The major stock market indexes remained in the green Thursday afternoon following optimistic retail sales and jobs data that pointed to a softening labor market. The IPO market got some life as Cava nearly doubled in its debut.
After opening lower, the Nasdaq added 0.9%. The Dow Jones Industrial Average gained 1.1%. The S&P 500 rose 1%. The Russell 2000 was unchanged.
The S&P 500 is on pace for its sixth consecutive gain, which would be its longest winning streak since November, 2021. The Nasdaq is also setting up for a six-day winning streak, the longest since January, according to Dow Jones Market Data.
The Nasdaq 100-tracking Invesco QQQ Trust ETF was 0.7% higher as some major techs showed strength. The First Trust Nasdaq 100 Equal Weighted ETF increased 0.6%.
The Innovator IBD 50 ETF shed 0.1%. NYSE and Nasdaq volume rose from Wednesday's levels at the same time of day.
Crude oil popped 3.2% to $70.66 per barrel. The price of Bitcoin tumbled another 3.5% to $24,990.
Mediterranean-style restaurant chain Cava started trading on the NYSE at 42 per share on an offering of over 14.4 million shares that were priced at an initial 22 per share. The fast-casual operates 263 restaurants. The IPO market has been sluggish this year, making Cava a standout.
Stock Market Digests Economic Data
Initial jobless claims rose to 262,000 vs. the 248,000 expected for the week ended June 10, and matched the prior week's revised number.
The Philadelphia Fed Manufacturing Index fell 13.7% in June vs. the 14.5% consensus increase. The reading shows continued slowdowns in areas including employment, working hours, new and unfilled orders, shipments and inventories. June marks the 10th straight month of contraction.
June's Empire State Manufacturing Index tallied a 6.6% increase vs. the -15.1% consensus estimate. The surprise number shows positive sentiment by the roughly 200 manufacturing executives surveyed on their six-month economic outlook.
May retail sales rose 0.3% vs. the 0.1% drop economists had forecast. Sales excluding vehicles rose 0.1%, as expected. Excluding vehicles and gas, sales increased 0.4% vs. a 0.2% forecast. Consumers put their dollars into car dealerships and hardware stores and also into groceries, furniture and electronics.
Stock Market Reaction To Fed Decision
Investors continued to digest the Federal Reserve's announcement and Fed Chair Jerome Powell's comments from Wednesday afternoon. As no surprise, Fed policymakers left rates unchanged Wednesday, holding the fed funds rate at 5%-5.25%.
But policymakers' projections show a median expectation for a fed funds rate of 5.6% by year-end, signaling two more quarter-point rate hikes.
The CME FedWatch tool shows nearly 70% odds for a quarter-point hike at the July Fed meeting. The 10-year U.S. Treasury yield fell 6 basis points to 3.74%.
Remember that there is often a second-day reaction to Fed meetings that can cause swings from the initial market move. That happened this morning, as indexes opened lower but reversed higher.
In contrast to the U.S., the European Central Bank raised its deposit rate a quarter point to 3.50% on Thursday in a move to thwart inflation.
Stock Market Movers: Pizza Stock Sizzles On Upgrade
Domino's Pizza jumped 6.1% in heavy volume after Stifel upgraded the restaurant stock to a buy from a hold rating and raised its price target to 350 from 320.
Domino's stock is the S&P 500's biggest winner today. Shares have slumped for a year and a half but bottomed around 300.
Lennar added 3.3% in heavy volume after reporting better-than-expected second quarter earnings and sales Wednesday after the close. The company posted improved gross margin and higher-than-expected new orders.
Lennar increased its full-year home deliveries projection to 68,000-70,000 from 62,000-68,000. The report prompted Wedbush to raise its price target to 123 from 94 on Lennar, while maintaining its neutral rating.
Shares are extended from a cup-with-handle base with a 106.13 buy point. But the stock, which hit a 52-week high Thursday, is in buy range from support at the 10-week moving average, a buy area that starts around 109.60.
Supermarket and convenience store operator Kroger sold off 3.2% after the company reported a miss on its fiscal Q1 sales and a beat on earnings.
IBD 50 Stocks Hit New Highs; Cloud Stock Hits Sell Rule
IBD 50 Biopharmaceutical stock Amphastar Pharmaceuticals catapulted 10% in heavy volume to yet another all-time high. Shares are above the buy zone of a long, cup-with-handle base with a 44.15 buy point. AMPH is the IBD 50's biggest gainer today.
IBD 50 leader Symbotic reversed lower to a loss of 2.7% in heavy volume. The AI-focused robotics company hit an all-time high earlier Thursday and had gained over 340% this year, before pulling back. The company focuses on AI-enabled technology for supply-chain operations such as warehouses.
In other IBD 50 action, Tecnoglass soared 7.9% in heavy volume after Stifel initiated coverage with a buy rating and a 60 price target on the specialty glass company.
Cloud networking stock Arista Networks initially fell over 5% but trimmed its loss to 3.8%. The move triggered the 7% sell rule from the 171.44 buy point of a cup base.
Futures: Stocks Run As Tech Titan Roars, But This Risk Grows
Stock Market Action: Adobe Picks Up Steam
Jabil rallied 4.8% in heavy volume after the contract manufacturing provider reported higher-than-expected fiscal third quarter profit and sales. Management gave mixed guidance for the current quarter. Shares are extended from a cup base with an 89.10 entry.
Adobe added 1.5% ahead of the digital media software company's May-ended quarter results Thursday after the market close. Shares are extended from a long, deep cup base with a 451.15 buy point.
Semiconductor stocks pulled back in heavy action after a big run, with Advanced Micro Devices falling 2.7% while Taiwan Semiconductor slid 1.3% and Nvidia initially fell more than 1% but recovered somewhat, dropping 0.1%.
VanEck Semiconductor ETF trimmed losses and was down 0.8%, dragged down by its heavy weighting in Nvidia, Taiwan Semiconductor and AMD.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
