Stocks rallied midday Thursday, with the Nasdaq leading and the Dow Jones Industrial Average up 180 points ahead of Apple's earnings.
XThe Nasdaq rallied 1.1%, the S&P 500 rose 0.7%, and the Dow Jones industrials advanced 0.4% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1.4%. Volume was mixed, higher on the NYSE but lower on the Nasdaq vs. the same time Wednesday.
Among exchange traded funds, Innovator IBD 50 (FFTY) rallied 2.2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) gained 1%. The IBD 50 ETF rebounded after testing support at its 50-day moving average on Wednesday.
The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. A resurgence in cases fueled by the more contagious delta variant has recently started to slow down as vaccinations rise.
Cumulative Covid-19 cases worldwide are approaching 246 million, with nearly 5 million deaths, according to Worldometer. In the U.S., cases have topped 46 million with almost 762,000 deaths.
Growth Stocks To Watch
Over in the IBD 50, Digital Turbine (APPS) led with a 6% pop. Analysts expect the mobile software maker to earn 39 cents a share on $306.5 million in revenue when Digital Turbine reports Q3 results Tuesday after the close.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35626.48 | +135.79 | +0.38 |
| S&P 500 | (0S&P5) | 4584.64 | +32.96 | +0.72 |
| Nasdaq | (0NDQC ) | 15400.64 | +164.80 | +1.08 |
| Russell 2000 | (IWM) | 226.76 | +3.11 | +1.39 |
| IBD 50 | (FFTY) | 49.67 | +1.07 | +2.20 |
Last Update: 12:04 PM ET 10/28/2021 |
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ChampionX (CHX) also surged 6%, as the stock adds a handle to a cup base. The ideal buy point is 26.97, or 10 cents above the handle's high, according to MarketSmith chart analysis. The oil drilling technology company reported Q3 results on Wednesday.
InMode (INMD) gained 6% as the stock trades near record highs. On Tuesday, the medical aesthetics firm delivered Q3 earnings and revenue that rose 77% and 58%, respectively.
Among other IBD 50 winners, Dutch Bros (BROS), SiTime (STME) and Asana (ASNA) added about 5% each.
Tesla (TSLA) cruised 3% higher in fast turnover, on pace for a new closing high. Shares are well-extended from a 900.50 buy point of a long cup base. In fact, the stock triggered the eight-week hold rule from the entry. Tesla is an IBD 50 and IBD Leaderboard stock.
The order for Tesla vehicles from rental car giant Hertz could double to 200,000 units, based on a supply agreement with Uber Technologies (UBER), according to comments from Hertz Chief Executive Mark Green in a CNN interview.
ServiceNow (NOW) and Shopify (SHOP) rallied Thursday, after reporting earnings ahead of the open. But Twilio (TWLO) gapped down and sank 14% in heavy volume after the software maker reported a narrower-than-expected Q3 loss, while gross margins were in line with estimates.
In upcoming earnings, Amazon (AMZN) reports today after the close. Analysts expect earnings of $8.90 per share on revenue of $111.5 billion. Amazon was up 1.4% in brisk trade, on track for a third straight advance as it moves further above its 50-day moving average.
Dow Jones Movers
Merck (MRK) soared 5% in fast trade to a 52-week high after reporting better-than-expected Q3 results. It's now extended from a 79.33 buy point of a flat base. Early Thursday, the drug giant reported adjusted Q3 EPS of $1.75 on sales of $13.15 billion. FactSet forecasts were for $1.55 EPS on $12.32 billion in sales. For the full year, Merck guided higher on profit and roughly in line on sales.
Caterpillar (CAT) rose nearly 4% in heavy trade to retake its 50-day line. The heavy equipment maker reported Q3 adjusted earnings of $2.66 a share, up 75% year over year and above FactSet estimates for $2.20. But sales, up 25% to $12.4 billion, fell slightly short of an expected $12.6 billion.
Apple (AAPL) gained 2.5% in twice normal trade ahead of its earnings due after the close. Analysts expect the iPhone maker to earn $1.24 a share on revenue of $85 billion. Apple shares are holding above they 50-day line as they work on the right side of a cup base with a 157.36 buy point. The stock could offer a lower entry if it adds a handle.
On the downside, American Express (AXP) fell 2.6%, while Visa (V) gave up 1.4%.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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