The Dow Jones Industrial Average underperformed Big Tech but held in the green at 1:30 p.m. ET Friday. The blue-chip index was up 0.2%. The Nasdaq rose 0.3% earlier and added to gains, even as chip leaders got slammed.
The tech-dominated index added 1% in late afternoon trading and broke resistance along the 200-day moving average in strong volume. It is above that key level for the first time since April 2022.
The S&P 500 traded 0.3% higher. The index has retaken its 200-day line.
Volume was lower on the NYSE and higher on the Nasdaq compared with the same time on Thursday.
The small-cap Russell 2000 rose 0.4%. Crude oil fell nearly 2% to trade at $79.61 per barrel, even as higher gasoline prices are renewing inflation concerns.
China's reopening is likely driving energy demand. LPL Financial Chief Global Strategist Quincy Krosby observed that Energy Information Agency reports show declining inventory as crude exports resume after inclement weather hampered refining activity in December.
The Innovator IBD 50 ETF matched the broad market, up nearly 0.6%.
The yield on the benchmark 10-year Treasury note rose 4 basis points to 3.53%.
Apple Earnings Next Week
Dow Jones leader Apple earnings are on deck after the market close on Thursday, Feb. 2. Amazon and Google-parent Alphabet will also report that evening.
According to IDC reports, the Cupertino, Calif., company shipped 72.3 million iPhones in 2022, down 14.9% from the previous year. China lockdowns in Zhengzhou's iPhone City have plagued Apple, hurting production. However, the Foxconn plant has returned to 90% capacity in January, according to reports.
FactSet estimates for Apple are looking for an 8% quarterly decline in earnings per share to $1.94 on a 2% sale contraction to $121.8 billion.
On Friday, Japan and the Netherlands were in talks to curb the export of advanced chips to China, according to reports. The action will most likely affect Dutch lithography machine maker ASML and Japan's Tokyo Electron. ASML fell nearly 2% in the afternoon.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34029.33 | +82.11 | +0.24 |
| S&P 500 | (0S&P5) | 4073.40 | +13.24 | +0.32 |
| Nasdaq | (0NDQC ) | 11620.27 | +108.43 | +0.95 |
| Russell 2000 | 189.52 | +0.92 | +0.50 | |
| IBD 50 | 23.34 | +0.15 | +0.56 | |
Last Update: 12:00 PM ET 7/27/2022 |
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The PCE price index, favored Fed gauge of the economy, rose 0.1% in December, higher than expectations for a flat print. On an annual basis, inflation fell to 5% from 5.5 %, as expected.
Excluding food and energy, the index rose 0.3%. Goods increased 0.7% as services rose 0.5%.
On Thursday, stocks gained after slowing GDP of 2.9% provided hopes for moderating interest rate hikes after the Feb. 1 Fed decision.
According to LPL Financial Chief Economist Jeffrey Roach, revised numbers show personal spending fell in both November and December, with a Q1 contraction now likely.
Dow Jones Leaders
After Thursday's close, chipmaker and Dow Jones tech titan Intel missed Q4 top- and bottom-line estimates, posting a profit of just 10 cents per share on sales of $14.04 billion. FactSet had estimated 21 cents on $14.49 billion.
CEO Pat Gelsinger sees "some of the largest inventory corrections literally ever seen in the industry." Shares plunged over 10% in early trading but bounced slightly by 1:30 p.m. ET.
Chip giants Advanced Micro Devices and Nvidia have risen despite the dismal news from the bellwether chipmaker. Applied Materials fell nearly 3%.
Dow Jones leader Chevron beat top-line views, with revenue of $56.57 billion against expectations of $52.7 billion. Earnings of $4.09 per share missed estimates of $4.33. Shares fell over 4% in late trading Friday.
Dow Jones component American Express raised guidance and boosted its dividend payout by 15% after record cardholder activity. Shares rose 12% in the afternoon.
Why This May Be A Life-Changing Rally; 4 Stocks Near Buy Points
Stocks Moving Today
Outside of the Dow Jones index, KLA beat fiscal Q2 2023 estimates, posting sales of $2.98 billion and earnings of $7.38 per share. However, it lowered its Q3 outlook, pressuring the stock. Shares dived over 5%, falling to their 50-day moving average.
Shares of Autoliv gained over 10% after earnings. The EV and hydrogen-electric vehicle maker's stock broke out of a cup base with a buy point of 89.98.
IBD Leaderboard stock Axon broke out past a buy point of 193.95 in a cup base but have fallen slightly in late trading. Axon is profiled in this week's The New America.
In health care, Immunocore neared a buy point of 65.10 in a cup-with-handle base.
Shares of Encore Wire broke above a 155.45 entry from a cup base. The RS line is at a 52-week high. Box also broke out of a flat base with a buy point of 32.10. Titan Machinery broke out of a cup-with-handle base and buy point of 43.59
In energy, ChampionX rallied out of a cup-with-handle base with a buy point of 32.85.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on the stock market today.
