Stock Market Lower In Late Trading As This Biotech Tops Buy Point

The stock market remained limp in afternoon trading Monday after it gave up modest gains at midday. Second-quarter earnings remain in focus.




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The Nasdaq composite is trading lower by 0.3% while the Dow Jones Industrial Average has risen 0.1%. The S&P 500 has lost 0.1% at this hour. Small caps have outperformed, with the Russell 2000 nearly flat.

Volume was lower on the Nasdaq and higher on the NYSE compared with the same time on Friday.

Only one stock is listed in MarketSmith’s list of breakouts today. PTC Therapeutics (PTCT) jumped past the 45.19 buy point of a cup-with-handle base. Volume has been mediocre, despite a nearly 6% jump in the share price. The biotech reports earnings Thursday after the close.

It’s not surprising for the stock market to ease after the Nasdaq rallied 4.7% last week and 3.3% in the previous week. Moves above the 50-day moving average have left the major indexes on better footing this week.

US Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32753.07 -92.06 -0.28
S&P 500 (0S&P5) 4112.23 -18.06 -0.44
Nasdaq (0NDQC ) 12352.76 -37.93 -0.31
Russell 2000 (IWM) 187.26 +0.01 +0.01
IBD 50 (FFTY) 28.48 +0.03 +0.11
Last Update: 2:52 PM ET 8/1/2022

Energy Select Sector SPDR (XLE) fell more than 2% as the sector lagged. The price of US crude oil closed down 4.8% to $93.89 per barrel. The ETF is meeting resistance at the 50-day moving average.

IBD 50 Down But Celsius Roars

Innovator IBD 50 ETF (FFTY) fell 0.1%.

Celsius Holdings (CELH) led the IBD 50 with a 12% jump that took the stock near its November high of 110.22. PepsiCo (PEP) agreed to acquire an 8.5% stake in the fitness beverage company and will become its preferred distribution partner. PepsiCo is investing $550 million in cash for its stake. Shares of PepsiCo climbed 0.8% and are nearing a 177.72 buy point.

Builder’s FirstSource (BLDR) vaulted 7.6% after the company reported a 127% rise in earnings per share earlier today.

American Tower (AMT) dipped below the 271.19 buy point of Friday’s breakout. So far, this appears to be a normal decline.

Daqo New Energy (DQ) fell 5.4% on light volume. The stock continues to find support at its 50-day moving average.

Another Busy Week Of Earnings For Stock Market

The stock market faces another busy week of earnings — a focal point of trading activity. So far, second-quarter results are underperforming and the outlook is dimming.

As of Friday, 73% of S&P 500 companies had beaten EPS estimates, below the five-year average of 77%, according to FactSet. S&P 500 companies are beating EPS estimates by 3.1%, which is below the five-year average of 8.8%.

Combined with companies that have yet to report, earnings growth for Q2 in the S&P 500 is 6%. That would be the lowest year-over-year growth rate since the fourth quarter of 2020 when earnings rose 4%.

The profit outlook for the third quarter is cautious. FactSet says that analysts are lowering Q3 EPS estimates by a larger-than-average margin. The bottom-up EPS estimate, which combines median estimates for all S&P 500 companies, has fallen by 2.5%. The latest estimate (July 28) is looking for $57.98 vs. $59.44 on June 30.

After today’s close, fertilizer companies CF Industries (CF) duck Mosaic (MOS) announce results Both are trying to form the right side of bases. Diamondback Energy (CATCH) duck Devon Energy (DVN) are also set to report. Both are testing possible resistance at the 50-day average.

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