The Dow Jones Industrial Average rallied sharply into the close on Thursday while the Nasdaq composite led the upside, posting a gain of more than 1.5%. Stocks were higher ahead of Chairman Jerome Powell's Jackson Hole address on Friday.
Dow Jones Rises Ahead Of Fed
The Dow closed 1% higher while the S&P 500 is holding a slightly stronger gain of 1.4%. Small caps performed well, with the Russell 2000 up 1.3%. The Nasdaq outperformed them all, up 1.7%.
Volume was higher on the Nasdaq and NYSE vs. the close on Wednesday, according to early data.
Crude oil futures lost 1.8%, reversing after trading higher on expectations for an output cut at OPEC's next meeting in September. The commodity traded around $93.29 per barrel on Thursday afternoon.
Likewise, the 10-year Treasury yield also cooled after this week's strong gains, falling to 3.02%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33293.66 | +324.43 | +0.98 |
| S&P 500 | (0S&P5) | 4199.52 | +58.75 | +1.42 |
| Nasdaq | (0NDQC ) | 12639.27 | +207.74 | +1.67 |
| Russell 2000 | 195.38 | +2.97 | +1.54 | |
| IBD 50 | 30.31 | +0.51 | +1.71 | |
Last Update: 4:04 PM ET 8/25/2022 |
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All Eyes On Jackson Hole
The global banking conference in Jackson Hole, Wyo., kicks off on Friday, highlighted by Chairman Jerome Powell's annual address.
His highly-anticipated speech could generate stock market volatility as the central bank reveals its next steps to control inflation. The Fed raised rates by 75 basis points in both June and July.
243,000 initial jobless claims were filed in the week ending Aug. 20, according to data released in Thursday's premarket, vs. the 245,000 consensus forecast. This marked a positive sign for the job market because initial claims decreased by 2,000, the same decrease as the prior week.
Homebuilders Downgraded
Bank of America analysts downgraded ratings on notable homebuilder stocks, including Lennar, KB Home and Toll Brothers.
Rising interest rates continue to make affordability for homebuyers a challenge and may cause the housing market to face an economic slowdown.
Lennar shares, which were downgraded to "Underperform" from "Neutral," traded 1.4% higher in the final hour of the regular session. The stock seeks support at its 21-day moving average.
Meanwhile, Toll Brothers and KB Home held modest gains as both stocks sought support at key levels.
Inside The Dow Jones: Salesforce.com Earnings
Tech giant Salesforce.com led the downside, losing 5.9%.
Shares sank after the firm lowered its fiscal 2023 revenue outlook, citing currency exchange rates and slowing demand from retail and telecom customers. The Dow Jones component reported July-quarter earnings that fell from a year earlier but exceeded Wall Street targets.
Shares have been tumbling over the past week, undercutting support at their 50-day moving average in strong volume. Even so, the stock was trading near intraday highs an hour before the closing bell.
On the upside, chip stock Intel and Boeing posted gains of over 3%.
Breakout Stocks To Watch
Stocks from a variety of industry groups scored breakouts on Thursday, including chip equipment stock Axcelis Technology, fertilizer stock CF Industries and steelmaker Steel Dynamics.
Chip equipment stock Axcelis, featured on Thursday's IBD Live show, rose close to 12.9% and traded above a 79.93 cup-with-handle buy point.
The stock's RS line notched a new high, while the breakout occurred in very strong volume. It remains within the lower part of the 5% buy zone and is still actionable.
Meanwhile, CF Industries gapped up and traded above a 113.58 cup base entry. The stock's RS line hit a new high while volume booked above-average participation alongside the breakout. CF stock has risen over 12% so far this week.
Finally, Steel Dynamics broke out above an 86.04 handle entry. Shares surged 6.6% in heavy volume but remain slightly below the buy point.
On Wednesday, shares tested support at the 21-day moving average, which helped boost the stock into its 5% buy zone.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
