The Dow Jones and other major indexes continued to hold most of their early gains at closing bell Thursday after Federal Reserve Chair Jerome Powell testified for a second day before Congress. Nvidia cleared a new benchmark, and Tesla fought profit concerns on the stock market today.
Retail and software earnings were some of the big movers. Friday's payroll data for February looms as the next big headline for investors.
The Dow Jones Industrial Average scored a second-straight winning session, trading 0.3% higher at market close. The S&P 500 climbed 1%. The index closed at a new high on Thursday. Among the 11 sectors in the benchmark index, real estate and financials lagged while others gained ground.
But it was the Nasdaq that led the way, as the tech-heavy index scaled 1.5% higher. Small caps also were on the rise, as the Russell 2000 moved up 0.7%.
Volume on both the New York Stock Exchange and Nasdaq was lower compared with the same time on Wednesday, according to unconfirmed data. Breadth was strong, however, as advancers beat decliners by more than 2-to-1 on the NYSE and nearly 5-to-3 on the Nasdaq.
Among exchange traded funds, the Innovator IBD 50 ETF added 0.7%. And the yield on the benchmark 10-year Treasury note fell 1 basis point to 4.09%.
Also, bitcoin rose and continued to hold above $67,000, according to CoinMarketCap.
Stock Market Today: Powell Gives An Encore
On Thursday, Powell addressed the Senate Banking, Housing and Urban Affairs Committee, and mentioned the need for new rules to address crises such as the bank run of 2023. The Fed chief also indicated he was surprised by two events as rates rose. The first was the effect of failing institutions such as Silicon Valley Bank.
"We were aware of it, but we probably didn't appreciate it enough," he said. He added the other surprise came via the quick fall in inflation.
"It's not consistent with the historical record, but it's a really positive thing," he said.
Powell's appearance came a day after he told a House panel that he expected rate cuts later this year but that it was too soon to implement them.
Also in economic news, initial unemployment claims for the week ended March 2 came in at 217,000. That was higher than economist views for 215,000 and unchanged from the prior week, according to Econoday. Economists see February payroll data, due Friday, dropping off sharply to 190,000 after January's huge 353,000 increase.
Nvidia climbed 4.5% on the stock market today as it cleared the 900 level for the first time. Shares of the artificial intelligence leader have launched more than 80% above a 505.48 buy point off a flat base. Nvidia's most recent breakout was Jan. 8.
Meanwhile, Tesla reversed higher. Tesla stock closed 1.2% higher, but shares dropped a collective 13.7% in the previous three sessions. According to analysts from Morgan Stanley, Tesla could lose money in 2024. Analysts see weak demand despite price cuts and an industry shift to hybrid vehicles as strong headwinds.
Dow Jones Stocks Mixed
Laggards and leaders were nearly evenly split on the Dow Jones index on Thursday. Top gainers included Intel, Amazon.com, American Express and Caterpillar.
Intel retook the 50-day moving average, according to IBD MarketSurge chart analysis. The stock is forming a base.
IBM tried to break out at 196.90 but has to wait another day. Microsoft found support at the 50-day moving average. Apple tried to break a six-day losing streak but failed.
Movers In The Stock Market Today: Broadcom, Marvell
MongoDB fell 12% after its earnings report came out after the close. Samsara soared 15% on its quarterly report, while DocuSign surged 12 after its report.
Among chip stocks, Broadcom and Marvell Technology rallied into earnings on Thursday. Both fell in after-hours trading following their quarterly reports.
Stock Market Today: Novo Nordisk Surges On Obesity Pill
In health care, Novo Nordisk surged 9% to a record high as its new obesity drug showed the promise of being more effective than the company's Wegovy. The stock is a holding on IBD Leaderboard as well as the IBD 50.
Shares formed a three-weeks-tight pattern with a buy point of 124.87 ahead of the news. They remained extended on the stock market today.
IBD SwingTrader holding Block is near a buy point of 80.29 in a cup base. The stock has a Composite Rating of 96 out of 99. The recent IBD Stock Of The Day also offers a handle entry at 83.29.
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