Dow Jones Fights Back As Microsoft Snatches Apple’s Crown; Donald Trump SPAC Dives Bigly; Amazon Falls On This

 Dow Jones Fights Back As Microsoft Snatches Apple’s Crown; Donald Trump SPAC Dives Bigly; Amazon Falls On This

The Dow Jones Industrial Average rallied into positive territory as Microsoft (MSFT) snatched Apple‘s (AAPL) crown as the world’s most valuable company. Meanwhile, the Donald Trump SPAC is on track for a huge weekly drop. Amazon (AMZN) took a dive on disappointing results.

Stocks closed at record highs and notched their best month of the year so far. A number of stocks managed to pass buy points amid the positive action. CubeSmart (CUBE), Extra Space Storage (EXR) and Freshworks (FRSH) passed entries.




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Earlier in the day, the Commerce Department released mixed data on personal spending and consumer price data for September.

Personal incomes dived 1%, vs. a 0.2% gain in August and against expectations for a 0.1% decline. Personal spending rose 0.6%, slower than August, but above projections. Prices rose 0.3%, just below estimates, while core prices rose 0.2% — in line with forecasts.

National Securities chief market strategist Art Hogan said next week’s earnings reports will be critical.

“Thus far investors have looked at supply chain issues as temporary, and chosen to focus on exploding aggregate demand,” he said in a note to clients. “We are just about halfway through the corporate confessions, and there will most certainly be some more bumps in the long and winding road ahead. By the end of next week 90% of the S&P 500 will have reported third quarter results.”

Nasdaq Gains, Growth Stocks Lead

The Nasdaq inched higher after a late rally, rising closing up 0.3%. Atlassian (TEAM) was the star of the index, gaining nearly 10% for the day.

The S&P 500 also battled its way into green territory, inching up 0.2%. Diabetes treatment play Dexcom (DXCM) fared best here, rising more than 9%.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 35819.59 89.11 0.25
S&P 500 (0S&P5) 4605.36 8.94 0.19
Nasdaq (0NDQC ) 15498.39 50.27 0.33
Russell 2000 (IWM) 228.11 0.00 0.00
IBD 50 (FFTY) 50.35 0.37 0.74
Last Update: 4:04 PM ET 10/29/2021

The S&P sectors were mostly red, with health and communication services making the best gains. Energy and real estate fared worst of all.

Small caps had been struggling, but the Russell 2000 managed to close unchanged.

Growth stocks fared best of all, with the Innovator IBD 50 ETF (FFTY) rising 0.7%.

Dow Jones: Microsoft Snatches Title As Reality Bites Apple

The Dow Jones Industrial Average managed to make its way into positive territory, closing with a gain of nearly 0.3%.

It was helped by the performance of Microsoft stock, which closed with a gain of over 2%. This saw its market cap swell to $2.49 trillion, which means it is now the world’s most valuable public company.

The Leaderboard stock is extended past a 305.94 buy point from a flat base.

Apple lost its market-cap crown after it gapped down on poor results Friday, closing down nearly 2% in heavy volume. It managed to finish off its lows for the day

The iPhone maker tumbled after it failed to meet fiscal Q4 sales expectations, even as it matched earnings views. Apple earnings jumped 70% year over year to $1.24 a share, while sales climbed 29% to $83.4 billion. The firm blamed product shortages due to supply chain issues.

Merck (MRK) and Intel (INTC) were two of the other major gainers on the Dow Jones today.

Prime Mover: Amazon Dips On Earnings

E-commerce and cloud computing giant Amazon was another suffering tech giant Friday.

The stock closed off lows for the day, but still fell more than 2%. It was punished after Amazon reported disappointing Q3 results that missed on the top and bottom lines.

Amazon earnings came in at $6.12 a share, while revenue was $110.8 billion. Analysts expected earnings of $8.92 on revenue of $111.6 billion.

Another key factor in its dip was the fact it warned rising costs due to labor shortages will hit earnings going forward.

Amazon is currently the fourth most valuable company in terms of market cap, behind Google parent Alphabet (GOOGL).

Donald Trump SPAC Falls Hard

A listed special purpose acquisition company linked to former President Donald Trump is on track to post a massive weekly decline.

Digital World Acquisition (DWAC) closed down nearly 7% Friday to just under 68 a share. This means it fell 28% this week.

Indeed, it is on track to finish more than 61% off its all-time high of 175, which it reached last Friday.

Earlier this week Trump outlined his plans for social media site Truth Social. He boasted he will offer a “Big Tent” platform as he locks horns with the likes of Facebook (FB) and Twitter (TWTR).

“Unlike with the Big Tech platforms, there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation,” the former president said. “We will not be treating users like lab rats for social experiments, or labeling alternative views as ‘disinformation.’ “

Digital World Acquisition skyrocketed last week on the news it will serve as a vehicle to take the Trump Media & Technology Group public via a merger.

In addition to Truth Social, the firm will offer a subscription-based video-on-demand service to be called TMTG .

The SPAC stock is still up overall, after it traded at around the 10 level for much of October.


Three Stocks Near Buy Points As Fed Taper Looms; What To Do Now


These 3 Stocks Pass Buy Points

CubeSmart passed the 55.17 buy point of a cup without handle, but closed just under the entry.

The REIT is one of the top three self-storage companies in the country, and reports earnings Thursday after the close. This adds risk to any share buys prior to the earnings report.

An approach highlighted by Investor’s Business Daily is to use options as a strategy to reduce risk around earnings. It’s a way to capitalize on the upside potential of a stock’s move around earnings, while reducing the downside risk.

The firm’s peer Extra Space Storage hit a new high Friday, and closed in a buy zone after passing the 194.77 buy point of a cup-without-handle base.

The company was boosted after Q3 results exceeded Wall Street expectations. Salt Lake City-based Extra Space has 2,054 self-storage locations in 41 states and Washington, D.C.

IPO stock Freshworks also closed in a buy zone after it passed an IPO-base entry of 49.35. The relative strength line is hitting new highs, an encouraging sign.

However, investing in a new issue is risky, especially as Freshworks posts third-quarter earnings next week. Nevertheless, it’s a watchlist candidate and was the IBD Stock Of The Day for Friday.

Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.

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