The Dow Jones Industrial Average rose over 600 points in today's stock market while the S&P 500 and Nasdaq also poured on the gains. Stocks rose despite reports of the second omicron variant case of Covid-19 infection being discovered in the U.S. Thursday.
XDow Jones In The Stock Market Today
At the close, the Nasdaq composite traded up 0.8%, lagging the other major indexes. The Dow rose over 1.8% and the S&P 500 jumped 1.4%. Meanwhile, the Russell 2000 which has been lagging the other indexes lately, gained over 2.8%. Early data showed volume was running lower on the Nasdaq and on the NYSE vs. the close on Wednesday.
The market has been volatile since Friday of last week, after the rise of the new coronavirus variant that originated in South Africa. Since then, there have been two confirmed cases in the U.S. Some preventive measures have been established, including a travel ban from several African nations.
The Nasdaq was weighted down on Thursday by underperformance in Apple (AAPL). Shares pared a deeper morning loss to around 0.6% in afternoon trading. The stock was hit by news that Apple told its component suppliers that iPhone 13 demand has slowed. Also, there's a chance that a rebound in sales next year may not materialize for the company, according to Bloomberg.
Shares of Apple have become extended from a recent 153.26 entry of a cup with handle. But shares briefly whipsawed back into the 5% buy zone on Thursday, according to MarketSmith chart analysis.
Apple didn't hinder the price-weighted Dow Jones index as badly as it did the Nasdaq. Many other Dow stocks also posted strong gains, with eight of the 30 blue chips gaining over 3%.
Top gainers in the index Thursday included Boeing (BA), Visa (V) and American Express (AXP). Boeing gained over 7% on news that China's aviation regulator took steps that bring the 737 MAX closer to returning to service in China after a period of grounding.
Growth Stocks To Watch
The growth-focused Innovator IBD 50 ETF (FFTY) rose 1.6% after several days of declines. On Wednesday, shares slipped below the 200-day line for the first time since July.
Among leading industry groups were several travel and reopening-related groups like airlines, lodging and travel booking. All three rose more than 5% each. Meanwhile, industry groups like semiconductor equipment and auto manufacturers declined after leading the market in recent sessions.
Several stocks in IBD's residential and commercial building group held strong gains on Thursday. Key names to watch in that group include Lennar (LEN), D.R. Horton (DHI) and LGI Homes (LGIH), as each rose over 4% in afternoon trading.
Meanwhile, Century Communities (CCS) broke out above a 75.47 cup-with-handle entry, which can be spotted on both a daily and a weekly chart. The relative strength line is rising sharply, a sign of stronger outperformance vs. the S&P 500.
The stock broke out in heavy volume, a bullish sign, and it shows strong EPS and sales growth in recent quarters. But with the market uptrend under pressure, all potential new buys come with added risk.
Follow Rachel Fox on Twitter at @rachelgfox for more Dow Jones and stock market commentary.
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