Stocks swung into a mixed open on Thursday through disappointing data on jobless claims over the heels of two sessions of quiet constructive trading. Technical stocks took advantage of the early advantage, with Square and PayPal chasing early clues out of pocket. On the Dow Jones today, Apple climbed, aiming to extend its rally to a sixth day, despite reports of problems with the shortage of chips.
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The Nasdaq Composite jumped 0.9%, while the S&P 500 was up 0.2% from a new high in initial trading. The Dow industry shot down 85 points, by 0.2%, as Chevron (CVX) led the decline in the stock market today.
MercadoLibre (MELI) and Autodesk (ADSK) was at the head of the Nasdaq’s early march. Autodesk rose more than 3%, leading the S&P 500. Shares are rising towards a buy point of 316.41 in a double bottom. Aviation leader Textron (TXT) rose 2.5%, surpassing a buying point after an upgrade to buy from Goldman Sachs. The breakthrough, over a buying point of 57.14 in a three-week pattern, is up to 60 in the buying range.
Square (SQ) was an early leader among IBD 50 and Leaderboard shares and rose 2.8%. The point-of-sale manufacturer fell back above its ten-week moving average this week and rose 6.8% to Wednesday. The six-day rally has put it in a buying range for aggressive investors as it expands the right of a seven-week base pattern.
PayPal also sits on a six-day advance and tests resistance at the bottom of the 50-day / ten-week line. Shares rose 2% in the opening trade. If the move holds through the opening clock, PayPal shares will open above the 50-day line for the first time since March 3rd. PayPal is also on the IBD 50 and Leaderboard list.
Semiconductor shares rose sharply in the early action, increasing the VanEck Vectors Semiconductor ETF (SMH) by 0.9%. The ETF ended 2% Wednesday at a buyout of 258.69 in an eight-week cup basis.
Microsoft, Apple Rising On Dow Jones Today
Techs set the early pace on the Dow Jones again today. Salesforce.com (CRM) led with an advance of 2%. Intel (INTC), appeal (AAPL) and Leaderboard inventory Microsoft (MSFT) was close.
Apple shares rose even as Nikkei Asia reported that Apple was experiencing production delays in its MacBooks and iPads, due to the continuing global shortage of chips.
The result is that orders for some devices are pushed back in the second half of the year. The delays indicate a possible exacerbation of the scarcity of chips, Nikkei reported, and could affect smaller tech players even more heavily.
Apple traded 1.5% higher early Thursday, after surpassing the market and breaking slightly above its 50-day moving average of 1.3% on Wednesday. Apple shares climbed for five live sessions, rising 10% from a March 8 low.
This is technically in a buying zone for aggressive investors, as the stock wants to move further to the right of a three-month base effort.
Unemployed claims, Powell debate, vital signs
In the week ended April 3, the number of first applications for unemployment benefits rose to 744,000. That was above the final count of 728,000 from the previous week, which was disappointing for a second consecutive decline to 680,000 claims.
The markets will also focus on the participation of Federal Reserve Jerome Powell in a virtual debate of the International Monetary Fund on the world economy, starting at 12 o’clock ET.
Wednesday’s announcement of minutes of the Fed’s meeting on March 17 showed a steadfast stance. The record indicates that it will take some time before they start removing aggressive monetary measures to support the economy, and that they will communicate early on any possible move – just the kind of predictability investors want.
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Trade all over the world markets was mixed, and European markets became strong in the afternoon. Crude oil prices have held up to the recent range, with West Texas Intermediate slightly lower and just under $ 60 a barrel. Bonds were steady, with the 10-year return unchanged at 1.65%. Bitcoin reversed early losses, reaching nearly 0.2%, rising above $ 57,000.
Tracking the Nasdaq Cup Base
A few days of trading leveled the Dow and S&P 500 just below record highs, while the Nasdaq added another brick to the symmetrical consolidation that began in mid-February. According to the Big Picture of Wednesday, the tight action of the past two sessions is positive because it shows that the market refuses to return any advance in March.
A look at the Invesco QQQ Trust (QQQ) shows that the Nasdaq Composite identifies the IBD MarketSmith analysis as an eight-week cup base. The buying point for the ETF is at 338.18. The fund ended less than 2% below the subscription on Wednesday. The symmetry of the base is a positive sign. In addition, the last two days can be the beginning of a handle that forms on the pattern. In this respect, a few more days of flat action can be positive.
Aggressive investors can follow the same basic pattern on the charged ProShares UltraPro QQQ (TQQQ) chart. The Invesco QQQ rose 1.1%, and the ProShares UltraPro QQQ rose 3.2% in Thursday’s pre-sale.
Dow Jones Today: A Dozen Blue Chip Buy Points
The Dow Jones today opened a load with an unusual number of stocks in bases and near buying points. More than a third of the 30 Dow shares are currently in buying ranges or just below buying points.
Among those, Boeing (BA) is back in a buying range above a 244.18 buying point in a 12-week cup basis. Intel is in a buying series over a 63.64 entry in a cup with handle.
Microsoft shares have now climbed in four of the past five sessions, ending Wednesday not quite 2% above a 246.23 buy base. The buying range extends to 258.54. Both Boeing and Microsoft are stocks on the IBD rankings.
Goldman Sachs (GS) is busy with its third week of close trading as it tests its ten-week moving average. The setback of March highs and support against the 50-day / ten-week moving average of the stock made it a potential buying opportunity as it recovered from the ten-week support.
The strict weekly close tends to indicate that institutional investors are accumulating equities. This could possibly support the setback.
Walt Disney (DIS) is technically in a buying range. But it is also set up for a possible backlash of support, and can also build a base pattern. Nike (NKE) is trying to regain support, offering aggressive investors a possible early entry into its base-building effort.
UnitedHealth Group (UNH) is again lower than a buying point of 367.59 because it is testing the support on its 21-day exponential moving average.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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