The Dow Jones industrial average closed lower even as the Nasdaq jumped more than 3%. Meta platforms (Meta) rocketed because Mark Zuckerberg shared a surprise. Apple (AAPL) was ahead of revenue Microsoft (MSFT) was a great blue chip.
New leaderboard member US Global Jets (JETS) ETF climbed above a buy point. A trio of other notable names staged breakouts amid bullish action. chewing (ft), seal (TPR) and Arrow Electronics (ARW) all entries tested.
New Labor Department data showed first-time jobless claims fell to 186,000 versus 183,000 in the previous week. Analysts had expected them to rise to 193,000. The labor market continues to show strength, with first-time claims last week coming in below expectations for the second week in a row.
NASDAQ JUMPS, SMALL CAPS SHINE
Today’s action is important as the stock market often has a two-day reaction to Fed meetings. Traders seem to be in risk-on mode today as the performance of Fed Chairman Jerome Powell’s artful post-meeting press conference lifted markets yesterday.
The Nasdaq was the strongest of the major indexes as it gained 3.3%. Document identification (Document) outperformed here with a gain of 7.7%.
The S&P 500 rose 1.5% to hit its best level in five months. WW Granger (GWW) was one of the stars here as it accounted for 13% of the company’s quarterly results.
S&P 500 Sectors closed mixed. Consumer discretionary, communications services and technology performed best, while consumer staples and energy were the worst laggards.
Small caps also impressed, with the Russell 2000 up 2.1%. Growth stocks struggled to the end with the Innovator IBD 50 ETF (Innovator).FFTYDone up to 1%.
Dow Jones Today: Microsoft, Apple Impress
The Dow Jones Industrial Average lagged behind other major indexes despite some positives. It closed lower, but still fell 0.1%.
Microsoft’s stock rose 4.7% to top the Dow Jones today. MSFT stock is now clear of its 200-day moving average for the first time since April, MarketSmith shows.
Apple stock also fared well, rising 3.7%. AAPL stock has also mounted a 200-day streak and is up 20% so far this year.
Coming after Apple’s earnings, Wall Street expects EPS to fall 8.1% to $1.93 on sales down 2.2% to $121.21 billion, according to Zacks Investment Research.
Meta Stock Rockets; Mark Zuckerberg admitted to being ‘surprised’
Facebook parent meta platforms rose following its latest quarterly report on Wednesday. Although revenue declines, revenue, Sales guidance and number of Facebook users are number one in views.
Meta shares closed slightly higher on Friday, but were still up 23.3%. This allowed it to break through its 200-day moving average. There is currently no entry point in sight.
Investors were particularly pleased when the company announced a $40 billion share buyback. The Facebook and Instagram parent has cut its forecast for expenses, including capital spending.
CEO Mark Zuckerberg seems to be finding his inner Ebenezer Scrooge, saying that “reducing the layers of management” has improved the flow of information, which he thinks will lead to better products and better employee retention.
“It was a bit of a surprise to me to be honest, and when we started digging into this, the company was really good to me,” he said.
Zuckerberg is already seeing a big payoff. The tech mogul, who Bloomberg estimates Worth $57.2 billion at Wednesday’s close, his net worth will increase significantly by the end of today’s trading.
The new leader passed the buy point
US Global Jets has clearly flown from a buy point amid positive activity in the ETF airlines sector.
It managed to pull clear with a 20.79 handle entry, winning a prestigious spot IBD Leaderboard List In the process. The ETF rose 3.1%, hitting the top of its buy zone.
The ETF holds most of its holdings in both U.S. and foreign airlines, but aerospace companies and travel companies also have meaningful positions in the fund.
Wednesday’s IBD Stock of the Day, Delta Air Lines (DAL), closed above the 39.72 buy point, with a 5% buy area extending to 41.70. It ended the day on par.
Align technology The stock is sinking its teeth into monster gains
Role of Orthodontics Align technology (ALGN) is one of the top performers in the stock market today.
It rose 27.3% in its quarterly report after beating Wall Street views on top and bottom lines.
Investors also cheered Align stock after the company announced it would buy back up to $1 billion of its stock over the next three years.
After the stock broke out, it rose more than 60% above its 50-day moving average, with no entry in sight.
ALGN stock is now up nearly 70% in 2023.
Outside the Dow Jones: 3 stocks test entries
It’s a good time to buy quality stocks, and three notable names tested Thursday’s buy points.
Online pet supplies retailer Chewy is in a buying zone after clearing out the 48.11 cup-with-handle entry. The relative strength line has reached a six-month high, which is a good sign.
Arrow Electronics surpassed the cup base entry of 129.66 following its earnings report. It has an excellent EPS rating of 95.
One reason to be cautious is that forward estimates are not that impressive. EPS is seen declining 29% in 2023 before rising 1% in 2024.
After earlier clearing the cup buy point at 47.15, the tapestry is just below its entry. It’s a first-rate basis, which means there’s a higher chance of net rich gains.
Earnings are a major weakness, with its EPS rating at 52 out of 99. Revenue is up 5% this year before climbing 15% in 2024.
Follow Michael Larkin on Twitter @IBD_MLarkin To further analyze growth stocks.
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