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Dow Jones Gains As Apple Pops; Lucid Motors Key Merger Vote Due; Virgin Galactic, AMC Stocks Dive

The Dow Jones Industrial Average rose as the stock market posted slim gains. Apple (AAPL) and Microsoft (MSFT) were among the top blue chips, while the Lucid Motors merger vote was due. Virgin Galactic (SPCE) and AMC Entertainment (AMC) dove once again.




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A few stocks were also trying to stage breakouts, despite the mild action. Software firm PTC (PTC) and Monolithic Power Systems (MPWR) both passed buy points.

Stocks lost momentum after the Labor Department reported a surprise increase in initial jobless claims. New filings for unemployment totaled 419,000 last week, sharply above the 350,000 consensus estimate.

But Oanda senior market analyst Edward Moya said one bad jobless claims report is not enough to suggest the downward trend is over.

“An unexpected increase in jobless claims did not unnerve investors as seasonal adjustment factors may have played into the big miss,” he said. “Many are attributing the soft reading to adjustments in the auto industry and as some states have returned to stricter restrictions. “

Nasdaq Up As Small Caps Are Squished

The Nasdaq was leading the other major indexes, though its gain of 0.3% was still slim. Rail stock CSX (CSX) was faring best here with a gain of more than 3%. It climbed above the 50-day line as it forms a base.

The S&P 500 was also up, though by even more meager 0.2%. Domino’s Pizza (DPZ) was the big winner here, popping more than 16% on its latest earnings report.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 34865.65 +67.65 +0.19
S&P 500 (0S&P5) 4367.07 +8.38 +0.19
Nasdaq (0NDQC ) 14680.15 +48.20 +0.33
Russell 2000 (IWM) 218.96 -3.10 -1.40
IBD 50 (FFTY) 44.50 +0.30 +0.68
Last Update: 2:46 PM ET 7/22/2021

The S&P sectors were mixed, with technology and health leading. Energy and financials were faring worst.

Small caps saw recent progress come to a crashing halt, with the Russell 2000 dipping 1.4% Tuesday afternoon. However growth stocks were having better luck, with the Innovator IBD 50 ETF (FFTY) up around 0.7%.

Dow Jones Up As Apple Stock Pops

The Dow Jones Industrial Average was also lagging the Nasdaq slightly. It was up around 0.2%.

Apple stock as was one of the top components. It pulled away from a buy zone as it posted a gain of more than 1%.

Apple stock is currently extended from a cup base buy point of 137.17, MarketSmith analysis shows. It is continuing to rise away from its 50-day moving average.

Leaderboard stock Microsoft was also one of the top gainers, rising about 1.5%. It remains extended past a 263.29 entry. However it was Salesforce.com (CRM) that led the index due to a gain of more than 2%.

EV Stocks: Lucid Motors Merger Vote Due

Lucid Motors looks set to go public, with a key merger vote for the luxury electric-vehicle startup due today.

It is expected to become one of the biggest new EV stocks, with the deal valuing Lucid at around $24 billion.

Shareholders vote Thursday on whether to approve the merger with blank check company Churchill Capital IV (CCIV) and Newark, Calif.-based Lucid Motors.

If it gets the go-ahead, Lucid Motors stock would debut Friday. It will trade under the symbol LCID on the New York Stock Exchange. The startup should receive about $4.4 billion in cash from the transaction. Saudi Arabia’s Public Investment Fund has plowed $1 billion into Lucid.

Churchill Capital IV was trading down ahead of the vote, slipping around 2%. It is trading around its 50-day line and well off prior highs.

Tesla (TSLA), the big beast of EV stocks due to its $631 billion market cap, was virtually flat.

Virgin Galactic Stock, AMC Stock Dive Again

Virgin Galactic stock stalled once again Thursday after Wednesday’s up day. It gave up almost 8% after being turned away at the 50-day moving average.

It was forced lower Tuesday after Amazon.com (AMZN) founder Jeff Bezos made headlines by blasting into space in his Blue Origin company’s first manned flight. His crew included the firm’s first paying customer.

SPCE stock has been struggling to climb out of a downward spin after it collapsed around 39% last week. It sank after revealing in a regulatory filing that it plans to sell up to $500 million in stock. The sell-off came despite the fact it came just after the firm made its first fully crewed flight.

Meanwhile AMC stock, the current star of meme stocks, continued to fall. The stock knifed under the key 50-day moving average as it gave up around 7%.

The stock has been sinking in recent weeks. AMC stock tumbled 24% last week, a fourth down week in a row. Despite its painful drawback, the stock still has a perfect Relative Strength Rating of 99.

GameStop (GME) also slipped, losing more than 3%. This caused it to lose more ground on its 50-day line. GME stock has now fallen more than 60% from its high of 483, which it reached in January.

These Stocks Pass Buy

Software stock PTC is in a buy zone after breaking out of a cup with handle base. The ideal buy point here is 147.17.

The relative strength line looks to be bending upward after a period of gentle ascent, which is a positive.

However earnings are due in six days. Investors should remember IBD recommends using options as a strategy to limit risk. It is a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.

Power circuit play Monolithic Power Systems has managed to pass a buy point of 406.85, however it has retreated back below it. The stock has a strong Composite Rating of 91, with earnings performance its strongest feature.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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