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Stock Market Today: Dow resumes record run as dip buyers pile into tech

AuthorYasin Ebrahim
Published 02/01/2024, 06:54 AM
Updated 02/01/2024, 04:23 PM
© Reuters.

Investing.com -- The Dow closed higher Thursday, notching a fresh record closing high as the Federal Reserve-led selloff from a day earlier attracted dip-buying in tech stocks ahead of the all-important monthly jobs report due Friday. 

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 369 points, or 1%, hitting a fresh record close of 38,519.84.  The S&P 500 traded 1.2% higher and Nasdaq Composite climbed 1.3%.

Amazon, Apple (NASDAQ:AAPL) and Meta set to report

Tech stocks rebounded to lead a sea of green across stocks as investors appeared to pile into stocks that were beaten down a day earlier after the Fed on Wednesday shot down hopes of a March cut. 

In afterours trading Thursday, Amazon (NASDAQ:AMZN) and Facebook-owner Meta Platforms (NASDAQ:META) jumped after quarterly results beat Wall Street estimates. 

Semiconductor stocks were slightly higher, but a nearly 5% slip in Qualcomm (NASDAQ:QCOM) kept a lid on gains in the sector, though investor concerns about maturing 5G smartphone market and loss of market share weighed on stock.  

"[T]he success that it had in the first few years of 5G creates a tough bar for further growth," Morgan Stanley said in a note.

Peloton sinks as guidance triggers bearish bets; Merck impresses on earnings stage

Peloton Interactive (NASDAQ:PTON) stock slumped 24% after the fitness company offered a weak outlook for revenue and free cash flow, while Royal

Royal Caribbean Cruises (NYSE:RCL) gave up early gains to end just below the flatline even as the cruise operator reported quarterly results and guidance that topped Wall Street estimates amid robust demand for cruise vacations. 

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Merck (NYSE:MRK) stock rose over 4% after the drugmaker posted better-than-expected fourth-quarter results on strong sales of its cancer immunotherapy Keytruda, now the world's biggest selling prescription medicine.

Jobless claims tick up ahead of monthly payrolls 

Initial jobless claims rose to 224,000 in the week ended Jan. 27, up from an upwardly revised 215,000 and the highest level since Mid-November. 

"We expect that more strain is going to become evident, especially as middle class household deal with slowing wage gains and inflation fatigue," Jefferies said in a Thursday note. 

The rise in jobless claims comes just a day ahead of the monthly non-farm payrolls report that is expected to show a fall in the number of jobs created last month.  

The Federal Reserve kept interest rates on hold at more than two-decade highs on Wednesday, as widely expected, but Chair Jerome Powell prompted a hefty selloff after he reined in hopes that the central bank would soon start to cut interest rates.

"We estimate payrolls rose 215,000 in January, the unemployment," {{0|Morgan Stanley said, with wage growth expected to grow 0.3% on the month. 

(Peter Nurse contributed to this report.)

