Stock market rises as service sector jumps; PayPal and Moderna lead in revenue – Investor’s Business Daily | Gmx Pharm

The stock market rose on Wednesday as the service sector rallied on fresh economic data. fintech provider PayPal (PYPL) and vaccine manufacturers modern (MRNA) led with strong gains.




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The Nasdaq Composite rose 2%. The S&P 500 was up 1.2% and the Dow Jones Industrial Average was up 1%. The Russell 2000 small-cap index was up 1%.

Volume rose on the Nasdaq and fell on the NYSE compared to the same time on Tuesday.

Innovator IBD 50 ETF (FFTY) lagged, down 0.7%, led by oil stocks.

The services purchasing managers’ index beat earlier forecasts to come in at 47.3 in July, despite a weaker trend. According to S&P Global, it was the fourth consecutive decline in the seasonally adjusted index. But while inflationary pressures remain at historically high levels, input and output costs have been the slowest rises over the past five and 16 months, respectively.

Overview of today’s US stock market

index symbol Price loss of gain % change
Dow Jones (0DJIA) 32728.29 +332.12 +1.03
S&P500 (0S&P5) 4140.85 +49.66 +1.21
Nasdaq (0NDQC) 12596.39 +247.63 +2.01
Russell 2000 (IWM) 188.94 +1.94 +1.04
IBD 50 (FFTY) 28.58 -0.19 -0.66
Last Updated: 12:16pm ET 8/3/2022

The Institute for Supply Management index hit a three-month high in July. The ISM monitors the activities of 375 service companies. It hit 56.7 in July, well above the Econoday consensus of 53.0 and better than June’s reading of 55.3.

Oil stocks, crude oil prices fall after OPEC decision

US crude fell 2.5% to below $92 a barrel after OPEC+ agreed to only a modest increase in oil production.

“The U.S. has probably been hoping for a bigger increase in output, especially after Biden’s recent trip to the Middle East,” said Noah Barrett, energy and utilities research analyst at Janus Henderson Investors. “In terms of overall supply/demand management, OPEC’s decision is logical.”

Crude Oil is nearing the Feb. 22 close of $91.59 a barrel just before Russia invaded Ukraine and sent prices higher.

The Energy Select Sector SPDR ETF (XLE) fell 2.2% on Wednesday, making it the worst-performing S&P sector.

Meanwhile, the Communications Services Select Sector ETF (XLC) rose 2%, becoming the best-performing sector in S&P.

PayPal rose 10% after the electronic payments company said it was willing to work with activist investor Elliott Management. PayPal added $15 billion to its share buyback program and reported mixed second-quarter results. The stock is attempting to bottom out after a deep decline.

Moderna erased sales and earnings forecasts for Covid vaccines on Wednesday morning, rising 15%. The company maintained its full-year guidance for revenue of $21 billion based on current agreements.

According to MarketSmith.com, Moderna stock has moved sharply towards its 200-day moving average.

Robinhood, Ping, Evolent Boost Stock Market

Robin Hood (HOOD) surged nearly 14% on heavy trading after the online broker announced second-quarter results that included a 34% year-over-year drop in average monthly users. It also implemented a second round of layoffs that were part of a cost-cutting program. Robinhood stock has been in a prolonged slump.

ping identity (PING) surged 60% on huge volume after the security software maker agreed to a $2.8 billion buyout from investment firm Thoma Bravo. The company is paying $28.50 per share in cash for Ping, a premium of about 63% over Tuesday’s close.

playgroup (MTCH) plunged more than 17% on large volumes, ending an attempted recovery for the laggard stock. The dating app company missed revenue estimates and posted a loss for the quarter. Tinder CEO Renate Nyborg is also leaving the company. The stock is currently at an all-time low.

Evolved Health (EVH) beat earnings estimates on Tuesday morning and raised its full-year guidance. The healthcare financial management software provider jumped 4.5% to a new high. A breakout of 33.24 buy point failed but Evolent recaptured entry. Investors can also look at 35.17 as an alternative buy point.

Follow Michael Molinski on Twitter @IMmolinski

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