April 25, 2024

The Dow Jones Industrial Average gained as stocks battled back from Wednesday’s firm losses. Nike (NKE) held firm near a buy point ahead of earnings. Tesla (TSLA) led the Magnificent Seven higher, but Apple (AAPL) lagged.


There was a dearth of breakouts but a few stocks closed in on entries. Carnival (CCL) jumped toward an entry after earnings while Southern Copper (SCCO) and ASML (ASML) also neared new highs.

Nasdaq Shines, Small Caps Outperform

The Nasdaq composite fared best out of the major indexes as it turned in a lift of almost 1%. Micron Technology (MU) outperformed here as it popped more than 7%. It was boosted after it beat earnings views and served up a sunny outlook. It is closing in on its 20% profit goal from a 72.31 entry, MarketSmith analysis shows.

The benchmark S&P 500 was also flexing its muscles after yesterday’s reversal, jumping 0.6%. Paramount Global (PARA) and Warner Bros. Discovery (WBD) both lagged amid merger talk.

The S&P 500 sectors were mostly green. Consumer discretionary and health care fared best in the stock market today. Energy and utilities lagged.

Small caps gave the bears a black eye, with the Russell 2000 up more than 1%. Growth stocks did even better, with the Innovator IBD 50 ETF (FFTY) jumping almost 2%.

Dow Jones Today: Nike Earnings Loom, Intel Shines

The Dow Jones lagged the other major indexes, but still managed to rise nearly 200 points, or 0.4%.

Intel (INTC) was benefiting from the broad boost to semiconductor stocks. It rallied more than 2%.

Salesforce (CRM) and American Express (AXP) were other outperformers on the much-watched index.

Nike stock was fractionally positive. The sportswear giant is getting set to post quarterly results after the close. It is trading below a cup base entry of 131.31, MarketSmith analysis shows.

Analysts see Nike earnings slipping just over 1% to 84 cents per share. Revenue is expected to rise 0.6% to $13.4 billion, according to Zacks Investment Research.

In a research note Thursday, UBS analyst Jay Sole said, “Nike’s business outlook has improved over the last few months. This could be an indication the company is regaining momentum after a tough past 2-yr. period.” He rates the stock as a buy with a 150 price target.

Magnificent 7: Tesla Leads, Apple Stock Lags

The so-called Magnificent Seven stocks were nearly all moving higher heading into the close Thursday.

Tesla stock led the way as it rose nearly 3%. It has been holding above its short-term and major moving averages in recent sessions. TSLA remains below a second-stage double-bottom base that is offering up a 278.98 buy point.

AI stock Nvidia (NVDA) rose more than 1%. The Leaderboard stock is in a buy zone above a 476.09 entry.

Meta Platforms (META) turned in a similar gain to NVDA, as did Google parent Alphabet (GOOGL).

E-commerce giant Amazon.com (AMZN) rose nearly 1%. It is near the top of its buy zone from a 145.86 entry that goes to 153.15.

The two Big Tech members of that club that also are on the Dow Jones index had mixed fortunes. Microsoft (MSFT) turned in a gain of less than 1% and remains in a buy zone above a 366.78 entry.

Its old rival Apple (AAPL) lagged with a fractional decline. Despite this, it continues to trade in a buy zone above a 192.93 cup-with-handle entry.

Outside Dow Jones: Carnival Earnings Lift Stock Near Entry

Breakouts were thin on the ground, but a handful of stocks made progress toward potential buy points.

Carnival stock popped more than 6% after earnings, and is closing in on a cup base buy point of 19.55.

The stock was boosted after management said it is seeing “strong booking momentum.” Carnival announced a fourth-quarter loss of 7 cents per share, compared to an 85-cent loss a year ago, with revenue growing 41% to $5.4 billion. This was a top and bottom line beat.

Southern Copper rose around 3% as it closes in on its own cup-base entry of 87.59. This is a first-stage pattern, a bonus. Overall performance is strong here, reflected in its IBD Composite Rating of 92 out of 99.

Finally, ASML is nearing a cup-base entry of 771.98 on its weekly chart. This offers a higher buy point after it got extended from a daily chart cup-with-handle entry.

The chip equipment play is also strong all-around. Earnings are particularly impressive, with its EPS Rating a mighty 98 out of 99.

Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.


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Source: investors.com

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