Dow Jones Slips While Nasdaq Leads Upside; Several Growth Stocks Score Breakouts

The Dow Jones Industrial Average traded slightly lower in today’s market. The Nasdaq traded near its highs of the day while the Dow swung lower over the past hour of trading. Several major tech companies are set to report earnings this week, with Tesla (TSLA) reporting Monday after the market closes.


Stock Market Today

At around 1:30 pm ET, the Nasdaq composite gained 0.6%. The S&P 500 traded 0.2% higher, while the Dow Jones held a small loss of less than 0.1%. The small-cap Russell 2000 index held a solid gain of 1.2%, leading the upside. Volume was higher on the NYSE and the Nasdaq vs. the same time on Friday.

As for the Innovator IBD 50 ETF (FFTY), shares of the growth-focused ETF rallied 1.7% Monday, proving to be a market outperformer. The index continued higher above its 50-day line for the first time since late March. Stocks leading the upside in the index were PLBY (PLBY) and MarineMax (HZO), with gains of over 8% and 7%, respectively.

Stocks were slightly higher on Monday as investors brace for a busy week of earnings. Electric car maker Tesla is expected to report Q1 earnings after the close. According to Zacks Investment Research, analysts expect EPS of 79 cents, a 216% year-over-year surge. Sales are seen jumping 66% to $9.92 billion.

Tesla rallied over 1% Monday morning as shares form a new cup with handle, offering a 780.89 buy point. But investors should be aware that the base is a late-stage base, which doesn’t bode well for breakouts.

Additionally, Amazon (AMZN), Alphabet (GOOGL), Facebook (FB), Apple (AAPL) and Microsoft (MSFT), which together comprise nearly half of the S&P 500’s total market capitalization, will also report results this week.

Several Growth Stocks Break Out

As for growth stocks, several from the MarketSmith Growth 250 list broke out from proper bases. Shares of chip maker Skyworks Solutions (SWKS), Trex (TREX), Horizon Therapeutics (HZNP), Brunswick (BC) and Camping World (CWH) traded inside buy zones on Monday.

Skyworks Solutions rose above a consolidation 195.92 buy pointaccording to MarketSmith analysis. Investors should note the current base is a stage four base, which is considered a later stage and less likely to work than an earlier stage base.

The stock, however, has very solid IBD Ratings including a 93 Composite. Shares remain inside the buy zone, which tops out at 205.71.

Trex broke out of a cup base with 107.74 buy point. Shares gained 1.7% and remained inside the key buy zone, which tops out at 113.13. The decking, railing and fencing products maker is up more than 30% since the start of 2021.

Horizon Therapeutics broke out from a consolidation with a 96.65 buy point. Shares were up over 1% in early afternoon trading but remained just shy of the key buy point.

Elsewhere, Brunswick gained over 1.5% and broke out from a 106.20 cup-with-handle buy point. Shares of the boat and fitness equipment maker held above the buy point in afternoon trading. The stock maintains positive IBD Ratings with a 97 Composite and an 84 RS Rating.

Finally, Camping World gained over 5% on Monday and broke out from a cup base with a 44.20 buy point. The stock has behaved bullishly over the past year, which is reflected in its 94 RS Rating. The recreational vehicles seller is up more than 74% since the start of 2021 as people seek alternate ways to vacation amid the pandemic.

Dow Jones Today

As for the Dow Jones industrials, blue chips were largely mixed. But several in the financial sector held solid gains, including Goldman Sachs (GS), American Express (AXP) and JPMorgan (JPM).

Disney (DIS) was also among stocks leading the upside with a gain of almost 1%. The media giant is building a new flat base with a 203.12 buy point, according to IBD MarketSmith chart analysis. Shares remain below their key 50-day moving average.

Elsewhere, Apple (AAPL) is nearing a cup base buy point of 145.19, according to MarketSmith analysis. However, the base is third stage, giving investors reason for caution.

Goldman Sachs rose more than 1.5% and continued higher above support at its 50-day moving average. The financial stock remains 3% below the nearest flat base entry of 356.95. The firm’s IBD Ratings look positive, with a Composite Rating of 97 and an RS Rating of 81.

Stocks leading the downside included Procter & Gamble (PG) and Coca-Cola (KO) with losses over 1% each.

Follow Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.


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