Dow Jones Dips, Nasdaq Flies; Meta Rockets Amid Mark Zuckerberg ‘Surprise’
The Dow Jones Industrial Average closed lower even as the Nasdaq soared more than 3%. Meta Platforms (META) jumped as Mark Zuckerberg shared a surprise. Apple ( AAPL ) led earnings while Microsoft ( MSFT ) was a blue chip high.
New Leaderboard member US Global Jets (JETS) ETF climbed above a buy point. A trio of other notable names staged breakouts amid the bullish action. Chewy ( CHWY ), Tapestry ( TPR ), and Arrow Electronics ( ARW ) all tested entries.
New Labor Department data showed first-time jobless claims fell to 183,000 from 186,000 in the previous week. Analysts had expected them to rise to 193,000. The labor market continues to show strength, with first-time claims last week coming in much lower than expected for the second week in a row.
Nasdaq bounces, small caps shine
Today’s action was key as the stock market often has a second-day reaction to Fed meetings. With Fed Chair Jerome Powell’s virtuoso post-press press conference boosting performance yesterday, traders appeared to remain in risk mode today.
The Nasdaq was the strongest of the major indexes as it rose 3.3%. DocuSign ( DOCU ) fared well here with a 7.7% gain.
The S&P 500 rose 1.5% to hit its best level in five months. WW Grainger (GWW) was among the stars here as it gained 13% on the company’s quarterly results.
S&P 500 sectors closed mixed. Consumer discretionary, communications services and technology fared best, while consumer staples and energy were the worst laggards.
Small caps also impressed, with the Russell 2000 rising 2.1%. Growth stocks struggled again at the close, with the Innovator IBD 50 ETF ( FFTY ) ending up 1%.
Dow Jones Today: Microsoft, Apple Impress
The Dow Jones Industrial Average lagged behind other major indexes, despite several components performing well. It closed lower, but again fell 0.1%.
Microsoft stock was the best performer on the Dow Jones today as it rose 4.7%. MSFT stock is now clear of its 200-day moving average for the first time since April, MarketSmith shows.
Apple shares also fared well, rising 3.7%. AAPL shares also climbed to the 200-day line and are up more than 20% so far this year.
Apple’s earnings are expected after the close, with Wall Street expecting EPS to fall 8.1% to $1.93 as sales fell 2.2% to $121.21 billion, according to Zacks Investment Research.
On the downside, UnitedHealth ( UNH ) and Merck ( MRK ) both remained in the Dow. UNH sank 5.3% while MRK fell 3.3%.
Meta Stock Rockets; Mark Zuckerberg admits the ‘surprise’
Facebook’s parent Meta platforms rose after its latest quarterly report on Wednesday. While earnings fell, Facebook’s revenue, sales guidance and user count topped views.
Meta stock closed just shy of Friday’s highs, but still rose 23.3%. This allowed it to break away from its 200-day moving average. There is no entry point in sight at the moment.
Investors seemed particularly pleased that the firm announced a $40 billion stock buyback. The parent of Facebook and Instagram lowered its forecast for expenses, including capital expenditures.
CEO Mark Zuckerberg seems to be finding his inner Ebenezer Scrooge, boasting during the earnings call that “reducing the layers of management” had improved the flow of information, which he believes will lead to better products. benefits and better staff retention.
“It was honestly a little surprising to me, that as we started to dig into this, the company felt better to me,” he said.
Zuckerberg is already seeing a big payoff. The tech mogul, which Bloomberg estimated was worth $57.2 billion at Wednesday’s close, will see its net worth rise sharply by the end of trading today.
The new leader flies to the previous purchase point
The US Global Jets ETF pulled away from a buy point amid bullish action in the airline space.
He managed to walk away from a 20.79 glove entry, earning a spot on the prestigious IBD Leaderboard in the process. The ETF rose 3.1%, climbing near the top of a buy zone.
The ETF has most of its holdings in both US and foreign airlines, but aerospace firms and travel firms also have significant positions within the fund.
Wednesday’s IBD stock of the day, Delta Air Lines ( DAL ), closed above a 39.72 buy point, with a 5% buy zone extending to 41.70. She ended the day calmly.
Among related stocks, Southwest Airlines ( LUV ) rose 3.4%, United Airlines ( UAL ) gained 4.2%, American Airlines ( AAL ) rose 2.2% and Alaska Air ( ALK ) jumped 3.3%.
Align Stock Technology sinks its teeth into monster profit
Orthodontics stock Align Technology ( ALGN ) was one of the best performers on the stock market today.
It surged 27.3% in its quarterly report after beating Wall Street’s views on both the top and bottom lines.
Investors also boosted Align shares after the firm announced it will buy back up to $1 billion of its stock over the next three years.
There is no entry in sight as the stock broke out, climbing more than 60% above its 50-day moving average.
ALGN stock is now up nearly 70% year to date in 2023.
Outside the Dow Jones: 3 Stock Test Records
Now is a good time to buy stocks, and a trio of notable names tested buy points on Thursday.
Online pet goods retailer Chewy is in a buying zone after clearing a handle cup entry of 48.11. The relative strength line has just hit a six-month high, a bullish sign.
Arrow Electronics overcame a cup-base entry of 129.66 after its earnings report. It boasts a high EPS rating of 95.
One reason to be cautious is that future valuations are not that impressive. EPS is seen falling 29% in 2023 before rising 1% in 2024.
The tape is just below its entry after earlier clearing the 47.15 cup buy point. This is a first-stage foundation, which means it is more likely to earn rich profits.
Earnings are a major weakness, with its EPS rating at 52 out of 99. Earnings are growing 5% this year before rising 15% in 2024.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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