The Dow Jones Industrial Average climbed more than 250 points Thursday, erasing earlier losses in the session and reflecting bullish strength. Rallies by numerous blue-chip giants offset an 11% sell-off in Dow component UnitedHealth, while high-growth companies and industry leaders such as Netflix exhibited strong chart action on the stock market today
In the final tally, the Dow finished 271 points ahead, or nearly 0.7%, after wiping out an earlier 274-point deficit. Thursday afternoon, only UnitedHealth sank one point or more in the price-weighted average. Seven Dow stocks rallied five points or more.
Meanwhile, the Nasdaq composite finished less than 0.2% lower. The Nasdaq-100, tracking the 100 largest nonfinancial companies on that exchange, rose 0.1%. The S&P 500 and Russell 2000 added small gains in the order of 0.4% and 0.5%, respectively.
Volume fell 10.2% vs. the same time Wednesday on the Nasdaq and shrank 4.6% on the New York Stock Exchange, according to the MarketSurge homepage.
Stock Market Today: Netflix Outperforms Averages
Netflix, the leader and innovator in video streaming around the globe, outperformed the major indexes with a 2.4% gain. Shares hit a session high of 1,187.80, as Netflix also produced a follow-on entry in the process. It rose past an eight-day shelf pattern at 1,159.44.
This offers a secondary entry point for those who bought Netflix at the primary buy point of 998.70 in a well-crafted double-bottom base.
In such narrow follow-on patterns including the shelf and the three-weeks-tight, Investor's Business Daily suggests staying disciplined by buying as close to the proper entry as possible — ideally no more than 3% above the entry.
Market On Cusp Of Power Trend; Why That Matters
Will Stagflation Concerns Cool?
The bright finish in the stock market indexes appeared to reflect confidence in the U.S. economy amid concerns of future stagflation, which is basically higher inflation coupled with a slowdown in output or even contraction.
Yet wholesale prices in the U.S. in April pointed to the cooling of inflation as businesses appeared to hesitate in making new orders in light of a rush of tariffs ordered by the White House on April 2. President Donald Trump issued a 90-day postponement in such reciprocal actions against most of its trading partners a week later. Meanwhile, the market reflects a buoyant mood after Trump and Chinese President Xi Jinping agreed to severely cut tariffs for the next three months from levels that had been set well above 100%.
A cooling of inflation showed up in the Federal Reserve's favorite indicator, the Producer Prices Index. The PPI fell 0.5% vs. March, while economists surveyed by Econoday expected a 0.2% rise.
Year over year, the PPI increased 2.4%, meeting expectations. However, excluding food and energy, core PPI jumped 3.1%, above the consensus estimate of 3%.
Meanwhile, U.S. retail sales inched 0.1% higher in April vs. the prior month, meeting views. The yield on the key U.S. 10-year government bond slipped 7 basis points to 4.45%.
3:25 p.m. ET
Robinhood Chart Analysis
Meanwhile, Robinhood actually underperformed on Thursday. Shares fell more than 1%, but they also rebounded off the session low of 57.68. Trading near 60.50, the trading app giant is in the second day of possibly etching a handle on its cup-style pattern.
Notice on a daily chart how Robinhood has floated above its 50-day moving average for nearly four weeks. And the 50-day line is starting to rise, which is bullish behavior.
The company recently posted strong first-quarter results. Earnings popped 106% to 37 cents a share on a 50% jump in sales to $927 million. Over the past four quarters, the top line has on average grown 60% vs. year-ago levels. That's exceptional fundamentals.
Investor's Corner: Will A Power Trend Begin?
Grocery Chain Standout
In the supermarket world, Sprouts Farmers Market has been a true leader. Sprouts, which has rallied as much as 692% from its 2022 bear-market low, is also crafting a cup with handle that for now presents a 178.16 proper buy point.
Keep in mind that Sprouts has already logged an extraordinary run. So its latest base — at least a third-stage one since the stock formed a bunch of first-stage patterns from 2022 through November 2023 — carries extra risk. After a stock has gone on an amazing run, its valuation and expectations rise to the point where a small miss on earnings or sales or an underwhelming outlook can pound the stock.
In early May, Sprouts Farmers fell hard on its first-quarter results, with per-share earnings up 72% to $1.81 and sales up 19% to $2.24 billion. However, notice on a weekly chart how the stock has held its ground near the rising 10-week moving average.
Please go to IBD's Stocks On The Move table, one of IBD's longest-running features since the founding of the once-daily newspaper in April 1984, to spot additional companies with solid IBD ratings and a strong earnings profile that could be setting up in their charts to break out to new highs and potentially outperform the stock market today.
