Strong results from Tesla, major airlines and other key companies pushed the stock market indexes higher Thursday morning. Wall Street now turns its attention to Fed Chairman Jerome Powell's speech.
The Nasdaq composite pared gains to 1.2% as the technology sector was among the morning's best performing. The index poked above its 50-day moving average, but came up against some selling at that level. This is a key test for the Nasdaq, so watch how the index handles this attempt to regain the line.
The S&P 500 rose 1% and held gains better than the Nasdaq. The S&P is now back above the 200-day moving average for the first time since April 8.
The Dow Jones Industrial Average rose 0.8%. Dow component Verizon broke out of a cup-with-handle base in heavy trading ahead of Friday morning's earnings report.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35456.36 | +295.57 | +0.84 |
| S&P 500 | (0S&P5) | 4503.74 | +44.29 | +0.99 |
| Nasdaq | (0NDQC ) | 13610.92 | +157.85 | +1.17 |
| Russell 2000 | 203.11 | +0.78 | +0.39 | |
| IBD 50 | 36.92 | +0.24 | +0.65 | |
Last Update: 10:10 AM ET 4/21/2022 |
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Also in the industrials, Dow Inc. shot up more than 5% after the specialty chemicals company beat first-quarter sales and profit estimates. The stock is now extended from the 65.04 buy point of a long cup-with-handle base.
Small caps lagged as the Russell 2000 rose 0.5% and quickly came off opening highs.
Volume rose on the Nasdaq and fell on the NYSE compared with the same time on Wednesday.
Yields Rise As Stock Market Watches Powell Speech
Powell is scheduled to speak at 11 a.m. ET at an International Monetary Fund panel, the Fed chief's last public appearance before the Fed's policy meeting in early May. Investors are keenly watching for signs of the Fed's next move on interest rates, which is widely expected to be a half-point rate hike.
The yield on the 10-year Treasury rose 4 basis points to 2.88%.
Late Wednesday, Tesla beat Wall Street expectations with a 246% surge in first-quarter earnings to $3.22 a share and an 81% jump in sales to $18.76 billion. The EV leader is slowly reopening its plant in Shanghai after a three-week shutdown due to a Covid-19 spike in China.
Tesla jumped 11% in heavy trading early Thursday, but is still short of the 1,152.97 buy point of a cup-with-handle base.
United Air Lines and American Airlines rallied after the carriers gave bullish outlooks on travel demand despite mixed Q1 results.
United Air Lines climbed 11.7% to a five-month high. The company narrowed its Q1 loss to $4.24 per share on revenue of $7.6 billion, slightly missing analysts' consensus estimates. The airline expects to return to profitability in the second quarter despite high fuel costs.
American Air topped expectations with a Q1 loss of $2.32 a share, a smaller loss than expected. Revenue soared 122% to $8.9 billion, above views. The company forecast Q2 revenue above Q2 of 2019, before the pandemic. American Air stock gapped up to a gain of more than 7% in heavy trading.
With other carriers rising in sympathy, IBD's airline industry group ascended 6%, today's second-best group after automakers. U.S. Global Jets, an ETF that tracks the airline industry, gapped up more than 5% in big volume, separating itself from the 200-day moving average.
What To Do After Market Reversal; Tesla Slashes Gain
IBD 50 Lags Stock Market
The Innovator IBD 50 ETF rose 0.7% as two of its stocks made notable moves.
Linde broke out of a cup with handle as shares gapped above the 329.10 buy point. The company this morning announced a new long-term agreement with a major space launch company in Florida to supply industrial gases. Terms weren't disclosed.
CubeSmart is rising past the 54.16 buy point of another cup with handle, but volume is well below average so far.
In economic reports, initial claims for jobless benefits last week of 184,000 were basically unchanged from the previous week's revised total of 186,000. Economists surveyed by Econoday had forecast 175,000.
