The Dow Jones Industrial Average rose over 280 points in today’s stock market, extending this week’s rally. The major indexes all posted strong gains ahead of the long holiday weekend while the S&P 500 closed in on its recent record highs.
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Dow Jones Today
An hour before the close, the Dow Jones industrials were up 0.8%. The Nasdaq composite rose 0.9%, while the S&P 500 gained 0.8%. Meanwhile, the Russell 2000 held a gain of around 1.1%. Data showed volume was running lower on the Nasdaq and the NYSE vs. the same time on Wednesday. The stock market will be closed Friday for Christmas.
The major indexes extended this week’s gains as consumer discretionary and industrial stocks took the lead. Almost all S&P 500 sectors traded positively, but real estate sank 0.4%.
The Labor Department early Thursday reported weekly jobless claims of 205,000 for the week ended Dec. 18. That was slightly below the prior week’s 206,000 but in line with Econoday’s estimate. Meanwhile, personal spending in the U.S. edged up 0.6% in November, meeting projections. However, it marks a slowdown from October’s 1.4% increase.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36039.54 | +285.65 | +0.80 |
| S&P 500 | (0S&P5) | 4736.51 | +39.95 | +0.85 |
| Nasdaq | (0NDQC ) | 15678.18 | +156.29 | +1.01 |
| Russell 2000 | (IWM) | 222.37 | +2.09 | +0.95 |
| IBD 50 | (FFTY) | 45.02 | +0.46 | +1.03 |
| Last Update: 3:04 PM ET 12/23/2021 | ||||
According to IBD’s Big Picture column, “Despite two days of strength, IBD’s market outlook remains at a cautionary “uptrend under pressure.” Until the market outlook moves back into a confirmed uptrend, investors should still be mostly on the sidelines due to a whipsaw market environment.”
But some stocks are showing improved relative strength and promising set-ups. Investors may consider initiating smaller positions in these names, but must note the higher risk.
Stocks Making Notable Moves
The Innovator IBD 50 ETF (FFTY) showed continued strength with a 1% rise in afternoon trading. The ETF still remains below the 50-day moving average, but is attempting to regain support at the 21-day exponential line.
On Thursday, stocks breaking out included medical supplies company West Pharmaceutical Services (WST). Shares rose 1.2% and traded past a 458.09 buy point of a cup-with-handle base. Volume on the breakout was weak largely due to the holiday-related low-volume session.
The stock was featured on Thursday’s IBD Live show.
Elsewhere, outside the Dow Jones Industrial Average, funeral services stock Service Corporation International (SCI) broke out from a 70.13 flat-base entry. The stock has been trading tightly above its 21-day line, a bullish sign considering the majority of stocks are trading below their 50-day and 200-day moving averages.
The funeral services industry group ranks No. 6 of the 197 groups IBD measures, showing market leadership.
CDW (CDW) was another successful breakout in today’s market. Shares rose above the 200.63 entry of a cup-with-handle base. Shares are holding strong above their 21-day line while the RS line is trending sharply higher.
Beyond Dow Jones: Leading The Tech Stocks Today
Chip equipment stock KLA (KLAC) flashed a buy signal as shares gained momentum above the 10-week line, which currently sits at around 399.19. KLA shares look poised to finish up more than 7% for the holiday-shortened week.
The expert in yield management and process control gear for chipmakers hosts a perfect 99 Composite Rating from IBD Stock Checkup.
AMAT Stock Approaches A New Buy Point
Meanwhile, fellow chip equipment maker Applied Materials (AMAT) rose 2% and remains just a small gain away from a 159.10 flat-base entry. With strong fund sponsorship and a strong RS line, this is definitely one to watch.
Both stocks also got some airplay in Thursday’s IBD Live show on Zoom.
Follow Rachel Fox on Twitter at @rachelgfox for more Dow Jones and stock market commentary.
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The post Dow Jones, Nasdaq Extend Gains; S&P 500 Nears Record Highs; Two Chip Equipment Stocks Worth Watching appeared first on Investor’s Business Daily.
