Stock Market Held Morning Gains; Software Stock Soars

The major stock market indexes closed in the green, up slightly in the last hour, as investors felt some comfort from higher jobless claims. That’s because increased claims point to a slowing labor market, a key factor in the Fed’s policymaking.

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The S&P 500 gained 0.8% while the Nasdaq led the indexes, up 1.1%. The Dow Jones Industrial Average increased 0.6%. The Russell 2000 small-cap index was in line with the other indexes, adding 0.7%.

The Nasdaq composite is testing resistance at its 21-day exponential moving average.

The Nasdaq composite has had an incredibly long dry spell without a new record high. In fact, the 264 trading-day long stretch ties the last longest period without a record high, dating back to Aug. 4, 2016.

This latest stint represents the 7th longest streak since the Nasdaq composite began. If it continues Friday, it will be the longest streak without a new high since Apr. 22, 2015.

The S&P 500 is hugging its 21-day line.

The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) rallied 1.2%. Volume on the NYSE was higher and Nasdaq was lower than the same time on Wednesday.

Crude oil pulled back 0.4% to $71.70 per barrel. The Energy Select Sector SPDR ETF (XLE) dropped 0.5%. Natural gas popped 4.7%. It is trading just below $6 per million British thermal units.

Jobless Claims Numbers Creep Up

The 10-year Treasury note yield added 6 basis points to 3.49%, near levels last seen in September.

European markets were mixed, with the German DAX unchanged and the Paris CAC 40 closing 0.2% lower. The London FTSE 100 also shed 0.2%.

Odds for a 50-basis-point hike at the mid-December Fed meeting stand at 79.4%, while 20.6% are looking for a 75-basis-point hike, according to the CME FedWatch Tool.

Initial unemployment claims for the week ending Dec. 3 rose to 230,000 versus the 228,000 consensus estimate. This is an increase over 226,000 in the prior week and is the highest level since February. Increased unemployment claims show a potential cooling in the job market. The Fed uses employment numbers to help it decide the pace of interest-rate hikes. The next FOMC meeting is Dec. 13-14.

Network Software Stock Skyrockets; Diabetes Equipment Maker Breaks Out

Networking systems and software company Ciena (CIEN) soared 20% in heavy volume on positive Q4 sales numbers. The stock rose above its 200-day moving average finding support at the line.

Dexcom (DXCM) gapped up and broke out of a flat base, hitting a 123.46 buy point, according to MarketSmith pattern recognition. Shares were up 4% in heavy volume. Dexcom is an S&P 500 leader today.

Dexcom is a leading maker of glucose monitoring systems used in diabetes care. Shares are up after the U.S. Food and Drug Administration cleared its G7 continuous glucose monitor. The stock ranks third in the medical products industry group. The groups ranks a strong No. 35 out of the 197 industry groups IBD tracks.

Meme stock GameStop (GME) rebounded 11.4% after yesterday’s 4.8% drop in heavy volume. The company late Wednesday reported a quarterly decline in sales but a narrower loss vs. a year ago.

Costco (COST), Lululemon (LULU) and Broadcom (AVGO) are set to report earnings after the close today.

Futures Rise With Inflation Data Due; Tesla, Lululemon In Focus

Stock Market Today: IBD 50 Beverage Stock Up Nicely

The Innovator IBD 50 ETF (FFTY) trimmed 0.3%, faring worse than the major stock market indexes.

Fitness beverage maker Celsius (CELH) rose 6.2% and is back near the 116.29 buy point of a cup base.

Lattice Semiconductor (LSCC) gained 3.3% in light volume. Shares are in a 55-week-old base and nearing the 73.63 buy point. The relative strength line hit a new high as indicated by the blue dot on the MarketSmith chart.

Shares of LSCC are up over 41% quarter-to-date after a positive earnings report and higher guidance in late October. Lattice holds the top spot on the chip designers industry group.

Arcus Biosciences (RCUS) dropped another 1.4% but is finding support at its 21-day line. The stock soared in late November following positive efficacy for its lung cancer drug, but has pulled back since.

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