Dow Jones At New High As Disney Stock Rallies; Virgin Galactic Falls Back To Earth

The stock market climbed toward new record highs around midday Monday, as Disney and Goldman Sachs led the Dow Jones Industrial Average.


The Dow Jones industrials advanced 0.3%, the S&P 500 added 0.2% and the Nasdaq ticked up 0.1% in the stock market today. Small caps tracked by the Russell 2000 lagged, down 0.2%. Volume was mixed, lower on the NYSE and higher on the Nasdaq, vs. the same time Friday.

Among exchange traded funds, Innovator IBD 50 (FFTY) edged 0.1% higher, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) climbed 0.3%.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states have relaxed restrictions as vaccinations continue to roll out and cases decrease.

Cumulative Covid-19 cases worldwide are approaching 188 million, with more than 4 million deaths, according to Worldometer. In the U.S., cases have topped 34 million with nearly 623,000 deaths, although the numbers of new cases and deaths in the U.S. have decreased dramatically.

Dow Jones Winners And Losers

Goldman Sachs (GS) rose 2% in heavy trade after finding support at its 50-day moving average, extending Friday’s 3.6% gain. The stock has now formed a five-week flat base with a 393.36 buy point, according to IBD MarketSmith chart analysis. Shares are about 3% away from the entry.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34967.06 +96.90 +0.28
S&P 500 (0S&P5) 4380.27 +10.72 +0.25
Nasdaq (0NDQC ) 14708.34 +6.42 +0.04
Russell 2000 (IWM) 225.92 -0.46 -0.20
IBD 50 (FFTY) 44.12 +0.32 +0.73
Last Update: 12:06 PM ET 7/12/2021

Disney (DIS) gained 1.8% in twice normal trade for its first solid move above the 50-day line. It had been stuck below the support line for much of the past three months. Disney stock is about 11% off its 52-week high.

Disney’s “Black Widow” took in $80 million in the domestic box office in its opening weekend. International box office receipts came in at $78 million, while Disney+ streaming sales generated $60 million. The Marvel movie’s premier had been delayed 15 months due to the pandemic.

Among other blue chip winners, JPMorgan (JPM), UnitedHealth Group (UNH) and American Express (AXP) added about 1% each.

Big-cap techs were mostly lower. (CRM) fell 1%, on track for a fourth straight decline. Cisco (CSCO), IBM (IBM), Apple (AAPL) and Microsoft (MSFT) each gave up less than 0.5%.

Apple stock slipped 0.3%, giving back part of Friday’s 1.3% gain, which marked a record high. It remains slightly extended from a 137.17 buy point of a cup base. The buy range topped out at 144.03.

Microsoft, also down 0.3%, continues to trade solidly above a 263.29 buy point of a cup base cleared in June. Shares are extended. The 5% buy zone goes up to 276.45. Microsoft is an IBD Leaderboard and IBD Long-Term Leader stock.

Outside The Dow

Virgin Galactic (SPCE) soared as much as 10% in premarket trade Monday, but reversed from an early gain to a 13% dive soon after the open. The company announced a $500 million stock offering. The stock is building a deep cup with handle with a 57.61 buy point.

The space company conducted its first fully crewed flight on Sunday, sending Richard Branson into space. Virgin’s Eve mother ship took off from Spaceport America in New Mexico on Sunday morning, carrying the company’s SpaceShipTwo.

Over in the IBD 50, InMode (INMD) gapped up and soared 12% in heavy volume to a new high. The stock has triggered the 20%-25% profit-taking rule after clearing an 87.10 cup-with-handle entry in early June. The  IBD Leaderboard stock is now extended from support at the 10-week moving average.

InMode forecast Q2 revenue of $86.5 million to $87 million, well ahead of the consensus estimate of around $66 million. InMode also raised its earnings guidance to $1 to $1.01 a share vs. the consensus estimate of 65 cents. The medical device maker reports earnings July 28 before the open.

Global e-Online (GLBE) surged 9% as it shapes the right side of a cup base. It’s about 7% away from the entry.

Among other IBD 50 winners, Moderna (MRNA), Cleveland-Cliffs (CLF) and Blackstone Group (BX) added more than 2% apiece.

Covid-19 vaccine maker Moderna is on track for a new closing high. The biotech’s stock is more than 20% extended from a 189.10 buy point of a cup with handle cleared early last month. That means it’s OK to take some profits.

But since Moderna tripped the profit-taking rule in just two weeks after the breakout, investors with conviction could hold the stock for eight weeks to see how it fares.

On the IBD 50 downside, Pinterest (PINS), Asana (ASNA) and (OSTK) lost about 4% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo


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