The Dow Jones Industrial Average inched higher Thursday as stocks gained overall ahead of a jobs report due Friday. Advanced Micro Devices (AMD) surged amid more enthusiasm over its artificial intelligence initiatives while Nvidia (NVDA) also gained. Meanwhile, a trio of stocks held by investing whiz Bill Ackman are near entries, including Google-parent Alphabet (GOOGL).
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Breakouts were thin on the ground but some noteworthy names closed in on entries. Leaderboard Watchlist name Booking (BKNG), Warren Buffett-backed Snowflake (SNOW) and Ralph Lauren (RL) moved near a buy point.
This Data Drops Ahead Of Jobs Report
With monthly unemployment numbers due Friday, first-time jobless claims for the week ended Dec. 2 rose to 220,000, an increase of 1,000 from the previous week. This was just below estimates. Continuing claims came in at 1.861 million for the week ended Nov. 25, a fall of 64,000 from the previous week.
The main event in this week’s barrage of employment data comes Friday, when the Labor Department releases nonfarm payroll figures for November. Analysts expect an increase of 190,000, which would be a lift from October’s rise of 150,000.
Investors want to see weakness in the labor market to help spur interest rate cuts from the Federal Reserve.
Nasdaq Pops As Small Caps Rise
The tech-heavy Nasdaq was faring best out of the major indexes as it turned in a robust gain of more than 1%. Airbnb (ABNB) was among the stocks that excelled as it rose nearly 4%.
The benchmark S&P 500 was on track to snap a three-session losing streak thanks to a gain of nearly 1%. Kenvue (KVUE) shined as it popped nearly 9% amid a court hearing on whether prenatal Tylenol exposure can be linked to autism in children.
The S&P 500 sectors were mostly positive heading into the close. Communication services and technology made the strongest moves on the stock market today. Energy and health were the only laggards.
Small caps were also rising, the Russell 2000 up nearly 1%. Growth stocks were lagging though, the Innovator IBD 50 ETF (FFTY) turning in a nominal gain.
Dow Jones Today: Walgreens Soars, Apple Stock Shines
The Dow Jones Industrial Average lagged the other major indexes but still managed to gain nearly 100 points, or 0.2%.
Walgreens Boots Alliance (WBA) was shining brightest on the much-watched index, surging more than 7%. This allowed it to pop through the key 50-day moving average.
Apple (AAPL) was another top performer on the Dow Jones today. The stock got a boost from the broad tech rally as it rose around 1%. AAPL stock is currently trading in a buy zone above a first-stage cup-with-handle buy point of 192.93.
In contrast, Merck (MRK) and Nike (NKE) were lagging. MRK fell more than 1% while NKE dipped about 1%.
AMD Stock Clears Entry; Nvidia Stock Gains
Artificial intelligence has been one of the hottest investing themes of the year, and Advanced Micro Devices made a bullish move following its latest move in the space. AMD stock surged more than 7%, clearing a cup-with-handle entry of 122.11 in the process. It now sits near the top of its 5% buy zone.
Shares rode investor enthusiasm over Wednesday’s unveiling of the Instinct MI300X, its latest attempt to compete with Nvidia (NVDA) in the AI arena.
AMD stock also felt the love after so-called “Magnificent Seven” members Meta Platforms (META) and Microsoft (MSFT) said they will buy the company’s new chip.
Nvidia stock, a member of the prestigious IBD Leaderboard list, also moved higher. It gained more than 2% heading into the close, and is finding support at the key 50-day moving average.
These 3 Bill Ackman Stocks Are Near Buy Points
Meanwhile, hedge fund titan Bill Ackman is getting a lot of attention lately for calling out anti-Jewish sentiment at colleges. But a trio of stocks held by Ackman’s Pershing Square Capital Management also are near buy points, including Alphabet. GOOGL stock is closing in on a cup-with-handle entry of 139.42, MarketSmith analysis shows.
Alphabet stock got a lift after the firm announced its new Gemini AI model. The search giant claims it outperforms OpenAI’s GPT-3.5 but did not comment on how it sizes up compared to GPT-4. A “Magnificent Seven” stock, Google has been a strong performer so far in 2023, rising around 54%, unusual for a large company.
Another Ackman holding, Chipotle Mexican Grill (CMG) sits in a buy zone above a cup base entry 2,175.01. Overall performance here is top notch, with CMG’s IBD Composite Rating coming in at 97 out of 99.
The third Ackman stock near a buy zone is Burger King-parent Restaurant Brands International (QSR), which is in a buy zone above a cup-with-handle entry of 71.50. One reason to think twice about QSR stock is its earnings performance. At the moment it is lackluster, which is why it holds an EPS Rating of 64 out of 99.
IBD recommends buying stocks with strong earnings and price performance rather than laggards. Look for leaders in strong industries that are showing superior earnings growth and sales, such as those in the IBD 50.
Outside Dow Jones: 3 Stocks Eye Entries
Several other stocks got closer to buy points amid the promising action. Booking moved in on a consolidation entry of 3,251.71, according to MarketSmith. It is also above a 3,207.32 alternative handle entry. Connecticut-based Booking is the world’s largest online travel agency by revenue.
Snowflake is near a cup-base entry of 193.94, and could soon yield a handle. Overall performance is strong, with its IBD Composite Rating coming in at 96. Berkshire Hathaway (BRKB), run by investing guru Warren Buffett, is a backer.
Finally, Ralph Lauren is nearing a cup base entry of 135.75 on its weekly chart. It is also near the top of a buy zone from a daily chart entry of 125.69.
RL stock is in the top 14% of stocks in terms of price performance over the past 12 months.
Please follow Michael Larkin on X, formerly known as Twitter, at @IBD_MLarkin for more analysis of growth stocks.
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