The stock market surged higher early Thursday as the Dow Jones industrial average hit a fresh record high. IBD 50 stock Nvidia (NVDA) sold off Thursday and was nearing a potential support area. Meanwhile, former hot stock Micron Technology (MU) will report earnings after the stock market close.
The Dow Jones industrial average and tech-heavy Nasdaq advanced about 0.8% apiece. The S&P 500 followed up with a 0.6% gain.
Among the Dow stocks, Apple (AAPL) was one of the top gainers with a 1.6% rise. Shares were on pace to extend a win streak to three trading sessions. Apple stock was about 4% off its recent high price.
Meanwhile, Caterpillar (CAT) rose another 2% Thursday. Shares were up nearly 8% this week, reclaiming their 200-day moving average line. A new base was forming.
Earnings: Red Hat Crumbles, Darden Hit Highs
Among companies reporting earnings, Red Hat (RHT) reported its Q2 earning results late Wednesday, sparking an over-7% decline in morning trade. The Linux provider missed Q2 revenue estimates and forecast weaker-than-expected sales in the current quarter. Shares were approaching their recent lows, about 25% off the 52-week high set back on June 14.
Olive Garden parent Darden Restaurants (DRI) reported better-than-expected fiscal-Q1 results early Thursday with strong same-store sales. The stock advanced almost 2% on its way to a new high. Shares were about 20% above a 100.21 base-on-base buy point — a potential profit-taking level.
After the stock market close, former stock market leader Micron Technology is expected to record earnings of $3.31 per share on revenues of $8.25 billion. Shares were about 30% off their high after a failed breakout above a cup-shaped base’s 63.52 buy point in late May. Shares moved up almost 4% Thursday morning.