The Dow Jones Industrial Average edge higher in afternoon trading Thursday after weekly jobless claims hit a new post-pandemic low. Netflix (NFLX) passed a buy point after Apple (AAPL) relaxed App Store rules on content subscriptions. Boeing ((BA)) was among the top blue chips, though Chevron (CVX) fared best amid an energy rally. Virgin Galactic (SPCE) stock dived lower amid news of a probe into its July flight, which included founder Richard Branson.
Meanwhile, Leaderboard stock DocuSign (DOCU) fell ahead of earnings. Finally, a trio of stocks tried to stage breakouts amid the positive action. Signet Jewelers (SIG) charged past a buy point on earnings, while Abbott Laboratories (ABT) also rose above an entry.
Ahead of Thursday’s open, the Labor Department reported jobless claims fell 14,000 to 340,000 in the week ended Aug. 28. That was the lowest level since the pandemic took hold in the U.S. in March 2020. Econoday consensus forecasts called for initial claims of 350,000.
Nasdaq Flat As IBD 50 Reaches Milestone
The Nasdaq was trading virtually flat after giving up early gains. Walgreens Boots Alliance (W(BA)) was a surprise name among the top gainers, while Autodesk (ADSK) lagged worst with a drop of more than 5%.
The S&P 500 also lost ground heading into the close, though it remain up about 0.1%. Power infrastructure stock Quanta Services (PWR) was the top gainer, rising almost 12% on news of an acquisition.
U.S. Stock Market Today Overview
Last Update: 2:56 PM ET 9/2/2021
A slight majority of the S&P sectors were positive, with energy and health posting the biggest gains. Technology and communications services lagging.
Small caps outperformed once again, with the Russell 2000 squeezing out a gain of 0.7%.
But growth stocks were making the most bullish moves with the Innovator IBD 50 ETF (FFTY) up 1.5%. The IBD 50 index itself is also at new highs.
The Dow Jones Industrial Average was the strongest of the major indexes, though its rise of 0.2% was modest.
Netflix Stock Pounces On Buy Point On App Store Boost
The stock, whose hits include the likes of “Tiger King,” pounced on a consolidation pattern buy point of 593.39, according to MarketSmith analysis.
However the stock has fallen away from session highs, and is currently trading just below that entry.
Spotify Technology (SPOT) and Match.com (MTCH) also got a boost. Both the former stock and the dating play were up almost 7%.
Leaderboard Stock Slips Ahead Of Earnings
DocuSign stock reports earnings after the close. It was looking for support around its 50-day moving average as it came under pressure, dipping almost 2%.
While it was slipping, DocuSign stock was managing to hold clear of its latest entry point of 291.29.
DocuSign provides electronic means to sign and authorize documents. The stock has been boosted by strong demand amid the Covid-19 pandemic. .
Meanwhile, fellow Leaderboard member Mercado Libre (MELI) made a more impressive move past its 1,899.43 buy point, with volume running above average. The position was increased due to bullish price action.
Virgin Galactic Stock Dives
Virgin Galactic’s stock reversed sharply on the news the firm’s July flight is to be the subject of a probe.
Shares fell around 3% after rising more than 5% earlier. The stock remains marooned below its 50-day and 200-day moving averages.
It has been reported that safety took a back seat as the firm battled to beat Amazon (AMZN) founder Jeff Bezos’ Blue Origin into space. The FAA has grounded the company’s spacecraft.
The grounding could delay Virgin Galactic’s flight test program and the start of commercial service, which has already been pushed back multiple times.
The Federal Aviation Administration opened a probe into Virgin Galactic’s flight on July 11 for veering off its projected flight path during descent.
The flight included two pilots, three crew members and founder Richard Branson.
Reuters reported that the flight was out of its designated airspace for a minute and forty-one seconds before the pilots were able to correct course. Virgin Galactic told Reuters that while the flight’s trajectory was off the projected plan, it “did not fly outside of the lateral confines of the protected airspace.”
The FAA designates a flight path for commercial space missions to keep commercial aircraft out of the area. The path would also prevent casualties on the ground in the event of a crash.
Signet Jewelers Among Stocks Passing Buy
Signet Jewelers stock moved into a buy zone after posting a strong earnings beat. Signet stock cleared a cup base entry of 81.10.
The relative strength line hit a new high, which is a positive. Upside volume has also been running well above average.
Earnings of $3.57 per share came in well above Wall Street views for $1.69 per share. Revenue of $1.79 billion in revenue also cleared expectations for $1.64 billion.
Abbott Laboratories stock had less luck. It slipped back under its entry after moving above a consolidation entry of 128.64 according to MarketSmith analysis.
While it is a top-notch earner, stock market performance over the past 12 months has not been ideal.
XP (XP) was also in a buy zone. The Brazil-based brokerage is actionable after moving above a 51.69 entry.
Volume running at more than 100% above average, a positive sign, and it is a first stage base. The stock boasts a perfect EPS Rating of 99.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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