The Dow Jones Industrial Average fell on Monday as yields rose again. Donald Trump SPAC Acquiring the digital world (DWAC) decreased in the context of legal issues, while Apple (AAPL) slide between Wall Street’s warm call.
A trio of health stocks are trying to make breakout periods. UnitedHealth Group (UNH) tested a buy point while Corcept therapy (CORT) and AstraZeneca (AZN) are the entries.
X
According to preliminary data, trading volumes on both Nasdaq and New York were lower.
The yield on the benchmark 10-year Treasury note rose 8 basis points to 3.2%. West Texas Intermediate crude rose 2.1% to nearly $110 a barrel.
Durable goods data strengthens the Fed
Meanwhile, US durable goods orders in May were higher than expected. New orders rose 0.7% to $267.2 billion in May, the Census Bureau revealed Monday. This is higher than Econoday’s estimate of a 0.1% increase. Orders rose 0.4% in April.
Edward Moya, senior market analyst at Oanda, said in a note to clients that it provides more evidence to bolster the Federal Reserve.
“Today’s volatile durables goods order reading is quite dramatic and although it is only one reading, it shows that the economy is still stabilizing and there may be more rate hikes possible,” he said. Fed rather than being priced,” he said.
Nasdaq falls but stocks grow Excel
Nasdaq ended the session down 0.8%, not too bad considering Friday’s bullish range. Luxury EV maker Lucid (LCID) is a lagging carrier because it fell 4.3%
The S&P 500 also struggled, gaining 0.3%. Etsy (ETSY) disappointed here as it fell 3.6%.
S&P 500 fields are mostly negative. Utilities and energy are the best performing sectors. Media and consumer discretionary services are the worst laggards.
Small-cap companies have managed to fend off the bears, with the Russell 2000 posting a 0.3% gain.
However, growth stocks are the star of the day, with the Innovator IBD 50 ETF (FFTY), a hit for growth stocks, rose 1.8%.
Dow Jones Today: Apple stock struggles after the call
The Dow Jones Industrial Average outperformed the major indexes, down just 0.2%.
Apple stock struggled after Wall Street’s quiet call. After typing, it ended a flat day. It is below its 50-day moving average, According to analysis by MarketSmith.
Bernstein reiterated their market performance rating for the stock, but said they see Apple TV+ going up ahead.
It estimates that the service “may now have 20 million-40 million paying subscribers, $1 billion to $2 billion in annual revenue, and an annual content spend of (approximately) $3 billion.” US dollars or more.”
It was left in the shade by the outstanding stats Chevron (CVX), up nearly 2%, and UnitedHealth.
Sales force (CRM) was the worst lagging as it fell 2.5%.
Donald Trump SPAC collapses amid legal woes
Donald Trump’s SPAC Digital World Acquisition Failed on Monday on the news that some board members was subpoenaed.
A federal grand jury in the Southern District of New York is seeking more details about the former president’s merger deal with Trump Media & Technology Corporation. The company is the father of conservative social platform Truth Social.
In a filing Monday, the DWAC said the subpoenas, as well as investigations from the Justice Department and the SEC, have the potential to slow down or completely destroy the merger deal.
According to the DWAC, it learned about the subpoena on June 16. The grand jury is asking for details similar to what the SEC requested previously.
The SEC and the Financial Industry Regulatory Authority began looking into Digital World late last year.
DWAC Stock down 9.6% in stock market today. It is currently trading at its lowest level since the deal was announced.
Outside of the Dow Jones: 3 buy points in stocks
With the market back in a confirmed uptrend, this is a good time to gradually increase market exposure. Here are some candidates.
UnitedHealth stock has passed double bottom buy point is at 507.35, although it is just below this level.
The relative strength line just hit a new high on the weekly chart and it is still in a strong long-term uptrend.
Profits are seen growing, with 14% growth over the next two years. Institutional investors are key backers of the stock, with 52% of the shares currently held by funds.
Its bullish behavior caused the stock to be added Ranking list of top stocks in Monday.
Corcept Therapeutics is earning a base buy point of 25.78. The relative strength line has hit a new high, a bullish sign.
Much of the base forms below the 50-day moving average, but the stock rallied above it last week.
Corcept is a biotech that specializes in disorders related to the steroid cortisol. Investors will want to see volume increase if it tries to break out.
AstraZeneca is also about to break out of a double bottom. The ideal entry point here is 67.50.
AZN is back above the 50-day moving average and the relative strength line is making new highs, both of which are encouraging signs.
All-round performance is excellent and earnings are seen to spike. EPS is expected to grow 34% this year before growth slows to 17% in 2023.
AZN specializes in biopharmaceuticals, oncology and rare disease treatments.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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