Dow Jones stocks surged, dragging the other indexes higher with it, but success was spotty in Tuesday's market. Nvidia fell despite a bullish analyst call while homebuilders popped amid more sector rotation. And in financial stocks, Charles Schwab plunged but Bank of America rallied on the stock market today after both reported results.
The Dow Jones Industrial Average set a record high and shot 743 points higher, or 1.85%, helped by an earnings-fueled jump from blue chip stock UnitedHealth. Dow stocks far outpaced the other major indexes and had their biggest point gain since Nov. 10, 2022. It also was the largest one-day percentage gain since June 2, 2023.
The S&P 500 also hit a fresh high as it rose 0.6%. Dating play Match was among the best performers as it jumped 7.5%. Activist hedge fund Starboard Value has acquired a stake of around 6.5% in the firm.
Meanwhile, the Nasdaq was flat most of the day but lifted slightly to close 0.2% higher. Broadcom and Micron Technology were among the laggards on the tech-heavy index with dips of 1.2% and 2.6%, respectively.
S&P 500 sectors were mostly positive. Industrials and materials remained on top while communication services and technology struggled the most.
The Russell 2000 outperformed the major indexes again, however, jumping 3.3%. The Innovator IBD 50 ETF was off highs, but remained up 0.5% in the stock market today.
Yields gave up some ground following Monday's spike. The 10-year Treasury note dipped seven basis points to 4.16% while the two-year slipped three basis points to 4.42%.
Among individual stocks, Nvidia was having some tough innings, falling 1.6% despite a bullish Wall Street call. Bernstein reiterated its rating on the stock as outperform with a price target of 130, citing an "enormous" opportunity in data centers.
Updated 3:14 p.m. ET
Stock Market Today: Charles Schwab Plummets
Investment broker and banking stock Charles Schwab got walloped despite reporting second-quarter earnings and revenue that beat analyst views.
The company said revenue rose less than 1% to $4.69 billion while earnings fell 3% to 73 cents per share. Analysts expected earnings of 72 cents and sales totaling $4.68 billion.
But net interest margin was below expectations. Net revenue from interest totaled $2.16 billion, down 6% year over year and below analysts' expectations of $2.17 billion.
Charles Schwab stock gapped below the 50-day moving average in high volume, a sell signal. It was down near session lows, diving more than 9% heading into the close.
In contrast, Morgan Stanley reversed higher after it beat Wall Street views for second-quarter results. Earnings of $1.82 a share were well clear of expectations for $1.65.
It was up 1.6% in recent action and is trading in the buy zone above a cup base entry of 103.25, MarketSurge analysis shows.
Bank Of America Surges After Earnings
One of the top performers was Bank of America. It rallied nearly 6% following its latest quarterly report.
The company said per-share earnings came in above analyst views despite falling 6% to 83 cents. Revenue of $25.54 billion was also better than expected.
Net interest income slipped 3% to $13.86 billion, however the bank giant predicted it would increase to about $14.5 billion in the fourth quarter.
Management had previously told investors net interest income would bottom in the second quarter, so this suggests a turnaround is on track.
Bank of America stock is currently extended, sitting more than 11% above its 50-day line. It is also clear of its short-term moving averages.
Updated 01:51 p.m. ET
Homebuilders Strong, NAIL Hammers Bears
An ongoing stock market rotation is apparently underway, with another recently out-of-fashion group showing strength Tuesday.
Homebuilder stocks in general were looking strong. The SPDR S&P Homebuilders ETF rose more than 4% and broke out of a double-bottom base pattern after clearing a 110.09 entry, according to MarketSurge analysis.
The triple-leveraged Direxion Daily Homebuilders & Supplies Bull 3X Shares ETF rocketed more than 13%.
Among highly rated stocks in the Building-Residential/Commercial industry group, Hovnanian Enterprises is nearing a cup-base entry of 184.42 after rallying around 9% Tuesday afternoon.
Green Brick Partners rose almost 4%, Toll Brothers rallied more than 5% and KB Home also turned in a lift of over 5%.
Stock Market Today: More Issues Test Entries
The MarketSurge breakout screen continues to turn up a plethora of breakouts throughout the session.
