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Dow Jones Rallies As Microsoft Hits New High; Nvidia Among Growth Stocks Near Buy Point

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The Dow Jones Industrial Average rallied 240 points midday Friday, on track to halt a three-day slide, as Microsoft hit a new high.

At around noon in New York, the Nasdaq rallied nearly 0.8%, the S&P 500 rose 0.6% and the Dow Jones industrials were up 0.6% in the stock market today. Small caps tracked by the Russell 2000 outperformed, up 1%. Volume was mixed, lower on the NYSE and higher on the Nasdaq vs. the same time Thursday.

Among exchange traded funds, Innovator IBD 50 (FFTY) rebounded 0.9%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) also gained 0.9%.

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 cases are rapidly rising again and mask mandates are returning in some states as the delta variant spreads.

Cumulative Covid-19 cases worldwide have topped 211 million, with over 4.4 million deaths, according to Worldometer. In the U.S., cases have surpassed 38 million with more than 643,000 deaths.

Growth Stocks To Watch

TaskUs (TASK) led the IBD 50 with a nearly 8% surge to a record high. Shares are now 40% extended from a 35.73 buy point of a consolidation. TaskUs broke out on Aug. 11 after reporting better-than-expected earnings. The digital outsourcing tech company came public June 11.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35090.77 +196.65 +0.56
S&P 500 (0S&P5) 4431.49 +25.69 +0.58
Nasdaq (0NDQC ) 14652.67 +110.88 +0.76
Russell 2000 (IWM) 214.03 +2.09 +0.99
IBD 50 (FFTY) 45.01 +0.42 +0.94
Last Update: 11:52 AM ET 8/20/2021

Among other IBD 50 winners, Upstart (UPST), Monday.com (MNDY), Maravai LifeSciences (MRVI) and Nvidia (NVDA) gained about 3% each.

Nvidia, up nearly 3% in fast trade, added to Thursday’s 4% advance. Shares are getting close to a 207.43 buy point of a cup with handle, according to MarketSmith chart analysis. The chart also can be interpreted as a flat base with a 208.85 buy point. The graphics chip designer is an IBD Leaderboard and SwingTrader stock.

Upstart is nearly extended from a 191.99 buy point of a cup base, which it first cleared last Friday. The buy zone tops out at 201.59. The cloud-based consumer lending platform, which held its IPO in December, earns a highest-possible 99 Composite Rating. That puts it at the top of the 31-stock consumer loans group.

About a dozen IBD 50 stocks were lower, most with losses below 1% each. Sea Limited (SE) led the downside with a nearly 3% drop, while Kulicke & Soffa (KLIC), Carvana (CVNA) and Shopify (SHOP) gave up roughly 1% apiece.

Shopify is just below a 1,499.85 buy point in a cup base, while trying to find support at its key 50-day moving average. Shares rose about 0.5% Friday.

Dow Jones Movers

Big-cap techs were mostly higher on the blue chip index with Microsoft (MSFT), Home Depot (HD), Salesforce.com (CRM) and Cisco (CSCO) leading the upside.

Microsoft rose more than 2% in triple normal trade to mark a second straight new high. The software giant said it would raise prices on its Office 365 and Microsoft 365 suite. Mizuho, UBS and Wedbush hiked their Microsoft price target to 350, according to Barron’s.

Shares continue to trade solidly above a 263.29 buy point of a cup base cleared in June. Microsoft stock is extended from the 5% buy zone, which goes up to 276.45. Microsoft is a Leaderboard and IBD Long-Term Leader stock.

Home Depot stock is back below a 333.55 buy point of a cup with handle after Tuesday’s earnings sell-off. That day, shares gapped down and tumbled 4% to test its 50-day line.

Follow Nancy Gondo on Twitter at @IBD_NGondo

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