Market Shrugs Off AI Fears; Eli Lilly, Urban Outfitters, Gold Miner ETF In Focus

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0:25Good afternoon, everyone, and welcome to Stock Market Today for Thursday, December 11th. It's Alexis Garcia here. And tech stocks initially came under pressure today after Oracle earnings brought back some AI spending worries. But the market seemed to shake that off by the close. So we saw a lot of breadth today. So here with me to help break things down is IBD News Editor Ed Carson. So Ed, a little bit of a wild ride today for investors. But what do you have on tap for us? Yeah, I would like to take a look at Eli Lilly, Urban Outfitters, and Goldminer ETF, GDX. All right, well, we'll get to those stocks.

1:08But let's go ahead and check in on the major indexes and see how they finish. The S &P 500 climbed back some early losses, finishing the day up two-tenths of a percent. The Dow up 1.3%, notching a new high there. The Nasdaq down about three-tenths of a percent. But again, that index coming off morning lows to finish the day. And small caps up 1.2%. So I'm going to go ahead and get my screen going here, but it looked like maybe early on there was a little bit of divergence in the market. We can see the Dow here, this one finishing the day up strong, up 1.4 % in the upper part of that range. We saw small caps doing well today as well, up over 1 % still in this buy zone after powering above this flat base entry here, 252.77.

2:02And, you know, the S &P 500, again, going strong, paring back some of those early losses. So give me your thoughts, because it seemed like the market really shrugged off this Oracle news. Yeah, I mean, there were definitely stocks that got hit, especially Oracle. But a lot of the AI plays that got hit did come off lows. And there were even some AI plays that rose. There were definitely some names that had positive sessions. But clearly, we saw the breadth. I mean, the Dow and small caps doing well. We saw it. I look at RSP, the equal rate index that hit a new high again. I mean, that one, like Russell, hit a new high yesterday and kept on moving.

2:40So we saw a lot of breadth. There was retailers. There was some drug names. There was obviously a lot of gold stocks. There was financials did well. There was a lot of breadth outside of that. So just in the last few days. And that's just something investors need to keep be in mind. We've been talking about broad leadership and, you know, the NASDAQ has been, you know, lagging a little bit. I mean, it lagged yesterday with the smallest gain. It's there. Even here, though, it bounced off its 21-day line. And this could all be nice. We have a shakeout. Maybe we have some handles that form. So it seems to be pretty positive action.

3:13If the market could have easily decided to sell off, oh, Oracle's doing this. Everything sells off. But it was showing that definitely should be looking to have a diversity of leadership, not just be concentrated in a handful of AI names. But yeah, ultimately nice action. It stayed mixed all day, but it was a very different mix from the beginning to where we closed. And I just want to check in on QQEW really quickly since we covered RRSP. This is the NASDAQ 100 equal weighted ETF. This one, again, flat for the day, Ed, after, you know, some bouncing around today. So any thoughts there? Again, it seemed like the market seemed to really kind of shrug off Oracle earnings.

3:56It wasn't Oracle and it was like, you know, NVIDIA came off loads. And actually the big loser of the day other than Oracle was Robinhood, which had nothing to do with AI. It was own trading issues. So once you strip out Robinhood and NVIDIA, a couple of the names, you know, all of a sudden the rest, even the rest of the tech field did pretty well. So, yeah, it was flat on the day. Not great. It was lagging, obviously, the Dow Jones and, you know, small caps. But yeah, there was definitely certain, you know, the losses were concentrated and there was a lot of strength. There was a lot of strength today.

4:28And let's just take a look at some sector ETFs starting with SMH. This went down about nine tenths of a percent today. But again, another one, Ed, coming off lows, finishing in the upper part of that trading range. So talk to me about what's happening here. Yeah, I mean, again, it's impressive how this is performed. There was definitely some weakness here because, you know, suggesting if you get concerned about data center spending, well, ultimately, the data centers are there to plug in chips. And so the fact that these chips came off, you know, came off lows, we're basically right at highs. So when we talk about AI woes, let's, you know, just be careful here.

5:07We're just a breadth away from all-time highs again on the chips. So and that's we're going to get Broadcom earnings tonight. That'll be important. But a lot of other names. still doing well here. So yeah, very, very strong performance from chips all in all, given where we started today. And let's just take a look at XBI. That's the S &P Biotech ETF. Again, this area has been an area of strength here, Ed, up eight-tenths of a percent today. Yeah, and there was definitely some names in this space that were doing well. So this has been a real, you wouldn't know that there had been, And we had some struggles in October, November in the market.

5:48But, you know, these were sort of blips for the biotechs. And this is just really powering along. So this is where you can get a lot of growth, where there's super speculative development stage names to fairly established slow growth names. There's a lot of names in XBI and, you know, and some of those related names, but doing very well. Yeah, I haven't touched the 50-day line here since this breakout back in September for XBI. Harvard Business School Executive Education delivers breakthrough learning for leaders, stimulating classes led by faculty at the forefront of their fields. Topics that will define the future of business.

6:25Discussions that transform perspectives and ways of thinking and access to the brightest business minds on the planet. Learn more at hbs.me slash breakthrough. That's hbs.me slash breakthrough. So let's go ahead and take a look at some individual stocks. And Ed, we were talking about biotech. Let's take a look at Eli Lilly. This was up 1.6 % today. Again, reclaiming this 21-day line. But Ed, this is a name. It broke out back here on November 10th. It rose above this 1100 area and then sharply pulled back. But it seems like Lilly may be looking to rebound here. Yeah. And I think that for a lot of folks could have bought it.

