The Dow Jones Industrial Average fell after a senior Federal Reserve official gave her view on when asset purchases may be dialed back. Apple (AAPL) and Microsoft (MSFT) were among the top blue chip gainers, while Virgin Galactic (SPCE) continued its plunge.
Meme stock AMC Entertainment (AMC) was also diving again. New Leaderboard pick Upwork (UPWK) passed a buy point but faded off highs, while Karat Packaging (KRT) also tried to break out.
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Fed Official Speaks Out Amid Inflation
San Francisco Fed President Mary Daly gave her view that asset purchases might be dialed back by late this year or early in 2022. Some investors have complained that quantitative easing, when the central bank purchases long-term securities, has allowed the economy to run too hot and increase the risk of inflation.
“My own view is we’ll probably be in a good position to taper at the end of this year or early next,” she told CNBC.
Daly said she think there will still be a very accommodative position with a low funds rate, but added “we don’t need all the tools (as) we see the economy get its own footing.”
She spoke out after markets were spooked after the Consumer Price Index came in with a 0.9% rise. This was almost double the consensus estimate of 0.5%. Prices were also up 5.4% year over year, which was above consensus views for 5%.
Oanda senior market analyst Ed Moya said in a research note the Fed’s transitory inflation argument “still holds water,” but added that if prices continue to stay elevated the central bank “will have to concede that parts of the surge with prices are becoming persistent.”
Nasdaq, S&P 500 Dip
The Nasdaq and the S&P 500 turned in identical dips of around 0.3%. On the Nasdaq, JD.com (JD) was the top performer thanks to a gain of almost 5%. Fox (FOX) and Tesla (TSLA) were the biggest laggards, down about 1.5%.
On the S&P 500 PepsiCo (PEP) was leading on a strong earnings report, gaining more than 2%. Conagra (CAG) lagged with a dip of almost 6%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34891.81 | -104.37 | -0.30 |
| S&P 500 | (0S&P5) | 4371.63 | -13.00 | -0.30 |
| Nasdaq | (0NDQC ) | 14689.74 | -43.50 | -0.30 |
| Russell 2000 | (IWM) | 223.02 | -3.55 | -1.57 |
| IBD 50 | (FFTY) | 44.17 | +0.02 | +0.05 |
Last Update: 2:50 PM ET 7/13/2021 |
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The S&P sectors were mostly in the red, with only technology and consumer staples managing to move higher. Consumer discretionary was the worst laggard.
Small caps were being battered by the bears, with the Russell 2000 falling 1.6%. Growth stocks were outperforming however, though the Innovator IBD 50 ETF (FFTY) was only up around 0.1%.
Apple Stock Gain Not Enough For Dow Jones
The Dow Jones Industrial Average was moving in lockstep with the other major indexes, giving up 0.3%.
Apple stock was one of the top performers thanks to a gain of around 1%. It is extended past a cup-base buy point of 137.17.
Microsoft was also having a positive session, gaining just over 1%. Visa (V) was the top performer though, gaining around 1.4%.
Boeing (BA) was weighing on the index, dipping almost 4%. It comes after the firm disclosed a new problem with the 787 Dreamliner.
Virgin Galactic Plunge Continues As AMC Stock Dives
Virgin Galactic stock was continuing to plunge following Monday’s brutal loss of over 17% on news of a big share offering.
It compounded its loss by a further dip of around 6%, and is down more than 22% for the week so far.
The sharp dip comes after the firm revealed in a regulatory filing that it plans to sell up to $500 million in stock. This saw the stock fall hard, despite making its first fully crewed flight during the weekend.
Meme stocks were also struggling. AMC stock, which had become the hottest name in the area, was down more than 8% and testing its 50-day line.
AMC stock is now down more than 15% for the week, which comes after the stock fell over 11% last week.
GameStop (GME) also lagged, giving up almost 5%. It remains up around 900% for the year.
New Leader Leads Breakouts
Upwork is just below a buy zone after earlier soaring above a new handle entry of 61.31 in high volume. The relative strength line has been spiking of late, which is another encouraging sign.
The strong move saw the stock added to the prestigious IBD Leaderboard of leading growth stocks.
Stock market performance is exceptional, however earnings are not ideal. Nevertheless, the stock has a near perfect Composite Rating of 97.
The midcap firm’s online platform specializes in connecting freelancers with employers. Upwork serves clients in more than 180 countries.
Karat Packaging is currently in a buy zone after surging past a flat base buy point of 21.33.
The April IPO stock saw its RS line spike to a new high. However, its poor EPS Rating of 41 out of 99 is a reason for caution.