The Dow Jones Industrial Average parted ways with other indexes at midday and fell 0.3% while other major indexes trimmed gains but continued to rise above their 50-day moving averages. Nvidia got a boost in the stock market today amid continued Big Tech spending plans and reports of a possible ban on China's DeepSeek. Amazon.com rose ahead of its fourth quarter results after the close.
The S&P narrowed its gain to 0.2% while the Nasdaq composite was up only 0.1% in recent action.
Volume was higher on the NYSE but lower on the Nasdaq compared with the same time on Wednesday. Advancers outnumbered decliners on the NYSE and were nearly evenly matched on the Nasdaq.
The small-cap Russell 2000 gave back its early gains and traded flat. After a strong 2.3% gain on Wednesday, the Innovator IBD 50 ETF pulled back 0.5%.
The yield on the benchmark 10-year Treasury note rose three basis points to 4.45%.
Initial jobless claims of 219,000 were higher than estimates of 215,000.
Dow Jones: Nvidia Stock
Nvidia rose 2.5% Thursday after regaining the 200-day moving average on Wednesday. Lawmakers are considering a ban on DeepSeek's chatbot on government devices, according to The Wall Street Journal. DeepSeek has emerged as a strong rival to U.S.-made artificial intelligence technology.
Other gainers in the Dow included Caterpillar, which is bouncing off its 200-day line, Boeing and Magnificent Seven stocks Microsoft and Amazon.com.
Amazon stock trimmed small early gains and was flat ahead of its fourth quarter report after the market close Wednesday. Shares hit an all-time high of 242.52 on Tuesday and have gained more than 15% from a buy point of 201.20 as they approach a profit-taking zone. Amazon has a top-notch Composite Rating of 99 although its EPS Rating lags at 78.
TTM Technologies gapped up and broke out to an all-time high from a consolidation at a buy point of 28. A blue dot on its chart on IBD MarketSurge shows that the relative strength is also at a new high. Shares have pulled back to just below the buy point. Needham raised its price target on the contract tech manufacturer to 33 from 30, Dow Jones reported.
Magnite also broke out of a consolidation, this one from an 18.38 buy point. The relative strength line is at a new high. Volume was tracking more than three times the average for the advertising platform operator.
10:49 a.m. ET
Breakouts In Stock Market Today
A few breakouts were seen on Thursday. Marriott broke out at a 295.45 buy point. Volume is double its average, and the relative strength line is near new highs. Both are bullish signals for the breakout.
Bank of America rose past a 47.51 handle entry, but volume is running at merely the average pace.
Banking app operator Dave edged past a 108.50 entry in heavy trading. Its relative strength line also made a new high. The buy zone goes to 113.93.
Gambling rose into a buy zone from a 16.09 buy point of a cup base but pulled back below the entry. However, the relative strength line is at a new high and volume was running more than five times its usual rate.
Stock Market Today: Arm Falls
Arm Holdings fell even though third quarter sales of $983 million and earnings per share of 39 cents were above estimates of 34 cents per share on sales of $949 million. Its guidance for the current quarter was in line with views. Shares had rallied into earnings and broken out from a 164.16 buy point but pulled back into the buy zone. The stock is also giving back some of Wednesday's 7% gain.
MicroStrategy rebranded itself as Strategy and reported a loss of $3.03 per share in the fourth quarter compared with a 56-cent profit the prior year. Sales fell to $120.7 million from $124.5 million. Shares fell modestly and remained below the 50 day moving average. The relative strength line, which compares the stock with the S&P 500, has also started falling. The stock holds a weak Composite Rating of 60.
Elsewhere, online gaming stock Roblox dived more than 10% after fourth quarter earnings were announced. The stock — which is in the ARK Innovation and ARK Next Generation Internet ETF headed by Cathie Wood — had just soared to a three-year high. But Roblox sold off after average daily active users rose to 85.3 million, missing analysts' target of 88.4 million. Its full year outlook for bookings also indicated slowing growth, as the company expects $5.25 billion in bookings, or a 20% increase, after 24% growth in 2024. Roblox stock fell over 15% in heavy volume and tested the 50-day moving average.
Earnings also moved obesity drug leader Eli Lilly. Earnings of $5.32 per share were above estimates of $5.06. The company confirmed preliminary sales results of $13.5 billion for the fourth quarter. Shares rose above the 200-day moving average but they've yet to undo the damage from an October sell-off that followed third quarter results. The 200-day line is above the 50-day moving average — a bearish sign.
Rival drugmaker Viking Therapeutics fell in the stock market today after the company did not give any updates on its experimental obesity drug in its earnings report Wednesday. Shares were in a downtrend ahead of the report and fell further below the 50-day moving average.
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