The Dow Jones Industrial Average briefly rallied 275 points Thursday, as Republicans and President Biden continued infrastructure spending talks and the White House announced a new $6 trillion budget plan. Boeing surged in morning trade. Tesla stock continues to rebound, while tech titan Nvidia fell despite “fantastic” earnings results.
Dow Jones Today: Biden Infrastructure Talks
The Dow Jones Industrial Average traded up 0.4% Thursday, while the S&P 500 rose 0.3%. The tech-heavy Nasdaq composite reversed from early losses to rally 0.15% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:34 AM ET 5/27/2021
Republicans and President Biden continue pursuing middle ground on an infrastructure plan, but there is a still a “big gap.” West Virginia Sen. Shelley Moore Capito said, “We’re still talking. I’m optimistic, we still have a big gap. I think where we’re really falling short is we can’t seem to get the White House to agree on a definition or a scope of infrastructure that matches where we think it is, and that’s physical, core infrastructure.” The Republican’s comments came on CNBC’s “Squawk Box.”
Biden’s latest offer to Republicans was $1.7 trillion, while the Republicans unveiled a $928 billion counteroffer early Thursday.
The White House also announced a $6 trillion budget, on which Biden is expected to offer some details on Friday.
Stock Market Rally’s Wall Of Worry
The Dow Jones Industrial Average and S&P 500 continue to rebound from their 50-day support levels with modest gains Wednesday. Meanwhile, the tech-heavy Nasdaq looks to build upon Monday’s bullish retake of its 50-day line.
Wednesday’s Big Picture column commented, “Indeed, fear is not such a bad thing for the stock market. Excessive worry often signals market lows, as it happened on the VIX. Wall Street, as the old saying goes, climbs a wall of worry. Today, inflation is the main worry, after multiple price gauges saw alarming increases the past several weeks.”
For more stock market commentary, check out IBD’s The Big Picture.
Dow Jones Stocks: Boeing, Goldman, JPMorgan
Airplane giant Boeing surged over 4% Thursday morning, as the stock looks to retake its key 50-day line. Shares are building the right side of a possible cup base, offering a potential buy point at 278.67.
Dow Jones financial leader JPMorgan is trading in buy range above a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares gained 1.5% Thursday morning.
Goldman Sachs is in the 5% buy range past a 356.95 buy point that goes up to 374.80. Shares were up 1.3% Thursday.
Stocks To Buy And Watch: Applied Materials, Logitech, UiPath
IBD Leaderboard stock Applied Materials moved up 0.15% Thursday, and is squarely above the 50-day line. Shares are building a consolidation with a 146.10 buy point. Meanwhile, an early entry at 138.77 is also in play.
Per Leaderboard commentary, “Applied Materials is forming a new base. The stock climbed above the 10-week line, which is being used as an aggressive entry.”
Applied Materials is also an IBD SwingTrader stock.
According to IBD Stock Checkup, PATH stock shows a mild 62 out of a perfect 99 IBD Composite Rating due to a lack of earnings growth. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
Stock Market Earnings: Okta, Workday
Cybersecurity leader Okta dived 12% Thursday morning. Late Wednesday, Okta reported Q1 earnings and revenue that topped analyst estimates, but expected a larger-than-expected loss in the July quarter,
Workday slipped 3% despite topping Q1 earnings and sales estimates. The stock is trying to hold above its long-term 200-day line.
Graphics-chip maker Nvidia beat the Street’s fiscal-Q1 estimates late Wednesday. The company earned an adjusted $3.66 a share on sales of $5.66 billion in the quarter ended May 2. Analysts expected Nvidia earnings of $3.28 a share on sales of $5.41 billion.
“We had a fantastic quarter, with strong demand for our products driving record revenue,” Chief Executive Jensen Huang said in a news release. “From gaming, cloud computing, AI, robotics, self-driving cars, to genomics and computational biology, Nvidia continues to do impactful work to invent a better future.”
Shares looked to snap their six-day win streak Thursday, moving down over 1% in morning trade.
Tesla stock rallied almost 1% Thursday morning, on pace to add to Wednesday’s sharp rise. Shares are at their highest level since May 10.
The stock reclaimed its long-term 200-day moving average on Monday. A new base could be forming, but the stock is far away from any new buy point.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple gained 0.4% Thursday, recovering from Wednesday’s slight fall. Shares are struggling to retake their 50-day line. A decisive retake of the 50-day line would be bullish for the stock’s prospects; however, the stock’s lagging RS line indicates significant stock market underperformance.
Earlier this month, the stock triggered the 7%-8% loss-cutting sell rule from a 135.63 buy point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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