Today: Dec 16, 2024

Nasdaq Surges on Strong Tech Earnings; Meta Reaches Record Highs

Nasdaq Surges on Strong Tech Earnings; Meta Reaches Record Highs
February 3, 2024



The stock market finished Friday near peak levels, led by the Nasdaq which saw impressive Big Tech earnings. The Dow Jones Industrial Average also hit a new high. Amazon.com (AMZN) and Meta Platforms (META) drove the Nasdaq up following their strong quarterly performance.

X

On the stock market today, the Dow achieved nearly a 0.4% increase to reach an all-time high. The S&P 500 also hit a record high with a 1.1% gain, while the Nasdaq outperformed the day with a 1.7% upsurge thanks to the tech sector. Meanwhile, the small-cap Russell 2000 fell 0.6%, although it closed above session lows.
The Invesco QQQ Trust (QQQ) advanced 1.7%, while the Innovator IBD 50 ETF (FFTY) rallied 2%.
Preliminary data showed a decline in trading volume on the New York Stock Exchange and the Nasdaq compared to the same time Thursday. However, the number of declining stocks exceeded advancers by almost 2-1 on the NYSE and by nearly 8-5 on the Nasdaq.
The 10-year Treasury yield increased by 17 basis points to 4.03%. This marked the largest one-day gain since Sept. 26, 2022 at 3 p.m. ET readings, according to Dow Jones Market Data.
The Labor Department reported a surprise rise of 353,000 new jobs in January, surpassing the expected 170,000 increase. December numbers were also revised up to 333,000 from the previously reported 216,000. The unemployment rate stood at 3.7%, below the 3.8% consensus forecast but unchanged from December.
2 Magnificent Sevens Rally; Meta Reaches New High
Meta Platforms, a Magnificent Seven stock and IBD 50 name, surged by 20.3% in heavy trading after reporting better-than-expected fourth-quarter earnings and sales, and announcing plans for its first-ever dividend. This caused Meta stock to reach an all-time high, surpassing its previous peak market cap of $1.078 trillion set on Sept. 7, 2021, and closing with a capitalization of $1.211 trillion, as per Dow Jones Market Data.
Amazon.com also surged by 7.9% in high trading volume, after the e-commerce and cloud-computing giant exceeded fourth-quarter profit and sales estimates. This marked Amazon’s largest one-day increase since Aug. 4, when it rose 8.3%.

On the other hand, Apple (AAPL) closed the day with a 0.5% loss, despite surpassing its fiscal first-quarter earnings and sales expectations, it experienced declining sales in China. The stock went below its 200-day moving average in morning trade but later recovered it, although it remains below its 50-day line.
Nvidia (NVDA), an IBD 50 name, surged by 5% to reach a new record high. Shares have exceeded the 25% profit target from a 505.48 flat-base entry.

S&P 500 Hits High In Stock Picker’s Market; Five New Buys

Other Stock Market Action: One Footwear Stock Stumbled, One Raced
Skechers USA (SKX) plummeted by 10.3% after the footwear company beat fourth-quarter earnings estimates but missed on sales. The stock also dropped below its 50-day line, signaling a sell-off. This caused the stock to relinquish about a 15% gain from a 56.53 buy point of a cup base.
On the other hand, IBD 50 footwear stock Deckers Outdoor (DECK) surged by 14.1% in high activity, after it surpassed its fiscal third-quarter profit and revenue expectations.
Database software stock MongoDB (MDB) soared by 6.6%. It is forming a cup base with a 442.84 buy point, with an early entry seen around 426.50. Using a trend line, an entry around 422 also seems feasible. The new formation started after a failed breakout in early December.
Clorox (CLX) also surged by 5.6% after the household products company reported significant surpasses on its fiscal second-quarter earnings estimates and higher sales. Clorox stock forcefully retook its 200-day line, with profit growing 120% over last year’s quarter on 16% sales growth.
Interactive Brokers (IBKR) surged by 5.8% and broke out of a secondary 92.62 buy point. The 5% buy zone from the new entry goes to 97.25. The online broker hit an all-time high on Friday. The explosive move came after Interactive reported its average daily revenue trades increased 11% in January compared to last year.

Exxon Mobil (XOM) relinquished earlier gains to close down 0.4%, even after the oil company surpassed fourth-quarter earnings but fell short on sales estimates.
Dow oil stock Chevron (CVX) surged by 2.9% after its mixed fourth-quarter earnings report. Profit exceeded expectations, while sales failed to meet estimates. Investors were rewarded as the oil producer announced an 8% increase in its dividend for the March quarter, making it the biggest gainer on the Dow in Friday’s stock market action.
Atlassian (TEAM) plummeted by 14.7% despite surpassing fiscal second-quarter profit and revenue projections. The stock dropped below the 50-day moving average, triggering a sell-off after gaining from a breakout from a 215.77 buy point of a cup base.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
YOU MAY ALSO LIKE:
These Brokers Help You Boost Your Cash | Where To Put Your Cash
Cadence Design Systems Teams Up With Tesla| Where To Invest
Warren Buffett Stocks Hit Highs | Where To Invest
Want To Smash Your Stock Picking? Copy The Best Funds.| Where To Invest
Watch Our Market Experts Spot Top Stocks Each Morning On IBD Live

OpenAI
Author: OpenAI

Don't Miss

Inventory marketplace as of late: Nasdaq hits a report as Wall Boulevard drifts forward of Federal Reserve’s assembly

Inventory marketplace as of late: Nasdaq hits a report as Wall Boulevard drifts forward of Federal Reserve’s assembly

NEW YORK (AP) — U.S. inventory indexes drifted amid blended buying and
Tremendous Micro’s Stunning Fall: Nasdaq Go out, Inventory Plunge, and Capital Elevate Chaos

Tremendous Micro’s Stunning Fall: Nasdaq Go out, Inventory Plunge, and Capital Elevate Chaos

Tremendous Micro Pc (NASDAQ:SMCI) is in unfastened fall, with stocks tanking 12%