Nasdaq Composite outperformed on Tuesday afternoon trading, up 1%, as stock market leaders like it Tesla (TSLA) and Shopify (SHOP) hit new highs. But after a good day of superior performance on Monday, the Dow Jones Industrial Average fell behind, declining 6% for Boeing (LICENSED IN LETTERS).
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Boeing shares soared 14% on Monday after the company’s troubled 737 Max plane had its first FAA recertification flight. But Boeing’s shares were weak on Tuesday after Norwegian Air canceled orders for 97 Boeing 737 Max and 787 aircraft. The airline also wants compensation for the 737’s grounding and 787-related engine problems.
On the last trading day of the second quarter, the Russell 2000 Small Cap Index was up 0.8%; the S&P 500 recovered 0.5% and the Dow Jones industrials decreased 0.2%. The S&P 500 is on track for its best quarter since the fourth quarter of 1998, when it was up 20.9%. The Nasdaq is poised for its best quarter since the fourth quarter of 2001, when it was up 30.1%.
Chip stocks lead the way
Semiconductor stocks outperformed, helped by a strong earnings report from Micron technology (MU) Micron shares rose, but are still below a buy point of 54.92.
The highest-performing stocks on the Nasdaq 100 included Lam Research (LRCX) and Qualcomm (QCOM) Lam Research, discussed on Tuesday’s IBD Live show, is vying for a break above a 325.22 buy point. Qualcomm is right below a 92.24 entry.
The Philadelphia semiconductor index rebounded more than 2%. The best-performing sectors in the S&P 500 included finance, technology, and real estate.
According to Monday’s Big Picture column, the stock market remains on a confirmed bullish trend. The S&P 500 confirmed a new uptrend on April 2 with a follow-up day. The Nasdaq compound’s follow-up day was April 6. The distribution day count is still light for the Nasdaq, but it is a bit high on the S&P 500. Topping Tuesday, the S&P 500 showed five distribution days but only two on the Nasdaq.
Growth stocks outperformed on Tuesday after underperforming on Monday. Innovator IBD 50 ETF (FFTY) rose 1.7% after rising higher on Monday. The exchange-traded fund rebounded very well from session lows on Monday, but Nasdaq’s 1.2% gain was delayed.
Summary of the US Stock Market Today |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25,556.24 | -39.56 | -0.15 |
| S&P 500 | (0S and P5) | 3,073.07 | +19.83 | +0.65 |
| Nasdaq | (0NDQC) | 9985.20 | +111.05 | +1.12 |
| Russell 2000 | (IWM) | 142.32 | +1.18 | +0.84 |
| IBD 50 | (FFTY) | 34.27 | +0.56 | +1.66 |
Last Updated: 1:24 PM ET 06/30/2020 |
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The best winners at the IBD 50 Tuesday included Focus Financial Partners (FOCS) The IBD industry leader recently issued a sell signal from a 31.51 buy point, but recovered the buy point with conviction on Tuesday.
Dow Jones Movers
Intel (INTC) was a top winner in the Dow Jones today, an increase of[17%eventhoughIntel’sactionshavebeenstrugglingafterafailedbreakoutatapointofpurchaseof6223[17%althoughIntelstockhasbeenstrugglingafterafailedbreakoutovera6223buypoint[17%aunquelasaccionesdeIntelhanestadoluchandodespuésdeunarupturafallidaenunpuntodecomprade6223[17%althoughIntelstockhasbeenstrugglingafterafailedbreakoutovera6223buypointQorvo (QRVO) has a more attractive chart in the chip manufacturers group. He claimed a 108.88 purchase point on Tuesday.
Microsoft (MSFT) added 1.3%, but extended beyond an alternative entry of 187.61.
Goldman Sachs and JPMorgan also performed better on the Dow, but not because of rising interest rates. The 10-year Treasury yield was mostly flat at 0.63%.
Outside of the Dow Jones, the MarketSmith Growth 250 served many big winners. Lululemon Athletica (LULU) did not hit the session highs, but still increased 5% after the company announced plans to acquire home fitness company Mirror for $ 500 million. Are LULU shares a buy now?
Edge computer company Quickly (FSLY) was another strong winner, up 7%. Shares fell 9.7% on Monday in high volume, but Tuesday’s recovery also had a strong turnover. Due to an explosive gain of a point of purchase of 25.33, Fastly is a candidate to form a high and tight flag pattern. Due to Tuesday’s solid gains, Fastly’s shares are only down 2% so far this week after rising 36% last week.
Chip designer Inphi (IPHI) is consolidating well as it maintains support at the 10-week moving average. An accumulation / distribution rating of A- and a rising / falling volume ratio of 1.5 indicate strong demand for stocks in recent weeks.
Follow Ken Shreve on Twitter @IBD_KShreve for more analysis and information on the stock market..
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