Stocks were trading mixed in the first hour of the regular session on Thursday, following a strong rally the previous day that led to increased suggested exposure to stocks. However, companies like Deere and Dillard’s saw declines due to disappointing quarterly reports.
The Nasdaq composite and S&P 500 were up 0.2%, hitting all-time highs on Wednesday after a favorable inflation report. The Dow Jones Industrial Average broke the 40,000 mark, gaining 0.3% and aiming for its 11th rise in 12 sessions.
While the major indexes posted gains, the Dow Jones transportation average fell 0.4%. The tech giants, known as the “Magnificent Seven,” rallied, pushing the Nasdaq 100 tracker up, but smaller stocks saw a dip. Deere’s stock fell 3% despite beating reduced top- and bottom-line views, while Dillard’s earnings fell 6%.
On the positive side, insurance giant Chubb became the latest major Warren Buffett holding, with shares jumping more than 5%. Chubb’s profit gains have been strong, and the company is expected to see growth despite a slight decline in earnings this year.
Walmart also added to the bullish sentiment with solid growth across various segments. The retailer surpassed a chart pattern with a proper buy point and saw a significant increase in earnings for the fiscal first quarter.
Meanwhile, China electric-vehicle maker Li Auto continued to struggle, with shares down 3% after announcing a staff cut. The company has a low Relative Strength Rating, indicating poor performance in the market.
In the coming days, the stock market will be watching for earnings from companies like Applied Materials and Copart. It’s important for investors to focus on growth leaders with high RS Ratings to find potential winners in the market.
