Stock Market Rally Includes The Dow; Venmo Gets Dumped By Amazon

The stock market picked up the pace Thursday as major indexes all posted increasing gains in afternoon trading, on the heels of new jobs data. Leading the way was the tech-heavy Nasdaq, which collected momentum as the session wore on.


While the Nasdaq forged ahead 1.3%, the Dow Jones Industrial Average added 0.3%. The S&P 500 notched up 0.8% on the stock market today. And all three major indexes remained solidly above their 50-day moving averages.

Meanwhile, the Russell 2000 index inched 0.6% higher. The Russell continues to hold firmly above its 200-day moving average.

Volume fell on the New York Stock Exchange and rose on the Nasdaq vs. the same time on Wednesday.

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, added 1.4%. The Innovator IBD 50 ETF (FFTY) crept up less than 0.1%. And the 10-year Treasury yield held at 4.12%.

Meanwhile, the Department of Labor reported 220,000 initial weekly jobless claims vs. estimates of 222,000 for the week ended Dec. 2. The number was higher than the prior week’s 219,000 but still considered low, according to MarketWatch. The more important nonfarm U.S. payrolls report is scheduled for early Friday.

Stock Market Movers: Venmo Gets The Brush-Off

Venmo parent PayPal Holdings (PYPL) lost nearly 2% after Amazon (AMZN) said it would no longer accept Venmo payments. The new policy takes effect on Jan. 10. PYPL stock is not in a base and has lost around 18% thus far this year.

Meanwhile, AMZN stock rose 2% and is in the buy zone of a consolidation. The stock is on track for its highest close since April 21, 2022, when it finished at 148.30, according to Dow Jones Market Data.

Ciena (CIEN) rose after the company reported fiscal fourth-quarter profit and revenue that exceeded estimates. Quarterly earnings growth decelerated to 23% from 79% and 48% in the prior two quarters. Its 16% sales growth also lagged increases of 23% and 19% during the prior two periods.

Shares of the networking software company are in a long, choppy base with a 54.25 buy point, but an early entry is available at 48.06.

Dow Jones component Walgreens Boots Alliance (WBA) popped more than 7% in heavy volume and led the 30-stock index. The drug retailer also reclaimed its 50-day line.

Veeva Systems (VEEV) skidded after the life sciences software maker beat its fiscal third-quarter earnings and sales estimates, but lowered its current quarter revenue outlook.

Lululemon Athletica (LULU) rose ahead of its Q3 earnings report, which is due after the stock market close.

AI Stocks Show Mixed Results

IBD 50 stock Braze (BRZE) sold off in heavy volume, even after the software company reported a smaller-than-expected loss for the third quarter, along with sales that beat estimates. Further, Braze offered fiscal fourth-quarter and full-year 2024 revenue forecasts that were ahead of analyst projections.

The stock stopped short of falling below its 21-day exponential moving average. BRZE is extended from a 50.13 buy point out of a consolidation. (AI) gapped down following the company’s mixed fiscal second-quarter earnings report. The company showed a smaller-than-expected adjusted loss but revenue missed forecasts. It also gave a revenue outlook for the current quarter that disappointed. The stock fell below its 50-day line, flashing a warning signal.

Advanced Micro Devices (AMD) bounced on the heels of Wednesday’s new artificial intelligence chip launch at a company event. The stock hit the 122.11 buy point of a cup-with-handle base and is in the 5% buy zone reaching to 128.22. AMD was the biggest gainer on the S&P 500 on Thursday.

Alphabet (GOOGL) gapped up on the stock market after it rolled out its artificial intelligence software model “Gemini” on Wednesday. GOOGL is in a cup-with-handle base with a 139.42 buy point.

Rivian (RIVN) rallied after Stifel initiated coverage on the electric vehicle stock with a buy rating and a 23 price target.

Futures: Two AI Giants Lead Rally With Jobs Report Due

Other Stock Action: Retail Stock Tanks

Ollie’s Bargain Outlet (OLLI) plunged after investors had a change of heart, following Wednesday’s higher-than-expected fiscal third-quarter results. The retail stock fell below its 50-day line, a red flag signal.

Sprinklr (CXM) gapped down drastically following its mixed Q3 results. The stock fell deep below its 50-day line and triggered a sell signal.

Chewy (CHWY) also sank following its mixed fiscal Q3 report. The pet products retailer posted a surprise profit but revenue missed expectations.

Lastly in stock market action, Dollar General (DG) reversed course and is now down 0.3% after the discount retailer reported a beat on Q3 profit and sales expectations. Its same-store sales declined 1.3% but that was better than the 2.1% drop predicted by FactSet.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.


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