Indexes climbed more than 1% Thursday morning as the stock market extended a rebound and pleasant surprises in the retail sector sparked a rise.
The Nasdaq composite, S&P 500 jumped 1.5% each. The Dow Jones Industrial Average was up about 1.7%. Small caps outperformed as the Russell 2000 rose 1.7%.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Wednesday. The Innovator IBD 50 ETF added 1.3%
Four energy stocks topped buy points: Northern Oil & Gas, Enterprise Products Partners (an IBD Dividend Leader), Western Midstream Partners and SM Energy.
Nvidia, Broadcom Among Tech Movers
Nvidia fell more than 4% at the open after the maker of graphics chips late Wednesday beat sales and profit estimates but its current-quarter sales outlook was weak. Shares so far are holding above this month's lows around 155 and the stock soon trimmed the loss to less than 1%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32553.33 | +433.05 | +1.35 |
| S&P 500 | (0S&P5) | 4032.82 | +54.09 | +1.36 |
| Nasdaq | (0NDQC ) | 11597.67 | +162.93 | +1.42 |
| Russell 2000 | 181.76 | +3.03 | +1.70 | |
| IBD 50 | 31.52 | +0.40 | +1.29 | |
Last Update: 10:10 AM ET 5/26/2022 |
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Broadcom was active today. The chip designer beat estimates for its April-ended quarter and confirmed it is acquiring VMware. The offer, initially reported Monday in The Wall Street Journal, is for $61 billion in cash and stock.
Broadcom also announced a new stock repurchase program for up to $10 billion through December 2023. Broadcom stock rose 2%, while VMware added less than 1%.
Dollar Stores Surge On Earnings
The view improved sharply in the retail sector after discount chains Dollar Tree and Dollar General soared on earnings reports.
Dollar Tree jumped 18% as the stock found support around the 200-day moving average. Its April-quarter sales and earnings beat expectations, and the company raised full-year guidance. Revenue rose 6.5% to $6.9 billion, while same-store sales rose 4.4%.
Dollar General also topped analysts' estimates for its fiscal first quarter. It bumped up full-year revenue and same-store sales growth targets. With today's rally, the two retailers have essentially erased last week's sharp losses. Dollar General's nearly 15% jump would be the stock's largest ever, according to Dow Jones Market Data.
Even apparel retailer Burlington Stores rose 3.6% despite a weak outlook for the current quarter and full year. April-quarter earnings missed views as sales shrank 12% and same-store sales fell 18%.
Indexes Jump, Even On Bad News — Five Stocks In Buy Zones
Retail Sector Helps Lift Stock Market
The SPDR S&P Retail ETF jumped more than 4%, adding to Wednesday's nearly 7% surge. Investors saw relief in the sector after weak outlooks from Target, Walmart and other stores hammered the industry last week.
After today's close, another key retail report is due when Costco announces results.
New jobless claims fell to 210,000 from 218,000 the previous week. It was slightly more than the 208,000 consensus estimate by Econoday.
New home sales fell 3.9% in April, worse than the 1.5% decline in the Econoday estimates. The National Association of Realtors revised the March decline to 1.6% from 1.2%.
