The major stock market indexes rose in afternoon trading Thursday, with the Nasdaq still in the lead. Investors remained positive and bought stocks after stronger-than-expected GDP and labor data.
The Dow Jones Industrial Average added 0.4%. The Nasdaq gained 1.2% while the small-cap Russell 2000 lagged, up 0.3%.
Volume on the NYSE and Nasdaq was higher vs. the same time on Wednesday.
The Dow traded near its 50-day and 21-day exponential moving averages. The S&P 500 found support at its 200-day moving average but is still testing this critical level. The Nasdaq held above its 50-day line. The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF rose 1.4%.
The S&P 500 rose 0.6%, holding above the 200-day line for the fourth day in a row. The SPDR Trust December high at 410.49 now looms large, with a rally above the 410.59 buy point having potential to build momentum.
Crude oil rallied 1.4% to $81.27 per barrel. The Energy Select Sector SPDR ETF edged up 1.9%.
Bitcoin futures added 0.6% to $23,070. The Innovator IBD 50 ETF was in line with the major stock market indexes, adding 0.6%.
The 10-year Treasury note yield added 2 basis points to 3.46%.
European stock markets rose, with the German DAX up 0.3% and Paris CAC 40 gaining 0.7%. The London FTSE inched up 0.2% to close out the day.
Fourth-quarter GDP grew to 2.9%, higher than 2.8% expectations. December durable goods orders blew away expectations, rising 5.6% vs. 2.8% consensus. Biden's infrastructure act is fueling this activity, easily seen in the 0.1% decline in orders ex-transportation.
Initial jobless claims fell to a seasonally-adjusted 186,000 vs. the 202,000 expected, and lower than last week's revised 192,000. The lower numbers show continued strength in the job market, although it has slowed in the last couple of months.
None of these numbers will sit well with Fed Chair Jerome Powell, who wants to see economic and labor weakness as signs that Fed rate hikes are slowing inflation.
Stock Market Today: Airlines Mixed On Earnings, Rental Stock In Buy Zone
American Airlines rose 0.3% in Thursday's stock market after beating Q4 earnings expectations on record high revenue, although revenue was a bit below analyst estimates.
Southwest Airlines sank 4.5% after reporting a larger-than-expected Q4 loss. Management said it will post another loss this quarter.
Steel producer Nucor popped 6.1% in heavy volume, and is in the 5% buy zone of a long cup-with-handle base.
Data storage firm Seagate soared 10.7% after reporting a beat on fiscal Q2 2023 top and bottom lines. The spike puts STX on pace for its largest percent increase since May 14, 2021, when it rose 12.4%
EV maker Tesla gapped up 9.3% following Wednesday's post-market Q4 earnings release, pushing the stock above its 50-day line.
Corn and ethanol producer Archer-Daniels-Midland rose 0.2% after topping Q4 EPS and sales forecasts.
Leaderboard stock United Rentals gapped up 7.9% and broke out of a long consolidation, hitting the 415.09 buy point. The jump comes after it reported a miss on Q4 EPS. Sales beat expectations.
The equipment rental company announced it will pay a dividend and resume its stock buyback program. URI's relative strength line hit a fresh high, as indicated by the blue dot on the weekly MarketSmith chart.
Las Vegas Sands rose 5.3% despite missing expectations. The casino operator gave a positive 2023 outlook as travel and tourism recover as the pandemic wanes.
Futures: Tesla Drives Rally To Big Test, Intel Dives Late; Inflation Report Due
Big Blue Weighs On The Dow
Paint and coatings manufacturer Sherwin-Williams gapped down 8.2% after missing on revenue and lowering full year 2023 profit numbers.
SHW stock dropped below its 50-day line, triggering a sell signal. The stock is the S&P's worst performer today. The move could signal trouble with the homebuilder sector after strong gains.
The iShares U.S. Home Construction ETF dropped 0.2% in sympathy with the paint stock. Homebuilder stock PulteGroup also gave back morning gains, trimming 0.6%.
IBD 50 stock STMicroelectronics popped 7.3% after reporting a beat on Q4 top and bottom lines, and giving positive Q1 2023 and full-year revenue guidance.
Dow component IBM shed 4.7% after meeting earnings estimates and beating on sales. The tech stock is the Dow's biggest loser today.
Teradyne turned around, up 0.7% after reporting stronger-than-expected Q4 EPS and sales. But the automated test systems developer expects slowing demand in the first half of 2023.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
