Dow Jones Rises As Big Banks Pass Fed Stress Test; Warren Buffett Loads Up On Oil Stock
The Dow Jones Industrial Average rose 0.7% at noon Thursday, adding 230 points as bank leaders rose.
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The S&P 500 rose 0.4% and the Nasdaq rose 0.1% at noon ET.
On Thursday, the market digested data that showed a resilient economy.
First-time unemployment claims fell to 239,000 for the week ended June 24, from 264,000 the previous week. Elsewhere, the Bureau of Economic Analysis released its final reading of first-quarter GDP, which was revised upward to 2% growth vs. the earlier reading of 1.3%. The latest reading found that exports and consumer spending were higher than prior estimates.
Pending home sales declined 2.7% in May, according to Econoday.
The economic reports helped send the yield on the benchmark 10-year Treasury note jumping 13 basis points to 3.84%.
Volume on the NYSE and on the Nasdaq was higher, compared with the same time on Wednesday.
Crude oil rose more than 1% and traded at $70.30 a barrel.
The small-cap Russell 2000 notched a 1% gain, while the Innovator IBD 50 ETF (FFTY) rose 0.6%.
Big Banks Pass Fed Stress Test
More than 20 big banks passed the Fed's annual stress test. Dow Jones leader JPMorgan Chase (JPM), Citigroup (C) and Bank of America (BAC) showed capital buffers well above the required minimum. JPMorgan rose 2.5% and is approaching a 143.37 entry again, according to IBD MarketSmith chart analysis. BAC stock rebounded from the 50-day moving average.
Outside Dow Jones: Stocks Moving Today
Occidental Petroleum (OXY) pared some of its early gains and was up less than 1% at the hour. Warren Buffett's Berkshire Hathaway (BRKB) bought 2.1 million shares of the oil explorer between June 26 and June 28, according to an SEC filing. Shares are in a long consolidation and have yet to clear the downward-sloping 50-day line.
Overstock.com (OSTK), which purchased Bed Bath & Beyond's intellectual property, will change its website's name to that of the bankrupt retailer. Overstock surged 15%.
Shares of Dow Jones component Disney (DIS) pared early losses and was flat after KeyBanc analysts downgraded the stock to sector weight from overweight with a price target of 85.
Rite Aid (RAD) rose over 2% after earnings but the stock remains depressed. Payments company Paychex (PAYX) reversed lower as it met resistance at the 200-day moving average after a generally positive earnings report.
Freyr Battery (FREY) gapped up from the 50-day line on an upgrade from Morgan Stanley to overweight from equal weight with a price target of 13.
Joby Aviation (JOBY) added 12% to Wednesday's 40% gain. The EV air taxi company saw an equity investment of $100 million by SK Telecom. On Wednesday, the company got a permit for flight testing with a commercial launch expected in 2025.
Elsewhere, shares of Virgin Galactic (SPCE) fell as the company made its first commercial space flight.
EV leader Tesla (TSLA) rose ahead of its likely announcement of record Q2 deliveries over the weekend. Two of fund manager Cathie Wood's Ark Invest funds sold some of their Tesla shares this week.
Medpace Breaks Out, Nike On Deck
Medpace (MEDP) is breaking out of a cup with handle with an entry of 231.63. But volume is light and the handle is deeper than normal.
Chipotle Mexican Grill (CMG) is nearing a buy point of 2,139.88 in a flat base. The fast-casual restaurant stock is on the IBD Leaderboard Watchlist.
Dow component Nike (NKE) will report earnings after today's close. The stock retook its 200-day line on Tuesday and is in a consolidation.
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Source: Investor's Business Daily