7:12This literally way back at 864, you know, there was sort of a handle that was technically above the midpoint of the bay. So you could have used that 864 in there. But yes, it rallied strongly, huge volume. There's a lot of people just sort of like woke up and said, wait a second, this has been turning out tremendous earnings. I mean, sometimes there's a sort of that situation. And I think people saw it as the clear winner of the current generation of obesity drugs. That is like, and it took a while to really make that clear. Really powerful. And you can see the ants there that were near the top of that run.

7:44That reflects how these strong volume gains that we were seeing along that stretch. Yeah, it pulled back. It pulled back. I guess I wouldn't call it sharp. It was not gentle, but at the same time, it was low volume and it was step by step. It wasn't like there was no day where you go, oh my goodness, what was that? So it was steady. And it found support right where you'd expect to do, right at the top of this consolidation. It bounced back today. And today they released some data on a next-generation drug that was supposedly even better performance. And it deals with three gut hormones to make sure nobody wants to ever eat again, I guess.

8:19And so really great weight loss on that. So that would be suggesting that it could continue its dominance. I mean, we'll see, but that was sort of a market reaction to it. I think you could buy it here or you could also wait to get back above today's highs as a place to add shares or even start a position because this is what a lot of people are waiting for, for that pullback. And so this is an opportunity here. Tremendous earnings obviously has to continue that. But today's news suggests that when the next generation of BC drugs are out there, that it'll be at least a significant player, if not the leader again.

8:54All right. So potentially actionable here or the 1031 intraday high. Correct, Ed? That would be correct, yeah. Okay. Let's go on and take a look at Urban Outfitters. This one also up today 3.3 % powering above this cup with handle by point of$79.92. Yeah. And both Urban Outfitters and Eli Lilly were added to swing traders today. Urban Outfitters was stock of the day. This was pretty easy. You know, when you look in the morning, looking at AI stocks getting hit and Urban Outfitters doing well, there's a number of names that have been doing well. Urban Outfitters, it's good time started around the earnings.

9:33I mean, it actually started just before that. There might have been another rival or something that came out before that. But then Urban Outfitters churned out its own strong results and then formed this handle. So there was a strong performance paused here and now is breaking out. This is what can sometimes happen. You sometimes wait, well, what? Consolidate. Can it really do something here? Well, it has. And it even also hit a new high, too. So that was impressive. A number of names in this sector or in the apparel space are hitting new highs and are extended. So all of a sudden, even though the group is 43, there's definitely a lot of, you know, that's getting in there again, but a lot of strength here.

10:09All right. How about we wrap up with a look at GDX? That's the gold miners ETF. This one up 3.6 today. And again, breaking above a cup with handle by point of 8403. Look, there's a lot of names that you could have used, individual names, but there's a lot. This is a way to get at it without individual stock risk. And this one looks just as good as the other names that we're breaking out today, honestly. And some others are extended. So this was a good way to play gold. Strong volume today after sort of pausing, you know, lighter volume. Just making a really strong move here. I mean, it's just that's, you know, gold has been a real area of strength.

10:50and this is just a classic breakout and a lot of names were looking like this. So I understand if you want to say, I want to get Newmont or I want to get First Majestic or I want to do this, that's fine. But I think gold plays and gold and silver plays tend to trade fairly similarly and this can avoid the risk here. All right. Well, we wanted to check in on Broadcom, Ed. That had earnings today after the close. It looks like it's up about 4 % after hours here. But again, down slightly today, 1.6%. But again, clawing off those lows here. Yeah, I don't know if there's anything anybody can do with this because it's sort of extended already from things.

11:32It didn't really pause long enough. But nice action here. We'll see. This could move around a lot. It did beat views. I haven't seen the guidance yet. I mean, it may. Okay, I do see the guidance now. Guided higher somewhat. I don't know what the whisper numbers, what people really want to see, quote unquote. And obviously the guidance is all to say how they're doing on things. And this is going to be important for NVIDIA, for Taiwan Semiconductor, Taiwan Semiconductor, making both Broadcom and NVIDIA and AMD and Apple chips. So it'll definitely be relevant what Broadcom has to say on that. And there's a few other names.

12:12Netscope. This is a cybersecurity IPO, NTSK. And this one, I believe it beat views with a small than expected loss. I mean, we'll have to see. It's sort of like moving up. It'd be great if it get up to around 25 and then pause and sort of form some kind of base. But we'll see how that goes. Another name is Lululemon. I didn't see the earnings per se. You know, obviously, I've been a little busy. But I also know that their CEO is going to switch out. Maybe they did beat views. And so this is gapping out. And up about 7 % after hours. Yeah, up 7%. It's got a long way to go. You know, this is, you know, when you're a trendy retailer that's no longer trendy, that's not great.

12:54So they need to turn around. Yeah, but how many times have we seen a new CEO step in and turn things around? Absolutely. Yeah, so there we go. You know, Costco is one of the other. That's another discounter that's been – that's one of the discounters that's not been performing well and not doing a whole lot here right now. So those are the names after the close. But I think, again, a lot of the attention will just be on Broadcom and, you know, the earnings call, what that means for some of its peers too. All right, Ed. Well, thank you so much for your insights today. That wraps it up for this episode of Stock Market Today.

13:30We'll be back with more market analysis starting tomorrow morning with IBD Live. You can head on over to IBD Live, investors.com slash IBD Live for all the details there. Thank you so much for watching. And we'll see you right back here tomorrow after the close.

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