The major stock indexes showed resilience on Thursday as they sought to maintain their upward trajectory, building upon the momentum from the previous day’s record-breaking performance. The positive sentiment was fueled by encouraging jobless claims data, with notable early gains seen in retail giant Walmart’s stock following its strong earnings results. However, meme stocks like GameStop continued to face headwinds, extending the losses observed on Wednesday.
During morning trading sessions, the Dow Jones Industrial Average edged slightly lower, while the S&P 500 experienced marginal declines of less than 0.1%. The Nasdaq composite, which focuses on technology stocks, also saw a modest decrease of 0.1%.
Early on Thursday, the yield on the 10-year Treasury ticked downwards to 4.33%, while oil prices climbed, with West Texas Intermediate futures trading around $78.75 per barrel.
Among exchange-traded funds (ETFs), the Nasdaq 100 tracker Invesco QQQ Trust ETF remained relatively flat, while the SPDR S&P 500 ETF recorded slight gains.
The ongoing meme stock frenzy appeared to lose steam further, with GameStop and AMC Entertainment both extending their losses from the previous day. GameStop’s stock plummeted by another 18% in morning trading, while AMC shares dropped by 10%.
Meanwhile, Walmart shares surged nearly 7% on Thursday morning after the retail giant reported strong earnings and sales figures, prompting the company to raise its earnings and sales outlook for the full year.
In economic news, the Labor Department reported a decrease in first-time jobless claims to 222,000, slightly below the previous week’s figure of 231,000 but in line with expectations. However, the Commerce Department’s data on April housing starts and permits fell short of estimates, with starts rising to 1.36 million and permits declining to 1.44 million. Additionally, the Philadelphia Fed manufacturing index for May fell to 4.5, lower than April’s reading of 15.5 and below expectations.
Key movers in the market included Baidu and JD.com, with Baidu’s shares falling by 4.2% and JD.com’s declining by nearly 2% in early trading.
The previous day saw the Dow Jones Industrial Average gaining 0.9%, the S&P 500 rising by 1.2%, and the Nasdaq composite advancing by 1.4%, with all three indexes reaching new all-time highs.
Looking ahead, investors are advised to stay informed about changing market conditions and adjust their strategies accordingly, leveraging resources like IBD’s exposure levels and the Big Picture column to navigate the evolving landscape. Additionally, keeping an eye on leading stocks such as JPMorgan Chase, Merck, NetApp, PDD, Taiwan Semiconductor Manufacturing, and Tradeweb Markets can provide valuable insights for market participants seeking investment opportunities.