The Dow Jones Industrial Average and other major indexes continued to improve right up until the close Thursday amid surprise results in two separate jobs reports. Meanwhile, a recent initial public offering fell hard while Broadcom made a move ahead of its earnings report on the stock market today.
Blue chips on the Dow increased their gain to 0.8%, or 350 points, despite a sell-off in Salesforce after the company reported its earnings results. The S&P 500 climbed 0.8% Thursday and crossed the 6,500 level.
Meanwhile, the tech-heavy Nasdaq composite advanced 1%. Small caps on the Russell 2000 also powered up 1%.
Volume was modestly lower on the Nasdaq exchange and higher on the New York Stock Exchange compared with Wednesday. On the Nasdaq exchange, rising stocks took a 5-to-4 lead over falling issues. But on the NYSE, winners topped losers by around 5-to-2.
The 10-year Treasury yield dropped to 4.17%. Oil prices dropped to around $63.30 a barrel. Bitcoin fell near $110,000.
In stocks, Palantir Technologies ended the session with a 0.8% gain and closed right at its 50-day moving average. Nvidia added 0.6%. It also finished near its 50-day line and ended a five-day losing streak.
Two IBD 50 Names Feel Heat
Two members of Investor's Business Daily's IBD 50 list saw big drops on the stock market today.
Guardant Health fell nearly 6% and completed three straight days of losses. Shares have fallen nearly 11% so far this week, after reaching a 52-week high on Tuesday. Despite the plunge, shares have nearly doubled year-to-date.
Thursday's drop came after the company's second-generation colon cancer test lagged expectations in a pivotal study. The results underwhelmed investors. Shares tested and found support at their 21-day exponential moving average.
Green bitcoin miner Iren skidded more than 7% following Wednesday's 3.1% reversal lower after hitting an all-time high.
3:05 p.m. ET
Stock Market Today: This New Issue Tumbles Hard
Recent new offer Figma plummeted nearly 19% after the design software developer reported its first results as a publicly traded company. Although its second-quarter adjusted profit and sales were in line with FactSet estimates, its revenue growth slowed to 41% from 50% and 46% in the prior two quarters.
Even more alarming was management's sales forecast, which predicted a 33% rise in the current quarter and 37% for the full year.
Figma stock began trading on July 31, with an IPO price of 33 per share. Shares immediately shot up to a high of 142.92 the following day, only to sell off on its third day of trading to start its downward spiral.
Meanwhile a more established name, Broadcom, climbed 1% on the stock market today. The IBD Big Cap 20 name reports its fiscal third-quarter results after the market close. Forecasts call for earnings to rise 34% on 21% sales growth.
Broadcom stock bounced off its 10-week line and is climbing back near its all time high of 317.35, reached on Aug. 13.
Stocks Rally Into Jobs; Amazon, Netflix Flash Buy Signals
1:40 p.m. ET
Ciena Pops, Gap Looks More Attractive
IBD MarketSurge Growth 250 stock Ciena trimmed a larger morning gain but still was up nearly 20% in huge volume.
The gap up came after the fiber-optics company easily topped fiscal third-quarter profit and revenue estimates. Its earnings surged 91% following 56% growth in the prior quarter and four straight declining quarters prior to that. Its sales growth also accelerated, with a 29% pop in the third quarter.
Ciena stock showed a giant bounce off its 10-week moving average. Shares are far extended from its recent consolidation pattern with a 86.21 buy point.
Gap jumped nearly 5% on news its Old Navy stores will expand its modest offering of beauty products. It plans to sell skin care, makeup and hair products and nail polish and will introduce its own line under the Old Navy brand. In addition, Gap stores are expected to start selling fragrances next year.
The apparel retailer reported a beat on fiscal second-quarter earnings with in-line sales on Aug. 28.
Gap stock has been clawing back from a low in early August and is on pace for five straight weeks of gains. Shares reclaimed their 200-day moving average on Tuesday, but are flat on the year.
11:52 a.m. ET
These ETF's Made Moves
According to Thinkorswim data, advancers topped decliners by a sound ratio of 17 to 11 on the New York Stock Exchange. Small and medium banks plus other financial firms helped the cause.
SPDR S&P Regional Banking added 0.6% to Wednesday's slight gain. SPDR S&P Insurance, another exchange traded fund, moved the same amount higher. But on the Nasdaq, losers actually beat winners by 200 issues.
Amid the mixed action in stock market internals, clearly, the stock market is awaiting Friday's key nonfarm payrolls report.
Credo Tech Growing Ultra Fast
Credo Technology jumped 10% on earnings, but its gain got capped when the stock tried to clear 140, a key round number. The company saw fiscal first-quarter revenue jump 274% to $223 million, boosting earnings to 52 cents a share on an adjusted basis. A year earlier, Credo earned 4 cents a share.
