The Dow Jones Industrial Average closed near session highs and bounced off its 50-day moving average on Friday. Apple rose after strong earnings late Thursday along with other blue chip leaders, pushing the index up by over 1.5%.
Bank stocks helped lift the S&P 500 — which sank near its 50-day line earlier this week — by 1.9%. But the tech-dominated Nasdaq was the biggest gainer at the closing bell, rising nearly 2.3%. The Dow climbed 1.7%.
Volume on the NYSE and the Nasdaq was lower compared with the same time on Thursday, which dampened the significance of Friday's rally.
Crude oil rose over 4% to trade at $71.51 a barrel. The yield on the benchmark 10-year Treasury note rose 10 basis points to 3.44%. The energy sector was the best performing in the S&P 500 Friday.
The small-cap Russell 2000 showed a hefty gain of 2.4% while the Innovator IBD 50 ETF outperformed, rising over 2.5%.
The economy added 253,000 jobs in April, much higher than views for 178,000. An unemployment rate of 3.4% in April was lower than estimates of 3.6%, the U.S. Labor Department reported early Friday.
Stocks Moving Today
Regional banks rose after falling sharply on Thursday. PacWest Bancorp rebounded over 80%. Western Alliance Bancorp showed a 50% gain at closing time. Zion Bancorp also surged and made up all of Thursday's plunge, and more.
InterDigital broke out of a flat base with a 75.84 entry, according to IBD MarketSmith chart analysis. The wireless technology company blew past Q1 estimates. Sales grew a whopping 100% while earnings outpaced sales growth with a 325% increase. The relative strength line is also at a new high. The stock is now extended.
Coinbase jumped 18% after earnings came out late Thursday. But the stock has some work to do before it can clear its 50-day line.
Fintech stock Block fell 2%, despite strong earnings and outlook thanks to its popular Cash App.
Carvana surged 25% in strong volume after earnings and cleared its 50-day line after the used car retail chain showed smaller losses than a year ago. Lyft plunged 20%, falling below its 50-day line after earnings were announced and management lowered guidance for the second quarter.
Strong results sent IBD 50 stock DraftKings surging to a 52-week high Friday. The stock had broken out of a cup base with a buy point of 21.72 ahead of earnings and is now extended.
Atlassian indicated slowing cloud computing growth despite a strong quarterly report. TEAM fell 10% in heavy volume.
Market Roars, But Don't Go Wild; What To Do Now
Dow Jones Stock In Focus
Dow Jones tech leader Apple rose on strong iPhone sales in the first quarter. The tech titan is hitting highs seen last in August 2022.
Outside Dow Jones, Dynatrace is building a cup base with a buy point of 48.10 with earnings due on May 17. The recent Stock of the Day and IBD SwingTrader stock cleared a potential early entry at 43.42 as it breaks a trendline.
Starbucks is rebounding from the 50-day after diving on earnings Wednesday. It is trading below the 110.93 buy point of last week's breakout but may be trying to climb back to it.
Berkshire Hathaway will report Q1 earnings and hold a shareholder meeting Saturday as the stock builds a base with a buy point of 362.20. The Warren Buffett portfolio sold several bank holdings ahead of the banking crisis, according to reports. Analysts polled by FactSet expect 12.5% growth in earnings per share to $3.58.
Shockwave Medical is approaching a 300.10 entry in a cup with handle with earnings due on Monday.
Wynn Resorts is also on watch as it holds the 50-day line ahead of earnings Wednesday. Axon has earnings on Tuesday and is testing the 50-day moving average.
Dow Jones component Walt Disney is rebounding from the 50-day line ahead of earnings Wednesday.
Please follow VRamakrishnan on Twitter for more news on the stock market today.
