Dow, S&P 500 jump after Nvidia earnings, while Alphabet tumbles

While the major market indexes rose on Thursday, megacap tech struggled as investors digested fresh earnings from Nvidia (NVDA) and a tumble from Alphabet (GOOG, GOOGL) amid a Department of Justice move to break up its empire.

Our look at the Nasdaq 100 (^NDX) below shows the downbeat sentiment was largely kept to the largest tech names and didn’t proliferate throughout the index. This was also seen in the broader Information Technology (XLK) sector, which rose 1% on the day.

MicroStrategy stock (MSTR) tanked more than 17% in late trading on Thursday.

The stock had been up in premarket trading as bitcoin, which MicroStrategy owns a large chunk of, hit record highs. But early in Thursday’s session short seller Citron Research said it had taken a new bet against the stock, which has gained over 600% this year.

Citron Research said that while the firm remains bullish on bitcoin — and was bullish on MicroStrategy’s bitcoin play years ago — the move in MicroStrategy stock has “completely detached from BTC fundamentals.”

Read more here.

New data released Thursday morning showed weekly jobless claims hit their lowest level since April, reversing any concerns from recent upticks seen in the data over the past several months.

Data from the Department of Labor showed 213,000 initial jobless claims were filed in the week ending Nov. 16, down from 219,000 the week prior and below the 220,000 economists had expected.

The weekly unemployment claims have been falling steadily throughout the past several weeks after hitting their highest level in more than a year in October.

“After being boosted by the Boeing strike and Hurricanes Helene and Milton, claims have returned to a level consistent with limited layoffs,” Oxford Economics lead US economist Nancy Vanden Houten wrote in a note to clients on Thursday.

Weakness in the labor market had been a concern through the summer and into the fall as jobless claims picked up along with a rise in the unemployment rate and a decline in monthly job gains. This data contributed to the Fed’s calculus when cutting interest rates by half a percentage point in September.

But since then, labor market data has come in better than expected with the unemployment rate falling from a peak of 4.3% to 4.1%. And for now things appear to be OK on the labor side of the Federal Reserve’s dual mandate.

“The weekly claims report remains the best real-time monitor of labor market conditions,” Jefferies US economist Thomas Simons wrote in a note to clients on Thursday. “Right now, the data show that the labor market is trending sideways at a healthy level.”

Yahoo Finance’s David Hollerith reports:

Crypto enthusiasts got the announcement they wanted Thursday when Gary Gensler said he would step down from the SEC in January, clearing the way for a more favorable relationship between the cryptocurrency industry and a key Washington regulator.

A Gensler exit as chair of the Securities and Exchange Commission was high on the wish list of many crypto executives, and President-elect Donald Trump made the removal of the SEC boss a promise to the industry while on the campaign trail.

Read more here.

Nvidia’s (NVDA) third quarter earnings report out Wednesday saw the chipmaker once again blow away Wall Street forecasts.

And analysts across the Street were quick to praise the results, which showed the world’s largest public company continuing to benefit from the AI boom.

Wedbush’s Dan Ives called the results “flawless” and said Nvidia’s earnings release “should be framed and hung in the Louvre” in a note to investors Thursday.

“We believe the path to $4 trillion market cap and beyond is now laid out by Nvidia and this is bullish for the broader tech rally into year-end and 2025,” Ives wrote.

While other analysts didn’t go so far as to draw parallels between Nvidia’s financials and fine art, analysts at investment firms including JPMorgan (JPM), DA Davidson, and Bernstein raised their price targets on the stock following Wednesday’s report.

Those analysts and others were encouraged by Nvidia’s statements about its Blackwell products and dismissed anxieties over an AI spending slowdown.

Read the full story here.

Eight of the 11 sectors were outperforming the S&P 500 (^GSPC) on Thursday and in a widespread rally on Wall Street.

Financials (XLF) led the sector action, rising more than 1.5%. Only the Consumer Discretionary (XLY) and Communications Services (XLC) sectors were underperforming the benchmark index.

Below is a look at the day’s sector action.

Securities and Exchange Commission Chair Gary Gensler will step down on January 20, 2025, the SEC announced on Thursday.

