The Dow Jones Industrial Average closed higher despite a disney (DIS) CEO Bob Iger TV bomb. A Cathie Wood stock was in a buy zone after the famous investor bought shares. AI Stock Burning Nvidia (NVDA) cleared a buy point.
X
A number of stocks breached buy points amid the seething action. Leaderboard Actions ASML (ASML) and On hold (ONON) tested inputs while Magellan channel partners (MMP) is a buy zone.
Stocks were boosted on more positive inflation news. The producer price index came in below views. This applied to both aggregate prices and basic producer prices.
Meanwhile, initial jobless claims unexpectedly fell to 237,000 from 248,000 the previous week. Economists had expected claims to rise to 249,000. The job market continues to show impressive strength.
Treasury yields fell again. The 10-year yield fell 10 basis points to 3.76% while the two-year yield fell 12 basis points to 4.62%. Nevertheless, the yield curve remains inverted.
Nasdaq rallies to IBD 50, small caps jump
The Nasdaq jumped again, with the high-tech index climbing 1.6% higher. IBD Sector Leaders Action Z-scale (ZS) was one of the best performers here, rising 5.4%.
The benchmark S&P 500 index ended the session up 0.9%. Epam systems (EPAM) was a standout performer in the S&P with a 4.8% jump.
Both indices closed at their highest levels in 2023 so far. Volume was lower on both the NYSE and Nasdaq, according to early data.
S&P 500 sectors ended mostly positive. Communication services and technology were the main winners. Healthcare and energy were the only stock market laggards today.
Small caps participated in the gains, with the Russell 2000 rising 1%. Growth stocks impressed even more, with the Innovator IBD 50 (FFTY) ETF closing up 1.6%.
Dow Jones Today: Microsoft Stock Pops, Disney TV News
The Dow Jones Industrial Average lagged other major indexes at the close with a meager gain of 0.1%.
Disney stock ended the day up 0.4% after Iger spoke about the challenges ahead for the struggling media giant. Disney is up less than 2% in 2023, well behind the S&P 500.
He told CNBC “the company faces many challenges, some of which are self-inflicted” and said its television business “may not be at the heart of Disney.”
Disney’s television network portfolio, which includes ABC and ESPN, has long been a key profitability driver for the company. But consumers are increasingly turning to streaming services.
There was more bad news for Disney on Thursday after the Screen Actors Guild emerged – the American Federation of Television and Radio Artists had voted to strike. This means that film and television productions will stop from midnight. They will join more than 11,000 members of the Writers Guild of America already on strike.
It’s the first time since 1960 that two major Hollywood unions have gone on strike at the same time.
Microsoft (MSFT), which is benefiting from the AI stock boom, was the top performer on the Dow Jones with a gain of around 1.6%. The stock is trading above its major moving averages, according to MarketSmith analysis.
Cisco Systems (CSCO) also made a strong gain on the Dow today, up 1.6%. Walgreens Boot Alliance (WBA) fell behind with a 1.9% drop.
Stocks Generate Big Profits, Nasdaq Rebalancing Due
Cathie Wood buys Teradyne as it hits the buy zone
Investors are always eager to follow the movements of top portfolio managers.
ARK Invest chief Wood added to his holdings of Teradyne (TER) yesterday.
It bought more than 12,000 shares for its ETF ARK Autonomous Technology & Robotics (ARKQ) and more than 3,000 shares for its ETF ARK Space Exploration & Innovation (ARKX).
The decision seems inspired at the moment, as TER has just moved into a buy zone above a buy point of 112.06 after finding support at the 21-day exponential moving average.
TER stock is up nearly 33% year-to-date. ARKQ’s performance is even better, increasing by almost 55% over this period, while ARKX has increased by almost 26%.
Cathie Wood also sold more You’re here (TSLA), this time offloading more than 20,000 shares into its various funds.
Nvidia Stock Wipes Entry Amid AI Boom
Chip leader Nvidia has had a remarkable run in 2023, growing nearly 220% so far.
Investors have another opportunity to climb aboard the stock market’s freight train as it breaks past a tight four-week entry at 439.90.
These are usually used as an opportunity to buy additional shares to an existing position. Aggressive investors can also use it as a buy point in a new position.
Nvidia stock soared amid a huge thirst for AI stocks. NVDA chips are currently essential for AI applications.
Analysts see earnings jump 112% in the current fiscal year ending January 2024 to $7.09 per share and rise 41% in the next fiscal year.
Outside of Dow Jones: Ranking Stock Test Buy Points
As the market rally continues to strengthen, now is the time to look for stocks that are showing breakouts.
ASML is in a buy zone after earlier breaking through a basic flat buy point of 747.13. It is a first floor base, a plus, even if the volume was average.
The overall performance here is top-notch, which is reflected in its perfect IBD composite rating of 99.
Footwear stock On Holding broke above a cup-with-handle base with a buy point of 33.67, but ended the session just below the entry. The sneaker game, which is backed by tennis legend Roger Federer, is up more than 100% so far this year.
Both ASML and ONON are on the prestigious Leaderboard list of top stocks.
Magellan Midstream Partners is a buy zone. It erased a flat base entry of 64.42, but the fact that the move came at low volume is a negative.
The oil transport game has seen its relative strength rise lately. The company agreed to be acquired by Oneok (OK).
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
YOU MIGHT ALSO LIKE:
Stock market forecasts for the next 6 months: what the pros are watching closely now
MarketSmith: research, charts, data and coaching in one place
These are the 5 best stocks to buy and watch right now
It’s the ultimate Warren Buffett action, but should you buy it?
This is Donald Trump’s ultimate action: Is DWAC a buy?