Stocks were mixed Thursday morning after early gains faded. The Dow Jones Industrial Average held a 100-point gain as Boeing (BA) and Visa (V) rallied.
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The Nasdaq fell 0.3%, the Dow Jones industrials advanced 0.3% and the S&P 500 was slightly lower in the stock market today. Small caps tracked by the Russell 2000 were up 0.3%. Volume was lower on both major exchanges vs. the same time Wednesday.
Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.8% but remains well below its 200-day moving average. The iShares Russell 1000 Growth ETF (IWF) climbed 0.3% and Invesco QQQ Trust (QQQ) added 0.2%.
Initial jobless claims rose to 230,000 the week ended Jan. 7 from 207,000 the prior week, the Labor Department said early Thursday. That was greater than Econoday’s estimate for 205,000 claims but remains well below levels from the start of the Covid-19 pandemic.
The Producer Price Index jumped 9.7% year over year in December, slightly below forecasts for a 9.8% gain. On a month-over-month basis, producer prices climbed 0.2% in December, below Econoday’s estimate for a 0.4% increase.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 36397.39 | +107.07 | +0.30 |
| S&P 500 | (0S&P5) | 4724.28 | -2.07 | -0.04 |
| Nasdaq | (0NDQC ) | 15148.14 | -40.25 | -0.27 |
| Russell 2000 | (IWM) | 216.63 | +0.64 | +0.30 |
| IBD 50 | (FFTY) | 43.00 | +0.33 | +0.77 |
| Last Update: 10:24 AM ET 1/13/2022 | ||||
At 10 a.m. ET, Federal Reserve governor Lael Brainard began testifying at her Senate confirmation hearing for Fed vice chair. Brainard said in prepared remarks that reducing inflation will be the central bank’s top priority.
The U.S. economy has been struggling to recover from the Covid-19 pandemic, which triggered nationwide lockdowns nearly two years ago. A resurgence in cases fueled by the more contagious delta variant had been slowing as vaccinations rise.
But the new omicron coronavirus variant is now spreading rapidly in the U.S. Currently available vaccinations and boosters may offer some protection against severe illness from the highly transmissible virus.
Globally, Covid-19 cases have topped 318 million, with more than 5.5 million deaths, according to Worldometer. In the U.S., cases have surpassed 64 million with nearly 867,000 deaths.
Earnings Movers
KB Home (KBH) gapped up and soared 14% in huge volume to an eight-month high. Late Wednesday, the homebuilder reported Q4 earnings that beat views but sales that missed. KBH offered bullish guidance on revenue, selling prices and profit margins. The stock is about 8% away from a 52.58 buy point of a base, according to MarketSmith chart analysis.
Delta Air Lines (DAL) lifted more than 3% in fast trade. Early Thursday, the carrier reported better-than-expected Q4 results despite the impact of omicron and tough winter weather. Delta sees a Q1 loss but expects a profit this year. Shares are close to retaking their 200-day moving average but remain nearly 20% off their 52-week high.
Taiwan Semiconductor (TSM) surged 10% in heavy volume to gap up past a 135.60 buy point of a cup with handle. It also cleared a 142.29 buy point based on the February high, according to MarketSmith’s weekly chart. Early Thursday, the chip foundry reported Q4 earnings and sales that beat Wall Street targets.
Ahead of earnings, Taiwan Semiconductor kicked off this week with a strong December sales report on Monday, posting a 32% increase vs. the same month in 2020. The manufacturer supplies chips to Apple (AAPL) and Qualcomm (QCOM), among others.
Financial companies set to report Friday include Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC).
Growth Stocks To Watch
Other leading chip stocks scoring big gains in heavy volume included Lam Research (LRCX), Applied Materials (AMAT) and STMicroelectronics (STM).
Lam Research, up 6%, is now extended from a 673.90 buy point of a long consolidation. STMicroelectronics popped 4% as it shapes the right side of a flat base with a 52.25 entry. It’s now about 3% away from the buy point.
Applied Materials, which gapped up and rose 3.5%, is back in buy range from a 159.10 buy point of a flat base. But the stock triggered the 7%-8% loss-cutting sell rule on Monday.
The chip sector strength sent VanEck Semiconductor (SMH) and iShares Semiconductor (SOXX) ETFs up more than 2% each.
Dow Jones Movers
Boeing led the Dow with a 3.4% gain in fast trade. The stock is trying to retake its 200-day line after hitting resistance at the level since August. Shares are about 20% off their 52-week high.
Other winners included Visa and Goldman Sachs (GS), up a respective 2% and 1%.
But Salesforce.com (CRM) and Cisco Systems (CSCO) fell about 1% each to lead the downside on the Dow.
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The post Dow Jones Leads Mixed Market As Boeing Soars, This Top Chip Stock Breaks Out appeared first on Investor’s Business Daily.
