The Dow Jones Industrial Average rose again as the stock market rally continued. Google parent Alphabet and Advanced Micro Devices rallied on earnings while PayPal cratered on weak results. Microsoft was among the top blue chips.
A couple of stocks managed to pass buy points amid the bullish action. CME Group, Arch Resources and Star Bulk Carriers all tested entries.
Nasdaq Joins Dow Joins In Rally
Breadth was positive on the NYSE, but losers outnumbered winners by almost 2-to-1 on the Nasdaq.
Meanwhile, the yield on the benchmark 10-year Treasury note slipped three basis points to 1.77%. Benchmark WTI crude oil futures settled at $88.26 a barrel, up 6 cents.
Nasdaq Up As Growth Stocks Shine
The tech-heavy Nasdaq closed the day with a gain of 0.5%. Qualcomm was one of the best gainers here, rising 6.3% ahead of its earnings report, but shares slumped nearly 5% in extended trading. Chip stocks in general rallied on strong results from AMD.
It was the broader S&P 500 that was the strongest major index Wednesday. It closed with a gain of 0.9%. PerkinElmer was among the top performers here, turning in a gain of 6.2%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35629.00 | +223.76 | +0.63 |
| S&P 500 | (0S&P5) | 4589.31 | +42.77 | +0.94 |
| Nasdaq | (0NDQC ) | 14417.55 | +71.55 | +0.50 |
| Russell 2000 | 201.27 | -2.09 | -1.03 | |
| IBD 50 | 38.82 | +0.40 | +1.04 | |
Last Update: 4:10 PM ET 2/2/2022 |
||||
The S&P sectors were nearly all positive. Communication services, real estate and utilities turned in the best gains. Consumer discretionary was the only laggard.
Small caps stood out for the wrong reasons as the Russell 2000 closed the day down 1%.
Growth stocks stood out due to decent gains. The Innovator IBD 50 ETF, a bellwether for growth stocks, rose 1%.
Dow Jones Today: Microsoft Stock Among Best Performers
The Dow Jones Industrial Average rose more than 200 points as it closed the day up 0.6%. This was its fourth up session in a row.
Microsoft got a lift following Alphabet's strong report. The software giant rose 1.5%.
Microsoft is back above its 200-day moving average but is not offering up an entry for now.
MSFT is a member of the prestigious IBD Leaderboard list of leading growth stocks.
But it was insurance play Travelers that was the top performer on the Dow Jones today. It ended the day up 2.8%.
The stock is now slightly extended past its buy zone from a 163.39 entry, MarketSmith analysis shows.
GOOGL Stock Surges Amid Split News
Google parent Alphabet gave the whole market a boost as it surged 7.5%. This helped the stock reach a new high, although GOOGL stock got turned away at the 3,000 level.
GOOGL stock was boosted after a strong earnings beat late Tuesday. The firm posted better-than-expected earnings and revenue expectations.
Alphabet, one of the largest stocks in the Nasdaq and S&P 500, gave both indexes a boost.
Additionally, Alphabet also announced a 20-for-1 stock split. Analysts say this could boost it into the Dow Jones.
Alphabet stock briefly topped a 3,019.43 consolidation pattern buy point. However, it gave back some gains to close just below its buy zone
The relative strength line hit a new high, a good sign.
PayPal Stock Hammered On This
PayPal stock endured its worst day ever as it fell about 25%. It was hammered following its latest report.
The company reported fourth-quarter earnings that fell short of expectations while total payment volume also came in below estimates.
Poor guidance was a key catalyst to the hefty plunge. It guided for Q1 EPS of 87 cents, well shy of analyst expectations for $1.16.
It also guided for full year revenue growth of 15% to 17%, below Wall Street expectations for revenue growth of 17.9% in 2022.
The stock gapped down and lost further ground on its 50-day line. Volume was massive on the downward move. PayPal stock is down nearly 50% over the past 12 months.
Other payment stocks had mixed fortunes. Rival stock Block fell nearly 11%.
Visa rose more than 1%, Mastercard rose around 1% and American Express was up 0.3%.
These 3 Stocks Test Buy Points
Derivatives marketplace stock CME Group is actionable after passing a flat base buy point of 232.74. It is on track for its fifth up session in a row and was moving in above-average volume
The relative strength line is enjoying a solid period of outperformance, a good sign. Its earnings performance is not ideal, which is reflected in its EPS Rating of 70 out of 99. CME rose 3% Wednesday, but was down an equal amount in after-hours trading.
The firm is due to report earnings on Feb. 9, which makes buying now riskier.
Coal stock Arch Resources is actionable after it passed a cup-with-handle entry of 104.80 on a weekly chart.
The RS line just hit a new high, a positive sign. The Energy-Coal industry group is currently the second best out of all 197 industry groups IBD tracks.
Star Bulk Carriers impressed by cruising above a consolidation buy point of 24.71. However it ended the day under its buy zone after giving back some gains.
The Greek shipping company boasts strong earnings and market performance. It is also a member of the highflying Transportation-Ship industry group, which is currently ranked No. 7.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
