Stocks eased from the day's highs in the final hour of trading Thursday with all major indexes posting gains amid a surprise spike in jobless claims. Meanwhile, Cheesecake Factory rallied but eased from earlier highs. And Duolingo plummeted on the stock market today after the company's earnings report offered a disappointing outlook.
The Nasdaq and S&P 500 gained ground after Wednesday's losses while the Dow Jones Industrial Average added a seventh day to its winning streak. The Dow stole the show on Thursday with a gain of 0.9%, or 331 points. The S&P 500 rose 0.5%, while the Nasdaq ended the day 0.3% higher. The small-cap Russell 2000 jumped 0.8%.
Volume fell on both the Nasdaq and New York Stock Exchange vs. the same time in Wednesday's session, in preliminary numbers.
Among exchange traded funds, Invesco QQQ Trust crept 0.2% higher. The Innovator IBD 50 ETF reversed and gained 1.3% on the stock market today.
Meanwhile, the benchmark 10-year Treasury yield dipped to 4.46%. And West Texas intermediate crude oil edged higher to $79.62 a barrel.
The Labor Department's weekly initial jobless claims for the week ended May 5 rose to 231,000 vs. the 212,000 expected, according to Econoday. This was an increase over the prior week's revised 209,000, indicating the job market is slowing. The tally was the highest number since August.
Cheesecake Factory Rises But Fades; Duolingo Plummets
Cheesecake Factory jumped and touched a buy point on Thursday, but the breakout faded by the afternoon. Shares surged more than 11% at one point in heavy volume, then pared those gains to 6.2% by the close. The restaurant company reported higher-than-expected first quarter earnings and sales.
During the move, the restaurant stock tapped the 37.65 buy point of a flat base before dipping back below the buy point. Still, Cheesecake Factory retook its 50-day moving average and recorded its largest increase since Nov. 10, 2022, when it rose 9.8%.
Duolingo stock plummeted 18% in heavy volume after the language learning company topped views on first quarter earnings and revenue. But investors focused on its second-quarter sales and expected bookings forecasts, which came up short of the Street's expectations.
The stock knifed below its 50-day moving average on the move, triggering a sell signal. Shares crashed 22.4% below its 245.59 buy point, causing another sell signal. Shares are on pace for their largest decrease on record, according to Dow Jones Market Data.
Stock Market Today: NRG Energy Climbs While Arm Sinks
Other stocks on the move Thursday included NRG Energy, which jumped 7.8% on top of Wednesday's 3.3% gain. And Arm Holdings retreated 2.3% on the stock market today, after the company gave a light fiscal 2025 revenue estimate.
NRG Energy rallied after the electricity provider's mixed first quarter earnings report with higher profit but lower revenue than views on Tuesday.
"We are even more optimistic about the competitive energy market outlook and Smart Home adoption, and remain committed to executing our long-term strategy and capital allocation program," Chief Executive Larry Coben said in the earnings release.
FactSet estimates show second-quarter profit rising 61% then 82% in the third quarter, before dropping. Quarterly sales projections show the tide turning from five straight declining periods to growth over the next four quarters.
Arm stock retreated 1.8% after the company topped March-quarter profit and sales estimates but gave a full year sales outlook that missed analyst projections.
Arm expects fiscal 2025 revenue of $3.95 billion while analysts hoped to see $3.98 billion. The company's fiscal year ends in March. Arm stock fell further below its 50-day line.
Celsius Stock Soars, Insurance Stock Breaks Out
Elsewhere in the market, Celsius Holdings surged 6.4% and reclaimed its 50-day moving average. The fitness beverage company gave a mixed first quarter earnings report on Tuesday. Earnings beat estimates but sales fell short.
Profits grew 108% on a 37% sales gain. With its strong fundamentals and rising stock price, Celsius was added to the IBD Leaderboard Leaders Watch List Thursday afternoon.
Epam Systems tumbled and was the biggest loser on the S&P 500 on the stock market today. Epam plummeted 27% even after the company reported higher-than-expected first quarter adjusted earnings and revenue. But investors soured on the software engineering company's updated outlook for full-year revenue and profit, which came in lower than its previous projection.
Epam's quarterly earnings were flat vs. the year-ago quarter, and came on the heels of two quarters of declines. Sales dropped 4%, making it four straight quarters of declines. Full-year profit estimates are for a 4% drop in earnings.
Airbnb plunged 6.9% after the company beat first quarter profit and sales forecasts but gave lower-than-expected revenue guidance for the second quarter. The stock fell deeper below its 50-day line. Airbnb had been forming a flat base but sank below it.
Manulife Financial broke out of a flat base and held above a 25.14 buy point. The insurance firm is in a 5% buy zone reaching to 26.40. The company gave a mixed first quarter earnings report. National Bank upgraded the stock to outperform from sector perform.
Futures: Nvidia Chipmaker On Tap; 5 AI Stocks Near Buy Points
Stock Market Today: AppLovin Feels The Love
Trade Desk rallied 3.1% after it beat first quarter profit and sales forecasts. The digital advertising company sees second-quarter revenue of $575 million, which exceeded analysts' midpoint estimate of $567 million.
Yeti Holdings surged 12.8% in heavy trading, after the company reported higher-than-expected earnings and revenue for the first quarter and raised its full-year adjusted earnings outlook. The outdoor products stock reclaimed its 50-day line on the move but pared opening gains.
AppLovin soared 14.5% after the company reported better-than-expected profit and sales during the first quarter and gave a second-quarter revenue forecast well above Wall Street estimates. The stock is extended from support at the 10-week moving average.
Other Stocks Making Big Moves: Roblox Tanks
Robinhood Markets reversed and sank 3.1%. The online trading app handily beat first quarter profit and sales expectations with a boost from its cryptocurrency trading revenue. The company expects a per-share profit of 30 cents for 2024, after losing money most prior years.
Roblox plummeted 22.1% in heavy volume on the stock market today and undercut its 50-day and 200-day moving averages, triggering sell signals. The move came following the company's lower full-year bookings forecast.
The video game platform experienced its largest decrease since Feb. 16, 2022, when it fell 26.5%, according to Dow Jones.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
