Nasdaq, the main small cap stock market; Health care up to 2 shares Best buy points
The stock market continued to build on its rebound on Thursday, with the Nasdaq composite adding more than 1% as investors watched new labor market data.
The Nasdaq jumped 1.3%, the S&P 500 rose 0.9% and the Dow Jones Industrial Average added 0.6%. Small caps dominated the stock market as the Russell 2000 rose 2%.
Innovator IBD 50 ETF (FFTY) also rose more than 1%. IBD Stock 50 Funko (FNKO) is above the 25.18 buy point of a handle entry.
Volume fell on the Nasdaq and NYSE from the same time Wednesday.
Two healthcare stocks break out
Overview of the US stock market today
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Last Updated: 10:10 a.m. ET on 07/07/2022
The health care sector leads the stock market and two of its highest-rated stocks broke above buy points this morning.
Cigna (CI) broke out from a base in large volume. The managed care provider has breached its buy point of 273.67 and is in a buy range at 287.35. Therapeutic Halozyme (HALO) broke above a buy point of 48.68 in high volume. It is in a buy zone at 51.11.
Merck (MRK) is in advanced talks to acquire seagen (SGEN) in a deal that could be worth around $40 billion, The Wall Street Journal reported, citing sources familiar with the talks. The addition of cancer biotechnology would strengthen Merck’s cancer treatment business. Shares of Seagen rose 3%, while Merck was nearly flat.
GameStop, Virgin Galactic among the stock movers
GameStop (GME) jumped 9% on news that the video game retailer had established a 4-for-1 stock split. The split is in the works after the July 18 close. GameStop launched the split in March, but had only announced the size when additional shares might be cleared.
Galactic Virgo (SPCE) grew by almost 4%. The company partners with Boeing (BA) Aurora Flight Sciences, a subsidiary of BA, on the design of Galactic’s next-generation motherships. Virgin Galactic shares are trading near all-time lows.
Ahead of Friday’s June jobs report, new data is released this morning on job growth and layoffs.
The June job growth estimate from payroll processing company ADP was due this morning. The consensus forecast from economists was for 200,000 new jobs. The ADP report found 128,000 gains in May.
Unemployment claims rise by 4,000
The number of jobless claims rose to 235,000 from 231,000 the previous week, according to the US Department of Labor. Economists polled by Econoday had forecast 230,000.
Jamie Cox, managing partner of Harris Financial Group, said the jobless claims data is moving in the direction the Fed wants.
“It’s never a good thing to see layoffs, but wage pressure may have peaked,” Cox wrote in a comment. “A few more weeks of these types of numbers and maybe, just maybe, financial conditions are tight enough to allow the Fed to slow the magnitude of rate hikes.”
Challenger’s layoffs report showed an increase from 20,712 to 32,517 job cuts in June.
Meanwhile, the yield on the 10-year Treasury note climbed 4 basis points to 2.95%.
The rise in the price of US crude oil is back above $100 a barrel. In early trading, crude rose 4.5% to $102.95. Energy Select Sector SPDR (XLE) was the easy winner among S&P sector ETFs with a 3.8% increase.
All S&P sectors were up except Consumer Staples, which was down 0.1%.
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