Gensler, who began his tenure in April 2021, didn’t provide a specific reason in his statement for why he’s stepping down.

“The Securities and Exchange Commission is a remarkable agency,” Gensler said in a statement. “The staff and the Commission are deeply mission-driven, focused on protecting investors, facilitating capital formation, and ensuring that the markets work for investors and issuers alike. The staff comprises true public servants. It has been an honor of a lifetime to serve with them on behalf of everyday Americans and ensure that our capital markets remain the best in the world.”

Gensler’s departure day aligns with Inauguration Day, when President-elect Donald Trump is expected to be sworn in as the next president of the US. In July, Trump attended a bitcoin conference in Nashville to court voters. Trump’s promises to the industry include appointing a crypto Presidential Advisory Council, firing SEC Chair Gary Gensler, and creating a “strategic national bitcoin stockpile.”

Oil jumped more than 1% on Thursday as the Russia-Ukraine war escalated, outweighing an uptick in inventories.

West Texas Intermediate (CL=F) futures hovered just below $70 per barrel, while Brent (BZ=F), the international benchmark, traded just above $74 per barrel.

Crude moved higher after Kyiv said Moscow launched what appeared to be a long-range intercontinental ballistic missile (ICBM) into Ukraine, in what would be the first use in war of a weapon primarily used for nuclear delivery. Western officials later told Reuters their initial analysis showed it was not an ICBM, but they left open the possibility their conclusion could change.

Read more here.

Former Florida congressman Matt Gaetz has withdrawn his name from consideration for US attorney general.

“While the momentum was strong, it is clear that my confirmation was unfairly becoming a distraction to the critical work of the Trump/Vance Transition. There is no time to waste on a needlessly protracted Washington scuffle, thus I’ll be withdrawing my name from consideration to serve as Attorney General,” wrote Gaetz on X on Thursday.

Last week President-elect Donald Trump picked Gaetz to serve as attorney general. The pick was controversial since Gaetz was recently at the center of a House Ethics investigation. The report on that probe has not been released.

Yahoo Finance’s Claire Boston reports:

Mortgage rates ticked up last week, providing little relief to prospective homebuyers in a seasonally slower time for the housing market.

The average 30-year fixed mortgage rate was 6.84% in the week through Wednesday, according to Freddie Mac data, compared with 6.78% a week earlier. The average 15-year rate rose to 6.02%, from 5.99% a week earlier.

Rates have been marching back toward 7% as 10-year Treasury yields, which closely track mortgage rates, have remained around 4.4% in the weeks since the election.

Read more here.

The S&P 500 (^GSPC) was trading in green territory by 11:45 a.m. ET on Thursday as stocks pared losses. The Dow Jones Industrial Average (^DJI) rose 0.8%, while the Nasdaq Composite (^IXIC) was down 0.5% as shares of Alphabet (GOOG, GOOGL) weighed on the tech-heavy index.

The tech giant sank more than 6% as as investors assessed the Department of Justice’s push for Google to sell its Chrome browser.

Meanwhile Nvidia (NVDA) shares also sagged more than 1% after gaining as much as 4% in early trading.

Yahoo Finance’s Laura Bratton reports:

MicroStrategy (MSTR) stock was on another wild ride early Thursday, rising as much as 11% before forfeiting a chunk of those gains after short seller Citron Research said it had taken a new bet against the stock, which has gained over 600% this year.

MicroStrategy stock has soared more than 80% since crypto-friendly President-elect Donald Trump’s victory earlier in November. Bitcoin itself is up roughly 30% over the same period, hitting a fresh record of $98,000 early Thursday before paring gains after the market open.

In a post on X early Thursday, Citron Research said that while the firm remains bullish on bitcoin — and was bullish on MicroStrategy’s bitcoin play years ago — the move in MicroStrategy stock has “completely detached from BTC fundamentals.”

Read more here.

Losses on the Nasdaq Composite (^IXIC) accelerated to a session low on Thursday. The tech-heavy index dropped more than 1.2%, with Alphabet (GOOG, GOOGL) shares leading the declines.

