Plunge Hits Nasdaq Harder As Stock Market Drops; This Software Stock Soars 26%

The stock market was off its opening lows Friday morning as the Nasdaq composite took the hardest hit from weakness in (AMZN) in particular.

X slid nearly 7% after the company reported second-quarter sales that missed views and gave a disappointing forecast for the third quarter. The stock, which is a sizable piece of the Nasdaq and S&P 500, gapped below its 50-day moving average in heavy volume but held above the 200-day average.

The Nasdaq gapped down at the open and trimmed its loss to 0.6%. The S&P 500 lost 0.4% as it also pared losses.

The Dow Jones Industrial Average dipped 0.2%. Procter & Gamble (PG) was the Dow’s best performer, up 2% after the household goods company beat sales and profit expectations, but warned of higher costs. On Thursday, P&G announced that David Taylor was stepping down as CEO. Chief Operating Officer Jon Moeller will succeed Taylor, who will serve as executive chairman.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35058.64 +127.71 +0.37
S&P 500 (0S&P5) 4407.35 +6.71 +0.15
Nasdaq (0NDQC ) 14710.54 -52.05 -0.35
Russell 2000 (IWM) 223.67 +2.85 +1.29
IBD 50 (FFTY) 45.51 -0.07 -0.15
Last Update: 10:02 AM ET 7/30/2021

Small caps outperformed the stock market. The Russell 2000 climbed 0.5%.

Volume was lower on the NYSE and Nasdaq compared with the same time on Thursday.

Market Rally Shows Quiet Strength; Amazon Lessons For 3 Key Stocks

Earnings Reports Spark Stock Market Moves

Other earnings reports sparked major stock market moves.

Atlassian (TEAM) soared more than 26% after the software maker’s earnings topped estimates and the company forecast higher-than-expected subscription revenue for its fiscal 2022. The stock broke out of a base in June and was testing the 10-week moving average before Friday’s surge.

But Pinterest (PINS) plummeted more than 17% after the social media company beat second-quarter expectations late Thursday but missed user growth estimates. The stock gapped below its 50-day and 200-day moving averages.

Pinterest is an IBD 50 stock, and its plunge cost the index. The Innovator IBD 50 ETF (FFTY) was down a modest 0.6%.

Oil Majors Beat Profit Views

Exxon Mobil (XOM) and Chevron (CVX) reported better-than-expected earnings early Friday. Exxon Mobil dipped less than 1%, while Chevron pared gains to 0.1%. Chevron faces upside resistance at the 50-day line.

Personal spending rose 1% in June, the Commerce Department reported Friday, beating economists’ expectations for a 0.6% increase. The gain follows a revised 0.1% dip in May. Also this morning, the U.S. personal income report for June showed a 0.1% increase. That was much better than a consensus forecast for a 0.7% decline.

Despite a positive reading on the U.S. consumer, Consumer Discretionary Select Sector SPDR (XLY) fell 1.7%, the worst S&P sector ETF in today’s stock market. Blame that on Amazon, which is roughly 23% of the ETF’s weighting. Still, the ETF is finding support at the 21-day exponential moving average.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia


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