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The Dow Jones Industrial Average fell 0.1%, while other indexes rose in early trades Thursday. Nvidia (NVDA) rose ahead of AI chip leader Broadcom‘s (AVGO) earnings after the market close.
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From Artificial Intelligence To Interest Rate Cuts, Here’s How Investors Can Win Big In 2024
The S&P 500 rose 0.4% in the stock market today, finding support at the 50-day moving average. The Nasdaq composite rebounded 1%. The tech-dominated index is trying to recover from a steep sell-off on Tuesday and further losses Wednesday.
Volume on the NYSE and on the Nasdaq was lower compared with the same time on Wednesday. Advancers outnumbered decliners on both main exchanges.
The small-cap Russell 2000 and the Innovator IBD 50 ETF (FFTY) also edged up 0.1% in the stock market today.
Employment data from Automatic Data Processing showed a softening in the job market with an increase of 99,000 jobs in August after a 122,000 increase in July. Economists had expected a 140,000 increase, according to Econoday.
But initial jobless claims for the week ended Aug. 31 came in lower than estimates at 227,000. Economists had expected 230,000. For the previous week, claims were revised to 232,000 from 231,000.
Friday’s employment data for August is another important economic report, with estimates of 160,000 additions in nonfarm payrolls.
With 13 days to go for the Fed meeting, the CME FedWatch Tool is projecting a 55% chance of a 25-basis point rate cut. Odds of a 50-basis point cut stand at 45%.
The yield on the benchmark 10-year Treasury note fell four basis points to 3.73%.
Dow Jones Stocks
Verizon Communications (VZ) fell 0.3% and added to Wednesday’s losses after news that the company will acquire Frontier Communications (FYBR) for $20 billion in cash including debt.
Apple (AAPL) rose nearly 2% ahead of its product event on Monday. Shares are climbing back above the 50-day moving average as the stock forms a base with a buy point at 237.23. A handle appears to be forming, though.
Merck (MRK) led with a gain of nearly 3%. Amazon.com (AMZN) also led, up 3.5% in the first hour of trading.
Stocks Market Today: Copart’s Sell Signal
Copart (CPRT) flashed a sell signal by falling below the 50-day and 200-day moving averages in heavy volume. The auto auction company’s July-quarter earnings declined while sales growth decelerated.
AeroVironment (AVAV) fell more than 1% in volatile trading after July-quarter results beat views while its earnings outlook missed expectations. The drone maker reported its results late Wednesday.
Among AI plays, C3.ai (AI) plunged over 10% even after beating views. Shares continue to trade below the 50-day moving average amid a downtrend.
Magnificent Seven stock Nvidia (NVDA) rose 2%, erasing some of Wednesday’s losses and a sharp sell-off on Tuesday. The stock remains below the 50-day line. Shares of Applied Digital (APLD) soared over 60% after news that Nvidia and other companies are participating in a $160 million funding to build its data centers.
Tesla (TSLA) jumped over 6% Thursday. The company plans to roll out its full self driving in China and Europe in the first quarter of 2025. According to a post on X, the plans await regulatory approval. Shares are back above the 50-day moving average, according to IBD MarketSurge.
Tesla rival and EV play Nio (NIO) rose after second-quarter results showed that losses narrowed, thanks to strong sales and higher margins.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
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