The Dow Jones Industrial Average turned positive again in Thursday's choppy market while the Nasdaq also pared losses after reversing earlier gains. Meanwhile, the growth-focused Innovator IBD 50 ETF outperformed the major indexes.
Dow Jones Pares Losses, Reverses Higher
The Dow was up 0.3%, after dipping lower briefly. The S&P 500 also held a gain of 0.3%. Tech stocks were struggling but the Nasdaq eventually also reversed higher with a small 0.1% gain. The Russell 2000 advanced 0.4% as small caps rose.
Volume was higher on the Nasdaq and NYSE compared to the same time on Wednesday.
Crude oil futures bounced back after trading at their lowest level in several months this week. The commodity rose around 2% to $83.65 per barrel. Meanwhile, the 10-year Treasury yield rose slightly to 3.29% and continued trading around a multi-month high this week.
Powell Affirms Tough Stance On Inflation
Investors closely watched Federal Reserve Chair Jerome Powell's speech at the Cato Institute's 40th Annual Monetary Conference in Washington D.C. early Thursday.
U.S. Stock Market Today Overview |
||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31684.74 | +103.46 | +0.33 |
| S&P 500 | (0S&P5) | 3992.83 | +12.96 | +0.33 |
| Nasdaq | (0NDQC ) | 11807.68 | +15.78 | +0.13 |
| Russell 2000 | 182.99 | +0.80 | +0.44 | |
| IBD 50 | 27.85 | +0.41 | +1.49 | |
Last Update: 1:26 PM ET 9/8/2022 |
||||
Powell affirmed the need for a firm stance on fighting inflation and remained optimistic that a soft landing can be achieved without the "very high social costs" of monetary tightening. The Fed Chair's speech serves as his final public appearance before the Fed's next policy announcement on Sept. 21.
Early Thursday, the Labor Department's first-time jobless claims fell to 222,000, below an expected rise to 240,000. Jobless claims were 232,000 in the previous week.
The financial and health care sectors led the upside with solid gains among the 11 S&P 500 sectors, while consumer staples stocks led the downside.
Outside Dow Jones: Growth Stocks To Watch
The Innovator IBD 50 ETF outperformed the stock market with a 1.5% gain on Thursday.
IBD 50 leader Cross Country Healthcare barreled toward a cup-with-handle buy point as shares rose over 7% and led the upside on the growth stock index. The stock remains 1% below a 27.87 buy point. Shares have captured gains of over 10% this week while the health care staffing stock's relative strength line is hitting a new high.
Cross Country was among the stocks that benefited from the pandemic as demand for medical professionals soared. In 2019, the health care staffing stock reported a profit of 15 cents a share. That figure jumped to 46 cents in 2020 and $3.06 in 2021. Analysts expect earnings to rise another 53% in 2022 to $4.69 a share, according to IBD's MarketSmith.
These IBD 50 Stocks Shine
Elsewhere, IBD 50 member Arista Networks, part of the rising computer networking industry group, rose over 1% as shares cross above a downward-sloping trendline entry. The stock is currently trading 15% below a proper 143.67 double-bottom buy point but the early entry could be used for more aggressive investors.
Waste Connections, a breakout stock from Wednesday, continued to move higher inside the buy zone from a 144.56 buy point of a cup-with-handle base. Shares rose close to 1% and the stock's relative strength line continues to strengthen.
On the downside in the IBD 50, shares of Daqo New Energy led with a loss of 8.8%. The volatile China-based solar energy firm crossed below its conjoined 50-day and 21-day moving averages. Shares continue trading sideways inside a consolidation with a 77.28 buy point.
