The Dow Jones Industrial Average charged higher after a speech by Federal Reserve Chairman Jerome Powell. Tesla ((TSLA)) moved higher after the firm finally moved on a jibe by CEO Elon Musk. AMC Entertainment (AMC) and GameStop (GME) posted massive weekly gains amid a meme stock rally, but Support.com (SPRT) was the day’s biggest winner.
Growth stocks were the top performers of the day. A clutch of stocks passed buy points amid the strong rally, including Avery Dennison (AVY), Syneos Health (SYNH), J.B. Hunt Transport (JBHT), Skyline Champion (SKY) and SiteOne Landscape Supply (SITE).
Action was broadly positive on the day of Powell’s Jackson Hole speech. He reaffirmed the central bank’s plan to scale back its stimulus policies. He also said he is expecting inflation to recede.
While it is likely the central bank will begin cutting the amount of bonds it buys each month by the end of 2021, Powell said ” the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.”
An announcing on when tapering will begin could be made as soon as the Federal Open Market Committee’s Sept. 21-22 meeting.
Nasdaq Rallies As Small Caps Lead
The Nasdaq was the leading major index, closing with a gain of 1.2%. Workday (WDAY) was the top performer here, rising more than 9% on strong earnings and subscriber growth estimates.
The S&P 500 also fared well, rising about 0.9%. Occidental Petroleum (OXY) was the biggest gainer here, rising almost 7%.
The S&P sectors were mostly green, with energy and communication services making the best gains. Utilities and health care were the only areas to post a loss.
U.S. Stock Market Today Overview
Last Update: 4:12 PM ET 8/27/2021
Small caps were the stars of the day, with the Russell 2000 posting a strong gain for the day of about 2.8%.
Growth stocks were running neck and neck with small caps, with the Innovator IBD 50 ETF (FFTY) powering up 2.8%.
The Dow Jones closed around highs, surging 242 points as it rose 0.7%. The move saw it pull further clear of its 50-day moving average.
Elon Musk Steps Up After Jibe; Tesla Stock Rises
Tesla stock was up following news the firm has filed an application with the Texas Public Utility Commission to sell electricity in the state. It closed the day up 1.5%.
It means Musk has finally moved after earlier this year mocking the efforts of the Electric Reliability Council of Texas, also know as ERCOT, over its management of the Texas grid.
At the height of the blackout crisis hitting the state, Musk took aim at ERCOT, tweeting it was “not earning that R.”
It was a good week overall for Tesla stock, and it ended up with a gain of almost 5%. The Leaderboard stock remains shy of a new early buy point of 730.
Elon Musk has also been active, springing a surprise on followers by tweeting that the firm’s Full Self Driving beta will be available to the wider U.S. public in about a month.
AMC Stock Makes Big Weekly Gain
Meme stocks ended the week with big gains, even if some struggled on Friday.
AMC Stock saw its stock price end up almost 19%, despite the fact it rose just over 1% for the day. It rallied after giving up ground for much of the session.
The cinema stock still boasts a perfect Relative Strength Rating of 99, but is now well off is 2021 high of 72.62.
GameStop stock fared even better, posting a gain of around 28% for the week. It gave up slight ground during the session.
But both stocks got smoked in the daily gain stakes by fellow meme play Support.com (SPRT). While it closed well off its highs, it still ended up posting a gain of around 34%.
5 Stocks Near Buys After Strong Rally; Payments IPO Soars On Amazon Deal
These Stocks Pass Buy Points Amid Stock Market Rally
A number of stocks in a variety of fields managed to stage breakouts.
Avery Dennison broke out of a cup-without-handle base, though it settle slightly below the entry. The ideal buy point here is 226.29, MarketSmith analysis shows.
The adhesive materials stock is seeing its relative strength line bend upward, and boasts good earnings and stock market performance.
Syneos Health moved above a flat base ideal entry point of 92.35, but also closed below it. This is a second-stage pattern, which IBD research shows is more likely to succeed than later ones.
The contract health research company’s stock boasts a strong Composite Rating of 94 due to solid earnings and price performance. Big money has also been buying the stock of late.
J.B. Hunt Transport Services is in a buy zone above a cup-with-handle entry of 177.03.
While the relative strength line is making progress, stock market performance over the past 12 months is not ideal. Earnings are solid however, and are accelerating.
Manufactured home stock Skyline Champion burst past an ascending base entry of 64.33 in above-average volume. Its RS line hit a new high, which is a plus.
Both earnings and stock market performance are very strong, with its EPS Rating a rare perfect 99.
SiteOne Landscape Supply moved above a cup-with-handle entry of 200.10. The landscaping supplies company’s stock has seen earnings rise 48% in the most recent quarter.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
YOU MIGHT ALSO LIKE:
Analysts: You’re Going To Lose Up To 30% On These 10 Stocks
MarketSmith: Research, Charts, Data And Coaching All In One Place
These Are The 5 Best Stocks To Buy And Watch Now
The Ultimate Warren Buffett Stock Is Near A Buy Point, But Should You Buy It?
Is Walmart Stock A Buy Right Now? Here’s What Charts, Analysis Show