The Dow Jones Industrial Average fell by 0.5% in the first hour of trading Thursday. The blue chip index remains above its 50-day moving average. The Nasdaq rose over 2% ahead of big tech earnings. The tech index cleared its 200-day moving average Wednesday in strong volume. The S&P 500 rose nearly 1% at 10:30 a.m. ET.
X
Volume on the NYSE and the Nasdaq spiked double-digit percentages compared to the same time on Wednesday.
Small cap Russell 2000 rose 1%. The Innovator IBD 50 (FFTY) also gained nearly 1%.
Crude oil rose fell over 1% to trade at $75.21 per barrel. The yield on the benchmark 10-year Treasury note fell 3 basis points to 3.36%
First-time jobless claims fell to 183,000 versus 186,000 the previous week. The four-week moving average declined.
The European Central Bank raised rates by 50 basis points, to 2.5%. On Wednesday, the Fed’s quarter-point hike brought interest rates to the 4.50% – 4.75% range. Fed Chair Powell indicated that rate policy will depend on further easing of inflation.
Dow Jones Stocks
Dow Jones tech leader Apple (AAPL) will report earnings after the market close.
According to reports, Apple has gained an average 1.1% in the post-earnings trading session since 2007 and 2.3% in the month after earnings. However, IDC research expects a 14.9% year-over-year decline in Q4 iPhone sales. It isn’t certain that investors will forgive this shortfall.
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Bank of America (BAC) analyst Wamsi Mohan is looking for a weaker iPhone cycle, due to both demand and supply issues. Earlier, the Cupertino, Calif. based company warned of foreign exchange headwinds that could affect service revenue.
Wedbush analyst Dan Ives views 175 as fair value for the stock, down from 200, but has maintained an outperform rating. Weaker iPhone sales in the current quarter will likely lead to a bounce later in 2023. AAPL shares are higher by over 2% ahead Thursday morning.
Healthcare stock and Dow Jones component stock Merck (MRK) is down 3% after earnings on Thursday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 33923.46 | -167.91 | -0.50 |
| S&P 500 | (0S&P5) | 4160.27 | +40.75 | +0.99 |
| Nasdaq | (0NDQC ) | 12093.44 | +278.14 | +2.38 |
| Russell 2000 | (IWM) | 197.02 | +2.75 | +1.43 |
| IBD 50 | (FFTY) | 23.87 | +0.30 | +1.27 |
Last Update: 10:30 AM ET 2/2/2023 |
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Stocks Moving Today
Meta Platforms (META) skyrocketed more than 20% in early trading after solid revenue, though it missed earnings estimates.
The Facebook parent slashed costs while declaring a $40 billion share buyback. Also on Wednesday, META got clearance to buy virtual reality startup Within Unlimited. despite the Federal Trade Commission’s bid to block the deal.
Shares are on pace for their highest-percentage gain since July 2013. The stock has rallied a whopping 50% so far in 2023.
Healthcare stocks Eli Lily (LLY) and Bristol Myers Squibb (BMY) are moving after earnings. Eli Lily fell over 3% in early trading while BMY’s rallied 1%.
Align Technology (ALGN) surged over 20% after earnings.
Amazon (AMZN), and Google-parent Alphabet (GOOGL) are on tap later today, along with Apple. Amazon’s e-commerce and cloud service AWS are both key revenue generators on watch. Both stocks rose 5% in the opening hour on Thursday.
Tesla (TSLA) is set to increase its production in Shanghai. Cost cuts earlier have boosted demand, according to sources. The plan is to produce 20,000 EVs a week in February and March. Shares rose over 4%
Ford (F) is on tap after General Motor (GM) earnings on Tuesday. Shares rose over 3%.
For more news on the stock market today, please follow VRamakrishnan on Twitter @IBD_VRamakrishnan
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