The Dow Jones Industrial Average and S&P 500 managed to set records with just meager gains by the close Thursday, although a number of individual companies churned out massive gains on the stock market today. One stock, Arm Holdings, was a market winner as it surged nearly 50% on the company's earnings report, while Walt Disney bolted higher as well.
The Dow Jones Industrial Average inched up 0.1% but still hit a new closing high of 38,726.33. The Dow's intraday all-time high of 38,783.62 was set on Friday.
The S&P 500 squeezed out a less than 0.1% gain, but it also was enough for a new closing high. The benchmark index teased investors by finishing at 4,997.91, just a few points under the 5,000 milestone for the second straight session. But S&P 500 stocks touched that 5,000 mark for the first time Thursday before retreating, hitting an all-time intraday high of 5,000.40.
Meanwhile, the Nasdaq climbed 0.2%. And the small-cap Russell 2000 outperformed as it rallied 1.5%.
The Invesco QQQ Trust exchange traded fund edged 0.2% higher, while the Innovator IBD 50 ETF outperformed the major indexes with a 1.6% increase.
Volume fell on the New York Stock Exchange and rose on the Nasdaq vs. the same time Wednesday, in preliminary numbers. And the 10-year Treasury yield added 5 basis points to 4.15%.
In economic news, weekly initial jobless claims for the week ended Feb. 3, came in at 218,000 vs. forecasts for 222,000. The prior week's claims were revised to 227,000.
Stock Market Action: Disney Pops, Arm's Record Day
IBD Leaderboard stock Arm Holdings gapped up and soared 47.9% in huge volume after the chip designer beat fiscal third-quarter earnings and sales expectations. Quarterly profit grew 32% on 14% sales growth. Arm supplies chip designs to big names including Apple, Qualcomm and Nvidia.
Arm stock is having its best day on the stock market today since it went public Sept. 14 at 51 per share. With the stock in the stratosphere, it may be smart to take at least some profits. With shares more than 70% above the 50-day moving average, it may be difficult for Arm to add gains. At the same time, there's a buyers' euphoria and no danger signals on the chart.
Meanwhile, Disney gapped up 11.5%. The entertainment giant and Dow Jones component reported higher-than-expected earnings for its fiscal first quarter.
The real excitement, though, came from Disney's 2024 adjusted earnings projections, which topped views. Disney stock scored its largest one-day increase since Dec. 11, 2020, when it rose 13.6%.
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IBD 50 name AAON rallied and broke out of a newly formed flat base with a 75.24 buy point. The heating and ventilation stock is at the top of the 5% buy zone which stretches to 79. The stock chart pattern formed just after a breakout from a cup base failed in late December.
Another IBD 50 stock, software maker Cloudflare, popped 8.4% in anticipation of the company's fourth-quarter earnings report due after the stock market close. Shares are extended from a 76.07 cup base buy point.
Premium apparel company Ralph Lauren jumped 16.8% in heavy trading on the stock market today, gapping above a flat base, after the firm exceeded fiscal third-quarter profit and revenue expectations.
Tapestry spiked 6.5% after the luxury handbag and accessories maker beat fiscal second-quarter profit and sales estimates and raised its fiscal 2024 earnings outlook. Shares traded around a resistance level of 44 to 45. Quarterly profit grew 20% on modest 3% sales growth. Tapestry owns the Kate Spade and Coach brands of bags and accessories.
Wynn, New Oriental, Advanced Drainage Gap Up
Hotel and casino operator Wynn Resorts advanced 6.3% after the company exceeded fourth-quarter profit and revenue estimates.
New Oriental Education gapped up 6.6% in heavy volume and broke out of a choppy, undefined base with an 83.73 buy point. Because of the gap-up, the first five-minute high at 88.43 serves as a better buy point.
Advanced Drainage Systems also gapped up 14.4% in heavy trading in the stock market today after the water drainage products maker reported fiscal third-quarter earnings and sales that topped analyst estimates. Shares broke out of a flat base with a 145.68 buy point, according to MarketSmith pattern recognition.
The early morning gap-up created a buy range from 156 to 163.80, based on the high of the first 5-minute bar. The stock and its relative strength line reached 52-week highs in the stock market today.
And automaker Stellantis added 2.3% and broke out of a flat base with a 23.66 buy point and is in a buy zone up to 24.83. Stellantis brands include Jeep, Dodge, Ram, Fiat and Alfa Romeo.
Magnificent Seven: Nvidia Hits A High, But Fades
Magnificent Seven stock and IBD 50 name Nvidia reversed and shed nearly 0.7% after reaching another all-time high at the open. Shares topped the 700 level but couldn't hold the higher level. Meta Platforms bumped up 0.1% in afternoon trading.
Meanwhile, Alphabet crept up nearly 0.3%. Apple sank 0.6% as it faces resistance at the 50-day line. Microsoft was unchanged Amazon.com edged 0.4% lower.
Tesla pulled ahead 1.1% in the stock market today, but remained near nine-month lows.
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Qualys lost 4.2% in heavy volume. The company reported better-than-expected fourth-quarter earnings and a slight miss on sales. But management gave full-year adjusted earnings and revenue guidance below analysts' forecasts. The cloud security software stock fell further below its 50-day moving average and had already triggered a sell signal.
PayPal gapped down 11.2% after the digital payments provider topped fourth-quarter profit and sales estimates but gave a full-year 2024 adjusted earnings forecast below analysts' views.
Monolithic Power Systems gapped up 14.2% following the company's beat on fourth-quarter top- and bottom-line estimates. Monolithic also raised its quarterly cash dividend to $1.25 from $1 per share. Several analysts raised their price targets.
Dynatrace sank 7.6% even after the firm topped fiscal third-quarter earnings and revenue estimates and bumped up its fiscal fourth-quarter and full-year profit and sales projections. Dynatrace tested its 50-day line on the stock market today and remains extended from a 52.60 cup-with-handle buy point.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
