TRENDING: Tech Stock In Buy Zone As It Joins Sector Leaders’ Final Four
The Dow Jones Industrial Average pulled back after a strong opening Thursday, fueled by a well-received Nvidia (NVDA) report. The blue chip index lost support at the 50-day line earlier this week and is down over 0.5% midday. Meanwhile, graphics giant Nvidia booked an astounding 82% of average daily volume in the first hour of trading, mostly to the upside, and remains over 10% higher at this hour.
Nvidia earnings beat views late Wednesday, as it benefits from increasing demand for artificial intelligence tools. Revenue from data centers surged, offsetting weakening demand for gaming chips. NVDA stock is up 12.3% at the lunch hour and on track for the highest percentage increase since March 2020.
This action is tagging other chip leaders.
Advanced Micro Devices (AMD) rallied over 2% at the noon hour, surging past its 200-day line. Super Micro Computer (SMCI) is up 5% within a consolidation.
The S&P 500 fell 0.5% as it tests support at its 50-day line, and the Nasdaq matched that loss. The tech-heavy index has gained 10% so far this year.
The small-cap Russell 2000 was flat at the hour. The Innovator IBD 50 ETF (FFTY) fell 0.1%.
Volume rose on the Nasdaq compared to midday Wednesday while NYSE volume matched the prior day’s level.
Crude oil rose over 1% to $75.04 per barrel. The yield on the 10-year Treasury note fell 3 basis points to 3.89%.
Initial jobless claims of 192,000 were lower than the 200,000 consensus. Minutes from the Federal Reserve’s Feb. 1 meeting noted that “recent reductions (in jobless claims) did not appear to reflect widespread weakness in the demand for labor.” Fourth-quarter GDP rose 2.7%, revised from the earlier estimate of 2.9%.
Apple (AAPL) dipped about 0.1% but remains supported at the 200-day line after a three-day shakeout. Shares are up less than 0.5% on Thursday and may offer an entry at 176.25.
Also in the Dow Jones, Microsoft (MSFT) is flat at its 200-day support line. On Wednesday, it released mobile apps with AI chatbot features. The features are also available on its Skype video and voice communications service.
Meanwhile, Salesforce (CRM) fell less than 0.1% while the handle forms a 178.94 entry. Last but not least, Disney (DIS) shows an early buy point at 118.28.
Elsewhere, Tesla‘s (TSLA) March 1 investor day will reveal the EV giant’s latest moves in full self-driving hardware updates and expansion plans.
Last August, CEO Elon Musk said that his plans included scaling up both cars and battery materials. The EV company has signed deals to get graphite for its lithium-ion batteries and reportedly is eyeing Sigma Lithium (SGML), a pure lithium play. Tesla is down over 1% and below its 200-day line while SGML has fallen over 3%.
Nasdaq Rallies Up To Resistance With Inflation Data Due
Shares of Etsy (ETSY) lost more than 2% despite an earnings beat. Luxury homebuilder Toll Brothers (TOL) rose nearly 1% after strong earnings as well.
Alibaba (BABA) fell over 1% and Moderna (MRNA) plunged 8% after earnings.
MercadoLibre (MELI) on the IBD Leaderboard is on deck after the market closes on Thursday.
Warren Buffett’s Berkshire Hathaway (BRKB) is due on Saturday. Buffett’s letter to shareholders is on watch for news about buybacks, and Geico and Alleghany deals.
MELI is in a buy zone above a 1,095.44 entry while BRKB is working toward a buy point of 321.42 but needs to clear the 50-day line ahead of that entry.
Outside of Dow Jones, Leaderboard stocks are in buy zones.
Airbnb (ABNB) is in a buy zone from a 121.50 entry. Flor (FLR) is also in a buy zone above a 36.16 entry, rebounding from its 50-day line. Inspire Medical Systems (INSP) is up nearly 2% and remains in a buy zone. Iridium Communications (IRDM) and Uber (UBER) are extended.
Please follow VRamakrishnan on Twitter for more news on the stock market today.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
10:51 AM ET Find the best stocks to buy and watch by seeing which top growth stocks were just added to the IBD…
10:51 AM ET Find the best stocks to buy and watch by seeing…
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2023 Investor’s Business Daily, LLC. All rights reserved
