The Dow Jones Industrial Average posted modest gains on Thursday afternoon, while lagging tech stocks weighed on the Nasdaq composite.
Dow Jones Pares Early Gains, Remains Positive
The major indexes continued higher after the Nasdaq switched into a power trend in Wednesday's session. Premarket economic data showed disinflation at the wholesale level, adding fuel to the fire of the current rally.
Midweek CPI data showed inflation rising at a slower pace than expected, putting investors at ease. This morning's producer price index data added to the good vibes, showing a 0.5% month-over-month decline in July. Economists had expected a 0.3% increase. It also climbed a less-than-expected 9.8% on an annual basis.
PPI measures the monthly change in the price of goods and services received by manufacturers.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33519.79 | +210.28 | +0.63 |
| S&P 500 | (0S&P5) | 4235.36 | +25.12 | +0.60 |
| Nasdaq | (0NDQC ) | 12885.03 | +30.22 | +0.24 |
| Russell 2000 | 197.51 | +1.89 | +0.97 | |
| IBD 50 | 29.84 | +0.25 | +0.84 | |
Last Update: 1:30 PM ET 8/11/2022 |
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Initial jobless claims rose to 262,000, slightly above estimates for 260,000, and above the 248,000 reported in the previous week.
The Dow Jones and S&P 500 were higher by 0.6% in midday trading. The Nasdaq composite pared gains to 0.2%, while the small-cap Russell 2000 led the upside with gains of 1%.
Volume rose a substantial 25% on the Nasdaq and 4% on the NYSE vs. the same time on Wednesday.
Breakout Stocks To Watch
A handful of stocks in the MarketSmith Growth 250 index scored notable breakouts, including oil and gas firms Western Midstream Partners and Matador Resources.
Western Midstream Partners rose 3% and is now trading above a 27.80 cup-with-handle entry. Shares recently found support at their 50-day moving average before launching higher into the buy zone.
Meanwhile, Matador gapped up and broke out above a 58.68 cup-with-handle buy point. The stock found support at its 50-day line earlier this week.
Other notable breakouts include Cardinal Health, which moved above a 64.63 cup buy point. The health care products distributor is part of the wholesale drug industry group, which currently ranks No. 11 out of IBD's 197 groups. The stock's relative strength line also hit a new high, which is a bullish indicator.
Finally, pollution control company Clean Harbors had a strong breakout on decent volume above a double-bottom 115.10 buy point. The stock's relative strength line also hit a new high as the stock popped 2.7%. But shares remain well above their 50-day moving average, which is a reason to be cautious with this breakout.
Dow Jones Leader Disney Pops 10% On Earnings
Disney led the upside among Dow Jones stocks for the second day in a row, up 6% following earnings. The firm reported a second-quarter profit of $1.09 per share on revenue of $21.5 billion, beating consensus estimates for 98 cents and $21 billion.
Subscription growth for Disney+ grew by 14.4 million while worldwide theme-park revenue picked up, despite fears of inflation. Wall Street expected net subscriber additions of around 10 million.
The stock has regained significant group placement since bottoming at 90.23 per share last month. Shares are closing in on retaking their 200-day moving average.
Disney stock is trading higher by 5.4% after gaining more than 10% following the release.
Electric-Vehicle Maker Rivian To Report Earnings After The Close
Rivian is set to report Q2 earnings late Thursday after the market close. Amid recent layoffs and supply-chain issues, FactSet analysts expect the EV maker to post a loss of $1.63 per share vs. a 66-cent loss in the same quarter last year.
Consensus is also looking for $335.4 million in sales. Investors will focus on expectations that Rivian will produce 25,000 vehicles in 2022.
RIVN stock rose 4.5% on Thursday but remains well off its all-time high of 179.47, according to MarketSmith. On the positive side, Rivian has doubled from its record low of 19.25 on May 11.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
