production combined stood at around 10.46 million barrels per day (bpd) in July, up by 0.3 percent from June, according to Bloomberg estimates based on preliminary data from Russia’s Energy Ministry.

In May and June, Russia’s crude and condensate production was lower despite the higher quota the leader of the non-OPEC group in the OPEC+ alliance had. According to the International Energy Agency (IEA), cited by Bloomberg, Russian crude oil production was lower in June because of planned maintenance.

It’s difficult to assess Russia’s compliance with the OPEC+ deal because its energy ministry is not breaking down crude oil and condensate production. Russia has won an exemption not to consider its condensate output as part of the production cut agreement.

As per Bloomberg estimates, if Russia’s condensate production in July was the same as in June, at around 900,000 bpd, then its crude oil production should have been 9.56 million bpd, above its quota of 9.495 million bpd for July. 

Russia’s compliance with the OPEC+ deal will be around 100 percent in July, Deputy Prime Minister and chief oil negotiator, Alexander Novak, told reporters in Moscow on Friday.

Russia can boost its oil production in August by 100,000 bpd, as per the parameters in the OPEC+ deal agreed in July, Novak added.

On July 18, the OPEC+ group decided it would start returning 400,000 bpd to the market every month beginning in August until it unwinds all the 5.8 million bpd cuts.

While Russia saw its oil production inch up by 0.3 percent month over month in July, OPEC’s oil production is estimated to have jumped last month by 610,000 bpd to 26.72 million bpd, the highest since April 2020, the monthly Reuters survey showed.

By Tsvetana Paraskova for Oilprice.com

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COVID-19: Canada's Moderna vaccines risk expiring due to hesitancy and preferences – Global News

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