Major indexes closed near session highs after a strong November, even though Fed Chair Jerome Powell made a cautious stance on interest rates Friday. The Dow Jones Industrial Average rose 0.8%.
Powell said in prepared remarks that "it would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease."
Yet, financial markets reacted as if Powell was far more dovish. The yield on the benchmark 10-year Treasury note plunged 12 basis points to 4.22%.
In economic data Friday, the S&P Global Purchasing Managers' Manufacturing Index for November came in at 49.4, while the Institute of Supply Management Index was unchanged from October's 46.7 and below consensus of 47.5, according to Econoday.
The S&P 500 was higher by 0.6% in the stock market today. Health and communication services sectors lagged while industrials and real estate led.
The Nasdaq also rose 0.6%.
Volume on the NYSE rose and fell on the Nasdaq, according to preliminary data.
The small-cap Russell 2000 surged nearly 3% while the Innovator IBD 50 ETF cleared the 200-day moving average with a gain of 1.9%.
Dow Jones Stocks
Salesforce added gains after an earnings-fueled breakaway gap on Thursday. Shares are extended from the 228.79 buy point of a double bottom.
Intel lagged in the Dow, off more than 2%. Johnson & Johnson rose after analysts at UBS upgraded the stock to buy from neutral with a price target of 180, up from 167. The company plans to hold its Investor Day on Tuesday.
Tesla fell over 2% in early trades but managed to erase some losses and ended 0.% lower after the launch of its Cybertruck on Thursday.
According to reports, analysts are concerned about its longer wait times and steep price tag. Analysts from Bernstein commented, "Tesla has a product problem ... an older lineup that does not address enough of the market, and no new mass market offerings until likely late 2025."
United Rentals broke out of a cup with handle with a buy point of 488.73. Volume was 52% above average. InterContinental Hotels also broke out past a handle entry of 79.20. Both stocks are at all-time highs.
Marvell, Dell Among Earnings Movers
Among earnings movers, Marvell Technology pared some losses, and closed right at the 50-day line after third-quarter results were announced. Both sales and earnings declined from the prior-year quarter, while the semiconductor company expects fourth-quarter sales to remain flat.
Ambarella gave up early gains and closed 0.3% lower after sales declined for the fifth straight quarter. The company also continued to realize losses.
Outside Dow Jones, Dell briefly dived below its 50-day line but cut losses in afternoon trading. It moved back above a buy point of 70.77 after disappointing third-quarter sales. Sales declined for the fifth-straight quarter while earnings also fell.
In software automation, UiPath soared past a 20%-25% profit zone after the company announced quarterly earnings grew 140%. The company expects revenue of $384 million at the midpoint in the fourth quarter.
Among database software providers, Elastic also soared past an entry of 84.04 after a strong fiscal second quarter. Sales grew 17% while earnings rose to 37 cents per share from 1 cent per share in the prior-year same quarter.
IBD 50 stock Samsara gapped up above a buy point of 32.41 in a cup base. Sales grew 40% while earnings of 4 cents per share reversed a 2-cent loss in the year-ago quarter.
Pfizer, which is not a Dow Jones industrials component, fell after reports that it will stop developing its twice-daily oral weight-loss drug due to side effects. Shares continue to trend lower along with the 50-day line.
Meme action returned for GameStop, which will report results on Wednesday. Shares have retaken the 50-day moving average and rose over 5% Friday.
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