The Dow Jones Industrial Average rebounded 580 points on Monday, or 2.3%, in the stock market today and recovered more than half from last week’s 856 point drop. The 30-share blue-chip index is also making a bullish position at a key level, the 50-day moving average, even as coronavirus cases continue to rise sharply in the key southern and southwestern states of the U.S.
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Giving you a quick look at the overall direction of a market index, ETF or stocks in the last 10 weeks of action, the 50-day line has continued to rise since the end of May.
Coronavirus infections have now exceeded 10.1 million worldwide, causing 503,000 deaths, according to data from the Johns Hopkins University CSSE.
Volume is running low on both major exchanges; Wall Street will close the Friday before the July 4th holiday weekend.
Boeing (BA) led the cause among Dow Jones stocks on bullish news: Its 737 MAX aircraft are preparing for new test flights. The aircraft maker increased more than 24 points, or 14%, in a rapid rotation, but is still in a base construction phase.
Nearly 77 million Boeing shares traded hands on Monday, 66% above the share’s 50-day moving average.
Five growth actions to watch
Summary of the US Stock Market Today |
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|---|---|---|---|---|
| Index | Symbol | Price | gain loss | % Change |
| Dow Jones | (0DJIA) | 25595.80 | +58.25 | +2.3 |
| S and P500 | (0SP5L) | 3,053.24 | +44.19 | +1.5 |
| Nasdaq | (0NDQC) | 9874.15 | +116.93 | +1.2 |
| Russell 2000 | (IWM) | 141.38 | +4.71 | +3.45 |
| IBD 50 | (FFTY) | 33.67 | -0.03 | -0.09 |
Last Updated: 4:18 pm ET 06/29/2020 |
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14 of the additional 30 Dow Jones shares earned 2 points or more, including House deposit (HD)
Home Depot joins Globant (GLOB), McCormick (MKC) Zillow (Z) and objective (TGT) as recently featured actions on the IBD Live Playlist. McCormick, a stay-at-home move, had a lot of air on Friday’s IBD live show.
The Nasdaq compound and the S&P 500 gained 1.2% and 1.5%, respectively. Meanwhile, the Innovator IBD 50 ETF (FFTY) was delayed but cut an early 1.8% erase to finish the session flat.
FFTY lost less ground last week than overall market averages, down 1.3%.
The small caps exceeded. The iShares Russell 2000 (IWM) exchange-traded fund ran more than 3.4%.
Last week, the Nasdaq fell 1.9% and the S&P 500 collapsed 2.9%.
Globant Stock Analysis
Globant erased the early losses and rose more than 4% on the silent rotation.
As seen on a daily chart, the IT services giant made a strong move on May 18, advancing 7% and surpassing an aggressive buy point at 126.85 within its own deep handle cup.
Now, you can be building a potential base on a base.
The upper base within this pattern shows a slight correction of only 14% from head to toe.
Globant’s earnings per share have increased 28%, 32%, 32%, 35%, 28% and 28% compared to the previous year’s levels in the last six quarters. Not surprisingly, the growth stock of midcap earns a rating of 97 EPS in the IBD database.
Globant has a market capitalization of $ 5.8 billion and 39 million shares outstanding.
Home Depot Stock
While Home Depot is testing an upside resistance near 250, the home improvement chain is also trading just below an entry point of 248.42 in a mug with a handle.
The handle began to form on May 18. A slight drop in price and lower lows are key elements of this final jolt within a bullish chart pattern. This final elimination of uncommitted headlines helps set the stage for a possible strong breakout.
Out of Dow Jones: Will Zillow Come Out Again?
Zillow seems to be spending more time sculpting a mango in his cup pattern.
Based on IBD stock control, Zillow scores a composite score of 67 on a scale of 1 (unpleasant) to 99 (unmatched). Ideally, investors in CAN SLIM-type growth stocks should focus on those companies with a composite rating of 95 or higher.
However, Zillow has shown decent relative strength. The online real estate data and information analytics firm has a relative strength rating of 91, meaning stocks have outperformed 91% of all companies in the EII database in the past 12 months.
The Street expects Zillow to lose $ 1.44 a share this year, which is not a good thing.
Analysts surveyed by FactSet also see revenue rise just 1% to $ 605.1 million in the second quarter compared to a year ago. In 2019, second-quarter sales increased 84%, making it a difficult year-over-year comparison. The top line rose 117%, 158%, and 148% in the last three quarters.
The shares reversed their bearish course around 10 a.m. ET, following a major upside surprise in pending US home sales for May. A 44.3% rise smashed even the economists surveyed by Econoday’s highest forecast of 25%.
Of moving stocks
In the IBD Moving Actions table, Daqo New Energy (DQ) stood out with a seventh day of earnings in nine sessions. Volume increased more than 163% above normal as stocks rose more than 9%.
The action is forming the right side of a deep cup in a hurry lately. The previous two days did not serve as good management.
The China-based maker of silicon wafers and cells for the solar panel industry reported a 244% rise in first-quarter earnings to $ 2.58 a share, as revenue increased 108% to $ 168.8 million. These outstanding earnings benefited from easy comparisons as, a year ago, quarterly earnings fell 72% to 75 cents a share and earnings fell 15%.
Still, Wall Street sees growth continue.
FactSet shows a second-quarter consensus earnings estimate of 19 cents a share, up 46%. Analysts see a 62% increase in sales to $ 107 million.
Follow Chung on Twitter at @SaitoChung and @IBD_DChung for more information on growth stocks, buy points, breaks, sell rules, and market insights.
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