the Dow Jones falls, the Nasdaq flies; Meta Rockets amid Mark Zuckerberg ‘surprise’
The Dow Jones Industrial Average closed lower even as the Nasdaq soared more than 3%. metaplatforms (GOAL) skyrocketed when Mark Zuckerberg shared a surprise. Apple (AAPL) was ahead of gains while Microsoft (MSFT) was a top blue chip.
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New member of the US Global Jets leaderboard (JETS) ETF rose above a buy point. A trio of other notable names staged breakouts amid the bullish action. Tough (BLOW), Tapestry (TPR) Y arrow electronics (ARW) all inputs tested.
New data from the Labor Department showed first-time jobless claims fell to 183,000 from 186,000 the week before. Analysts had expected them to rise to 193,000. The job 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 jumps, small caps shine
Today’s action was key as the stock market often has a second day reaction to Fed meetings. With the virtuous performance of Fed Chairman Jerome Powell’s post-meeting press conference, which drove the markets yesterday, traders seemed to remain in risk mode today.
The Nasdaq was the strongest of the major indices as it jumped 3.3%. DocuSign (DOCU) did well here with a 7.7% gain.
The S&P 500 rose 1.5% to hit its best level in five months. W. W. Grainger (GWW) was one of the stars here, gaining 13% on the company’s quarterly results.
The S&P 500 mixed closed sectors. Consumer discretionary goods, communication services and technology fared the best, while consumer staples and energy were the worst laggards.
Small-cap companies also impressed, with the Russell 2000 rising 2.1%. Growth stocks struggled until the close, with the Innovator IBD 50 ETF (ffty) finishing up to 1%.
Dow Jones today: Microsoft, Apple Impress
The Dow Jones Industrial Average lagged behind other major indices, despite some components doing well. It closed at lows but still fell 0.1%.
Microsoft shares were the best performers on the Dow Jones today as they rose 4.7%. MSFT shares are now outside their 200-day moving average for the first time since April, Market Smith Shows.
Apple shares also did well, rising 3.7%. AAPL shares have also climbed above the 200-day line and are up more than 20% year to date.
Apple’s earnings will be released after the close, and Wall Street expects EPS to fall 8.1% to $1.93 while sales fall 2.2% to $121.21 billion, according to Zacks Investment Research.
down, UnitedHealth (UNH) Y Merck (MRK) both laggards in the Dow. UNH dipped 5.3% while MRK fell 3.3%.
Meta Stock Rockets; Mark Zuckerberg admits ‘surprise’
Meta Platforms, Facebook’s parent company, skyrocketed after its latest quarterly report. Although profits fell short, revenues, sales targeting and the number of top visits from Facebook users.
Meta shares closed slightly above the day’s highs but still soared 23.3%. This allowed it to break above its 200-day moving average. There is no entry point in sight at this time.
Investors seemed particularly pleased that the company announced a $40 billion worth of share buyback. The parent of Facebook and Instagram cut its spending forecast, including capital spending.
CEO Mark Zuckerberg appears to be finding his inner Ebenezer Scrooge, boasting during the earnings call that “reducing management levels” had improved the flow of information, which he believes will lead to better products and better staff retention.
“Honestly, that was a little surprising to me, that when we started to dig into this, the company felt better to me,” he said.
Zuckerberg is already seeing a big benefit. The tech mogul, who Bloomberg estimated was worth $57.2 billion as of Wednesday’s close, he will see his net worth rise substantially by the end of today’s trading.
The new leader exceeds the point of purchase
The US Global Jets ETF flew out of a buy point amid bullish action in the airline space.
He managed to come off a mango entry of 20.79, earning a place in the prestigious IBD Classification List in the process. The ETF rose 3.1%, rising near the top of its buy zone.
The ETF has most of its holdings in US and foreign airlines, but aerospace and travel companies also have significant positions within the fund.
Wednesday IBD day stock, delta airlines (DALL), closed above a buy point of 39.72, with the 5% buy zone extending to 41.70. The day ended flat.
Among the related actions, southwest airlines (light) rose 3.4%, united airlines (UAL) gained 4.2%, american airlines (AAL) appeared 2.2% and alaska air (ALK) jumped 3.3%.
alignment technology Stock sinks teeth into Monster Gain
orthodontic stock alignment technology (SOMEONE) was one of the best on the stock market today.
It soared 27.3% in its quarterly report after beating Wall Street’s views on the top and bottom results.
Investors also boosted Align’s shares after the company announced it will buy back up to $1 billion of its shares over the next three years.
There is no entry in sight after the stock broke out, rising more than 60% above its 50-day moving average.
ALGN shares are now up nearly 70% so far in 2023.
Outside of Dow Jones: 3 stock test entries
Now is a great time to buy stocks, and a trio of notable names tested the buy points on Thursday.
Online pet supplies retailer Chewy is in a buy zone after clearing a 48.11 handle mug entry. The relative strength line just touched a 6-month high, a bullish sign.
Arrow Electronics jumped past a rate base entry of 129.66 following its earnings report. It boasts a first-class EPS rating of 95.
One reason to be cautious is that forward-looking estimates are not that impressive. EPS is projected to fall 29% in 2023 before rising 1% in 2024.
Tapestry is just below his entry after breaking above a cup buy point of 47.15. This is a first stage basis, which means you are more likely to net rich profits.
Earnings are a key weakness, with its EPS rating of 52 out of 99. Earnings are up 5% this year before climbing 15% in 2024.
Follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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