The Dow Jones Industrial Average moved higher, continuing the week’s gains in today’s stock market, while the S&P 500 and Nasdaq also gained after Fed chief Jerome Powell’s speech.
Stock Market Today
The Nasdaq rose 1.2% while the S&P 500 gained 0.9%. The Dow Jones advanced 0.7%, while the Russell 2000 index climbed 2.8%, leading on the upside. Volume was higher on the Nasdaq and on the NYSE vs. the same time on Thursday. CAN SLIM investors like to see stocks rising in higher volume. It’s a bullish sign for the market overall.
Stocks continued higher on Friday after taking a pause Thursday. The market rose across the board after Powell gave a dovish view on inflation. In his remarks, Powell supported the central bank’s new plan to begin reversing its bond purchases later this year.
“I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace” of the Fed’s $120 billion in monthly asset purchases, Powell said Friday.
U.S. Stock Market Today Overview
Last Update: 2:44 PM ET 8/27/2021
Growth Stocks To Watch
As for top growth stocks in the stock market, the Innovator IBD 50 ETF (FFTY) outperformed with a gain of 2.9%, rising near its April highs. The ETF continues to move above its 50-day line. Stocks outperforming in the index included Bill.com Holdings (BILL) and TaskUs (TASK), which gained roughly 28% and 8%, respectively.
Bill.com rose in heavy volume and reached a new high of 288.88. Shares are now more than 45% extended from a 192.99 buy point of a cup with handle. Investors can consider taking profits at this point since the stock has moved well beyond the 20%-25% profit zone.
Late Thursday, the growth stock reported another strong quarter of sales growth and offered bullish revenue guidance for the current quarter. The financial software maker reported an adjusted loss of 7 cents a share, but revenue growth accelerated sharply from the prior quarter to $78.3 million, or a rise of 86%.
Notable stocks from the MarketSmith Growth 250 breaking out on Friday included transportation services stock J.B. Hunt (JBHT). The growth stock rose over 2.6% and broke out from a 177.03 cup-with-handle buy point. Shares remained in the buy area in afternoon trading.
Elsewhere, mobile home manufacturer Skyline Champion (SKY) broke out from a rare ascending base pattern with a 64.33 buy point. The stock rose 6.6% in afternoon trading and shares remain near the upper edge of the buy zone, which tops out at 67.54.
Dow Jones Today
Finally, Dow Jones leader Home Depot (HD) rose 0.5% Friday. The stock is trying to reclaim both its 200-day line and a recent 333.55 entry. Shares currently sit 3% below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Follow Rachel Fox on Twitter at @foxonstocks for more Dow Jones and market commentary.
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