The S&P 500 (^GSPC) also fell 0.4%.

Alphabet (GOOG, GOOGL) shares tumbled more than 5% on Thursday morning as investors assessed the Department of Justice’s proposed Google changes which include the forced sale of Google’s Chrome browser.

Alphabet shares sank to a session low by 10:30 a.m. ET.

The rest of the “Magnificent Seven” stocks lagged too, with AI chip heavyweight Nvidia (NVDA) dropping more than 2%. Amazon (AMZN) and Meta (META) also sank.

Nvidia (NVDA) shares struggled for direction on Thursday morning, flipping between positive and negative territory. The stock pared gains after surging more than 4% in early trading.

By 10:10 a.m. ET, shares were trading down more than 1.5%. Nvidia beat on profit in its latest quarter but projected slowing revenue growth.

Wall Street analysts, however were bullish on the company’s next-generation chip, called Blackwell, with Wedbush’s Dan Ives stating the company’s results were “flawless.”

“We would characterize results as another earnings press release from Nvidia that should be framed and hung in the Louvre given these eye popping results and unprecedented growth from the Godfather of AI Jensen and Nvidia,” wrote Ives.

Existing home sales rose in October as house hunters returned to the market.

Sales of previously owned homes increased 2.9% from a year ago to a seasonally adjusted annual rate of 3.96 million, marking the first annual gain since July 2021, the National Association of Realtors said Thursday. Sales climbed 3.4% from September.

Economists polled by Bloomberg expected existing home sales to reach a pace of 3.95 million in October.

“The worst of the downturn in home sales could be over, with increasing inventory leading to more transactions,” NAR chief economist Lawrence Yun wrote in a press statement.

Homes typically go under contract a month or two before the contract closes, which means the October data largely reflects decisions made in September and August.

Rates on the 30-year mortgages fell to around 6% in September. Cheaper borrowing costs typically spur more housing activity. But rates are now hovering around 6.7%, according to Freddie Mac.

“Additional job gains and continued economic growth appear assured, resulting in growing housing demand. However, for most first-time homebuyers, mortgage financing is critically important,” Yun said. “While mortgage rates remain elevated, they are expected to stabilize.”

The data also showed that the median home price rose 4% from last October to $407,200, marking the 16th consecutive month of annual price increases.

US stocks climbed on Thursday as investors digested Nvidia’s (NVDA) earnings while bitcoin (BTC-USD) briefly hit yet another record high just north of $98,000.

The Dow Jones Industrial Average (^DJI) rose 0.3%, while the S&P 500 (^GSPC) added 0.%. The tech-heavy Nasdaq Composite (^IXIC) put on 0.6%, coming off a muted day for the major gauges.

Nvidia beat on profit in the third quarter, but the chipmaker’s revenue growth forecast slowed. Shares of the AI chip heavyweight erased premarket losses to open 4% higher.

Meanwhile, bitcoin soared more than 5% earlier on Thursday, climbing closer to the $100,000 threshold amid optimism that the incoming Trump administration will implement crypto-friendly policies.

Weekly jobless claims rose less than expected last week in a sign of cooling in the labor market.

New data from the Department of Labor showed 213,000 initial jobless claims were filed in the week ending Nov. 16, down from 219,000 the week prior and below the 220,000 economists had expected. The weekly claims for unemployment have been falling steadily throughout the past several weeks after hitting their highest level in more than a year in October.

Meanwhile, the number of continuing applications for unemployment benefits hit 1.9 million, up 36,000 from the week prior and the highest level since November 2021.

Bitcoin (BTC-USD) jumped more than 5% to a record high Thursday morning, trading just north of $98,000 amid speculation of pro-crypto policies from an incoming Trump administration.

The token has soared roughly 40% since the presidential elections earlier this month, hitting multiple milestones as investors eye the target of $100,000.

Reports that President-elect Donald Trump’s transition team has discussed the possibility of a first-ever crypto policy chief for the White House has helped lift the token in the past 24 hours.

Bitcoin has been a key component of the Trump trade, as the incoming president has promised to explore crypto-friendly initiatives, including the creation of a national bitcoin stockpile.