The Dow Jones Industrial Average traded slightly higher in today’s stock market as all the major indexes closed near their highs of the day. The Nasdaq composite led on the upside while the S&P 500 notched another new high in early trading.
At the market close, the small-cap Russell 2000 was up nearly 0.9%. Meanwhile, the Nasdaq gained 1%. The S&P 500 traded 0.4% higher after reaching a high of 4,098.19. The Dow Jones industrials rose 0.2%. Early data showed volume fell on both the Nasdaq and the NYSE vs. the close on Wednesday.
Federal Reserve Chairman Jerome Powell addressed the importance of global Covid-19 vaccinations during an International Monetary Fund virtual debate on the global economy. He mentioned that global vaccination rates are being watched “very carefully,” as it could put the U.S. economy’s recovery at risk.
Powell also mentioned that the U.S. central bank will be looking at inflation and “the indicators of maximal employment” in the coming months. He reiterated the current stance on its asset purchase program. The markets were largely unaffected.
Meanwhile, the Labor Department reported early Thursday that initial jobless claims rose to 744,000 the week ended April 3. That was higher than expectations for a second straight decline to 680,000. The number was also above the prior week’s claims of 728,000.
Tech Stocks In Buy Zones
A handful of tech stocks, namely FANG stocks, traded in buy zones and hit new highs on Thursday after scoring breakouts earlier this week. Among them were Google parent Alphabet (GOOGL) and Facebook (FB).
Google stock remains near the upper edge of its 5% buy zone after rising 0.5%. Shares broke out past a 2,145.24 flat-base buy point on Monday in heavy trading. The stock was also added to IBD Leaderboard. Recent support at the 21-day line helped the stock climb to a new high near 2,272.
Elsewhere, Facebook traded inside the buy zone of a 304.77 consolidation buy point. Shares closed slightly lower on Thursday and have benefited from the recent resurgence in tech shares. The current buy zone tops out at 320.
As for growth stocks, the Innovator IBD 50 ETF (FFTY) climbed 1.4%, beating the major indexes. The growth-focused index is still trading below the 50-day line but is close to reclaiming this key area of support.
Dow Jones Today
As for the Dow components, tech giants Apple (AAPL), Salesforce.com (CRM) and Microsoft (MSFT) led the upside with gains of over 1% each. On the downside, shares of Nike (NKE) and Verizon (VZ) were down 1% or more each.
Apple rose more than 1% as shares gain momentum above the 50-day moving average. The iPhone maker reclaimed this key area of support on Wednesday. The stock has notched a win streak of six straight sessions. Due to the global chip shortage, the iPhone maker will delay some MacBook and iPad production, Japan’s Nikkei news service reported.
On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below a 138.89 buy point of a cup with handle. Shares are currently building the right side of a consolidation with potential buy point at 145.19. The stock is roughly 10% away from the buy zone.
Microsoft stock rose 1.3% in afternoon trade Thursday. Shares remain in the buy zone above a 246.23 buy point of a flat base, according to MarketSmith chart analysis. The potential buy range tops out at 258.54. The software giant is currently an IBD Leaderboard and IBD Long-Term Leader stock.
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