Stocks posted robust gains Friday in the wake of a sharp sell-off, but the major indexes came off highs by the closing bell. A big loser was Dexcom, which lost nearly half its value on the stock market today.
The Dow Jones Industrial Average was the star of Friday's show, as it surged more than 800 points at one point. The Dow still managed a 654-point climb by the close, reaping a 1.6% gain. Along the way, the blue-chip index reclaimed the 40,000 psychological level.
The S&P 500 ended the day 1.1% higher, though it posted more sizable gains earlier in the session. The Nasdaq composite also gave back some ground but closed with a 1% gain. The tech-heavy index remained below its 50-day moving average, however.
The small-cap Russell 2000 climbed off session lows for a 1.7% jump.
Volume was lower on the Nasdaq and the New York Stock Exchange vs. the same time Thursday. Winners beat losers on the Nasdaq exchange by more than 5-to-2 and by 4-to-1 on the NYSE.
In the bond market, the 10-year Treasury yield shed six basis points to 4.19%. And U.S. crude oil prices fell to $76.77 a barrel.
3:48 p.m. ET
Stock Market Today: Flooring, Oil Stocks Jump
Flooring products stock Mohawk Industries surged nearly 20% after the firm topped second-quarter adjusted profit estimates but missed sales projections. The company sees higher interest rates, inflation and weak housing sales impacting their markets. In its earnings release, Mohawk said: "Our restructuring initiatives will deliver significant savings and enhance our performance when our markets recover."
BofA Securities upgraded the stock to a buy rating from underperform, which is two ratings higher, and raised its price target to 177 from 120. Shares reached a 52-week high on the stock market today.
Meanwhile, Baker Hughes popped nearly 6% and reached the 37.58 buy point of a 46-week undefined base.
The oil-and-gas services provider reported better-than-expected earnings and revenue for the second quarter. It also raised the midpoint of its full-year 2024 revenue outlook.
2:30 p.m. ET
Not All Stocks Look Rosy
Booz Allen Hamilton plummeted nearly 10% after the company missed fiscal first-quarter adjusted earnings estimates with modestly higher-than-expected sales. The plunge below its 200-day moving average in heavy volume triggered a sell signal.
Booz Allen's quarterly profit dropped 6% from last year's same period while its sales growth slowed from the prior quarter. Booz Allen is the largest provider of artificial intelligence services to the U.S. government, using artificial intelligence technologies and machine learning.
Another big loser was BJ's Restaurants, which cratered more than 16%. The company's second-quarter adjusted profit number missed forecasts, though sales were higher than views.
The restaurant stock undercut its 50-day and 200-day moving averages in heavy volume, triggering sell signals. Its sales have been flat to down 6% over the last three quarters.
12:47 p.m. ET
Bitcoin Stocks Rally
Bitcoin-related stocks bolted higher as bitcoin prices jumped to more than $67,600.
Crypto exchange Coinbase Global surged 4.5%, bouncing off its 50-day line. Shares are in a late-stage undefined base with a 283.48 buy point. But an early entry can be seen at 263.80.
MicroStrategy soared 10% and is in an irregular base with a 1,999.99 buy point. An early buy point can also be seen at 1,734.70. MicroStrategy is a software firm that focuses on bitcoin tools and has a large holding of the cryptocurrency. A 10-for-1 stock split goes into effect next week.
11:57 a.m. ET
Stock Market Today: IBD 50 Stock Sinks
IBD 50 stock AppFolio plummeted more than 8% despite the property management software company reporting second-quarter earnings that topped expectations. The stock sliced through its 50-day line and retreated below a 256.73 buy point.
Norfolk Southern surged more than 11% in heavy trading after the railway operator beat second-quarter adjusted earnings estimates. The stock is in a skewed cup base with a 263.66 buy point. The new base formed following a cup-with-handle base breakout in mid-March that couldn't progress.
The stock jumped past its 200-day moving average on the stock market today. Norfolk has a dismal 27 IBD Relative Strength Rating and a 34 Composite Rating.
Installed Building Products powered up 4.5% and broke out of a double-bottom base with a 257.45 buy point. The stock is in the 5% buy zone up to 270.32.
10:36 a.m. ET
Economic News: Core PCE Edges Past Estimates
The June month-over-month personal consumption expenditures index rose 0.1% as expected, while the year-over-year met the 2.5% estimate.
The June core PCE price index, which excludes more volatile food and energy prices, increased 0.2%, above the 0.1% consensus estimate. The closely watched annual core PCE index rose 2.6%, which edged past the 2.5% projection.
The June personal income reading rose 0.2% vs. the 0.4% expected and lagged the revised 0.4% increase in May. And the June personal consumption expenditures came in at the expected 0.3% and lower than May's revised 0.4% increase.
Stock Market Today: Dexcom Tanks After Lower Forecast
Dexcom plunged more than 40% in heavy volume following the company's better-than-expected second-quarter adjusted earnings but lower revenue than estimates. It also cut its full-year 2024 sales outlook. The diabetes devices maker fell further below its 200-day moving average and sank to its lowest level since April 2020.
The drop is the largest decrease on record, according to Dow Jones Market Data. Dexcom is the biggest loser in the S&P 500 on the stock market today.
Deckers Outdoor gapped up around 9.8% in huge volume after the footwear maker topped fiscal first-quarter adjusted profit and sales expectations. The maker of HOKA and UGG shoes also raised its fiscal 2025 profit guidance. The stock tested its 50-day line before rising and is back near the 916.65 buy point of a cup-with-handle base.
Bristol-Myers Squibb popped around 9% after the pharmaceuticals company handily topped second-quarter earnings and sales projections and raised its full-year profit guidance. The stock climbed above its 200-day line on the stock market today. Shares have been on a steep downtrend since December 2022.
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Stock Movers: Dow Stock 3M Breaks Out
Dow Jones stock 3M surged around 16% and broke out of a flat base with a 106.04 buy point. A more appropriate entry is 119.53 based on the high of the first five minutes of trading. The industrial and consumer products stock is in a 5% buy zone up to 125.51.
The jump followed the company's higher-than-expected second-quarter adjusted earnings and sales results. 3M also raised its full-year adjusted profit guidance.
Texas Roadhouse jumped around 4% after it beat profit and sales views. Its comparable-restaurant sales increased 9.3%. The restaurant stock has been trading tightly as it finds support around the 10-week moving average.
Charter Communications soared more than 16% after the cable and broadband provider exceeded second-quarter earnings and revenue forecasts. The stock reclaimed its 200-day line for the first time since the start of the year.
Nvidia rebounded 0.7% after three days of selling but the stock remained below its 50-day line in the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