1:05 p.m. ET
Walmart Leads Early Downdraft
Walmart led an initial downdraft on the Dow Jones index Thursday after reporting quarterly results, but the blue chip index switched gears and moved slightly higher in late-morning action. Shares of Walmart, meanwhile, cut its losses sharply and traded off less than 1% in triple average volume on the stock market today.
On Monday, the Dow rebounded back above its key 200-day moving average, hinting that buyers are beginning to gain the upper hand. So, a pullback in recent days is not surprising.
As noted in an earlier Stock Market Today story, Federal Reserve Chairman Jerome Powell warned that the U.S. economy could face years of price volatility and inflation, potentially damaging consumer confidence. However, keep in the mind that the stock market remains an excellent barometer of what the economy may look like six to 12 months out.
Stock Market Today: Walmart Beats, CoreWeave Wavers
Walmart beat views for the April-ended fiscal first quarter. However, profit edged up a paltry 2% to 61 cents a share. Wall Street expected 58 cents from the retail behemoth. Revenue rose 3% to $165.6 billion, essentially meeting views. That was the slowest year-over-year top-line gain in at least eight quarters.
Among tech stocks, CoreWeave showed high volatility from the get-go, rallying to an all-time high but quickly reversing for a sharp loss on the stock market today. Yet later in the morning shares waged a bullish reversal, turning a brief 9% loss into a gain of nearly 4.7%, to around 70 a share.
Volume in CoreWeave, an artificial intelligence-focused data center stock, zoomed past 24.5 million shares, already one of the heaviest days of trading since the large cap held its March 28 initial public offering on the Nasdaq at 40 a share.
CoreWeave wields a lofty 98 Relative Strength Rating on a scale of 1 to 99. Please note that the RS Rating traditionally covers 12 months' worth of action. That said, CoreWeave has shown bullish action since the stock bottomed out in mid-April at 33.52. The stock is now extended past a narrow IPO base with a 64.62 entry.
The new issue went public on the Nasdaq at $40 a share in late March. CoreWeave still boasts a solid post-IPO gain of more than 55%.
The company posted an exhilarating 420% rise in revenue vs. a year earlier for the first three months of 2025, to $981.6 million. However, the company bled even more red ink, losing 31 cents a share. A year earlier, the Livingston, N.J., firm lost a nickel per share. CoreWeave has 480.8 million shares outstanding.
Wall Street Firms Leading In 2025
Thursday's gainers included Dow component Goldman Sachs. The money center bank is now up 7.6% so far in 2025 after barreling 48% higher last year.
Goldman stock is forming a base that shows the elements of a double bottom. The middle peak, at 592.64, in between the first low of 520.06 and second low of 439.38, presents a viable buy point.
The 5% buy zone from that 592.64 entry goes up to 622.27.
Goldman Sachs is seen growing earnings 11% this year to $44.87 a share and up 12% to $50.13 in 2026.
10:59 a.m. ET
May Day: UnitedHealth Down More Than 35% For The Month
UnitedHealth, became a focal point of selling again, this time on fresh reports that the Department of Justice is investigating the health insurance juggernaut for possible violations of reimbursement and payment rules for the U.S. government's gigantic Medicare program. UnitedHealth stock collapsed 22% on earnings and a disappointing full-year outlook on April 17, and the stock has spiraled downward ever since.
The megacap health care firm, which has virtually wiped out all gains since the 2020 Covid bear market bottom but has still delivered a 9,400% gain since the start of 2000, faces a potential exit from the IBD Long-Term Leaders list.
Meanwhile, the S&P 500 managed to trim losses in similar fashion to the Dow industrials, off around 0.3%. During the first hour of trading, the large-cap index fell nearly 0.5%, a relatively light loss compared with its stout gains over the past few weeks. The 500 has done remarkably well since a Day 9 follow-through day on April 22 marked a potential turn.
The Nasdaq composite dropped 0.8% and tested 19,000, a key psychological level. At Thursday's low of 18,968, the Nasdaq is down a modest 1.7% thus far this year after rallying 24.2% in 2023 and speeding ahead 28.6% in 2024.
Stock Market Today: Alibaba Slips Back Below 50-Day Line
Among notable China stocks, Alibaba plunged 8% and slouched back under its critical 50-day moving average. Profit in the first quarter grew 23%, marking an acceleration in quarterly earnings growth. But sales remained stuck at a low gear of growth, up just 6% to $32.6 billion.
Investor's Business Daily research on the biggest stock market winners shows that most companies — excluding cyclical plays — already show robust earnings and sales increases.
Investors should look for 20% to 25% increases or more in both metrics for at least two or three quarters in a row. Then their shares can break out of an excellent base and rush to new highs. Such strong gains tend to attract more buyers. They also make all holders of the stock happy, except for the short sellers.
SPDR S&P China, a thinly traded exchange traded fund, fell nearly 2%. Trading near 85.50, the ETF still holds above its 50-day line and tracing a cup base so far.
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