The Dow Jones Industrial Average added to early gains at 1:30 p.m. ET and was up 0.7% thanks in large part to Salesforce's post-earnings rally. However, the blue chip index remains below its 50-day line.
The S&P 500 pared morning losses and traded 0.4% higher in the afternoon. The index fell below its 50-day moving average on Tuesday and now tests the 200-day line.
The Nasdaq also pared early losses and also added 3% in gains; the small-cap Russell 2000 trimmed its own loss and was up fractionally.
Volume on the NYSE ran lower and on the Nasdaq higher compared with the same time on Wednesday.
The Innovator IBD 50 ETF lagged with a 1% decline.
Crude oil rose less than 0.5% to $77.91 a barrel.
The yield on the benchmark 10-year Treasury note continued to rise, adding 7 basis points to reach 4.07%. Initial jobless claims fell to 190,000 from 192,000 the previous week. Any sign of strength in the labor market tends to raise the odds of higher interest rates for longer.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32906.37 | +245.79 | +0.70 |
| S&P 500 | (0S&P5) | 3965.07 | _14.12 | +0.35 |
| Nasdaq | (0NDQC ) | 11408.93 | +29.25 | +0.25 |
| Russell 2000 | 187.5 | -1.01 | -0.46 | |
| IBD 50 | 23 | -0.27 | -1.18 | |
Last Update: 12 PM ET 3/2/2023 |
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Dow Jones Stocks
Besides Salesforce, banking behemoth JPMorgan Chase and networking leader Cisco Systems are on watch near buy points. JPM is in a buy zone above a buy point of 138.76, while Cisco is testing its 50-day line and continues to fall from its 50.81 entry.
Stocks Moving Today
Shares of crypto lending bank Silvergate Capital nose-dived over 50% after the company said it would miss its filing deadline set for March 16. The filing of its annual reports is already late. Silvergate also said it would likely miss an interest payment on Series A preferred shares, equivalent to yield exceeding 5.3%.
The company has been struggling after the FTX carnage as deposits ran low in the fourth quarter. Bitcoin fell over 1% on Thursday.
Tesla's Investor Day revealed CEO Elon Musk's plans to cut assembly costs by half, which the company says will likely lead to the much-anticipated affordable electric car.
Musk confirmed plans for a GigaMexico factory in north Mexico, where the next-generation car will be built with "substantially lower cost per mile." He also revealed the company's lithium plant in Corpus Christi, Texas, will likely start production within 10 months.
But analysts were generally unimpressed with Tesla's presentation and gave mixed reactions. The stock fell 6% but trimmed some of its initial loss of 8%.
The company's MasterPlan 3 focuses on renewable energy to repower the grid and make all-electric vehicles. The company says there are enough global nickel, lithium and cobalt sources for supplies for its batteries to become sustainable.
Musk also noted that in the future, Tesla's EV cars will use up to 75% less silicon carbide than initially planned. Silicon carbide-based battery production is said to be less scalable. The news sent chief silicon carbide chip suppliers STMicroelectronics and Wolfspeed reeling on Thursday.
In September, Wolfspeed made plans to build a new factory to meet demand for silicon carbide chips in EVs for Tesla, General Motors and other automakers. WOLF plunged 10% with STMicroelectronics down 4%.
Futures Rise, Yields Slide Ahead Of Key Econ Data; AI Stock Soars Into Buy Zone
Dow Jones Stock Surges After Earnings
Shares of Salesforce broke out of a cup-with-handle base, gapping above a 178.94 entry in strong volume after beating views for both earnings and sales in the fiscal fourth quarter. The stock pared some gains in intraday trading but is still up over 10% on Thursday.
The Dow Jones leader has been under pressure from activist investors Elliott Management, Starboard Value, Third Point and others to improve profit margins. The stock is on pace for its largest percentage increase since August 2020.
Software peer Snowflake fell over 10% after an earnings beat and lowered outlook.
Shares of Box and Splunk took a hit after earnings, while Okta rose after an earnings beat. BOX is down over 15% and SPLK has fallen fractionally. DoubleVerify is approaching a 28.99 entry as it rises after the earnings report. But early gains faded.
Electronics retailer Best Buy and department store chain Macy's reported results. BBY shares fell 2% after earnings beat views but the company lowered its outlook. Macy's surged nearly 10% after topping earnings estimates.
AMC Entertainment fell more than 5% after posting a loss for the 14th quarter in a row. The company warned of further sales of common stock. AMC has been pushing investors to approve converting its preferred "APE" units to common shares.
Costco will report earnings after the close, along with Broadcom and C3.Ai.
Analyst Rating Changes
Broadcom shares got a price target boost to 685 from 650 ahead of earnings. Susquehanna analyst Christopher Rolland maintained a positive rating and believes the stock will outperform peers. Shares were down less than 1% in the afternoon.
Onsemi fell more than 5% but trimmed losses after a downgrade from Raymond James analysts from outperform to market perform. The stock bounced off its rising 50-day moving average, an encouraging sign. DollarTree fell less than 1% after JPMorgan downgraded the stock to neutral from overweight.
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