Stock market looks for direction as healthcare stocks lose steam

Major stock indexes are relatively unchanged and close to last hour levels. The Dow Jones Industrial Average leads the other indexes, but only slightly.


Investors are cautious in anticipation of the next earnings season. At midday, the Nasdaq and S&P 500 were down less than 0.1%. The Dow Jones Industrial Average is up 0.2% and the Russell 2000 is up about 0.2% as well. NYSE volume is up 14.2% and Nasdaq volume is up 0.3% from the same time Monday.

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Growth of auto parts and beverage business

PepsiCo (DYNAMISM) pared its gains after posting a beating in second-quarter sales and earnings. The company raised its guidance, saying it expects organic growth of 10% for 2022 from the 8% previously forecast. The beverage company has posted steady single-digit growth in earnings per share in recent quarters. Quarterly sales growth has fluctuated between 5% and 12% over the past three quarters.

PepsiCo has positive CAN SLIM ratings, including a composite rating of 89, a relative strength rating of 92 and a return on equity of 59%. Its stock price is within 4% of the buy point at 177.72 in a flat basis. The company pays a 2.7% dividend yield to shareholders.

Dorman Products (DORMITORY), a supplier of aftermarket auto and truck parts, was up 1.3% after announcing more than 300 new products for July, including 98 exclusive products. The letter “N” in the CAN SLIM guidelines stands for new, meaning new products, new management, or a new high from a base. New products can be a catalyst for interest in a stock, with the potential to increase the stock price.

Dorman’s stock is coming out of a cup with a handle with a buy point of 113.22, and the relative strength line is at new highs. Analysts expect an annual EPS growth rate of 19% in 2022 and 10% in 2023. The stock has the best possible composite rating of 99.

Stock Market Mover: Healthcare provider in the green

Health Acadia (CCSA), a provider of psychiatric services, is up 0.8% and holding above the 21-day exponential moving average. The stock is consolidating and approaching its buy point of 76.79, with a new high on the relative strength line already in place.

Analysts expect an annual EPS growth rate of 18% in 2022 and 10% in 2023. Mutual funds added ACHC in the June quarter, with 592 shares, compared to 558 in March . The company earns a composite rating of 93.

Medical, oil stocks see red

Overview of the US stock market today

Index Symbol Price loss of profit % To change
Dow Jones (0DJIA) 31242.97 +69.13 +0.22
S&P500 (0S&P5) 3853.01 -1.42 -0.04
Nasdaq (0NDQC ) 11364.18 -8.42 -0.07
Russell 2000 (IWM) 172.33 +0.27 +0.16
INN 50 (FFTY) 26.61 -0.27 -1.00
Last Updated: 12:12 PM ET on 07/12/2022

Evolutionary Health (EVH), a provider of medical software, is down a further 4.4% after yesterday’s strong volume decline of 5.8%. The stock reached the sell signal 7% to 8% below the buy point and was removed from the chart.

Cross Country Health Care (CCRN), a medical staffing company, is down 2.4% after a recent rally that took it above a buy point of 24.06. AMN Health (AMN), another medical staffing company, is down 5.4% in increased volume.

Exxon Mobil (XOM) is down 1.7% and Chevron (CLC) is down 1.8% following the drop in crude.

Crude oil futures are down 7.2%, with crude oil below $100 a barrel at $96.59 on fears of a possible recession. The SPDR S&P Energy ETF (XLE) is down 2%.

ETF movements

Invesco QQQ Trust (QQQ), an ETF corresponding to the Nasdaq 100 index, is up 0.1% as it tries to bounce off the 21-day exponential moving average.

Chinese stocks continued Monday’s slide on rising Covid-19 cases and small fines imposed Ali Baba (BABA) and Tencent (TCEHY). The iShares China Large-Cap ETF (FXI) is down 0.3%.

Bitcoin futures are down 3% today, dropping below the $20,000 level to $19,845.

The Innovator IBD 50 ETF (FFTY), an indicator of growth stocks, was down 1.1%, lagging the major indexes.


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