The Dow Jones Industrial Average remained on track for a fourth straight gain but pared gains at 1:30 p.m. ET and lagged with a 0.1% gain. New inflation data showed prices cooling, which helped indexes extend gains.
The S&P 500 rose 0.6% while the Nasdaq was at session highs, rising 1.3% in early afternoon trading.
The producer price index rose 0.1% in June after a revised 0.4% decline in May. On an annual basis, PPI rose 0.1%, also below forecasts. The data follows Wednesday's consumer price index, which increased 0.2% in June, lower than views for 0.3%.
The CME FedWatch Tool projects an 82.2% chance of rates remaining unchanged in September after a 25-basis-point hike expected for July. There is no Fed meeting in August.
Initial jobless claims fell to 237,000 from the prior week's 248,000.
Nasdaq 100 Rebalancing
The Nasdaq 100 index will prune the top holdings that account for more than 4.5% in weight. When they collectively rise above 48% of total weight in the index, SEC rules require a rebalance. Apple, Microsoft and Tesla are among the heavyweights that will have less influence.
According to Wells Fargo strategists, Starbucks, Mondelez, Booking Holdings and Intuitive Surgical are stocks that may enter the Nasdaq 100.
Changes will be announced Friday and will take effect on July 24 before the market opens. The Nasdaq has rebalanced twice so far in its history, in 1998 and in 2011.
Equal-weighted ETFs that track the Nasdaq 100 are on watch. The First Trust NASDAQ-100 Equal Weighted Index Fund rose ahead of Friday's news.
Volume on the NYSE and Nasdaq fell compared with the same time on Wednesday.
The small-cap Russell 2000 rose 0.8% while the Innovator IBD 50 ETF outperformed with a nearly 2% gain.
Crude oil rose to $76.55 a barrel. The yield on the benchmark 10-year Treasury note fell 9 basis points to 3.76%.
Stocks Run With Big Earnings, Nasdaq Rebalance Due
Dow Jones Stocks
Dow leaders Apple and Microsoft rose Thursday. Both stocks are trading near all-time highs. Microsoft is offering an early trendline entry around 341.75.
Walt Disney rose 0.4% after erasing early losses. CEO Bob Iger will continue to hold his position until 2026, the entertainment company said late Wednesday.
Stocks Moving Today
IBD 50 stock On Holding broke out of a cup with handle at a 33.67 buy point. Volume is above average, which is a bullish sign. But the relative strength line is lagging for the maker of athletic shoes.
Shares of Exxon Mobil fell over 2% after news that the oil giant will buy Denbury for $4.9 billion. Exxon Mobile shares are testing the 50-day line as they work on a cup base.
Tesla rose after news that it's in talks to possibly set up a factory in India that will make 500,000 electric vehicles per year.
PepsiCo rose after a beat-and-raise earnings report. The stock remains stuck below its 50-day moving average.
Among airline stocks, Delta Air Lines rose in heavy volume after a strong second-quarter performance. Fastenal fell after the company reported second-quarter earnings. Volume was heavy, although shares trimmed losses to 2.4%. Fastenal remains in buy range from a 55.34 buy point.
Aehr Test Systems rose ahead of earnings after the market close. Shares are above a 40.69 entry in a cup without handle, according to IBD MarketSmith.
Dow Jones leader UnitedHealth will report on Friday along with big banks JPMorgan Chase, Citigroup and Wells Fargo.
Meta Platforms added to its huge gains after a TD Cowen analyst upgraded the stock to outperform. The analyst gave a new price target of 345, which is much higher than the earlier 220 target.
Arista Networks and Crocs are growth stocks to watch as they both join the IBD 50. ANET is also on IBD SwingTrader.
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