The Dow Jones Industrial Average rose in today's market as stocks attempted to recover some of last week's steep losses. The Dow added more than 500 points. All the major indexes traded near their highs of the day.
XDow Jones In The Stock Market Today
At around 3 p.m. ET, the Nasdaq held a gain of 0.8%. The S&P 500 rose 1.3%, while the Dow Jones industrials gained about 1.7%. Meanwhile, the small-cap Russell 2000 index climbed 2.2%. Volume was running lower on the NYSE and on the Nasdaq vs. the same time on Friday.
Stocks were rocked last week after the Federal Reserve said it sees interest rates rising sooner than previously expected. The Dow suffered a weekly loss of over 3% on the news.
However, the major index recovered nearly half those losses in today's trading. The blue-chip index remained below the 50-day moving average after losing that level of support during last week's weakness.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33893.21 | +603.13 | +1.81 |
| S&P 500 | (0S&P5) | 4224.26 | +57.81 | +1.39 |
| Nasdaq | (0NDQC ) | 14146.32 | +115.94 | +0.83 |
| Russell 2000 | (IWM) | 226.89 | +4.76 | +2.14 |
| IBD 50 | (FFTY) | 44.18 | +0.15 | +0.34 |
Last Update: 2:04 PM ET 6/21/2021 |
||||
IBD changed its stock market outlook from confirmed uptrend to uptrend under pressure on Friday after the major indexes extended weekly losses.
Friday's The Big Picture column commented, "The day's losses in higher volume not only added a distribution day but also forced a downgrade in IBD's market outlook, to uptrend under pressure. This calls for investors to avoid most stock purchases and be quick to heed sell signals. Taking some profits to reduce exposure is smart, too."
Most blue chips traded higher on Monday. Shares of Microsoft (MSFT) were up 1.2% in early afternoon trading. The stock is very close to passing a new cup base's 263.29 buy point, according to IBD MarketSmith chart analysis. The stock is less than 1% away from the buy zone.
The stock's relative strength line has been trending softly higher in recent days. But beware of the tech firm's low RS Rating of only 67, out of 99. On the positive side, the stock still holds a Composite Rating of 92, which is strong.
Stocks In The News
As for growth stocks, the Innovator IBD 50 ETF (FFTY) held a solid gain of 0.6% as shares still remain below the 50-day line. Stocks leading the upside in the index included Smith & Wesson Brands (SWBI) and Global-E Online (GLBE).
Elsewhere, IBD 50 stock Generac (GNRC) continued to extend gains with a 0.9% rise on Monday. Last week, shares broke out from a 364.10 consolidation buy point and are now extended from the buy area. The stock was up over 10% last week.
Generac stock maintains superior IBD ratings, with a best-possible 99 Composite Rating and a 93 Relative Strength Rating. But investors should note that the current base is a fourth-stage base, which indicates a lower probability of success than with an earlier-stage base.
Breakouts Galore
On Monday, some stocks from the MarketSmith Growth 250 list broke out and traded inside buy zones.
Most notably, Pool (POOL), Intuitive Surgical (ISRG), Copart (CPRT) and Shopify (SHOP) all broke out from key buy points.
Pool, an operator of nearly 400 pool equipment and supply centers, broke out above a flat base with 449.54 buy point. The stock is frequently mentioned on IBD Live and has a perfect 99 Composite Rating. The stock's relative strength line is also near all-time highs, a bullish sign. But shares faded from the buy point in afternoon trading and are now slightly below this area.
Intuitive Surgical rose nearly 2% and broke out above a flat-base buy point of 893.89. The stock remains inside the buy area, which tops out at 938.58. While the stock's RS line is near its highs, the firm's RS Rating of 77 remains just below the minimum of 80 we like to see for growth stocks breaking out.
Copart broke out from a large consolidation with a 130.17 handle buy point. Shares rose as much as 2.3% and remain inside the 5% buy zone. Copart conducts salvaged-vehicle auctions for insurance companies, charities, dealerships and other institutions.
Shopify broke out in heavy volume above a 1,499.85 cup-base buy point. The stock has a 95 Composite Rating and a 99 EPS Rating, showing that earnings play a big role in this stock's strength. The RS line also has made a strong move higher in recent weeks and is near highs.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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