Latest comments

Zucker was literally in Congress yesterday having to testify about how FB enables pedophiles and harms children. Today the company adds over $100 billion to its market cap after already having a massively inflated P/E that has factored in nearly 100 years worth of future earnings.
Alternative investments are gaining in popularity.
Keep buying! The flush will be epic!
this fake market will not end pretty in couple months
agreed, why bother to bet against FED and CB? no one could destroy wallstreet by just fundamental short selling.
  So you're saying keep buying for a "couple months"
Just caught up with the Dow's performance today. It's fascinating how tech stocks are bouncing back. I've been closely mirroring trades from a certain expert in the field, and it's incredible how spot-on her predictions are. My portfolio has doubled in less than a year with minimal effort on my part. Truly a game-changer!
Bigger declines coming.
people were expecting that from 2017. 7 yrs later people's mind still havent changed.
Maybe after bears go insolvent.
Hear lots of talk about PE ratios being inflated. Checked a few ETFs that track the SP500 (e.g. IVV), Nasdaq (QQQ) and Rusell 2000 (IWM). SP500 looks like your typical value in the low to mid 20s, QQQ is a bit inflated (30s) due to AI craze and IWM is at about 12 so very low. Not seeing huge inflated values. So, when there was a hug drop yesterday, sounds like a dip to me.
Now let’s do PEs of companies, and not indices. You can start with the big seven.
The only dip buyer is the fed. Everyone else is terrified based on proper stock PE valuations . What's even more terrifying is that they're calling this overvalued behemoth a "dip"!!! I guess they need to lure in more FOMO bag holders before they pull the rug
looks this country is in big trouble.
you meant to type in for big growth. Things looking very good but you will not hear that on right wing religious media outlets. Let's go Swifties!
yep projected gdp q1 right now is 4%. that's crazy high for a developed nation
Smh i cant read this anymore lol
Dip buyers lol best joke recently
Buying the dips was well worth it in 2023. Algorithms take control at the third standard deviation band on the downside and holding to the first standard deviation band on the upside based on the previous day market close. Retail investors don't stand a chance. Trading view has a robust charting platform that you can setup easily. Best of fortunes to you and happy trading.
Since market is at all-time-high, buying the dips was well worth it in ANYTIME in the past.
The Fed printed 112 billion to pump stocks and bonds last night ! The Rrp is a repositiry for liquidity it fell from 615 billion to 503 billion . The “dip” buyers dont exsist …. Fed is running out of stuff to buy and Janet cant sell bonds due to kack of buyers
This is why stock valuations are so high...they just keep buying with no regard to PE rations or fundamentals. Its also why stocks are the only Leading Economic Indicators that's positive. Its all a fabricates movie
TheLast LoserDon said he brought the dip.  Very rude to deny his existence.
My bad, I called it wrong.  Certainly didn't think the criminal manipulation would be flagrant enough to completely reverse the DOW's entire loss in a single day.  BIGGEST INVESTMENT JOKE IN THE WORLD.
it is ok, you were wrong even if it took 2 or 3 days. do not be so hard on yourself.
well, it took less than an hour. It's always either at the end of market or after hours when it gets pumping hard hmm...
there we're more buyers no real sellers today. looks to me like several very large positions in the tech secture were cleared yesterday.
It is pumping market using magic word "AI". Now, everything is AI. I saw old software for video converting which have simple deinterlace tool which is known and popular for 25+ years but now it was put in menu: "AI Video tools" :)))
Fed is printing the market by canabolizing bank assets
AI is the flavor of the day for FED liquidity pumps
Is the new AI-powered deinterlace tool better?
Nvidia apple, Amazon doing me well. Boeing not so great but just holding what I bought on bad news dip.
thanks all the buyers today. Wish I had money left to invest but 98% invested now.
Fed: "The economy is doing terrible and inflation is rising again. We are not going to do any of the 5-6 rate drops we anticipated this year.". Market "OMG SO BULLISH!"
Its insanity. Rate cut hopes were the reason stocks soared 5K over the past few months.
Fed printed 112 billion last 2 days and that went into the rrp , then out to bonds and a bit to stocks … the liqidity buffer is down to 503b from 2.7 t in less tban 10 months!!! Most of what is left is credit u ion poaching risk free 5.3 percent tax payer funded!!!
We are led to believe that all this market liquidity is coming from the coordinated efforts of swashbuckling investors. This is a FED/CB run show. Its like living in a financial system MATRIX
no, no one believes it, we all know the liquidity come from FED, so just have fun, market is not necessary to be so called healthy
they scare market and drop stocks and immediately pick them up. simple
 Fun for some, but Main St. will be the one that picks up the tab when this charade implodes.
What happened to rate cuts off the table? I guess speculation is better than reality for markets. Stawks Up forever!!! Back to the party gents!!
I ve become the fan of Mitchel Pioneer, If I saw him turns to bullish supporting the US market one day, the real crash would be coming.
Mitchell been right all the way
Mitch, right all the way, now that's a laughable statement. Mitch doesn't have a clue.
All the losses will miraculously vanish by COB on Friday.  Wall Street is already putting a fine edge on the financial knife they'll plunge into the back of America heading into the weekend.  And all the manufactured "gains" started with the predictable 11AM breaker fire.  Fraudulent, criminally manipulated JOKE.
u ain't wrong. incredible
This article makes it sounds like earnings are not stellar enough to make the Nasdaq rise over 1% today. Yet, there you have it. Keep up that fiscal spending!
Considering all of these companies already have over 70 years worth of earnings factored into their current prices, the earnings coming out today better be up at least 100% compared to a year ago, otherwise we will just see more dumps like we saw just 2 days ago. Even the Fed yesterday said things are getting bad again so rather than having 5-6 rate cuts this year it is likely zero, possible even a rate hike considering we have 3 wars going on at the moment due to Biden.
Even if every single stock doubled their earnings from last year they would still have over-inflated P/Es. For example, MSFT P/E is up around 1,000% compared to 10 years ago. There is not actual growth of these "big tech" stocks, there has just been massive increases in valuations like we saw in 1999 with internet, now they are doing it with "AI". As if saying the word "AI" suddenly makes trillions of more dollars appear in their profits.
Well the sell off yesterday was nothing but panic and algos. If you sold or shorted into that, you had to do it early on and be ready to cover at the close or early this morning. I'm a long term investor so it made no difference to me. But it was interesting to see the market panic reaction. Rates held higher for a few months more means nothing. Also, alphabet and Microsoft had mega quarters. So all systems point to a continued bull run in tech at least.
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