The stock market surged after PayPal, Daqo New Energy and Moderna posted earnings that were better than estimates. Indexes rose to session highs in afternoon trading.
The Nasdaq led with a 2.6% gain, followed by the S&P 500 which rose 1.5% and the Dow Jones Industrial Average, which was up 0.5%. The small-cap Russell 2000 also gained by 1%.
Crude oil fell more than 3% to $91.37 a barrel after OPEC+ agreed to increase its output by 100,000 barrels a day in September, though that was a smaller increase than some expected.
The yield on the 10-year Treasury rose 3 basis points to 2.77%. The Innovator IBD 50 Fund posted a 1.3% gain.
Volume on the Nasdaq was higher by 24% compared to the same time yesterday. It was lighter by 8% on the NYSE.
Stocks Market Movers
Shares of PayPal surged 11% but pared gains a little in the afternoon. The stock is still up 8.6% after the company beat earnings estimates late Tuesday.
The company reported 93 cents in earnings per share on revenue of $6.81 billion. PayPal increased its full-year outlook through cost-cutting plans.
Shares also rose on the news that Elliott Investment Management will take a $2 billion stake in the company. Elliott was in the news yesterday as well when it announced a stake in Pinterest.
In health care, Moderna spiked 16%. Earnings per share of $5.24 on revenue of $4.75 billion came in above expectations of $4.58 earnings and $4.1 billion sales, according to FactSet. Its Covid vaccine, Spikevax, drove revenue gains. The stock has reclaimed its 50-day moving average after earnings.
Daqo New Energy reversed lower, giving up a big early gain after it announced earnings of $8.18 per share on revenue of $1.24 billion. Lower sales were partly offset by the higher average selling price of solar equipment.
The stock was down 0.4% with support at its 50-day moving average. The IBD Leaderboard stock could be interpreted to be forming a cup-with-handle base with a 77.38 buy point.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31918.83 | +157.29 | +0.50 |
| S&P 500 | (0S&P5) | 3977.95 | +56.90 | +1.45 |
| Nasdaq | (0NDQC ) | 11862.75 | +300.17 | +2.60 |
| Russell 2000 | 181.06 | +1.73 | +0.96 | |
| IBD 50 | 27.42 | +0.36 | +1.33 | |
Last Update: 12:00 PM ET 7/27/2022 |
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Shares of Airbnb are down after a slight revenue miss. The company beat earnings estimates by 11 cents a share. Gross bookings were the highest for any quarter, but still fell below estimates.
SolarEdge also missed revenue views but beat earnings estimates. Earnings were 95 cents per share on revenue of $727.8 million.
Earnings Deck
Cross Country Healthcare is up before earnings after the stock market closes today. The shares are trading above their 50- and 200-day moving averages.
The stock's strong Relative Strength Rating of 98 demonstrates its superior performance as well. The stock is trading in a cup base with an entry point of 30.50, according to MarketSmith. It appears to be forming a handle. CCRN is on the highly selective IBD 50 list and is an IBD Leaderboard stock.
In the EV segment, Lucid and Fisker are on the earnings deck after the stock market closes. Lucid is expected to cut its losses from $1.17 in Q2 2021 to 37 cents a share this quarter.
Fisker faces a higher hurdle. According to FactSet, Fisker is expected to lose $1.64 a share as it builds out its SUV, the Ocean.
After Tesla rival BYD's strong July sales numbers, Lucid's forward guidance will be on watch today.
Shares of Lucid are up nearly 3% today, while Fisker has risen 4.5%. Both are trading slightly above support along the 50-day line.
Also on earnings watch is Verra Mobility. The IBD Leaderboard company gave full-year guidance for $715 million sales. The stock has an RS Rating of 90.
