Stocks again closed at new highs Thursday, as the Dow Jones Industrial Average held most of the day's gains but the Nasdaq and S&P 500 weakened and closed near session lows. Dow stocks showed their dominance despite a sell-off for Apple. Helping the blue chip index was Goldman Sachs, one of several banks that outperformed on the stock market today.
The Dow jumped 269 points, or nearly 0.7%, while the tech-heavy Nasdaq trimmed gains to 0.2%. The S&P 500 closed 0.3% higher and held above the 5,200 level as the small-cap Russell 2000 popped 1.1%.
Volume rose on the New York Stock Exchange and the Nasdaq vs. the same time on Wednesday, according to preliminary numbers.
The markets started moving higher late Wednesday after Fed Chairman Jerome Powell indicated three quarter-point rate cuts in 2024, and that action snowballed into Thursday's trading session. Powell didn't give details on when rate cuts would start, but the odds for a quarter-point cut at the June 12 meeting currently sit at 66.9%, according to the CME FedWatch survey.
Apple Stock Worst In The Dow
Dow Jones component Apple tumbled 4.1% on news the Justice Department and 16 states sued the tech giant on Thursday. The antitrust case contends Apple limits competition on phones and other products, and blocks software developers from offering consumers other options.
The stock fell further below its 50-dayline and undercut its 21-day exponential moving average on the stock market today. Its IBD Relative Strength Rating is a low 31. Apple stock was the worst performer among blue chips in Thursday trades.
China-based electric-vehicle maker Li Auto plunged more than 7% after the company lowered its first-quarter delivery forecast to a range of 76,000 to 78,000 cars from its prior prediction of 100,000 to 103,000 vehicles. The company cited lower-than-expected demand. The EV stock fell further below its 50-day moving average in heavy trading. Shares have lost 18% thus far this year.
Floor & Decor rallied nearly 8.5% in heavy volume. Shares are extended from a flat base buy zone that stretched to 122.54. Shares reached a 52-week high on Thursday.
Mizuho initiated coverage on the stock with a neutral rating and a 115 price target on Tuesday. And BofA Securities recently raised its price target to 140 from 125 and maintained its buy rating on the flooring retailer.
Bank Stocks Hit Highs
Meanwhile, financial stocks seemed to get a lift from the Fed announcement, rallying on expectations of lower interest rates on the horizon. Goldman Sachs bolted 4.4% after JPMorgan maintained its overweight rating and raised its price target on the stock to 424 from 421.
The stock is extended from a buy zone of a long, undefined base with a 389.58 buy point. Goldman stock is on pace for its highest close since Nov. 3, 2021, when it finished the day at 417.90, according to Dow Jones.
Mirroring Goldman Sachs' rise, Bank of America notched up 2.1% and JPMorgan Chase increased 1.4%. All three hit 52-week highs on the stock market today.
Also, the Financial Select SPDR exchange traded fund added 0.8%.
Stock Market Today: Indexes Strong Since Pandemic
Major stock indexes have come a long way. This Saturday, March 23, marks the four-year anniversary of the pandemic low for the market, and the Dow has climbed 113% since hitting its low that day. The S&P 500 has surged 134% while the Nasdaq is up 139% over the same time frame, according to Dow Jones Market Data.
In Thursday's action, the Invesco QQQ Trust ETF advanced 0.5%, while the Innovator IBD 50 ETF jumped 1.6%. The 10-year Treasury yield was nearly flat at 4.27%. And West Texas intermediate crude oil dipped to $80.90 a barrel.
In economic news, weekly initial jobless claims came in at 210,000 vs. the 209,000 expected for the week ended March 16, and lower than the revised 212,000 from the prior week.
Bitcoin Stocks Showed Mixed Results
Olive Garden-parent Darden Restaurants sold off 6.5% after the company reported in-line profit for its fiscal third quarter but said sales were lower than estimates. In addition, quarterly same-store sales unexpectedly dropped. Darden also guided lower for its 2024 revenue and same-store-sales growth. The stock fell below its 50-day line.
Bitcoin's price dipped to just above $64,800, leaving bitcoin-related stocks mixed. MicroStrategy, which owns a large amount of bitcoin, surged 3.4% on the stock market today. Coinbase added 2% while Marathon Digital reversed and sank 2.9%. Riot Platforms also gave back gains and lost 3.4%.
Another Dow Jones stock, Microsoft ended the day up 1% reaching another record high as its "New Era of Work" event was underway Thursday. Officials from Microsoft, a Magnificent Seven stock, were to discuss artificial intelligence innovations, along with what's new with Windows and Surface computers.
Further, Leaderboard stock Nvidia gained 1.2% on the stock market today. Nvidia started the last three sessions in the red but came back each time to finish higher by day's end. On Thursday, it started out ahead and stayed there.
Futures Rise, FedEx Soars; Tesla Skids On China Woes
Stock Market Today: Micron Crushes Estimates
Micron soared 14.1% in heavy volume after reporting a surprise fiscal second-quarter profit and higher sales than expected late Wednesday. The memory-chip maker also gave a current-quarter adjusted earnings and sales outlook that was above views.
Shares gapped up and are extended from a flat base with a 72.31 buy point. Further, Micron stock reached a 52-week high on the move. It was the biggest gainer on the S&P 500 as it touched a record high.
Broadcom popped 5.6%. Brokerage TD Cowen upgraded the stock to outperform from market perform and raised its price target to 1,500 from 1,400.
Five Below gapped down 15.4% in heavy volume after the discount retailer reported its January-ended quarterly results with a miss on profit and sales expectations. It also gave current-quarter earnings and revenue estimates that were lower than analyst estimates.
Further, the company cited in-store thefts weighing on its bottom line. Five Below stock plunged below its 50-day moving average, triggering a sell signal.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
