Stock Market Rallies After Jobs Number; Diabetes Device Maker Pops

Stock market indexes rose in the past hour and bounced back to intraday highs, as investors cheered jobless claims. Because the increase in claims points to a slowing labor market, it is an important factor in the Fed’s policy making.


The S&P 500 gained 0.8% while the Nasdaq rose 1.2%. The Dow Jones Industrial Average rose 0.6%. The Russell 2000 small-cap index along with other indexes, added 1%.

The Nasdaq composite is testing resistance at its 21-day annual moving average. The S&P 500 is hugging its 21-day line.

The tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF ( QQQ ) rose 1.2%. Volume on the NYSE rose and fell on the Nasdaq at the same time on Wednesday.

Oil was unchanged at $71.99 a barrel. The SPDR Energy Index ETF (XLE) was unchanged. Natural gas fell 7%. It is above $6 per million British thermal units.

The yield on the 10-year Treasury note added 6 basis points to 3.48%, close to levels seen in September.

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

The odds of 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 CME FedWatch Tools.

Initial jobless claims for the week ending Dec. 3 rose to 230,000 versus the 228,000 estimate. This was an increase from 226,000 the previous week and the highest level since February. The rise in jobless claims reflects a cooling labor market. The Fed uses employment numbers to help it determine the pace of rate hikes. The next FOMC meeting is December 13-14.

The Diabetic Equipment Manufacturer breaks down

Dexcom (DXCM) broke and broke out of a flat base, hitting the buy mark at 123.46, according to MarketSmith indicator. Shares rose 3.7% in heavy volume and are in a 5% buy zone that extends to 129.63. Dexcom is an S&P 500 leader today.

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Dexcom is the leading manufacturer of glucose monitoring systems used in diabetes care. Shares rose after the US Food and Drug Administration released its G7 continuous sugar monitor. The third place is in the pharmaceutical product industry group. The groups on the list are 35 active names from 197 industry groups IBD tracks.

meme material Game Stop (GME) returned 9% after yesterday’s 4.8% drop in weighted volume. The company late Wednesday reported a decline in quarterly sales but a smaller loss from a year ago.

Costco (PAYMENT), Lululemon (LULU) and Broadcom (AVGO) is scheduled to report earnings after the close today.

Today’s Stock Market: IBD 50 Best Beverages

The Innovator IBD 50 ETF ( FFTY ) rose 0.2%, outperforming the stock market benchmark.

Body drink maker Celsius (CELH) rose 4.3% and is back near the 116.29 buy mark of the cup base.

Exchange Transactions (LSCC) gained 3.1% in monthly volume. Shares are in a 55-week-old base and near the 73.63 buy mark. The relative strength line hit a new high as indicated by the blue dot on the MarketSmith chart.

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Shares of LSCC are up over 41% quarter-to-date after a positive earnings report and high guidance at the end of October. Lattice is the top platform in the industry’s leading chip design industry.

Arcus Biosciences (RCUS) fell another 2.5% but is finding support at its 21-day line. The stock rose in late November after positive results for its lung cancer drug, but has since rebounded.

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