The stock market started out the week cautious but upbeat, with the major indexes holding on to gains into the afternoon. Investors are waiting patiently for a myriad earnings reports this week.
The Nasdaq composite showed the most strength, holding steady with a 0.7% rise in afternoon trading on Monday. The Dow Jones Industrial Average eked out a 0.2% increase and the S&P 500 edged higher 0.3%. Meanwhile, the small-cap Russell 2000 outperformed with a 1.2% pop.
The Nasdaq 100-tracking Invesco QQQ Trust ETF advanced 0.6%. The Innovator IBD 50 ETF fared better than the major indexes, adding 2.8%.
NYSE and Nasdaq volume fell, compared with the same time on Friday.
The July Empire State Manufacturing Index unexpectedly rose to a positive 1.1 vs. the 3.0 decline projected, but lagged the stronger 6.6 result in June. A number above zero indicates expansion, while a reading below zero shows contraction.
Tesla and Netflix report earnings this week. Look for airline stocks United Airlines and Delta Air Lines to report second-quarter results, along with Dow Jones names like Goldman Sachs and Johnson & Johnson.
Stock Market Movers: Semiconductor Equipment Stock Soars
Axcelis Technologies stock surged 7.3% after B. Riley raised its price target to 225 from 165 and kept its buy rating on the semiconductor equipment stock. Shares of the IBD 50 stock hit a 52-week high on Monday. Shares broke above a trendline around 185.
Network security provider Cloudflare bolted 6% to lift above the buy zone of a double-bottom base.
Cloud-based AI lending stock Upstart soared over 14% to add to its recent run-up. Shares are not in any base at this time and have rewarded investors with a 290% gain this year so far.
The relative strength line is in a steep uptrend.
Palantir Technologies added 6.4% after Mizuho raised its price target to 14 from 8 and maintained its neutral rating on the cybersecurity stock. Shares are extended from a cup-with-handle base with a 10.31 buy point. Shares have gained over 170% year to date.
Analysts project hearty 252% annual EPS growth this year.
Other Stock Action: Bank Stock Pops On Deal News
First Citizens Bancshares advanced 2.7% in light trading action and broke out of a flat base hitting the 1,345.43 buy point, after the company announced it will finance a $40 million real estate deal in Florida.
Yelp shares gapped up 10.7% in heavy volume, after Goldman Sachs upgraded the stock to a buy rating from neutral with a 47 price target.
Shares are above the 5% buy zone of a long cup-with-handle base with a 36.95 buy point. The business advertising stock traded tightly to form a three-weeks tight pattern, also flashing the same buy point.
Shares of online pet product retailer Chewy reversed course and dropped 0.2% after Goldman Sachs upgraded the stock to a buy rating from neutral with a 50 price target. Shares bounced around the 200-day moving average where they found resistance.
Chewy posted 25% earnings growth and 15% sales growth in its April-ended quarterly results on May 31. Analysts project whopping 362% annual EPS growth in fiscal 2024.
S&P 500: Solar Stocks Shine As Telecoms, Tesla Rival Tumble
Other Stock Movers: Ventilation Products Stock Breaks Out
IBD 50 stock AAON powered up 4.9% in heavy volume, and broke out of a cup-with-handle base hitting the 100.46 buy point. Shares are in the buy range reaching to 105.48.
The company makes industrial air handling units, such as chillers, heat and water pumps, rooftop units and pool room dehumidifiers.
IBD Leaderboard stock Tesla added 1.6% after the company announced on Saturday that it had completed its first Cybertruck at the Austin, Texas, plant. The EV giant will report its second-quarter results on Wednesday after the market close.
Shares are extended from the buy range of a double bottom's 207.79 buy point.
Meanwhile, Ford tumbled 5.3% after the automaker announced price cuts from around $6,000 to $10,000 on all versions of its F-150 Lightning pickup trucks.
PepsiCo dipped 1.2% after Morgan Stanley downgraded the stock to equal weight from overweight with a 210 price target.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
