The stock market is in a confirmed uptrend as economic and political news add to investors' confidence. After major indexes jumped at the week's opening, they pared most gains.
The Dow traded up 0.9% earlier and is now almost flat, with a gain of 0.1%. The S&P 500 rose 1% but has given up that gain and is trading slightly above Friday's close. The Nasdaq has given up some of its morning gains of 1.4% and is up 0.2%. The Russell 2000 is higher by 0.9% as small caps hold up better.
The yield on the 10-year Treasury continued to slide and was at 2.77%. Crude oil rose after last week's loss and was trading at $89.96 a barrel after a high of $90.63.
The Dow briefly exited the correction that it entered on March 7 when it hit a session high of 33,109.96 this morning. That's based on a 10% decline from the prior peak. IBD's market outlook moved to "confirmed uptrend" on July 28.
Political And Economic Boost To Stock Markets
The Senate's approval of the climate and health care bill over the weekend is good news for several industries. The renewable energy and health care industries will benefit from tax incentives if the bill clears the House, which takes up the bill on Friday.
Inflation expectations are moderating as well.
According to the New York Fed's July survey, "median one- and three-year-ahead inflation expectations both declined sharply in July, to 6.2% and 3.2% from 6.8% and 3.6% in June."
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32842.30 | +38.83 | +0.12 |
| S&P 500 | (0S&P5) | 4145.77 | +0.58 | +0.01 |
| Nasdaq | (0NDQC ) | 12679.92 | +24.34 | +0.16 |
| Russell 2000 | 192.49 | +1.69 | +0.89 | |
| IBD 50 | 29.20 | -0.24 | -0.07 | |
Last Update: 12:00 PM ET 7/27/2022 |
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Stocks On The Move
Manufacturer of building products Griffon is making strong moves and is trading above a buy point of 31.12. Its relative strength line has just reached a new high. The stock continues to trade in a buy zone to 32.68.
C.H. Robinson, in the logistics group, is also in a buy zone after topping a buy point of 110.95. The stock is up after forming a cup-with-handle base.
Energy, Health Care In Spotlight
New Fortress Energyis trading higher above its buy point of 52.47 in a cup base. It is in a buy zone with a relative strength line that has reached a new high. The company's strong revenue in the second quarter was in the news last week though it missed earnings estimates.
Petrobras is also in a buy zone after clearing a cup base with a buy point of 13.70. Its RS Rating of 98 also indicates technical strength.
Karuna Therapeutics shot up and shares are 65% above their buy point after a study showed that its drug for schizophrenia resulted in a 9.6 point reduction in symptoms compared to patients taking a placebo. Shares of the company had formed a double-bottom base with a buy point of 144.53 before today's action.
Shares of Cerevel Therepeutics have risen in sympathy. The company provides investigational therapies and preclinical compounds to treat neurological disorders and recently disclosed a strong cash and cash equivalents position that will fund its operations till 2024. The stock topped the 38.48 buy point of a cup base but has retreated below it.
Pfizer confirmed a $5.4 billion deal to acquire Global Blood Therapeutics[ticker symb=GBT] in an all-stock deal. GBT shares rose steeply last week on news of a potential deal. According to Pfizer, the acquisition of the Oxbryta maker will add $3 billion to revenues.
Elsewhere in health care, Signify Health, a health technology and analytics provider, is trading up on rumors of acquisition by CVS Health. CVS Health reported a strong quarter last week with earnings of $2.40 a share that beat estimates of $2.18 and management raised its full-year outlook.
Retail On The Move In Today's Stock Market
Bed, Bath and Beyond is trading 37% higher and is surging above its 50-day moving average for the first time since April 11. The stock is up a whopping 84% since Friday in its longest winning streak since 2007. The stock has grabbed investors' attention since activist investor Ryan Cohen became the largest shareholder and announced plans to spinoff its baby stores chain to turnaround the business.
