The Dow Jones Industrial Average rallied over 225 points Thursday, as Apple rebounded from Wednesday’s sell-off. Nvidia regained a buy point, while Tesla stock and the Coinbase IPO stock jumped at the stock market open.
Dow Jones stock UnitedHealth Group (UNH) reported strong Q1 estimates early Thursday .
Dow Jones Today
The Dow Jones Industrial Average advanced 0.7%, while the S&P 500 rose 0.65%. The tech-heavy Nasdaq composite climbed 1% in morning trade.
Stock Market Rally: Dow, S&P Hit New Highs
Amid the current stock market rally, the Dow Jones Industrial Average hit record highs Wednesday, while the S&P 500 also hit new high before reversing lower.
Meanwhile, the tech-heavy Nasdaq sits just off its own all-time highs amid the index’s recent strength.
Wednesday’s Big Picture commented, “For days, large caps and techs teased IBD readers with this thought: Even if the economy is going to reopen, the big winners of last year are not going to act shy this year. All five FAANG stocks are not only trading above their 50-day moving averages; they’re also leading their 21-day exponential moving averages upward.”
Bitcoin gained about 1% Thursday, trading around $62,600 in morning trade. The cryptocurrency hit an all-time high at $64,829 on April 14, according to CoinDesk.
The Grayscale Bitcoin Trust (GBTC) moved up 2% Thursday, looking to rebound from Wednesday’s 6% skid.
Dow Jones Earnings: UnitedHealth
Early Thursday, UnitedHealth Group crushed Wall Street estimates. The company’s adjusted earnings per share jumped 42.7% to $5.31. Revenue climbed 9% to $70.2 billion.
UNH stock advanced 3% in morning trade and is moving out of buy range above a 368.05 buy point in a flat base.
Stock Market Earnings: Taiwan Semiconductor
Taiwan Semiconductor beat Wall Street’s target for its first-quarter earnings. But its sales guidance for the current quarter was a little light.
TSM stock declined 1.5% in morning trade and fell further below its 50-day moving average.
Stocks To Buy: Nvidia, Roblox
Graphics-chip maker Nvidia regained its 615 buy point in a new cup base amid Thursday’s 4% rise. The 5% buy zone goes up to 645.75.
According to IBD Stock Checkup, Nvidia stock boasts a strong 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock’s fundamental and technical metrics.
IBD Leaderboard stock Roblox is trying to break out past an IPO base’s 79.20 buy point, according to IBD MarketSmith chart analysis. Shares closed Wednesday about 5% below the buy point amid the day’s 8% tumble. Shares rallied 0.6% Thursday morning.
According to Leaderboard commentary, “The stock’s relative strength line is in new high ground, which gives the breakout merit. After Tuesday’s huge gain, Wednesday’s drop is not surprising. For now, Tuesday’s session is an inside day, meaning the high and low of that day is inside the high and low of the prior session.”
Cryptocurrency exchange Coinbase jumped 3% Thursday morning following Wednesday’s debut. Coinbase stock ended Wednesday 31% above its 250 IPO price after surging as much as 66% intraday.
Investors should wait for an IPO base to form before jumping into the hot IPO stock.
Tesla stock reversed almost 1% lower Thursday morning, adding to Wednesday’s tumble. The EV giant was featured as Monday’s IBD Stock Of The Day.
Shares of Tesla regained their key 10-week moving average, a critical resistance level, for the first time since late February. Tesla is forming a new base, but it is too early for a new risk-optimal 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 rallied 2% Thursday, looking to rebound from Wednesday’s 1.8% fall.
Apple stock is rebounding from its 40-week line and back above its 10-week line. On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.
Software giant Microsoft moved up 1.4% Thursday. Microsoft is trading at the top of the 5% buy range past a flat base’s 246.23 buy point that tops out at 258.54.
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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