Commodity and industrial stocks stole the show in stocks today, overshadowing a nice gain by FAANG play and Google search engine owner Alphabet. The Dow Jones industrial average paced the upside with a 0.7% advance.
XThe Nasdaq composite surrendered early gains of as much as 1.1% to end the session down less than 0.1%. The Nasdaq 100 rose 0.4%, but it was up as much as 1.4%.
Volume soared vs. Monday levels, according to preliminary data.
As many as 10 of the Dow Jones industrials' 30 components rose 1 point or more, including aerospace and manufacturing play United Technologies (UTX), oil and gas integrated giant Chevron (CVX), and construction and mining gear play Caterpillar (CAT).
WTI crude oil futures rose 0.9% to $68.50 a barrel. Gold was flat, but copper prices soared 2%.
The Russell 2000, however, had a much rougher go, losing 1%. The S&P SmallCap 600 fell 0.9%. Yet at 1046, it still holds a commanding 11.7% year-to-date gain, vs. a 5.5% rise for the S&P 500.
Defense Stocks Go On Offense
Defense giant Lockheed Martin (LMT), meanwhile, joined the winners column with a gain of nearly 1% to 321 in double usual turnover. The fighter jet and military combat systems maker reported a 31% jump in second-quarter earnings to $4.31 a share, matching a heady 31% increase seen in Q1.
Q2 revenue climbed 7% to $13.4 billion, while net margin expanded by 160 basis points to 9.2%.
At one point, Lockheed rose as much as 3.5% and briefly hopped back above the critical 200-day moving average. A sustained rise back above the long-term support and resistance line would indicate a shift in the balance toward heavy institutional demand vs. institutional supply (or selling).
The stock is trading less than 12% below a 361.99 52-week peak and is in base-building mode.
This FAANG Stock Rises Sharply
Alphabet (GOOGL) gapped up at the open and rose nearly 4% to 1,258.16 in triple average turnover. That sent shares rising 4.7% past a 1,201.59 buy point in a cup with handle base. This means Alphabet is still in buy range.
The web search advertising titan reported a 19% rise in Q2 profit to $10.58 a share, more than 10% above the Thomson Reuters consensus view. Revenue jumped 26% to $32.66 billion. Investors are looking past a $5 billion fine by the European Union levied against Alphabet for alleged anti-competitive activities regarding its mobile phone software platform.
Despite gains in a few major indexes, breadth was negative. On the Nasdaq, losing issues outnumbered winners by a 2-1 ratio. On the NYSE, decliners beat gainers by fewer than 200 issues.
Despite the Nasdaq's sluggishness, a few Nasdaq-listed leaders showed poise.
Intuitive Surgical (ISRG) edged nearly 0.7% higher to 523.22 in fast turnover. The robotic surgery pioneer is up 17.5% after clearing a 445.20 correct entry point in a shallow 11-week cup with handle.
The Innovator IBD 50 (FFTY) ETF slumped more than 1.7% lower. At 36.36, the fund is still up 9.6% since Jan. 1.
Please follow Saito-Chung on Twitter at @IBD_DChung for more commentary on growth stocks and financial markets.
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