Cruise line Carnival has sailed above a second-stage cup-with-handle entry of 18.92. The stock has an IBD Composite Rating of 97.
United Rentals moved above a consolidation entry of 732.37. The pattern can also be viewed as a double bottom with a 715.34 buy point. Funds have been buying of late, with its Accumulation/Distribution Rating sitting at B+.
Insurance IPO stock Bowhead Specialty tested a flat base buy point of 27.49. Institutional ownership is very low here, though, with just 4% of its stock held by funds, according to MarketSurge data.
Updated 12:46 p.m. ET
Stock Market Today: More Stocks Test Buy Points
There were a flurry of stocks clearing entries on the stock market today amid the encouraging action.
Towing and recovery equipment firm Miller Industries cleared a flat base buy point of 61.87. Volume was above average.
The stock holds an IBD Composite Rating of 95 out of a best-possible 99. Both earnings and stock market performance are considered to be strong.
Medical stock RadNet cleared a weekly chart flat base entry of 64.06. This is a mid-stage pattern.
Stock market performance is the strongest suit here, with its Relative Strength Rating coming in at 97 out of 99.
Viper Energy is clearing a cup base. The ideal buy point here is 41.22.
The Permian Basin energy play has an EPS Rating of 93. Earnings have grown by an average of 50% over the past three quarters.
Magnificent 7 Mostly Lower
The so-called Magnificent Seven were mostly lower Tuesday.
While Nvidia fell the most, Microsoft and Meta Platforms were also down more than 1%, as was Google-parent Alphabet. Apple slipped fractionally.
Amazon was the best performer in the group, but was flat in recent action. Tesla edged lower.
Updated 11:12 a.m. ET
Stock Market Today: Retail Sales Better Than Expected
The Commerce Department reported retail sales topped estimates Tuesday, coming in unchanged in June. They were expected to fall 0.3%, according to Econoday.
Spending on gasoline and motor vehicles fell, but spending on areas such as furniture, building materials and electronics rose.
Additionally, May's figures were revised upward by the Census Bureau from a 0.1% rise to a 0.3% gain.
Dow Jones Today: UnitedHealth Pops After Earnings
UnitedHealth soared after reporting earnings of $6.80 a share, topping Wall Street expectations for $6.66. Revenue rose 6% to $98.9 billion.
The health insurer is expecting fiscal-year earnings of $15.95 to $16.40 a share.
The stock rallied more than 5% and is now well clear of its 200-day moving average.
Fellow Dow components Boeing and Goldman Sachs also outperformed on the stock market today as they rose more than 2% each. Intel and Chevron lagged.
Tech Futures Skid On ASML, Tougher China Curbs, Trump
Netflix Stock Flat Despite Wall Street Call
Netflix stock is one to watch this week as it gets set to report earnings Thursday. Jefferies retained its buy rating on the stock and hiked its price target from 655 to 780.
Jefferies analyst James Heaney said in a research note he expects subscribers to rise by 18% in the second quarter to 5.8 million net adds. This is up from his previous estimate of 4.9 million.
He touted strong content such as its Squid Game and Bridgerton shows.
But Netflix was flat on the stock market today despite the call. As it flirted with break-even territory, it maintained support at the 50-day moving average.
Outside Dow Jones: Stocks Test Entries
A number of stocks were attempting breakouts in early action on the stock market today.
OneSpaWorld has cleared a flat base entry of 16.29, according to MarketSurge analysis. The stock holds a strong IBD Composite Rating of 94. Earnings performance is lackluster though, with its EPS Rating coming in at 50 out of 99. It is in the top 8% of issues in terms of price performance over the past 12 months.
Garmin, a maker of global positioning systems, is also in a buy zone after clearing a flat base entry at 171.64. This is a second-stage base, which still counts as early.
Garmin's all-around performance is excellent, netting it a best-possible IBD Composite Rating of 99. Big Money has been snapping up shares of late, with its Accumulation/Distribution Rating sitting at B+.
Finally, shipping play Kirby sailed above a flat base buy point of 124.92 on the stock market today, in a second-stage pattern. Solid earnings performance is reflected in its EPS Rating of 84 out of 99. In total, 72% of Kirby stock is held by funds.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
