The stock market gained on Monday as investors braced for another busy week after the US Senate passed major tax, health care and climate legislation over the weekend. At least six stocks were breaking out of their base.
The Nasdaq composite gained 0.5% and the S&P 500 added 0.3%. The Dow Jones Industrial Average gained 0.4%. The small-cap Russell 2000 index gained 1.3%.
Volume rose on the Nasdaq but fell on the NYSE at the same time Friday.
The Nasdaq and S&P have started what could be their fourth week in a row. Last week, the Nasdaq rose 2.1% and the S&P rose 0.4%. The Dow lost 0.1% for the week.
The Dow is on track to break out of the correction range to close at 32,877.66 or higher, which is defined as a 10% drop, according to Dow Jones Markets.
Overview of the US stock market today
|Dow Jones||(0 money)||32939.22||+ 135.75||+0.41|
|S&P 500||(0S&P5)||4159.30||+ 14.11||+0.34|
|Nasdaq||(0NDQC )||12717.08||+ 59.52||+0.47|
Last update: 12:02 pm ET 8/8/2022
of The Senate approved a bill Vice President Kamala Harris voted Sunday to cut hundreds of billions of dollars in climate and health care programs and raise taxes on large, profitable companies. The law offers tax incentives to reduce carbon emissions, wants to allow Medicare to negotiate prices for some prescription drugs, allocates about $80 billion to the Internal Revenue Service and extends health insurance subsidies under the Affordable Care Act. The House is expected to approve the bill next Friday.
The week starts with mixed earnings results.
of During recent earnings It’s not as weak as feared, according to Yardeni Research, which will soon help fuel the market’s recovery. As of midweek, 356 (or 71%) of the S&P 500 companies had reported Q2 results. Earnings beat consensus forecasts by 2.5 percent. Earnings beat estimates by 5.6 percent. So far, 68% of Q2 reporters have reported a positive earnings surprise, while 77% beat earnings forecasts.
To kick off Q2 earnings week, Tyson Foods (TSN) Quarterly sales rose 8 percent, but rising costs wiped out any profit growth. Shares were down 9 percent Monday morning. The maker of chicken and other packaged meats had $13.5 billion in revenue. Analysts polled by FactSet were expecting sales of $13.31 billion. Profits were flat a year ago amid rising costs for wages, animal feed and transportation.
Palantir Technologies (PLTR) on Monday It reported June-quarter earnings That missed views, earnings are coming close to Wall Street targets. PLTR stock fell 12 percent after earnings guidance came in below expectations
New Breakouts for the Stock Market
In other news. Pfizer (PFE) officially announced on Monday that he agreed to buy International Hematology (GBT) for 5.4 billion dollars. Pfizer said on Monday it would pay $68.50 a share in cash for Global Blood Therapeutics, one of a handful of ailing painkillers.
GBT shares rose 26 percent on Friday after news of the deal first surfaced. GBT shares traded up more than 4% on Monday, while PFE shares rose slightly.
Meanwhile. A number of stocks were breaking out of their fundamentals on Monday. Brazilian oil (PBRA), the state-owned Brazilian oil company broke a Cuban base of 13.70 buy points.
Manufacturer of building products Griffin (GF) also broke a cup base with a 31.12 buy point and easily reached near the top of the 5% buy range.
Gas and energy infrastructure NFE broke a cup base with a buy point of 52.47. When energy reserves are not good, NFE is. IBD 50 Best Stocks to Watch.
Looking ahead to the stock market
Stocks in Asia and Europe gained mostly on Monday, with London’s FTSE 100, Germany’s DAX and France’s CAC 40 all advancing. Japan’s Nikkei and Shanghai Core Index gained 224, while Hong Kong’s Hang Seng Index fell 0.8 percent.
The 10-year U.S. Treasury yield rose 10 basis points to 2.78 percent. Crude oil prices rose 1 percent to $89.90 a barrel.
The creator of the IBD 50 ETF (FFTY) rose 0.1%, slowing broader market gains.
Walt Disney (DIS) will outline another busy week of earnings reports as the stock market grows more optimistic about a soft landing for the US economy. with other strong price performers Income is coming. inclusion Celsius (CELH), Aspen Technology (A.P.N), Grocery outlet (go over) and Shockwave therapy (SWAT).
Follow Michael Molinski on Twitter @IMmolinski
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