Dow Jones Jumps 200 Points On Inflation Data, But Covid Stocks Dive - Investor's Business Daily

The Dow Jones Industrial Average rallied nearly 200 points Wednesday afternoon to a new high as July inflation data showed signs of cooling.

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The Dow Jones industrials rose 0.6%, the S&P 500 climbed 0.2%, and the Nasdaq fell nearly 0.3% in today's stock market. Small caps tracked by the Russell 2000 gave up 0.2%. Volume was mixed, lower on the NYSE but higher on the Nasdaq vs. the same time Tuesday.

Among exchange traded funds, Innovator IBD 50 (FFTY) was down 1.1%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) fell 0.4%.

The consumer price index rose 5.4% in July from a year ago, less than expected, with a month-over-month increase of 0.5%, as the economic recovery gained steam. The U.S. Labor Department's CPI measures what consumers pay for a select basket of goods and services, including groceries, clothes, restaurant meals, recreation and vehicles.

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
Index	Symbol	Price	Gain/Loss	% Change
Dow Jones	(0DJIA)	35466.18	+201.51	+0.57
S&P 500	(0S&P5)	4443.95	+7.20	+0.16
Nasdaq	(0NDQC )	14748.26	-39.83	-0.27
Russell 2000	(IWM)	222.20	-0.40	-0.18
IBD 50	(FFTY)	45.62	-0.51	-1.11
Last Update: 1:34 PM ET 8/11/2021

Cumulative Covid-19 cases worldwide have surpassed 205 million, with over 4.3 million deaths, according to Worldometer. In the U.S., cases are approaching 37 million with nearly 635,000 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

Unity Software (U) surged nearly 9% in heavy volume after the design software maker's Q2 results topped views late Thursday. Unity reported a loss of 2 cents a share on revenue of $263.6 million. The Leaderboard stock is breaking out past a 111.84 buy point of a cup with handle, according to IBD MarketSmith chart analysis. A 115.60 entry is also valid.

In the IBD 50, Upstart (UPST) easily led as it gapped up and soared 21% in fast turnover. The cloud-based lending platform reported strong Q2 results and guided for higher-than-expected Q3 sales. Upstart is building the right side of a cup base with a 191.99 buy point. A lower buy point could emerge if the stock adds a handle.

Atkore (ATKR) rallied 5% in heavy trade to a new high. Shares are now slightly extended from a 90.18 buy point of a cup base cleared on Tuesday. The buy range topped out at 94.69. Atkore leads the 42-stock building products group with a 99 Composite Rating and 99 Earnings Per Share Rating. It's featured in this week's Breakout Stocks column.

NortonLifeLock (NLOK) gapped up and soared 8% in fast trade to lead the S&P 500. Late Tuesday, the security software leader said it will buy Avast, a Czech cybersecurity firm, for $8 billion.

But Covid-19 vaccine maker Moderna (MRNA), down 17% in heavy volume, was the biggest IBD 50 loser. European drug regulators are studying three new possible side effects of coronavirus vaccines from Moderna and Pfizer/BioNTech, Reuters reported. Moderna stock remains sharply extended from a 189.10 buy point of a cup with handle cleared in June.

Germany's BioNTech (BNTX) sank 17%, while Covid-19 vaccine partner Pfizer (PFE) lost 4%, both in high volume. The stocks reached new highs on Tuesday.

Among other IBD 50 decliners, Cloudflare (NET), Trade Desk (TTD) and Kulicke & Soffa (KLIC) shed more than 6% each.

Dow Jones Winners And Losers

Caterpillar (CAT), Walgreens (WBA) and Home Depot (HD), up more than 1.5% each, led the upside on the blue-chip index.

Caterpillar gained 3% in heavy trade, on track to extend its win streak to five. The stock reclaimed its 50-day moving average for the first time in two months. Construction-related stocks got a boost from the Senate's approval of a $1 trillion infrastructure spending package on Tuesday.

Home Depot is breaking out past a 333.55 buy point of a cup with handle, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23. The home improvement retail giant has an 85 Composite Rating and a 93 EPS Rating. A 56 Relative Strength Rating is a bit weak.

Visa (V), down 1.2%, and Salesforce.com (CRM), down 1%, were among the few losers.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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