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Stocks Reverse Higher As Pinterest Stock Goes Public, Zoom Soars On IPO

On a day in which Pinterest stock went public and Zoom also launched a widely watched IPO, the stock market shook off early weakness and closed higher Thursday.

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The Dow Jones Industrial Average climbed 0.4% to lead the main indexes. Dow component Travelers Cos. (TRV) broke out of a cup-with-handle base, topping a 138.70 buy point. The insurance giant posted better-than-expected earnings today.

The Nasdaq composite rose a fraction after erasing a loss of more than 0.5%. It closed just below the 8,000 level, where some resistance is possible. Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, rose more than 0.1% and made a record closing high at 187.39.

The S&P 500 also reversed higher and ended with a 0.2% increase. The S&P and other major indexes closed near session highs. The small-cap Russell 2000 lost 0.2%.

Volume rose on the NYSE and fell on the Nasdaq, according to early figures.

Leading stocks lagged. The Innovator IBD 50 ETF (FFTY) fell 0.4% even after trimming losses. Security software leaders such as Fortinet (FTNT), Palo Alto Networks (PANW) and Atlassian (TEAM) (off 8.3% on weak guidance) helped to drag the ETF.

Pinterest Stock Soars On IPO

Pinterest (PINS) shares jumped 28% on the first day of trading with an initial public offering that raised $1.4 billion, giving the company a valuation above $12 billion. Pinterest priced 75 million shares at 19 each. That was above the estimated price range of 15 to 17. The IPO gave Pinterest a valuation near $12.6 billion on a fully diluted basis. The stock closed at 24.40.

Zoom Video Communications (ZM) began trading Thursday with an initial public offering that raised $752 million, as the stock initially soared more than 80%. Late Wednesday, Zoom priced 20.9 million shares at 36 each, above an upwardly revised range of 33 to 35. It gave the company a valuation above $9 billion. Zoom closed at 62, up an astonishing 72%.

A handful of stocks broke out past buy points after reporting earnings.

Union Pacific (UNP) broke out of a flat base in heavy volume after the rail company beat profit expectations. Shares gapped above the 172.54 buy point in heavy trading.

Taiwan Semiconductor (TSM) rose past the 45.34 buy point of a cup-without-handle base. The chip foundry, also known as TSMC, early Thursday edged past first-quarter estimates. Shares broke out even though TSMC gave lower guidance for the current quarter.

Adtran Breaks Out; Sector Winners

Telecom equipment maker Adtran (ADTN) leaped past the 15.50 buy point of a flat base nested inside a much larger consolidation. Shares surged 14%.

The industrial, real estate and transportation sectors were Thursday's top performers. Retail, energy and financials were weakest, despite data showing a surge in March retail sales. Health care, which suffered broad selling this week, ended little changed.

The stock and bond markets are closed Friday for the Good Friday holiday.

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