The Dow Jones Industrial Average closed higher on Thursday. The S&P 500 index is in the second day of its rally attempt while the market remains in a correction. Meanwhile, the tech-driven Nasdaq composite led the upside, up more than 3%.
The Dow Jones industrials were up 1.8%, with the blue-chip index poised for its first weekly gain after four straight weekly declines. The Nasdaq rose a powerful 3.1% and traded near intraday highs while the S&P 500 advanced 2.5%. The small-cap Russell 2000 lagged the major indexes, but still rose 1.8%. Volume was higher on the Nasdaq and on the NYSE vs. the close on Wednesday, according to early data.
The S&P 500 and Dow Jones rose for a second-straight day, serving as a second day for a rally attempt. Be on the lookout for a follow-through day, which has been seen at every single market bottom in the past. While investors should be mostly in cash right now, there are still stocks worth keeping an eye on for when the next uptrend begins.
The Innovator IBD 50 ETF, a benchmark for growth stocks, rose 1.1%, lagging the major indexes. The index remains deep below its 50-day and 200-day moving averages as the market has been especially damaging to growth stocks.
The S&P sectors were all trading higher at least 1% or more. Communication services and technology were making the best gains while utilities and industrials rose the least.
Facebook Pops On Earnings
Facebook parent Meta Platforms soared nearly 18% after the company's Q1 earnings beat views, although revenue missed targets. Jefferies analyst Brent Thill said the firm would have beaten revenue estimates were it not for macroeconomic conditions and the Russia-Ukraine conflict.
The stock narrowly reclaimed its 21-day line while closing in on its 50-day line. Facebook has been in a downtrend since the start of this year. Despite Thursday's strength, there's no new entry point with the stock still far off highs.
Elsewhere, Dow Jones component Apple rose ahead of its latest report, which is due after the close. The stock surged more than 4.5% and gained support off its 200-day line, a bullish sign. But shares remain below the 50-day moving average.
Apple earnings are expected to come in at $1.42 per share on sales of $94 billion. In a note to clients Wednesday, Goldman Sachs was cautious ahead of the report, saying "lockdowns in China, a slowing App Store and the potential for slowing consumer demand increase risk for Apple's guidance and commentary around FQ3 to June."
Dow Jones Today
Stocks outperforming in the Dow Jones included Salesforce.com, which rose 6.3%. The tech giant has been in a downtrend since the start of this year and remains below key moving averages.
Nike and Merck also led the upside with gains of over 4% each. Merck made a powerful move toward a cup-with-handle base, according to MarketSmith analysis. The base shows an 89.58 buy point. Shares remain just pennies below the entry.
The stock's relative strength line has been bullishly pushing higher even in the midst of a stock market correction.
On the downside, Caterpillar and Amgen led with losses of 0.7% and 4.3% each.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
