The stock market surged after PayPal (PYPL), Daqo New Energy (DQ) and Modern (MRNA) posted earnings above estimates. The indices reached highs in the afternoon session.
The Nasdaq led with a 2.6% gain, followed by the S&P 500 which rose 1.5% and the Dow Jones Industrial Average which rose 0.5%. Small cap Russell 2000 also gained 1%.
Crude oil fell more than 3% to $91.37 a barrel after OPEC+ agreed to increase production by just 100,000 barrels a day in September.
The 10-year Treasury yield rose 3 basis points to 2.77%. The Innovator IBD 50 Fund (FFTY) posted a gain of 1.3%.
Volume on the Nasdaq was 24% higher from the same time yesterday. It was 8% lighter on the NYSE.
Stock market movers
Shares of PayPal jumped 11% but pared gains a bit in the afternoon. The stock is still up 8.6% after the company beat earnings late yesterday.
The company reported earnings per share of 93 cents on revenue of $6.81 billion. The company improved its outlook for the full year thanks to cost reduction plans.
Shares also rose on news that Elliott Investment Management will take a $2 billion stake in the company. Elliott also made headlines yesterday when he announced a stake in Pinterest.
In health care, Modern increased by 16%. According to FactSet, earnings per share of $5.24 on revenue of $4.75 billion beat expectations of 4.58 earnings and $4.1 billion. Its Covid vaccine, Spikevax, has generated revenue gains. The stock recovered its 50-day moving average after the earnings.
Daqo New Energy (DQ) reversed lower, giving up a big early gain, after reporting earnings of $8.18 a share on revenue of $1.24 billion. The drop in sales was partly offset by the increase in the average selling price of solar equipment.
The stock fell 0.4% with support along its 50-day moving average. The IBD Leaderboard stock could be interpreted as forming a cup with handle base with a buy point of 77.38.
Overview of the US stock market today
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Last Updated: 12:00 PM ET on 07/27/2022
Shares of Airbnb (ABNB) are down after a slight shortfall. The company beat earnings estimates by 11 cents per share. Gross bookings were the highest of any quarter, but are still below estimates.
SolarEdge (SEDG) also missed earnings views but topped earnings estimates. Earnings were 95 cents per share on revenue of $727.8 million.
Cross Country Health Care (CCRN) is up ahead of earnings after the close of trading today. The stocks are trading above their 50- and 200-day moving averages.
The stock’s strong relative strength rating of 98 also demonstrates its superior performance. The stock is trading in a cup basis with an entry point of 30.50, according to MarketSmith. It seems to form a handful. CCRN is on the highly selective IBD 50 and is an IBD Leaderboard stock.
In the electric vehicle segment, Lucid (LCID) and Fisker (FSR) are on deck for profits after the stock market close. Lucid is expected to cut losses from $1.17 in the second quarter of 2021 to 37 cents per share this quarter.
Fisker faces a higher hurdle. According to FactSet, Fisker is expected to lose $1.64 per share as it builds its SUV, the Ocean.
After You’re here (TSLA)rival BYD (BYD) strong sales numbers in July, Lucid’s forecast will be watched today.
Shares of Lucid rose nearly 3% today, while Fisker rose 4.5%. Both are trading slightly above support along the 50-day line.
Also under results watch is Mobility will see (VRRM). IBD Leaderboard gave full-year guidance for $715 million. The stock has an RS rating of 90.
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