Stock Market Up Slightly For Day Ahead Of Earnings Season

The major stock market indexes are up in the last hour and near the highs of the day. The Nasdaq is slightly ahead of the other indexes.

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At midday, the Nasdaq is up 0.4%, while the S&P 500 is climbing 0.2%. The Dow Jones Industrial Average is up 0.3%, and the Russell 2000 is up 0.2%. NYSE volume is down 12.7% and Nasdaq volume is up 3.6% vs. the same time on Thursday.

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Stocks initially fell as yields rose following the June jobs report, but indexes bounced back.

According to David Kelly, Chief Global Strategist at J.P. Morgan Asset Management: “Despite expectations for a slowdown, the U.S. economy saw solid hiring growth in June as labor demand remained strong and a continued lack of workers kept wage gains elevated. Job gains in June slowed modestly month-over-month but were much better than expected, with total nonfarm payrolls increasing by 372,000 vs. 275,000 expected. Wage growth continues to cool modestly with average hourly earnings rising by 0.3% after a 0.4% climb last month.”

Next week kicks off earnings season, with big banks including JPMorgan Chase (JPM) and Morgan Stanley (MS) announcing on Thursday.

Managed Health Care Stock Breaks Out

Centene (CNC), a managed health care company, is up 3.4% and breaking out of a double-bottom base on the MarketSmith chart. The stock hit the 87.44 buy point and is in the 5% buy zone to 91.81.

Centene is ranked No. 2 in the managed care industry, following Humana (HUM). The industry has been a leader, ranking No. 12 out of 197 industries IBD tracks, up from No. 24 three months ago. The company holds a 98 Composite Rating and a 93 Earnings Per Share Rating.

United Healthcare (UNH), an IBD 50 stock, is up 1.8% and rose above the 518.80 buy point of a cup-with-handle base. The stock is in the 5% buy zone, according to Leaderboard. The stock has a 95 Relative Strength Rating, a positive sign. Earnings are scheduled for next Friday.

Lubricant Company Slides, Auto Companies Tick Up

WD-40 (WDC) is down 10.9% after reporting a decline in fiscal Q3 sales and earnings late Thursday. Earnings per share came in at $1.07, missing analysts’ estimate of $1.27, while sales came in at $123.7 millions vs. the expected $142.8 million, according to Benzinga. Gross margins declined to 47.7% from 53.1% in the prior year quarter.

“The company in the third quarter was up against strong comparison and had to manage through several global disruptions that negatively impacted its current-quarter sales results,” said Chief Executive Garry Ridge. Analyst Linda Bolton Weiser of D.A. Davidson maintained a neutral rating on WDFC, but lowered the price target to 169 from 172.

Driven Brands (DRVN) — a paint, collision, and vehicle repair company — is down 0.2% but holding above the 21-day exponential moving average. The stock has been in a cuplike base since the beginning of the year and is working its way back up to the 200-day moving average.

Alibaba (BABA) is up 0.2% and rose above the 200-day moving average on July 7 as Chinese stocks remain strong.

Nasdaq Index ETF Nearing 50-Day Line

Invesco QQQ Trust (QQQ), an ETF corresponding to the Nasdaq 100 Index, is up 0.2% and testing possible resistance at the 50-day line.

Crude oil futures are up 1.8%, with crude oil at $104.62 per barrel. The SPDR S&P Energy ETF (XLE) is up a slight 0.1%.

Bitcoin futures are up 0.2% today to $21,925 and trading near the highs of the day.

The Innovator IBD 50 ETF (FFTY), a gauge of growth stocks, is up a modest 0.1%, slightly behind the major indexes.

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