The Dow Jones Industrial Average started out a super-busy week of corporate earnings on a sound note. Its 0.5% gain paced a mild advance in the stock market today. Meanwhile, a 2.4% jump in near-term West Texas Intermediate crude oil futures attracted more money into the energy sector.
Looking at IBD's analysis of 197 industry groups, preliminary data showed strength in the oil and gas royalty trust stocks, which rose 2.8% on a price-weighted basis. International oil and gas stocks pumped 2.5% higher, while coal and gas refinery issues rallied 2.4%. Chevron led the way among integrated oil and gas giants, rising 1.9% in mildly above-average trading.
Please see this IBD news story for more on Chevron's early look at second-quarter results.
Chevron continues to work on a long base that so far shows the elements of a saucer. However, a trendline drawn from the January peak of 187.81 creates an early entry point near 160. The oil company continues to trade below its 200-day moving average.
The Dow Jones' gain beat a 0.2% rise by both the Nasdaq composite and the Nasdaq 100.
The S&P 500 rallied 0.4%, just ahead of a nearly 0.3% increase by the Russell 2000. Volume jumped sharply vs. Friday on the NYSE and lightened up on the Nasdaq, early data showed.
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Please check out IBD's The Big Picture column later in the afternoon for more details on top stocks and analysis of the overall direction of the stock market.
Dow Jones Today
Within the Dow Jones industrials, as many as six components rose 2 points or more. In addition to Chevron, Wall Street banks JPMorgan Chase and Goldman Sachs advanced 2% each.
JPM continued to gain traction after it cleared resistance near the 143-144 level. The bank has risen 10% since clearing a new flat base with a 143.37 entry point in mid-June. Wall Street sees JPMorgan's full-year earnings rebounding 29% to $15.59 a share after a 1% dip last year to $12.07.
Boeing, another Dow Jones stock that gained 2 points or more, continues to lag clear leaders in the stock market with a 76 Composite Rating.
Nevertheless, the military supplier of fighter jets and maker of passenger jets continues to build a neighbor base that shows a 223.91 entry point.
Watch to see if BA stock's relative strength line can break a short-term downtrend in recent weeks.
BA shows an acceptable (but not great) 83 Relative Strength Rating.
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IBD 50 Stock Gets Hammered
Inside the IBD 50, Symbotic took holders on a very rough ride. Shares fell 6.2% in volume that ran 4-1/2 times its 50-day average. At 40.97, the expert in robotics-based warehouse management systems managed to close above its key 50-day moving average.
A sharp drop through the 50-day line after a strong run-up would constitute a key sell signal for growth investors.
A daily chart shows the large-cap growth stock had formed a faulty cup base that was less than five weeks long.
In general, a good cup pattern builds over a minimum six weeks in time.
Symbotic has gained as much as 193% after clearing an ultradeep cup with handle at 18.34 in late February.
The company lost $1.46 a share in fiscal 2022, which ended in September. But Wall Street sees a much smaller net loss in FY 2023 at 6 cents a share and a profit of 20 cents in FY 2024. Symbotic's sales grew 177% to $266.9 million in the March-ended fiscal second quarter.
On Monday, Wilmington, Mass.-based Symbotic announced a joint venture with Japan's tech investor SoftBank Group that would offer warehouse services using AI and automation technology provided by the former. According to a news release, Symbotic will own 35% of the venture. Symbotic has issued warrants to SoftBank of up to 2% of its fully diluted outstanding shares.
According to MarketSmith, Symbotic has a market value of $22.8 billion, 555.5 million shares outstanding and a float of just 12.3 million.
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