The Dow Jones Industrial Average rallied as small caps surged. Senate Republican Leader Mitch McConnell made a pledge after Congress struck a late deal to avert a government shutdown. Boeing (BA) took flight on China news, while Apple (AAPL) lagged amid reports of slowing demand. Warren Buffett stock Snowflake (SNOW) rocketed higher.
Breakouts were hard to come by following the whipsaw action of the past week. But Century Communities (CCS) managed to pass a buy point amid a broad rally in homebuilder stocks.
Mitch McConnell Makes Pledge Amid Shutdown Deal
Stocks have been beaten down by negative news over the past week. However, positive sentiment increased after the House reached a deal on a temporary government funding bill to avoid a Federal shutdown.
Senate Minority Leader McConnell indicated he will be lending support to getting the measure through the Senate. This is despite some GOP members wanting to include language in the bill barring a Biden administration Covid vaccine mandate on private employers.
While senators have the ability to slow the bill’s passage, McConnell pointed out the courts have been blocking previous vaccine mandates pushed through by the president.
“We’re not going to shut the government down,” the senior Republican told Fox News. “That makes no sense for anyone. Almost no one on either side thinks that’s a good idea.”
Nasdaq Gains As Small Caps Excel
The Nasdaq was lagging the other major indexes, but still rose 0.4%. Okta (OKTA) was the top performer, surging nearly 11% on earnings.
U.S. Stock Market Today Overview
Last Update: 1:52 PM ET 12/2/2021
The broader S&P 500 was up 1.3%. Kroger (KR) was the top gainer here, surging more than 12% after the supermarket chain hiked its guidance.
The S&P sectors were all making up ground, with financials and real estate leading. Technology and health care were turning in the smallest gains.
Strength in finance stocks helped small caps mightily. The Russell 2000, which has come under assault of late, was up 2.1%.
Meanwhile, growth stocks were catching up after lagging. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, gained 1.1%. Private equity markets firm StepStone (STEP) was the top performer on the IBD 50 with a gain of about 5%.
Dow Jones Today: Boeing Stock Soars As Apple Falls
The Dow Jones Industrial Average was faring best out of the major indexes, surging 1.7%.
Boeing stock was the top performer on the Dow Jones today, rising more than 5%.
It was boosted after China’s aviation regulator cleared the Boeing 737 Max to return to flying on Thursday. It had been grounded for more than two years following two fatal crashes.
Meanwhile, Apple was faring worst following a Bloomberg report that the firm told some of its suppliers there could be slowing demand for the iPhone 13. A parts shortage is said to be one of the reasons consumers are turning away. Apple stock was down 1% after paring a steeper loss.
This Warren Buffett Stock Rockets
Snowflake (SNOW) rocketed higher, surging more than 13%.
This allowed the Warren Buffett stock to bullishly retake its 50-day moving average in heavy volume.
It got a boost after Snowflake handily beat expectations for its October-ended quarter. It’s also served up bullish guidance.
The data warehousing stock was axed from the IBD Leaderboard on Wednesday, after it flashed a sell signal by dipping under its 50-day line in heavy volume.
Warren Buffett’s Berkshire Hathaway (BRKB) is a noted holder of the stock. Fidelity Contrafund (FCNTX), which is highly rated by IBD research, also owns shares.
CCS Stock Passes Buy Point As Homebuilders Pop
Century Communities managed to pass a buy point as homebuilder stocks outperformed. It is sitting in a buy zone above a weekly chart cup-with-handle entry of 75.47. But with the market uptrend under pressure, all stock purchases are more risky.
CCS stock has seen its relative strength line pick up in recent weeks. It is benefiting from a broad rally among homebuilder stocks.
Confidence is growing in the industry, according to the November National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
Homebuilder sentiment rose to 83, with anything above 50 seen as positive. Analysts had seen it holding steady at 80.
Current sales conditions rose 3 points to 89, buyer traffic gained 3 points to 68 and sales expectations in the next six months held firm at 84.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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