The Dow Jones Industrial Average experienced a robust rebound of 326 points on Thursday, recovering from a recent market sell-off, driven by reactions to a positive GDP report and favorable unemployment data. Simultaneously, renowned investor Cathie Wood made headlines by acquiring over 110,000 shares of Tesla stock.
Upon Thursday’s opening bell, the Dow Jones Industrial Average saw gains narrow to 0.6%, while the S&P 500 and the tech-heavy Nasdaq composite advanced 0.7% and 0.8%, respectively, in morning trading.
In the realm of exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) recorded a 0.8% increase, while the SPDR S&P 500 ETF (SPY) posted a 0.7% gain early on Thursday.
The yield on the 10-year U.S. Treasury bond dipped to 3.86% in morning trading, marking a slight decrease from Wednesday’s 3.87%, which was the lowest level since late July.
Oil prices, after a five-day rebound, experienced a significant downturn on Wednesday. West Texas Intermediate futures fell by 1.8% on Thursday morning, slipping below $73 a barrel. Last week, WTI had reached its lowest point since late June before rebounding.
GDP and Jobless Claims Report
Early on Thursday, the Commerce Department’s third estimate of third-quarter GDP revealed a growth rate of 4.9%, slightly below the anticipated unrevised figure of 5.2%. Simultaneously, the Labor Department reported a rise in first-time jobless claims to 205,000 from the previous week’s 202,000, beating Econoday estimates for 210,000 new claims.
Cathie Wood’s Investment Moves
Cathie Wood’s Ark Innovation ETF (ARKK) made a notable purchase of 93,965 shares of Tesla (TSLA) stock on Wednesday, valued at approximately $23 million based on Wednesday’s closing price. This acquisition elevated Tesla to the second-highest holding in the portfolio, with a 7.6% weighting. Additionally, Wood’s Ark Next Generation Internet ETF (ARKW) added over 17,000 shares of Tesla stock to its holdings.
Earnings Highlights
Memory-chip manufacturer Micron Technology (MU) surpassed expectations for its fiscal first quarter and provided a positive outlook for the current period, leading to a more than 7% surge in MU stock during morning trading.
Other significant earnings movers included CarMax (KMX), Carnival (CCL), and Paychex (PAYX). CarMax stock saw a substantial 10% increase, while Carnival shares rose nearly 6%. However, PAYX stock experienced a decline of over 5%.
Finally, Dow Jones stock Nike (NKE) is scheduled to report its quarterly earnings results later on Thursday.