In a news release, Chief Executive Bill Brennan said that given "increasing market demand for reliable and power-efficient connectivity solutions, we expect continued revenue growth and diversification in terms of customers, protocols and applications."
The company offered an October-ending second-quarter sales outlook of $230 million-$240 million vs. $72 million in the year-ago period.
Big Picture: Will This Defensive Sector Squander Its Fresh Gains?
The stock has vaulted more than 69% since it broke out of a good cup with handle that revealed an 80.99 proper entry point. The Cayman Islands-based firm went public at $10 a share back in early 2022.
While Credo jumped, enterprise software firms fell with a sharp slide by Salesforce, the giant in customer relationship software that has expanded aggressively into other forms of business software, including project-focused internal messaging.
Salesforce fell further from a 52-week high of 369 with a 5.5% plunge. Volume screamed at seven times its usual pace. ServiceNow and Snowflake also backtracked sharply, down more than 2% and 4%, respectively.
Please go to IBD Tech News for more stories on Credo and other high-performance tech companies leading the stock market today.
10:40 a.m. ET
Retailers In The Dow Rise
Within the Dow, retail-oriented shares cheered on American Eagle's results.
Amazon led the upside among the 30-stock blue chip index as it climbed more than 3% while Walmart added 1%. Other consumer-spending firms in the Dow also advanced, such as Verizon, Procter & Gamble and Nike, with gains ranging from 0.6% to 1%.
And finally, McDonald's, also in the Dow industrials, moved 0.5% higher. The world's largest fast-food chain has gained ground for a fifth-straight session. Thus, the stock is also shaping the right side of a new base that stretches back to its early March high of 326.32.
Draw a trendline from that peak, and arguably McDonald's is actionable around 315 to 316. Further, its three-month Relative Strength Rating of 71 is better than a 12-month score of 55 for the stock.
9:49 a.m. ET
Stock Market Today: Treasurys Ease, Oil Drops
The 10-year Treasury yield ticked lower to 4.19%. Oil prices dropped, as West Texas Intermediate futures traded around $63.25 a barrel.
Among exchange traded funds, the Invesco QQQ Trust moved up 0.2%. Also, the SPDR S&P 500 ETF rose 0.2% after Thursday's market open.
Nasdaq 100 Winners, Losers: AppLovin, Meta, Texas Instruments
Among the Nasdaq 100 stocks, AppLovin and Meta Platforms rallied roughly 2% each, making them some of the best performers in morning trading. AppLovin is just shy of new highs, while Meta stock is rebounding from its 50-day moving average.
On the downside, Texas Instruments and Old Dominion Freight Line tumbled more than 6% and in excess of 3%, respectively.
9:00 a.m. ET
Dow Jones Movers: Amazon, Apple, Nvidia
Inside the blue chip index, Amazon was the clear leader in early action, up more than 2% in premarket trading. Shares are on pace to rebound further from their 50-day moving average.
Meanwhile, Apple fell 0.3% following Wednesday's breakout past a 235.12 handle entry. And Nvidia moved up 0.1%, looking to snap a five-day losing streak.
8:43 a.m. ET
Stock Market Today: Surprise Jobs Data
ADP's employment report said private payrolls increased by 54,000 in August, down from 104,000 in July and missing estimates that called for an increase of 68,000.
Meanwhile, the Labor Department said initial unemployment claims rose more than expected, up to 237,000 vs. 229,000 in the previous week. They were expected to rise to 232,000.
8:10 a.m. ET
Earnings Movers: American Eagle, Salesforce
American Eagle soared nearly 26% Thursday premarket after the retailer beat second-quarter earnings and sales targets and reinstated a full-year outlook that was stronger than expected. The company said that its Sydney Sweeney ads are boosting sales, along with a recent collaboration with Kansas City Chiefs tight end Travis Kelce.
Salesforce tumbled 7% even though the enterprise software maker reported fiscal second-quarter earnings that topped estimates and revenue that edged by views. However, its sales outlook for the October quarter came in below expectations amid its artificial intelligence product push.
Other key earnings movers Thursday morning included C3.ai, Ciena, Credo Technology, Figma, GitLab and Hewlett Packard Enterprise.
C3.ai stock plunged more than 14%, while Ciena jumped nearly 15%. Credo shares soared in excess of 12% while Figma stock plunged more than 15%. GitLab's deficit topped 7%. And HPE rallied more than 4% in premarket trading.
Stock Market Today: ADP Jobs Data, Jobless Claims
Due at 8:15 a.m. ET is the ADP employment report. It is expected to show that private payrolls grew by 68,000 in August, down from July's 104,000 increase.
Meanwhile, the Labor Department's weekly unemployment claims are expected at 8:30 a.m. ET. Claims are anticipated to rise to 232,000 vs. 229,000 in the previous week.
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