Stock market is strong, Dow Jones is lagging as meta rises
Stock market indexes closed near their highest levels on Friday, led by the Nasdaq index, amid anticipation of the profits of major technology companies. The Dow Jones Industrial Average rose to a new high. Amazon.com (Amzn) and Meta platforms (META) The Nasdaq gave a big boost after strong earnings reports.
On the stock market today, the Dow Jones Index gained nearly 0.4% to reach an all-time high. The S&P 500 also rose 1.1% to reach a record high, while the Nasdaq led the day with a 1.7% increase on technology stocks. The small-cap Russell 2000 index fell 0.6%, although it closed at session lows.
Elsewhere, the Invesco QQQ Trust (QQQ) rose 1.7%, while the Innovator IBD 50 ETF (FFTY) rose 2%.
Trading volume on the New York Stock Exchange and Nasdaq fell versus the same time on Thursday, in preliminary numbers. But declining stocks outperformed rising stocks by about 2-1 on the New York Stock Exchange and by about 8-5 on the Nasdaq Stock Exchange.
Meanwhile, the 10-year Treasury yield added 17 basis points to 4.03%. This was the biggest single-day gain since September 26, 2022 as of 3pm EST readings, according to Dow Jones Market Data.
The Labor Department announced a surprise increase of 353,000 new jobs in January versus an expected rise of 170,000. December numbers were revised to 333,000 from 216,000 previously reported. The unemployment rate came in at 3.7%, below expectations of 3.8% but unchanged from December.
2 Great Sevens Rally; Meta reaches a new high
Shares of Magnificent Seven and IBD 50 Meta Platforms rose 20.3% on massive volume after the social media giant reported better-than-expected fourth-quarter earnings and sales and announced plans to pay a dividend for the first time ever. Meta stock was the biggest gainer on the S&P 500 as it jumped to an all-time high. Meta shares surpassed their peak market cap of $1.078 trillion set on September 7, 2021, and closed with a capitalization of $1.211 trillion, according to Dow Jones Market Data.
Amazon.com stock rose 7.9% in heavy trading, after the e-commerce and cloud computing giant beat estimates for fourth-quarter earnings and sales. This was Amazon’s largest single-day increase since August 4, when it rose 8.3%.
while, apple (AAPL) ended the day with a loss of 0.5%, on the heels of fiscal first-quarter earnings and sales that beat expectations but lower sales in China. The Dow fell below its 200-day moving average in morning trading but has since recovered. Apple stock is still below its 50-day line.
IBD 50 name Nvidia (NVDA) jumped 5% to reach a new all-time high. Shares beat the profit target by 25% from the flat entry level of 505.48.
S&P 500 Hits Highs in Stock Picker’s Market; Five new purchases
Other stock market moves: One shoe stock stumbled, another raced
Skechers USA (SKX) stock fell 10.3% after the footwear company beat fourth-quarter earnings estimates but missed sales. Skechers stock gapped below the 50-day line, giving a sell signal. The stock gave up about a 15% gain from a 56.53 buy point for the cup base.
Shoe inventory worth BD 50 Decker outdoors (DECK) rose 14.1% in a heavy move, after beating fiscal third-quarter earnings and revenue expectations.
Database software inventory MongoDB (MDB) shares rose by 6.6%. It forms a cup base with a buy point of 442.84, although an early entry could be seen around 426.50. Using the trend line, an entry around 422 also makes sense. The new formation began after the failed breakout in early December.
Clorox (CLX) rose 5.6% after the home products company reported a big beat in fiscal second-quarter earnings estimates and higher sales. Clorox stock has firmly reclaimed its 200-day line. Earnings grew 120% year-over-year quarter with sales growing 16%.
Interactive Brokers (IBKR) rose 5.8% and exited a secondary buy point at 92.62. Buy zone 5% of new entry point reaches 97.25. The online broker reached an all-time high on Friday. The surprise move came after Interactive announced that its average daily revenue from trades rose 11% in January compared to last year.
Exxon Mobil (XOM) gave up earlier gains to close 0.4% lower, after the oil company reported a beat in fourth-quarter earnings but missed sales estimates.
Dow oil stocks Chevron (CVX) jumped 2.9% after a mixed Q4 earnings report. Profit exceeded views while sales fell short of estimates. Investors were rewarded when the oil production company announced it would increase its dividend by 8% in the March quarter. Chevron was the biggest gainer on the Dow Jones index in Friday’s stock market action.
Atlantic (TEAM) fell 14.7% even after the collaborative software developer beat earnings and revenue expectations for its fiscal second quarter. The stock gave up gains on the breakout from a 215.77 cup base buy point, triggering a sell signal. Shares fell below the 50-day moving average, triggering another sell signal.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_Kkoenig.
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