Dow Jones Rallies 200 Points To New High But Nasdaq Lags As Senate Passes Key Bill

Stocks were mixed Tuesday afternoon with the Dow Jones Industrial Average up but Nasdaq down as the U.S. Senate passed an infrastructure bill with bipartisan support.




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The Dow Jones industrials rose 0.5%, the S&P 500 climbed 0.2% and the Nasdaq slid 0.4% in the stock market today. Small caps tracked by the Russell 2000 edged 0.4% higher. Volume was mixed, higher on the NYSE but lower on the Nasdaq vs. the same time Monday.

Among exchange traded funds, Innovator IBD 50 (FFTY) dipped 0.2%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) fell 0.4%.

The Senate passed a sweeping $1 trillion infrastructure package, which includes $550 billion for transportation, broadband and utilities, with a 69-30 vote. The bill now heads to the House of Representatives before it goes  to President Joe Biden, who is expected to sign it into law.

Nineteen Republican senators joined all Democrats to pass the bill, with Vice President Kamala Harris presiding.

The U.S. economy continues to recover from the Covid-19 pandemic, which triggered nationwide lockdowns over a year ago. Most states had relaxed restrictions as vaccinations continued to roll out and cases decreased. But mask mandates are returning in some areas as the delta variant spreads.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)35278.03+176.18+0.50
S&P 500(0S&P5)4439.85+7.50+0.17
Nasdaq(0NDQC )14796.03-64.15-0.43
Russell 2000 (IWM)222.95+0.79+0.36
IBD 50 (FFTY)46.40-0.10-0.22
Last Update: 1:40 PM ET 8/10/2021

Cumulative Covid-19 cases worldwide have surpassed 204 million, with over 4.3 million deaths, according to Worldometer. In the U.S., cases are approaching 37 million with nearly 634,000 deaths.

Although the numbers of new cases and deaths in the U.S. have decreased dramatically, cases are back on the rise in some states due to delta.

Growth Stocks To Watch

In the IBD 50, Cleveland-Cliffs (CLF) leapt 6% in twice normal trade as it recrossed a 24.87 buy point. It’s now slightly extended from the 24.87 entry. But the stock remains in potential buy range from a 25.93 entry of a high handle it recently added. The buy zone for the handle goes up to 27.23.

Crocs (CROX) advanced 3% to a new high, on track for a fourth straight weekly gain. Shares have reached the 20%-25% profit-taking zone from a 110.01 buy point of a flat base cleared in June, according to IBD MarketSmith chart analysis.

The resin-based shoemaker holds a highest possible 99 for both its Composite Rating and Earnings Per Share Rating. Crocs posted triple-digit profit growth and 56% or higher sales growth the past three quarters.

Among other IBD 50 winners, Carvana (CVNA) and Atkore (ATKR) rose more than 3% each.

Health care stocks led the downside as Shockwave Medical (SWAV) and Maravai Lifesciences (MRVI) shed a respective 7% and 6%. Shockwave fell back below its 10-week moving average as it works on a cup base with a 203.84 buy point.

Other IBD 50 losers included DLocal (DLO) and Axon Enterprise (AXON), down more than 3% apiece.

Dow Jones Winners And Losers

Dow Inc. (DOW), Caterpillar (CAT) and Goldman Sachs (GS), up more than 2% each, led the upside on the blue chip index. Dow Inc. and Caterpillar are trying to get past resistance at their 50-day lines.

Caterpillar rose 2.6% as construction-related stocks get a boost from the Senate’s vote on the $1 trillion infrastructure bill. Shares are 13% off their early June high as they start building the right side of a potential new base.

Goldman Sachs remains in potential buy range from a 393.36 entry of a flat base. The buy zone tops out at 413.03. A 96 Composite Rating puts Goldman at the top of its 22-stock money center banks group, which includes Citigroup (C) and fellow Dow stock JPMorgan Chase (JPM).

Walmart (WMT) gained nearly 2% in heavy trade. It remains in buy range from a 144.68 entry of a flat base that’s part of a larger consolidation. The 5% chase zone goes up to 151.91. Bank of America maintained a buy rating and 185 price target on the discount retailer, according to The Fly, citing general merchandise strength and back-to-school sales and other potential catalysts. Walmart reports quarterly results Aug. 17.

Blue chip losers included Amgen (AMGN), Visa (V) and Salesforce.com (CRM), down more than 1% each.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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