The stock market started the week strong after mixed earnings reports from banks, with indexes trading up the last hour but off the highs of the day.
The Nasdaq composite was up 1.4% and the S&P 500 gained 0.8%, while the Dow Jones Industrial Average rose 0.6%. The small-cap Russell 2000 led, up 1.6%.
NYSE volume was down 16.6% and Nasdaq volume was up 4.8% vs. the same time on Friday.
Housing Market Index Misses Estimate
The July housing market index came in at 55 vs. the consensus for 66, missing Econoday's consensus. The index has missed Econoday's consensus every month in 2022. The index number is a weighted average of three components tracking new home sales, expected new home sales in the next six months, and prospective sales.
The report can give insight to spillover industries such as mortgage lenders and home furnishings and appliance companies. Look for housing starts and permits numbers, existing-home sales and MBA mortgage applications on Tuesday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31479.23 | +190.97 | +0.61 |
| S&P 500 | (0S&P5) | 3894.27 | +31.11 | +0.81 |
| Nasdaq | (0NDQC ) | 11610.03 | +157.61 | +1.38 |
| Russell 2000 | 175.92 | +2.83 | +1.63 | |
| IBD 50 | 27.30 | +0.32 | +1.19 | |
Last Update: 11:58 AM ET 7/18/2022 |
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More Big Banks Report Earnings
The SPDR Select Financial ETF was up 0.9%, on reports of more bank earnings reports.
Goldman Sachs, a leading global investment bank, was up 3.1% after beating both its Q2 EPS and sales numbers. The company said its trading revenue was up 32% for the quarter, yet profit fell 47%. Goldman announced it would raise its dividend 25% to $2.50 per share. Shares are above their 50-day moving average on the MarketSmith chart. The increase in stock prices is helping boost the Dow Jones Industrial Average, as it holds a 6.1% weight in the index.
Synchrony Financial was up 2.8% after reporting better-than-expected Q2 earnings per share. Charles Schwab, a brokerage and financial advisory company, was up 1.3% after reporting a beat on Q2 EPS and sales.
The bank group has been an underperformer and is ranked No. 172 by IBD out of 197 industries.
Prologis, a logistics real estate company, was up 0.5% after reporting better-than-expected Q2 EPS and sales.
Boeing, Delta, Chesapeake Are Big Stock Market Movers
Scorpio Tankers, a transporter of petroleum products, rose 6.5% above a cuplike base to hit the 38.17 buy point. The stock has a 99 Relative Strength Rating.
Delta Air Lines was up 5.6% on news that it ordered 100 737 Max 10 planes from Boeing, causing Boeing stock to rise 2.7%. Boeing said it expects demand for over 41,000 new airplanes by 2041 on expectations of increased international travel. Boeing is weighted 3.1% of the Dow Jones, helping push the index higher.
Chesapeake Energy was up 5.2% after Goldman Sachs initiated coverage on Chesapeake with a buy rating and price target of $106.
Seagen was down 3.9% on news that the deal with Merck is unlikely to be completed before its next earnings report. Seagen reports Q2 earnings on July 28. Merck shares were down 0.8%.
IBD 50 Leaders Breaking Out
The Innovator IBD 50 ETF, a gauge of growth stocks, was up 1.2%, in line with the major indexes.
Alliance Resource Partners, a coal producer on the IBD 50 list, was up 0.1% and broke out of a weekly cup base, hitting the buy point of 21.34. The company has a best-possible 99 Composite Rating and 99 Relative Strength Rating.
Consol Energy, another coal producer, was up 1% in heavy volume and broke out of a sideways base hitting the 59.48 buy point. The stock has a 99 Relative Strength Rating.
Verra Mobility, a provider of tollway and rental-car technologies, was up 3.6% and broke out of a cup-with-handle base, hitting the 16.83 buy point.
Acadia Health, a provider of psychiatric services, was up 1.6% and broke out of a sideways base, hitting the 76.79 buy point. The stock price hit a new high on the relative strength line. ACHC stock earns a 96 Composite Rating.
Enphase Energy, an IBD 50 leader, was up 6.9% and extended above the buy zone.
Crude oil futures were up 4.7%, with crude at $99.02 per barrel. Bitcoin futures rose 5.6% to $22,370.
