The stock market was higher in the first hour of trading Thursday, although the Nasdaq composite underperformed after Apple (AAPL) shares took a hit on news of weak iPhone demand.
The S&P 500 rose 0.7% and is trying to regain its 50-day moving average. The Nasdaq reversed higher and was up 0.4%, now back above its 50-day line.
Apple told component suppliers that demand for the iPhone 13 has slowed, and hopes for a rebound next year may not materialize, Bloomberg reported. Frustrated consumers appear to be giving up trying to find the model due to a shortage of parts. The stock, which made a bearish reversal Wednesday, gapped down, though it pared losses to 2.4%. It remains above its 153.26 buy point.
Apple was a drag on the Dow Jones Industrial Average, which nonetheless climbed 1.3%. Boeing (BA) was one of the Dow’s best performers, up nearly 4%. China’s aviation regulator took steps that bring the 737 MAX closer to returning to service in China after a lengthy grounding.
U.S. Stock Market Today Overview
Last Update: 10:14 AM ET 12/2/2021
Boeing shares remain depressed. Visa (V) climbed more than 3% amid a rebound in pandemic reopening stocks. Airlines rose 3.8%, lodging 2.9% and travel booking 2.5%. Visa stock also is in a deep slump.
Small caps bounced back as the Russell 2000 climbed 1.5%. But the index is below the 200-day line and near a September low.
For about a week, the stock market has been in a volatile period after the discovery of a new Covid-19 variant caused new uncertainty. Though little is known about the omicron variant, some preventive measures are already in place, including a travel ban from several African nations.
On Thursday, officials said President Biden plans to tighten up testing for travelers entering the U.S. and extend a mask mandate on airplanes and public transportation.
U.S. crude oil prices fell 1.4% to $64.67 a barrel after the bloc of major oil producers agreed to go ahead with an increase in output next month. Yet, the energy sector was still higher, with a 1.2% gain in the Energy Select Sector SPDR ETF (XLE).
Snowflake (SNOW) surged more than 12% and is back above its 50-day moving average in heavy volume. The data warehousing company beat expectations for its October-ended quarter. Its guidance was bullish, too. On Wednesday, Snowflake was kicked out of IBD Leaderboard after the stock plunged below its 50-day line in heavy volume, which is a sell signal.
CrowdStrike Holdings (CRWD) beat October-quarter earnings and revenue estimates and its guidance came in above expectations. The stock climbed 2.5% but has a lot of repair to do after plummeting below its 50-day and 200-day moving averages.
Innovator IBD 50 ETF (FFTY) rose 1.4% but remains below the 200-day moving average as many of its stocks struggle.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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