Bulls remained in charge Friday as major indexes scored sizable gains to close out the week. The Dow Jones Industrial Average led the surge while the other major indexes — and particularly small caps — also moved to higher ground at the closing bell on the stock market today.
The Dow added 422 points, or 1%, to finish at a record close of 44,296. It was followed by the S&P 500, up 0.4%, while the tech-weighted Nasdaq added 0.2%. Both the S&P and Nasdaq are rebounding from their 21-day exponential moving averages. All three indexes wrapped up the week with gains of more than 1.5%.
Small caps outperformed the major indexes by far, as the Russell 2000 jumped 1.6%. The Russell also surpassed the other indexes with a 4.4% weekly gain.
The Innovator IBD 50 exchange traded fund rose 0.7% Friday and more than 9% for the week.
Volume on both the New York Stock Exchange and Nasdaq came in lower compared with the same time on Thursday. Advancers outnumbered decliners by nearly 3-to-1 on the NYSE and more than 2-to-1 on the Nasdaq.
The yield on the 10-year Treasury note fell one basis point to 4.42%.
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In stocks, Nvidia fell further as the day progressed. Shares dropped from a record high in the morning as investors continued to digest the company's earnings and disappointing outlook. The stock finished more than 3% lower — though it remains in a buy zone.
A Magnificent Seven stock, Nvidia's buy zone goes up to 147.80 from an entry of 140.76. On Friday, the stock got a rare downgrade.
On Friday, analyst Stacy Rasgon at Bernstein Research said although third-quarter results were strong, the company's forecast was "perhaps a touch below some of the more bullish whispers." But Rasgon added Nvidia's outlook could also be on the conservative side.
Meanwhile, another Magnificent Seven stock, Google-parent Alphabet, touched down on its 200-day moving average amid more bad news for the company. Google failed a test of its 50-day moving average Thursday and lost 1.7% by Friday's close.
The stock plunged nearly 5% on Thursday on news that the Department of Justice may ask the search giant to sell its Chrome business. On Friday, The Information reported that OpenAI is planning its own web browser that would have a chat feature. That would compete with Google's Chrome.
Also among the Magnificent Seven, Amazon.com hovered just below a buy point of 202.20, as it finished the day 0.6% lower. The e-commerce and cloud giant increased its artificial intelligence stake by investing another $4 billion in Anthropic. Anthropic will use Amazon Web Services to train its generative AI models. Amazon has a total of $8 billion invested in the AI company.
3:23 p.m. ET
Atlassian Breaks Out Late
Software stock Atlassian broke out in afternoon trades. Shares had carved a cup-with-handle base with a buy point of 256.39 over 42 weeks before breaking out on Friday.
The stock rallied after fiscal first-quarter results on Oct. 31 when it gapped up in the base. The 50-day moving average crossed over the 200-day line just as Atlassian built its handle in the cup base.
Other bullish signs on its chart bolster Atlassian's case. For one, the relative strength line has risen. Further, Atlassian holds a Composite Rating of 98 and is a stock market leader with a Relative Strength Rating of 93.
1:59 p.m. ET
Tax Software Maker Tumbles On Earnings, Trump Risk
Intuit fell more than 5% after it announced quarterly results. Revenue rose 10% to $3.3 billion while earnings per share for its fiscal first quarter rose just 1% to $2.50 per share.
But the tax software maker's outlook for the current quarter disappointed. For the full year, the company maintained its revenue outlook of $18.26 billion and earnings of $19.26 per share at the midpoint.
On Tuesday, shares fell 5% to the 50-day moving average amid news that President-elect Donald Trump's "Department of Government Efficiency" planned a free tax-filing app that could compete with Intuit's software.
Though shares rebounded and staged a recovery, earnings drove the stock lower again on Friday.
12:18 p.m. ET
Break Outs: Copart, Burlington, Deckers, Clorox
A few stocks broke out. Copart gapped up and broke out past a handle buy point of 58.16. The auto auction company beat October-quarter sales and profit expectations.
Burlington broke out at 279.51 from a cup-with-handle base. The retailer will report its third quarter results on Tuesday, making a purchase on the breakout riskier.
In footwear, Deckers gapped out of a cup with handle with a buy point of 182.26. Volume was heavy.
Household products maker Clorox edged into its buy zone from a buy point of 169.09. But volume was mild and the relative strength line is lagging.
10:50 a.m. ET
Stock Market Checks Economic Reports
In economic news, the Purchasing Managers' Index for November rose to 55.3 from October's 54.1 reading. The manufacturing index met estimates of 48.8 and the services index rose to 57. Economists had expected the services index at 55.1.
Consumer sentiment, according to the University of Michigan's Survey came in at 71.8 vs. views of 73 for November. Inflation expectations for the upcoming year met views and tapered to 2.6% after October's 2.7%.
In crypto news, bitcoin rose near an all-time high and just below the $100,000 mark. Late Thursday, SEC Commissioner Gary Gensler said he plans to step down. Gensler brought new regulations to the crypto industry but also allowed spot bitcoin ETFs.
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NetApp jumped after its quarterly report. Earnings of $1.87 per share on $1.66 billion in sales were higher than analysts' estimates of $1.78 in per-share earnings and sales of $1.65 billion.
Shares of the data storage leader rallied for four days ahead of the report and broke out from past a buy point of 135.01 on Friday. However, the stock reversed lower one hour into the session.
Elastic was also an earnings mover. Shares soared after earnings and sales topped views, but the chart looks weak. The database software play has a Relative Strength Rating of just 22.
In retail, Gap rose after its third quarter report. Sales of $3.8 billion rose 2% while earnings per share of 72 cents was 22% higher. Shares rose headed into earnings on Thursday and soared past the August high of 25.40 before paring gains.
Ross Stores soared, then trimmed gains. Sales of $5.1 billion were 3% higher than the prior year and earnings of $1.48 per share increased 11%.
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