The stock market indexes made another attempt to rebound Thursday morning, as more earnings reports and economic data added to the mix.
XThe Nasdaq led the bounce with a 1.6% gain as the tech sector led the market. Apple (AAPL) rose back above its 50-day moving average after dipping below it Wednesday.
The S&P 500 rose 1.1% while the Dow Jones Industrial Average climbed 1%. The Russell 2000 rose 0.6%. Volume rose on the NYSE and Nasdaq compared with the same time on Wednesday.
First-time claims for jobless benefits rose sharply last week to 286,000 from a revised 231,000 the previous week. Economists polled by Econoday had forecast 207,000.
John Lynch, Chief Investment Officer for Comerica Wealth Management, said in a statement the rise in claims brought the four-week average to 231,000 but there's still a positive take-away.
"While investors may be disappointed at the headline number, the underlying strength in the labor market suggests this is a temporary blip due to omicron," he said. "We look for job growth to continue to firm as global cyclical recovery persists."
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35327.62 | -40.85 | -0.12 |
| S&P 500 | (0S&P5) | 4578.75 | +1.64 | +0.04 |
| Nasdaq | (0NDQC ) | 14563.90 | +57.00 | +0.39 |
| Russell 2000 | (IWM) | 206.45 | -1.38 | -0.66 |
| IBD 50 | (FFTY) | 39.88 | -0.85 | -2.09 |
Last Update: 10:04 AM ET 1/20/2022 |
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The jobless claims report didn't bother the stock market much. In fact, index futures climbed after the report was released at 8:30 a.m. ET.
Nasdaq Confirms Stock Market Correction
After Wednesday's decline, the Nasdaq found itself more than 10% below its prior high. That's the commonly accepted definition of a market correction, and it agrees with IBD's change to the market outlook earlier this week.
Investors should be raising cash and avoiding new stock buys. Following sell rules is critically important now. A number of top-rated stocks have already fallen more than 7% below buy points, broken below the 10-week moving average or erased gains of more than 10% from buy points.
Innovator IBD 50 ETF (FFTY) rose 0.5%. A couple of new companies in the index are in buy zones.
Berry Global (BERY), a product packaging company, is in buy range from a 70.63 buy point and acting well amid a weak market. Drugmaker Bristol Myers Squibb (BMY) is in a buy zone from a 62.77 entry in a cup with handle.
After a strong January, Energy Select Sector SPDR (XLE) was the weakest S&P sector ETF, down 0.8%. Still, it's up about 15% for the month.
In the first look at the leading oil and gas industry, Baker Hughes (BKR) climbed about 6% after a mixed Q4 report early today. The stock climbed above the 27.76 buy point of a cup base.
The drilling machinery company earned an adjusted 25 cents a share vs. a year-ago loss of 7 cents a share. Views were for a profit of 28 cents. Sales of $5.5 billion were in line with estimates.
Stock Market Watches Airline, Alcoa Earnings
Airline stocks fell after more carriers reported fourth-quarter results. American Airlines (AAL) fell 1.5% after it narrowly topped views early Thursday.
United Airlines (UAL) fell nearly 1%. The company's fourth-quarter earnings late Wednesday beat estimates, but United warned of weaker-than-expected first-quarter sales, rising costs and a reduced flight schedule. It blamed the omicron variant of Covid-19.
Alcoa (AA) rose nearly 5% after the aluminum company beat fourth-quarter expectations. Adjusted EPS of $2.50 marked an 862% increase from a year ago. Revenue climbed 36% to $3.34 billion. Alcoa shares are extended from the 52.96 buy point of a double bottom base breakout Dec. 16. The stock held up well the past few weeks as the broad market tumbled.
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