Stock Market Today

Stock Market Today: Amazon Lifts Nasdaq to Another Record Close

Weak services data clipped win streaks in the Dow and S&P 500, but a big move by Amazon.com (AMZN) kept the Nasdaq in the green.

Stocks returned from the holiday weekend somewhat sluggishly. Slight declines on Tuesday snapped win streaks for a couple major indexes, though the Nasdaq managed to claw out another new high.

What weighed on investors' optimism?

The Institute for Supply Management's services reading fell 3.9 points to 60.1 in June; anything over 50 signals expansion, so services are still improving, just at a slower rate than in May.

"June's headline was a fair bit softer than anticipated (Barclays 64.0; consensus 63.4)," says Barclays economist Jonathan Millar. "Today's report suggests that supply bottlenecks remain acute amid very strong demand, slowing the transition of activity from goods to services."

Meanwhile, over the weekend, OPEC and its allies failed to agree on production increases, postponing talks indefinitely. While that initially drove U.S. crude oil prices to six-year highs, they finished soundly negative, declining 2.4% to $73.37 per barrel.

The Dow Jones Industrial Average (-0.6% to 34,577) ended a four-day win streak, while the S&P 500 (-0.2% to 4,343) failed to secure its eighth consecutive advance.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

But the Nasdaq (+0.2% to 14,633) managed to score a record close, helped by Amazon.com (AMZN, +4.7%), which leaped to a fresh all-time high following Monday's passing of the torch from founder Jeff Bezos to new CEO Andy Jassy. Tugging in the other direction was Tesla (TSLA, -2.9%); the electric vehicle maker struggled after CEO Elon Musk's weekend comments that he didn't expect that developing self-driving technologies would be "so hard."

Other action in the stock market today:

  • The small-cap Russell 2000 took a deep 1.4% cut to 2,274.
  • DiDi Global (DIDI) was a notable decliner on Wall Street on Tuesday, just days after the Chinese ride-sharing firm went public. DIDI stock shed 18.9% after China said new users were banned from downloading the company's app until regulators concluded a cybersecurity review. Yesterday, the Wall Street Journal reported that officials in China suggested DIDI delay its initial public offering (IPO) in the U.S. until after the review. Regardless, the company opened for trading on the New York Stock Exchange last Wednesday.
  • AMC Entertainment (AMC) fell 3.9% after the company withdrew plans to issue up to 25 million more shares, according to a Securities and Exchange Commission filing. In a tweet, the movie chain's CEO Adam Aron said, "It's no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split." The meme stock is still up roughly 2,260% for the year to date.
  • Gold futures gained 0.6% to end at $1,794.20 an ounce.
  • The CBOE Volatility Index (VIX) jumped 8.0% to 16.28.
  • Bitcoin prices ebbed and flowed across the weekend, but finished Tuesday afternoon at $33,948.73, up 2.2% from the same time on Friday. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.
stock chart for 070621

YCharts

Grow, Growth! Grow!

Growth is evening the score in 2021. While value still maintains a performance edge across the year, the growth style has flipped the script over the past couple months – and the fun might just be starting.

"We feel this rotation has created an unusual buying opportunity for secular growth stocks, as they are generally 30%-50% off their 52-week highs," say James L. Callinan and Bryan Wong, Osterweis Capital Management's chief investment officer of emerging growth and vice president, respectively. "When combined with their underlying growth rates, which have remained robust despite their tepid share performance, valuations look reasonable, especially on five-year projected earnings."

These growth-at-a-reasonable price (GARP) stocks are a perfect example of that, offering up substantial future earnings prospects while trading at true-blue values.

If you're not as concerned about price but still want to harness secular growth trends, you have your pick of the litter. Booming technologies such as semiconductors and artificial intelligence come to mind, but industries such as marijuana are trying to prove breakneck growth doesn't have to come from tech.

If you prefer a little variety, however, consider these 11 great growth stocks – dealing in everything from electrical products to credit cards to Big Macs – that appear to have runway through at least the end of 2021 … if not much longer.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
12 Best Monthly Dividend Stocks and Funds to Buy
Kiplinger's Investing Outlook

12 Best Monthly Dividend Stocks and Funds to Buy

Your bills come monthly. Why not your dividend checks? These are some of 2022's best monthly dividend stocks and funds for easier income planning.
November 22, 2021
The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked
stocks

The Berkshire Hathaway Portfolio: All 41 Warren Buffett Stocks Ranked

The Berkshire Hathaway portfolio is a diverse set of blue chips, and increasingly, lesser-known growth bets. Here's a look at every stock picked by Wa…
November 16, 2021

Recommended

Stock Market Today (11/29/21): Tech Stocks Lead in Broad-Market Bounce
Stock Market Today

Stock Market Today (11/29/21): Tech Stocks Lead in Broad-Market Bounce

Tesla and Microsoft were two notable gainers, while semiconductor stocks also made a big move higher.
November 29, 2021
Stock Market Today (11/26/21): New COVID Strain Sinks Stocks in Short Session
Stock Market Today

Stock Market Today (11/26/21): New COVID Strain Sinks Stocks in Short Session

The WHO assigned the new strain the Greek letter "Omicron" and designated it a "variant of concern."
November 26, 2021
New "Omicron" COVID Variant Rattles Stock Markets
stocks

New "Omicron" COVID Variant Rattles Stock Markets

A new strain of COVID - B.1.1.529, which has been given the "omicron" label - hit stocks and other risk assets on the chin Friday.
November 26, 2021
Kiplinger's Weekly Earnings Calendar
stocks

Kiplinger's Weekly Earnings Calendar

Check out our earnings calendar for the upcoming week, as well as our previews of the more noteworthy reports.
November 26, 2021