Stocks ran sharply higher Thursday, ignoring another rising inflation gauge as the Dow industrials and S&P 500 faced key technical tests. Chip stocks led the early action with a broad advance. Tesla stock jumped as Bitcoin plummeted on a Tesla policy change. Meanwhile, Boeing leapt to the top of the Dow Jones today.
The Nasdaq Composite scrolled up 1.5%, with ASML Holding (ASML) and Applied Materials (AMAT) leading the advance. The S&P 500 rose 1.3%, staging a healthy bounce off its 50-day moving average. The Dow industrials popped 420 points, a 1.25% gain on the stock market today.
Chip stocks headed the early gains, with ASML Holding and Applied Materials each up more than 4%, trading high on the Nasdaq 100. Lam Research (LRCX) topped the S&P 500 with a 6% gain. Intel (INTC) rallied 1.2% as it aimed to halt a steep three-day slide. The iShares PHLX Semiconductor ETF (SOXX) vaulted 2.7% in opening trade.
Tesla (TSLA) scrambled 2.4% higher, after declining in seven of eight recent sessions. The stock is positioned for a test of support at its 200-day moving average for the first time since March 2020.
Dow Jones Today: Apple, Microsoft, Disney
Apple (AAPL) rallied 1.6%, Microsoft (MSFT) rose 0.9% to lead the Dow Jones today. Rosenblatt initiated coverage on Microsoft and placed its price target at 301, more than 25% above where Microsoft stock closed on Wednesday. The report called Microsoft “the most important software company on the planet.”
The Dow Jones today fires its earnings calendar back up after a quiet week and a half, as Walt Disney (DIS) reports its fiscal second quarter earnings after the market close. Shares climbed 1.3% in opening trade. Disney stock has been in a downtrend since early March.
The company’s breadwinning theme parks in Paris and California remained largely closed during the quarter. But California theme parks Disneyland and California Adventure reopened on April 30 with capacity limits, after being shut down for more than a year.
Jobless Claims Dip, Inflation Gauge Jumps
The Labor Department reported first-time applications for unemployment assistance fell to 473,000 in the week ended May 8. That was down from 498,000 applications in the prior week, falling slightly further than the 475,000 new claims projected by economists.
Inflation bears received another boost, as the April Producer Price Index jumped 0.6%, with a year-over-year gain of 6.2%. The index had climbed 4.2% in March, and 4.2% on an annual basis. Economists had projected a 0.3% advance in April, and a 5.9% year-over-year gain.
Stripping out food and energy, the index gained 0.7% vs. expectations for a 0.4% rise.
Earnings News: Yeti, Azek, Canada Goose
Artificial decking products maker Azek (AZEK) gained 2.8% after its fiscal second-quarter report. IBD…
Go to the news source: Dow Jones Today Chases Nasdaq As Chips Lead Stocks Higher; Tesla Snubs Bitcoin; …