The stock rebounded from the starting gates on Thursday, with Nasdaq leading and industrialists Dow and Russell 2000 looking to extend their advances for a fifth consecutive session. The House’s final vote on Wednesday almost guaranteed the launch of $ 1.9 trillion in federal stimulus. EV makers, chip stocks and names based in China boosted the Nasdaq. Bitcoin recovered to close to $ 57,000. IPO Roblox skyrocketed on its second day of trading. Meanwhile, Boeing and Apple set the pace for the Dow Jones today, while Microsoft is preparing for an early break.
The Nasdaq Composite had an initial gain of 1.7%, since that of Argentina MarketLibre (MELI) rose 5.2% to the top of the index in an analyst update. ASML Holding (ASML) and Skyworks Solutions (SWKS) were also the first leaders, with chip stocks marking seven of the Nasdaq 100’s top ten advances.
Dow industrialists climbed a more modest 0.5%, about 100 points – enough to hit another new high. The S&P 500 gained 0.7% on the stock market today, behind the 0.9% advance of the Russell 2000.
Electric vehicle manufacturers have teamed up with China Li Auto (LI) and Xpeng (XPEV) each with more than 5%. Nio (NIO) jumped 4.2%, while Tesla (TSLA) rose 2.8%. Mizuho launched coverage at Tesla with a purchase rating and a target price of 775.
Chip stocks also showed initial strength with the IBD 50 ASML stock holding 4% and the stock on the Leaderboard Taiwan Semiconductor (TSM) increasing 3.4% in the first shares, following the Philadelphia Semiconductor Index. Both stocks are trying to create floors after breaking below support in strong four-week retreats. The ETF VanEck Vectors Semiconductor (SMH) was up 2.9% at the start of trading. Taiwan Semi is also an IBD 50 stock.
IPO Roblox (RBLX) increased 4.8%, adding to the 54% gain from the online gaming platform recorded on its first trading day on Wednesday. From South Korea Coupang (CPNG) IPO was set to launch its first trading day on Thursday.
Fuel cell manufacturer Ballard Power (BLDP) jumped 4.7%, despite losing earnings and revenue views in its fourth quarter report. Recent IPOs Rush Street Interactive (RSI) and Bumble (BMBL) rose 13% and 10%, respectively, after its earnings reports.
Oracle (ORCL) was an initial hurdle among rising technology stocks, trading down 5.8%, despite exceeding analysts’ fiscal targets for the third quarter, increasing their dividends by 33% and expanding their share buybacks. Software developer Cloudera (CLDR) also plummeted, down 13%, after surpassing fourth quarter earnings, but providing weak guidance for the entire year.
Stimulus progress; Unemployment claims, bond yield facility
In Washington, the $ 1.9 trillion American Rescue Plan passed a final House vote on Wednesday, and heads to the White House for President Joe Biden’s signature, scheduled for Friday. The Labor Department reported that the first claims for unemployment benefits lowered expectations for the second consecutive week, dropping to 712,000 in the week ending March 6, against predictions of 725,000 claims.
In addition, bond yields stabilized, with 10-year yield stabilizing at 1.52%. Yields jumped to highs above 1.61% on Monday, and the rapid increase in lows around 0.50% in August raised concerns about inflation. Despite the rapid advance, yields remain in a healthy range, after starting in 2020 at around 1.8%, which was a drop of about 2.7% a year earlier.
Dow Jones Today: Boeing signs deal with Southwest
Boeing (BA) gained 3%, easily leading the Dow Jones today. Reuters reported on Wednesday that the company was closing a deal to sell Southwest Airlines (LUV) “dozens” of its 737 Max aircraft. An unidentified source said the deal could involve 130 firm orders for the jets, with options for another 170. Boeing shares ended Wednesday in a buy range above 244.18 on a 12 week canopy basis. The purchase range is up to 256.38.
Apple (APPL) rose 1.4%. Apple shares are working on a third week of tight trading as they drop to test support on its 200-day moving average.
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China’s stocks soar based on data
Chinese stocks soared as China’s markets recovered with better-than-expected bank lending data from February and news that U.S. Secretary of State Antony Blinken told the House Foreign Affairs Committee on Wednesday that he and his Chinese counterpart will meet next week in Alaska. Shanghai Composite rose 2.4%, while Hong Kong’s Hang Seng rose 1.7%.
In the US markets, online clothing retailer JD.com (JD) advanced 5.9% as investors investigated the company’s fourth quarter earnings report. Search engine giant Baidu (BIDU) increased by 3.8%. Futu Holdings (FUTU) jumped 7.8%, extending its recovery from the 10-week support. 360 Digital (QFIN) traded higher among the IBD 50 shares, with an increase of almost 6% at the beginning.
In purchase intervals: CF Industries, Polaris, Generac
Leaderboard list, fertilizer producer CF Industries (CF) added 3% at the start of trading, rising in a buying range above an entry of 48.98. Generac Holdings (GNRC), a manufacturer of solar components and home emergency generators, gained 3.3%. Generac ended Wednesday on a buying track in a 10-week support recovery.
The SwingTrader ETFMG Prime Mobile Payments ETF (IPAY) share ended Wednesday in a buying zone at a jump in its 10-week moving average. Off-road vehicle manufacturer Polaris (PII) added 1.2% on Thursday morning. He is also in a buying range, after releasing an entry of 129.10 on a flat five-week basis. The purchase range goes to 135.55. Polaris is listed on the IBD’s SwingTrader and Leaderboard lists.
Bitcoin approaches $ 57,000, PayPal increase
PayPal Holdings (PYPL) jumped 3.4% on Thursday with Bitcoin rising above $ 56,900. IBD Leaderboard PayPal’s shares have been influenced by Bitcoin price fluctuations since October, when the company launched a cryptocurrency trading service that trades Bitcoin. The shares gained 1.3% in the week through Wednesday, as they work to stem a four-week decline. The stock retreated after reaching the profit-making targets after a break in December.
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Bitcoin has risen almost 2% in the past 24 hours, according to CoinDesk, approaching the $ 57,000 mark, as well as its record high above $ 58,300 on February 21.
Among Bitcoin-related actions, Marathon Patent Group (MARA) gained 3.5%, while MicroStrategy (MSTR) traded 2.5% higher. The Amplify Transformational Data Sharing ETF (BLOK) added 2.7%, and grayscale Bitcoin TrustGBTC advanced 2.1%.
Russell 2000, Dow Jones Today Go For 5
The Nasdaq Composite rose to an initial test of resistance at the 50-day moving average of the index. Nasdaq had easily dispatched challenges on this line in November and September. In the small cap and blue chip segments of the market, the Russell 2000 and Dow Jones today seek to extend their hikes for five consecutive days.
For a more detailed analysis of the current stock market and its status, study the big picture.
Dow industrialists set new records in each of the last three sessions and rose above 32,000 for the first time on Wednesday. The Russell 2000 ended Wednesday less than 1.4% below its February 10 record high of 2,318.
At the Dow, Visa (V) and Travelers (TRV) are in purchase ranges above the purchase points. Microsoft (MSFT) gained 1.1% in the first trades, resuming a buying point of 232.96 at the opening of the trades. UnitedHealth Group (UNH) ended Wednesday 5% below a cup buying point at 368.05.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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