Major stock indexes pared large gains Friday but the Dow Jones Industrial Average still managed to crack a key threshold. The Nasdaq composite and S&P 500 rebounded after marking distribution days on Thursday. And Big Tech names including Nvidia, Apple and Tesla tried to recover some lost ground on the stock market today.
The Dow was up more than 1% at one point during the session but ended trading up 0.6%. While its gains were nearly sliced in half, it was still enough for blue chips to close just above 40,000 for the first time ever.
The Nasdaq composite's gains from earlier in the day were nearly cut in half by the session's close, and the tech-heavy index finished 0.6% higher. Nasdaq stocks were in recovery mode after falling nearly 2% Thursday in high volume.
Meanwhile, the S&P 500 also moved up 0.6%, also surrendering some ground by the close. The S&P 500 tried to recover all of Thursday's 0.9% decline but fell short by the time trading concluded.
The small-cap Russell 2000 outperformed for a second straight day and climbed 1.3%, following Thursday's stellar 3.6% surge.
In bonds, the 10-year Treasury yield dipped slightly to around 4.18% after the latest inflation report. According to CME FedWatch, traders are now pricing in the possibility of three rate cuts before the end of the year.
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 2-to-1. The ratio was better than 3-to-1 positive on the NYSE.
Intel, Nvidia, Apple Pare Gains
Several tech stocks tried to win back some ground lost on Thursday, but saw more robust gains whittled down by Friday's close.
Chip giant Intel was the top performer on the Dow. The company had jumped more than 5% at one point Friday but ended the day up just under 3%. Intel lost nearly 4% in Thursday's Big Tech sell-off.
IBD 50 and Leaderboard stock Nvidia saw some of its gains erode as the artificial intelligence giant finished 1.5% higher. Nvidia had recovered nearly 3% of a 5.5% loss incurred in Thursday's brutal session. The stock remains extended from its latest buy points at 92.22 and 97.40.
Finally, Apple rose 1.3% following Thursday's 2.3% drop. Apple is extended from a cup base with a 199.62 buy point.
Tesla, however, managed to finish near session highs with a 3% pop Friday. Shares had snapped an 11-session win streak in ugly fashion Thursday with a plunge of more than 8%.
Updated 3:24 p.m. ET
Stocks On The Move
Inside the Dow Jones index, Amgen rallied another 2.5% and was poised to extend its winning streak to six sessions. The biotech is making nice progress after reclaiming a 322.60 buy point, but recent gains have come in very light volume.
Ford was one of the top gainers in the S&P 500, up around 5%. The automaker broke out from a shallow cup base with a 13.95 buy point.
Mohawk Industries also moved well in the S&P 500, up more than 4%. The maker of flooring products for residential and commercial markets is forming a double-bottom base and closing in quickly on a 126.62 buy point
Retail stocks RH and Williams-Sonoma helped lead the home furnishings group to a gain of around 2.5%. Williams-Sonoma is back near highs after rising above the 150 level. Shares are up more than 14% this week. RH, meanwhile, is still on a downtrend, more than 30% off its high.
Further, India-based MakeMyTrip reversed higher and reclaimed an 89.83 entry.
Updated 2:06 p.m. ET
Stock Market Today: Financials, Growth Stocks In Focus
Financial stocks remained in focus. JPMorgan traded lower but was well off lows after reporting earnings. But Wells Fargo and Citigroup were mired in the red with losses of 6% and 2%, respectively.
Growth stocks outperformed again. Inside the MarketSurge Growth 250, Modine Manufacturing gave back early gains but still rallied 1% as it tries to clear a base with a 109.53 buy point. The company provides thermal management systems for data centers, but it only makes up a small portion of the company's business at this point.
Leaderboard stocks Taiwan Semiconductor Manufacturing and ASML rallied around 2.5%. Both stocks report earnings next week. ASML reports early Wednesday. Taiwan Semi reports early Thursday.
Updated 12:10 p.m. ET
Producer Prices Rise More Than Expected
The Bureau of Labor Statistics' final June Producer Price Index rose 0.2% vs. the 0.1% increase economists expected, while producer prices rose 2.6% year over year vs. the 2.3% estimate.
The June month-over-month reading, excluding food and energy, rose 0.4% and was double the 0.2% increase expected. And the annual number excluding food and energy surprised with a 3.0% jump vs. the 2.3% rise economists had forecast.
Market Rally Powers Up On Rate-Cut Hopes, But Two Big Risks Loom
Stock Market Today: These Stocks Rebound
Another IBD 50 name, AppFolio, popped more than 4% and broke out of a stage two flat base with a 256.73 buy point in heavy volume. Shares are in the buy zone up to 269.57 and reached a record high on the stock market today.
Another Leaderboard name, Weatherford International, broke out of a cup-with-handle base with a 127.20 buy point. The oil and gas services stock is in the buy zone up to 133.56.
IBD 50 component ELF Beauty climbed 2% after UBS raised its price target to 250 from 202 and maintained its buy rating on the cosmetics and skin care stock. Shares topped the buy zone of a cup-with-handle base with a 202.58 buy point.
Updated 10:44 a.m. ET
Bank Stocks Lower With One Exception After Earnings
Bank of New York Mellon popped more than 4% after the bank topped second-quarter adjusted profit and sales forecasts. Shares are extended from a flat-base 58.27 buy point.
Outside of bank stocks, Fastenal surged more than 4% after the construction supply retailer reported higher-than-expected Q2 sales and profit in line with views. The stock retook its 50- and 200-day lines on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
