Thanksgiving Market Rally: Apple Hits $3 Trillion Despite Mixed Stock Performances
Thanksgiving Market Rally: Apple Hits $3 Trillion Despite Mixed Stock Performances
Amidst pre-Thanksgiving fervor, the stock market held steady on Wednesday, with a notable surge from Apple propelling optimism despite a mixed performance among various stocks.
Indexes maintained a moderate uptrend through the afternoon. The Nasdaq composite demonstrated a 0.6% increase, while the S&P 500 climbed 0.4%.
Nvidia faced some setbacks, stumbling by 2% following its earnings report. Despite this, the company remains close to the 476.09 buy point of a double-bottom base, signaling no immediate sell signals.
On Tuesday, Nvidia surpassed expectations for the October quarter due to a remarkable surge in sales of artificial intelligence processors for data centers. The company's current-quarter guidance also outperformed expectations.
The Dow Jones Industrial Average surged by 0.5%, boosted by the upward trajectory of Microsoft, Apple, and Boeing. Microsoft reached a record high, fueled by its association with OpenAI and the reinstatement of co-founder Sam Altman as CEO. Apple, after reclaiming a $3 trillion market cap earlier in the session, registered a 0.6% increase, consolidating since July after initially reaching the $3 trillion milestone in June.
Boeing witnessed a 0.9% rise subsequent to the FAA's approval of flight tests for the company's MAX-10 jetliner, marking progress after significant delays.
While small caps tapered off from their opening highs, the Russell 2000 index sustained a 0.6% gain. However, volume decreased on both the NYSE and Nasdaq compared to the previous day's levels.
Palo Alto Networks (PANW) stood out as the sole stock breaking out on Wednesday, surpassing the 265.90 buy point of a flat base, albeit with declining volume.
The market appears to be at an extended phase following a robust rally since late October. Despite the Investment Business Daily's recommended exposure level of 80% to 100%, a potential pullback wouldn't be unexpected, especially if major indexes reverse their upward trends.
Ahead of the Thanksgiving holiday, the market navigated economic data and earnings reports. The University of Michigan's consumer sentiment index edged up to 61.3 from 60.4 in October, with slightly higher inflation expectations. Jobless claims saw a notable decrease of 24,000 to 209,000, surpassing economist forecasts. However, durable goods orders experienced a 5.4% decline in October, with a notable drop in the transportation component, signifying a possible economic slowdown in the current quarter.
Energy emerged as the weakest sector on Wednesday, with the Energy Select Sector SPDR (XLE) down 0.4%. The decline in crude oil prices to $76.25 per barrel, along with OPEC's delayed meeting on oil-production cuts, contributed to this sector's weakness.
Specifically, apparel retailers faced a mixed performance. Urban Outfitters (URBN) witnessed a significant drop below its 50-day moving average, triggering sell signals despite beating quarterly views. Guess (GES) and Deere (DE) also faced declines, while Autodesk (ADSK) experienced a 5.5% dip despite raised fiscal year outlooks.
The Innovator IBD 50 ETF (FFTY) registered a 0.3% increase during the afternoon session, with Nvidia being among its weaker performers.
