Stock Market Gets Back On Bullish Path; Trump Remarks Help
U.S. stock indexes got back on a bullish track Thursday, as the stock market returned to July’s upward bias.
The Nasdaq advanced 1.2%, hitting a record high. The Dow Jones industrial average and the S&P 500 rose 0.9% and 0.8%, respectively. The small-cap Russell 2000 edged up 0.3%.
Volume fell on the NYSE but rose on the Nasdaq.
President Donald Trump removed some of the negative influence on the stock market with his comments on NATO. Trump claimed victory in his efforts to increase Europe’s contribution to defense spending. According to the New York Times, leaders from some NATO nations said they agreed to no such thing.
The stock market, however, took the news as a cue to rise.
The Innovator IBD 50 Fund (FFTY) gapped up 1.7% as it padded its position above the 50-day moving average. The exchange traded fund reflects the action of the IBD 50.
In the S&P 500, stocks gaining 3% to 4% included chipmaker Texas Instruments (TXN), open-source software provider Red Hat (RHT), clear dental braces maker Align Technology (ALGN), payment processor Total System Services (TSS) and aerospace play Northrop Grumman (NOC).
Total System Services showed the best action chartwise. The stock popped 3% as it cleared a 90.84 buy point in a 9% deep channel. Volume was 54% above average. The pattern is third stage, which carries some challenges.
Quality breakouts were scarce.
In Europe, Pierre Moscovici — commissioner for economic and financial affairs, taxation and customs — said the threat of a trade war is hurting Europe’s economy. The EC cut its economic forecast for this year. The EC expects 2.1% growth, down from the previous estimate of 2.3%.
In the U.S., first-time jobless claims rolled in at 214,000 vs. the consensus estimate of 225,000.
The consumer price index for June came in at 0.1% vs. views for 0.2%.
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