The Dow Jones Industrial Average and other indexes rose throughout Friday and ended at session highs. Tech titan Broadcom rose while retailer Costco fell, both after earnings. Tesla rose after China February deliveries showed a 13% increase from January.
The Dow Jones industrials climbed 1.2% for a third straight gain. The index is bouncing after testing its December lows.
Stocks rose after business activity in services showed a pickup in February. The S&P Global Business Activity Index for services rose to 50.6 in February, from 46.8 in January. It effectively ended a seven-month contraction and gave wings to the stock market. On Friday, the Fed's semiannual monetary policy report stressed that interest rates would have to keep going up to meet the Fed's target.
These Dow Jones Stocks Outperform
Dow Jones stocks Apple and Boeing outperformed on Friday. Morgan Stanley analyst Erik Woodring sees a 20% upside to AAPL stock. He raised the price target to 180 from 175 and maintained an overweight rating. Apple was up 3%, rising above its 200-day line.
Additionally, Boeing stock is on pace to rise for the fifth day in a row amid increasing orders and deliveries.
The Nasdaq gained 2%, spurred partly by Broadcom's strong earnings and robust guidance. AVGO rallied over 5% at the closing bell.
Nasdaq megacaps Tesla, Meta Platforms, Alphabet and Amazon rose as well on stronger signs of a soft landing for the economy. Amazon and Alphabet are testing their 50-day lines.
Tesla rose nearly 4% after China sales in February rose 13% from January and 32% from last year. The stock, however, remains under its 200-day line.
Most sectors in the S&P 500 did well in the afternoon, while the defensive consumer staples lagged the rest. The S&P 500 closed 1.6% higher.
Meanwhile, the small-cap Russell 2000 rose 1.3%. And the Innovator IBD 50 ETF jumped 2.2%, outperforming the main indexes.
Treasury yields fell, with the yield on the benchmark 10-year Treasury note scaling back 9 basis points to 3.97%. The drop appeared to help stocks.
Crude oil rose over 1% to $79.76 a barrel. Volume was lighter on both the Nasdaq and the NYSE compared to the same time on Thursday.
Futures: As Market Rally Revives, Do This
Broadcom, Costco Earnings
Shares of Broadcom gapped up more than 5% in high volume after strong earnings. The San Jose, Calif.-based company made $10.33 a share on sales of $8.92 billion. That beat views of $10.17 a share on $8.9 billion in sales. Its April-quarter guidance was also strong. It expects sales of $8.7 billion, above $8.58 billion estimates. The stock cleared an entry at 617.11 and the relative strength line is at a 52-week high.
COST fell nearly 2%. Any hope of reclaiming its 50-day line was dashed as the stock tumbled after Thursday evening's earnings report. Sales of $55.3 billion rose just 6% while earnings of $3.30 per share grew 13%.
C3.Ai stock surged over 30% after the company beat its own guidance and saw improved sentiment late Thursday as the AI company announced quarterly results. Its outlook was rosy based on "improving business sentiment."
Stocks Moving Today Outside Dow Jones
Alteryx rose nearly 4% and is near a buy point of 69.56 in a cup base. An alternative entry exists at 70.73. The stock is the latest addition to IBD Leaderboard.
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