The stock market experienced a mixed performance on Thursday, with the major indexes finishing near session lows as a postelection rally started to falter. However, some sectors showed signs of renewed strength, with major airlines and blue-chip stocks like Chevron and Walt Disney grabbing the attention of investors.

Navigating the Choppy Market Conditions

Indexes Slip, but Sectors Diverge

The Nasdaq and S&P 500 both finished the day down 0.6%, while the Dow Jones Industrial Average lost nearly 0.5%. The Russell 2000 small-cap index also backtracked sharply, losing 1.5%. Despite the overall market weakness, some sectors managed to rally, with department stores, solar, plastics, tobacco, gold and silver mining, and discount and variety retail industry groups all gaining 1.6% or more.

Airlines Grab Investor Interest

Within the airlines group, American Airlines (AAL) appeared to be gaining more interest among fund managers. The stock rose as much as 4.7% to a six-month high of $14.67, and has gained more than 30% for the current quarter. The stock has been building the right side of a cup base or even a saucer-style pattern, and its 10-week moving average is on the verge of crossing its still-falling 40-week line, which is a positive sign.

United Airlines Emerges as a Turnaround Story

In the same group, United Airlines (UAL) has emerged as a true turnaround and leader in the stock market. The stock rose 2% for the third gain in four sessions, and has soared 87% from a 49.67 perfect entry point in an early-stage double bottom. Wall Street expects United's profit to accelerate from a 2% increase this year to 19% growth in 2025.

Beazer Homes Breaks Out

Beazer Homes (BZH), a small-cap in the residential building industry group, broke out at one point on earnings. The company posted a 6% decline in fiscal fourth-quarter profit, but with its recent rebound from summer lows, Beazer Homes has grown back to a market value exceeding $1.1 billion. The stock ran past a buy point of $35.20 in a seven-week base, and the 5% buy zone goes up to $36.96.

Disney Roars on Earnings

Among blue-chip stocks, Disney (DIS) roared like a bull, gaining on fiscal fourth-quarter results that included revenue of $22.6 billion and adjusted earnings of $1.14 per share. The media and entertainment giant reportedly noted that it sees a modest decline in first-quarter Disney+ core subscribers, but the stock is now quickly forming the right side of a new base.

Biotech Stocks Struggle

The biotech sector has been a mixed bag, with the iShares Biotech ETF (IBB) down sharply on Thursday and on track for a fourth straight down session. Even strong performers like Eli Lilly (LLY) and Vertex Pharmaceuticals (VRTX) have struggled, with Lilly continuing to hover below its long-term 200-day moving average.

Seeking Opportunities in Less-Covered Stocks

According to Niels Peetz-Larsen, partner at Boston-based HighVista Strategies, the team looks for biotech and medical stock opportunities across all sizes of market cap, as they believe the price of a $1 billion biotech stock is more likely to be mispriced than a stock like Google (GOOGL). However, the biotech area is not the only one to see some stocks suffer negative reversals, with contract electronics firm Fabrinet (FN), Japan's Sony (SONY), and tech services firm TaskUs (TASK) offering recent examples of breakouts failing.

Energy Sector Gains, but Some Fast Movers Stumble

In the early going, the energy sector saw some positive movement, with Chevron (CVX) rising more than 1% and crossing a trendline entry near $160. However, some fast movers like Nu (NU), a Brazil-based fintech platform, and Hims & Hers (HIMS), a weight-loss treatment company, slumped in the early trading.