The Dow Jones Industrial Average traded close to session highs at 1:30 p.m. ET Thursday, after investors looked past the surprise in initial jobless claims. With the Fed meeting next week, the jobs data showed some loosening in the labor market.
The S&P 500 gained 0.5% while the Nasdaq led, adding 0.8% at the hour in a solid rebound from Wednesday's 1.3% tumble.
Volume on the NYSE and the Nasdaq was lower compared with the same time on Wednesday.
The small-cap Russell 2000 lagged with a 0.5% fall after strong gains so far this month.
The Innovator IBD 50 ETF reversed higher and gained 0.7%. The ETF is breaking out at a buy point of 24.34 again. Shares broke out initially on Tuesday.
Crude oil slipped slightly to trade at $72.13 a barrel. The yield on the benchmark 10-year Treasury note fell 4 basis points to 3.73%. Bitcoin rose at the hour. The crypto coin fell on Monday on news of the SEC's probe into crypto exchanges Binance and Coinbase. Bitcoin has bounced back since then.
The 261,000 initial jobless claims for the week ended June 3 rose from the previous week's revised 233,000. It was a surprisingly high number that economists had forecast. The four-week moving average increased to 237,250 from the previous week's revised 229,750. The likelihood of a rate pause next week at the Fed's policy meeting rose to 73.6%, according to the CME FedWatch Tool.
Stocks Moving Today Outside Dow Jones
Smartsheet plummeted after the company reported strong earnings but a dimming outlook. The stock has fallen nearly 20% from its 48.99 buy point, which is a clear sell signal.
Toro also fell after earnings. Both stocks fell below their 50-day moving averages in heavy volume, according to IBD MarketSmith.
Meme stock GameStop plunged nearly 20% after the company announced late Wednesday it fired CEO Matthew Furlong. The video game retailer elevated activist investor Ryan Cohen from chairman to executive chairman.
Also Wednesday, GameStop reported sales of $1.24 billion, a drop from $1.37 billion a year ago. The company did not hold an earnings conference call. The stock, which had been forming a cup base, dived below the 50-day line in strong volume.
Carvana surged 40% after it raised its second-quarter outlook. It climbed to the highest level since last October.
Also outside Dow Jones, shares of Amazon.com rose 2% after Wells Fargo analyst Ken Gawrelski initiated coverage with an overweight rating and price target of 159. The e-commerce behemoth may return to pre-pandemic profit margins sooner as inflation eases and cloud spending resumes, the analyst said.
Ark Invest chief Cathie Wood snapped up $21.6 million of Coinbase shares on Tuesday. Both Coinbase and crypto exchange Binance face scrutiny from the SEC, for different reasons. The head of Ark funds sees Coinbase benefiting from lower competition and continues to be bullish on bitcoin. COIN gapped below its 50-day line this week.
Shares of semiconductor and cloud connectivity service provider Semtech jumped after a surprise profit in its fiscal first quarter. The stock rose above its 50-day line, though it pared earlier gains.
Futures: Dow Giant, Apple Chipmaker In Buy Areas; Tesla Keeps Running Late
IBD 50 Stocks To Watch
Celsius and DraftKings are extended but found support at their 21-day moving averages. Duolingo is retaking the 10-day line after falling sharply on Wednesday.
HubSpot is rebounding from the 21-day line. HUBS, CELH and DKNG are on IBD Leaderboard.
Also on Leaderboard, Palo Alto Networks is in a buy zone from a 213.63 buy point and got support at the 10-day line.
Wingstop, which is on the IBD Leaderboard Watchlist, is building support at the 50-day line and could be forming a new base.
Dow Jones component JPMorgan Chase offers a conventional entry at 143.37 in a flat base. IBD's option idea today is on JPMorgan stock.
Recent IBD Stock Of The Day Fortinet is also near a buy point, of 69.07, with support at the 50-day line.
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