The Dow Jones Industrial Average charged higher as stocks broadly gained. Twitter gained after Tesla CEO Elon Musk lost a legal bid. Netflix surged before earnings. Apple and Goldman Sachs were among blue-chip gainers.
A trio of stocks managed to pass buy points amid the bullish action. Marten Transport, Digi International and Gaming & Leisure Properties all attempted breakouts.
Volume was split. It rose on the Nasdaq but was flat on the New York Stock Exchange vs. the same time Monday.
The yield on the benchmark 10-year Treasury note rose six basis points to 3.02%. West Texas Intermediate crude oil rose nearly 2% to trade at just over $104 per barrel.
Nasdaq Surges As Small Caps Shine
The Nasdaq was holding gains, rising nearly 3%. Match was a top performer here as it surged nearly 8% higher.
The S&P 500 also impressed with a gain of 2.5%. Casino play Caesars Entertainment was a standout here with a gain of more than 8%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31733.43 | +660.82 | +2.13 |
| S&P 500 | (0S&P5) | 3926.41 | +95.56 | +2.49 |
| Nasdaq | (0NDQC ) | 11681.09 | +321.04 | +2.83 |
| Russell 2000 | 178.34 | +5.74 | +3.33 | |
| IBD 50 | 27.23 | +0.38 | +1.42 | |
Last Update: 3:06 PM ET 7/19/2022 |
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The S&P 500 sectors were all positive. Consumer discretionary, industrials and financials were shining brightest. Consumer staples lagged but still rose.
Small caps were giving bears the biggest black eye, with the Russell 2000 gaining 3.3%.
Growth stocks were also fighting back. The Innovator IBD 50 ETF, a bellwether for growth stocks, was up 1.4%.
Dow Jones Today: Apple Stock, Goldman Sachs Pop
The Dow Jones Industrial Average lagged the other major indexes but still gained more than 2%.
Apple stock was among the beneficiaries of the market rally, rising about 2.5%. It pulled further away from its 50-day moving average, MarketSmith analysis shows.
Goldman Sachs was shining brightest as it continued to gain on Monday's strong earnings report.
It retook its 50-day line as it popped more than 5%. It remains down almost 20% so far this year, though.
Goldman Sachs smashed expectations and reported earnings of $7.73 per share on $11.86 billion in revenue. Wall Street predicted earnings to fall more than 56% to $6.56 per share from $15.02 last year.
Twitter Stock Gains Amid Elon Musk Loss
Twitter stock was surging higher after the firm scored a legal victory after a Delaware court ruled Tuesday in favor of an expedited five-day trial. The Twitter lawsuit now is expected to go to trial in October. Musk's legal team failed to persuade the adjudicator that the timeline was too aggressive.
The court is considering Twitter's request to force Musk to complete a $44 billion takeover deal reached in April.
The eccentric executive is unhappy about the number of spam accounts on the platform. TWTR was up nearly 3% and was trading near session highs. It managed to rally back above its 50-day moving average, an encouraging sign.
Tesla stock was at highs for the day as it rose more than 2%. It remains down about 39% since the start of 2022. Earnings are due tomorrow, which could give the stock a boost.
The former Leaderboard stock remains stuck well below its 50-day moving average. It is near the lows of a consolidation pattern with a 1,208.10 entry.
Netflix Earnings Beat, Stock Rallies
Netflix stock jumped more than 5% in open trading. It made further gains, rising almost 8% after hours on an earnings beat.
The firm posted EPS of $3.20, beating analyst views for $2.96 a share, flat vs. the year-ago period. Revenue of $7.97 billion was below expectations for $8.03 billion.
But the big story was the fact the firm lost 970,000 subscribers in Q2 after previously warning it could lose 2 million.
Netflix has had a torrid year so far in 2022, sliding more than 66%.
It gapped down nearly 30% after the Q1 report that warned it would lose 2 million subscribers in the second quarter. It also reported the first quarterly loss in subscribers in a decade.
The firm has been somewhat bolstered by plans to offer subscribers a lower-cost ad tier.
Market Rally Breaks Key Resistance; Netflix Jumps On Subscribers
Outside Dow Jones: These 3 Stocks Pass Buy Points
A trio of stocks managed to clear buy points amid the broad rally.
Marten Transport exploded more than 18% on earnings as it staged a powerful breakout. EPS popped 50% to 39 cents.
It is currently in its buy zone above a consolidation-pattern buy point of 20.04. The relative strength line spiked higher.
Big money has been snapping up the food transport giant, with its Accumulation-Distribution Rating coming in at B.
Digi International cleared a cup-without-handle entry in high volume. The buy point here is 25.73.
It is in the top 3% of stocks in terms of price performance over the past 12 months. It also has an excellent EPS Rating of 94 out of 99.
Gaming and Leisure Properties is in a buy zone after passing a consolidation entry of 50.34.
The REIT is a corporate spinoff from Penn National Gaming. It owns 55 casino properties. At the moment earnings performance is lackluster, with its EPS Rating coming in at 56..
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
