Dow Rallies As Netflix Sinks; Full Steam Ahead For Cruise Stock; Leader Up With Earnings Due

The Dow Jones Industrial Average rallied as the broader stock market fought back following a couple of tough down days. A post-earnings hangover for Netflix (NFLX) was shaken off by the Nasdaq, while International Business Machines (IBM) was the top performing blue chip.

It was full steam ahead for Norwegian Cruise Line (NCLH), which powered higher after an upgrade. Leaderboard stock Lam Research (LRCX) rallied before posting earnings, while Fox Factory (FOXF) scored a breakout.


Nasdaq Rallies As Netflix Stock Sinks

The Nasdaq was the leading major index after rising 1.2%. It could have fared even better but was weighed down by the poor performance of Netflix.

The stock was battered more than 7% lower after poor subscriber growth overshadowed an earnings beat. Subscriber growth of 3.98 million fell well short, while it sees only 1 million new streaming customers in Q2.

The top performer on the tech-heavy index was Intuitive Surgical (ISRG). It surged almost 10% on strong Q1 earnings. Procedures using the firm’s famed da Vinci Surgical Systems were up 16% year over year.

The S&P 500 also moved higher, posting a gain of 0.9%. TV stock Dish Network (DISH) was one of the standout performers here, rising more than 8%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34125.73 +304.43 +0.90
S&P 500 (0S&P5) 4172.13 +37.19 +0.90
Nasdaq (0NDQC ) 13946.82 +160.55 +1.16
Russell 2000 (IWM) 222.46 +5.27 +2.43
IBD 50 (FFTY) 45.20 +1.47 +3.36
Last Update: 4:02 PM ET 4/21/2021

The S&P sectors were broadly positive. Materials and energy fared best, while communication services and utilities were the only laggards.

Small caps charged higher as they tried to shake off recent losses. The Russell 2000 outperformed the major indexes as it posted a gain of 2.3%.

Growth stocks fared the best of all however, with the Innovator IBD 50 ETF (FFTY) swelling 3.4%.

Dow Jones Up As IBM Stock Rises In Buy Zone

The Dow Jones Industrial Average managed to squeeze out a gain of 0.9%, matching the S&P 500.

IBM stock was among the top performers. It rose near the top of its buy zone after gaining almost 4%.

It cleared a 137.17 buy point Tuesday on strong earnings. The firm posted its first quarterly sales increase since the second quarter of 2018. However, IBM stock has a weak IBD Composite Rating of 48.

Chemical giant Dow (DOW) was running virtually neck and neck with IBM, rising 3.9%.

Cruise Stock Steams Past Key Benchmark

Norwegian Cruise Line stock managed to power up almost 10% after it scored an analyst upgrade.

The move was enough to see it sail back above its 50-day moving average. The stock’s performance over the past 12 months has been strong, which is reflected in its Relative Strength Rating of 85.

The cruise line operator rallied after Goldman Sachs upgraded it to buy from neutral. Goldman Sachs gave it a price target of 37.

Analyst Stephen Grambling said Norwegian Cruise Line stock is in a strong position compared to peers due to its business mix and balance sheet.

Leaderboard Stock Rallies Before Earnings Beat

Lam Research rose more than 4% ahead of its latest earnings report after the close.

The move saw LRCX stock move out of buy range. It previously cleared a consolidation pattern buy point of 603.70.

Lam Research ended up crushing analyst estimates for the March quarter, but LRCX stock dipped in extended trading.

The Leaderboard stock holds a perfect 99 Composite Rating and sits at the summit of the Electronics-Semiconductor Equipment Industry Group.

The stock was given a boost after ASML (ASML) served up better-than-expected results earlier on Wednesday. The Dutch chip-gear supplier also raised its 2021 revenue guidance.

This was seen as a good sign for the broader chip sector. It had come under pressure amid the broad pullback this week.

Highly Rated Stock Passes Buy

There was a paucity of stocks passing buy points, but Fox Factory was one name that made such a move.

It is in the buy zone after passing a consolidation pattern buy point of 144.35. The stock is up around 37% so far this year.

The maker of high-performance suspension products for mountain bikes and off-road vehicles has a top-notch Composite Rating of 97, with earning performance a key strength.

It has also been finding strong institutional support of late.

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