May 30, 2024
Stock Market

Stock Market Today: Stocks Rise As Powell Mentions New Rules; Nvidia Hits 900 While Tesla Losses Feared

The Dow Jones and other major indexes rallied Thursday as retail and software earnings moved markets, Nvidia (NVDA) cleared a new benchmark, and Tesla (TSLA) fought profit concerns on the stock market today. Meanwhile, Federal Reserve Chair Jerome Powell testified a second day before Congress Thursday.


The Dow Jones Industrial Average headed into a second day of winnings and was 0.6% higher in morning action. The S&P 500 climbed 1% on the stock market today. All 11 sectors in the benchmark index gained ground.

But it was the Nasdaq that led the way, as the tech-heavy index scaled 1.3% higher. Small caps also were higher, as the Russell 2000 was up 0.8%.

Volume on both the New York Stock Exchange and Nasdaq was lower compared with the same time on Wednesday. Breadth was strong as advancers beat decliners by nearly 4-to-1 on the NYSE and less than 2-to-1 on the Nasdaq.

Among exchange traded funds, the Innovator IBD 50 (FFTY) ETF added 0.3%. And the yield on the benchmark 10-year Treasury note was unchanged at 4.10%.

Also, bitcoin rose and continued to hold above $67,000, according to CoinMarketCap.

Powell Makes An Encore Appearance

On Thursday, Fed Chair Powell addressed the Senate Banking, Housing and Urban Affairs Committee. The Fed chief mentioned the need for new rules to address crises such as the bank run of 2023.

Powell’s appearance came a day after he told a House panel that he expected rate cuts later this year but that it was too soon to implement them.

Also in economic news, initial unemployment claims for the week ended March 2 came in at 217,000. That was higher than economist views for 215,000 and was unchanged from the prior week, according to Econoday. Economists see February payroll data, due Friday, dropping off sharply to 190,000 after January’s 353,000.

Nvidia stock climbed another 3% on the stock market today as it cleared the 900 level for the first time. Shares of the artificial intelligence leader have launched more than 80% above a 505.48 buy point off a flat base. Nvidia’s most recent breakout began Jan. 8.

Meanwhile, Tesla tried to reverse higher after analysts feared the electric-vehicle giant would post a loss this year. Tesla stock was up 1.1% in recent action, but shares dropped a collective 13.7% in the previous three session.

According to analysts from Morgan Stanley, Tesla could lose money in 2024. Analysts see weak demand despite price cuts and an industry shift to hybrid vehicles as strong headwinds.

Dow Jones: Few Laggards

Only nine stocks in the Dow 30 lagged in Thursday trades. Top gainers included Intel (INTC), American Express (AXP) and Caterpillar (CAT).

Intel retook the 50-day moving average according to IBD MarketSurge chart analysis. IBM (IBM) is trying to break out at 196.90 while Microsoft (MSFT) tested the 50-day line. Apple (AAPL) tried to break a six-day losing streak.

Movers In The Stock Market Today

MongoDB (MDB), Samsara (IOT) and DocuSign (DOCU) are due to report results after market close. MongoDB fell but Samsara tried to hold its 50-day moving average, according to IBD MarketSurge. DocuSign also rose.

Among chip stocks, Broadcom (AVGO) and Marvell Technology (MRVL) were extended but kept rising ahead of earnings, which also are due after the market close. Broadcom announced its advanced switches for connecting AI servers in data centers ahead of its results.

Retail earnings also moved stocks. BJ’s Wholesale (BJ) surged after comparable sales excluding gas grew 0.5% in the fourth quarter though income from membership fees rose 6.5%.

Kroger (KR) rose 8% after earnings improved for the second straight quarter earn as the company sales continued to decline. Its full-year outlook suggested 1% sales growth at the midpoint. American Eagle Outfitters (AEO) surged 7% after its results.

Costco (COST) plans to report after the market close. Abercrombie and Fitch (ANF) was 3% lower after reporting Wednesday.

In health care, Novo Nordisk (NVO) surged 8% to a record high as its new obesity drug showed promises of being more effective than Wegovy. The stock is a holding on IBD Leaderboard as well as the IBD 50. Shares had formed a three-weeks-tight pattern with a buy point of 124.87 ahead of the news and are extended on the stock market today.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.


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