The Dow Jones Industrial Average, Nasdaq composite and S&P 500 moved higher in the final hour of trading on Thursday. After trading negative for most of the session, the Dow Jones turned slightly positive at day's end.
Dow Jones Reverses Higher, Small Caps Lead Upside
After trading in the red for most of the session, the Dow Jones finally recouped losses and traded around 0.1% higher into the close.
Meanwhile, the S&P 500 also pushed higher into the close and held a gain of 0.2%. Small caps led the upside, with the Russell 2000 advancing 0.7%. The Nasdaq composite held a gain of 0.2%. Volume was trading 10% lower on the Nasdaq and 17% lower on the NYSE vs. the close on Wednesday, according to early data. Elsewhere, oil prices rose 2.8% to $90.62 per barrel after slipping below $90 a barrel earlier this week.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34000.95 | +20.63 | +0.06 |
| S&P 500 | (0S&P5) | 4284.15 | +10.11 | +0.24 |
| Nasdaq | (0NDQC ) | 12965.34 | +27.22 | +0.21 |
| Russell 2000 | 198.98 | +1.37 | +0.69 | |
| IBD 50 | 29.59 | +0.42 | +1.44 | |
Last Update: 4:20 PM ET 8/18/2022 |
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This week remains an important one as the indexes slow down after several weeks of gains. The major indexes are all being confronted by overhead resistance at their 200-day moving averages. The Dow Jones has successfully regained this area while the S&P 500 is trading just beneath this key technical indicator.
The Nasdaq also still remains slightly below its 200-day line, and is on track to post its first weekly loss in over a month.
Should the indexes be able to retake their 200-day lines, it would be a bullish indicator for the current market uptrend.
Inside The Dow Jones: Cisco Leads On Earnings
Cisco boosted the Dow Jones on Thursday, and led the upside with a 5.8% gain. Volume surged 93% higher than its 50-day average of 20.2 million shares.
The computer networking giant issued better-than-expected fiscal 2023 revenue guidance. The stock is quickly approaching its 200-day moving average.
Amid lowered expectations, Cisco's fiscal fourth-quarter earnings came in at 83 cents per share, down 1% from a year earlier. Revenue was flat at $13.1 billion, including acquisitions. Analysts estimated that Cisco would earn 82 cents per share on revenue of $12.73 billion, according to FactSet.
Intel and IBM also led the upside with gains of around 1% each. On the downside, Walgreens lost 6.3% after the drugstore chain was ordered by a federal judge to pay two Ohio counties damaged by the opioid crisis. Walmart and CVS, alongside Walgreens, were ordered to pay a combined $650.6 million.
Elsewhere, Dow Jones leader Verizon also led the downside with losses of 2.6% as the stock was downgraded to underperform by MoffettNathanson. The firm also lowered its price target on Verizon.
Please read this IBD special feature on why Warren Buffett dumped these four holdings, including Verizon.
Alternative Energy Stocks Breaking Out
A handful of stocks broke out on Thursday including Montauk Resources, which is part of the No. 4-ranking renewable energy industry group. Shares gained nearly 9% Thursday and are extended from the 16.75 buy point of a cup base. Montauk has been on a powerful run in recent months, on track to close higher for its fifth-straight week.
The stock's RS line notched a new high as well. Shares are up over 47% for the month of August.
Another alternative energy stock, Canadian Solar also scored a breakout on Thursday above a 43.24 buy point of an unidentified base. The stock powered 15% higher and also closed above the upper edge of its 5% buy zone. The robust price move higher occurred in extremely heavy volume, while the relative strength line popped to new highs.
Solar energy remains the No. 1-ranking industry group among the 197 groups IBD tracks, based on six-month relative price performance.
According to IBD Stock Checkup, Canadian Solar remains the No. 3 stock in the group, when ranked by Composite Rating, behind Enphase Energy and Daqo New Energy.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
