The stock market rally gained more traction Friday with the Dow Jones Industrial Average up more than 500 points near midday. Top performing stocks in the Dow Jones included Nike and Caterpillar, while Tesla stock extended gains after topping its late-March high of 207.79 Thursday.
Sentiment was positive after the Senate last night passed the debt-ceiling bill by a vote of 63-36.
The stock market also cheered another healthy jobs report. April nonfarm payrolls increased 339,000, well above the 190,000 consensus. The unemployment rate rose more than expected to 3.7%, while job growth in April was revised higher to 294,000 from an initial reading of 253,000. Average hourly earnings rose 0.3% month over month. On a year-over-year basis, average hourly earnings increased 4.3%, a little below the 4.4% consensus estimate.
The 10-year Treasury yield rallied 6 basis points to 3.67% as traders debate the Federal Reserve's next move at the June 13-14 meeting. As it stands now, federal funds futures traders think there's a 70% chance that the Fed will hold rates steady.
Nike stock was one of the top gainers in the Dow Jones, up more than 3%. But several higher-volume declines for Nike the past few weeks point toward a stock under distribution.
Caterpillar, along with financial stocks like American Express, Goldman Sachs, 3M and JPMorgan Chase outperformed in the Dow Jones, but Verizon lagged badly, down about 4%.
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Goldman Sachs is still on a sharp downtrend, but JPMorgan gapped above the 140 level and cleared a trendline. AXP stock looked poised to extend its winning streak to six sessions. Shares were up another 3%, bringing its weekly gain to more than 7%.
VZ stock was under pressure after Bloomberg reported that Amazon.com is in talks with Verizon, Dish Network and T-Mobile about a low-cost, or even free, mobile service to U.S. Prime members. DISH stock soared 19%.
Outside The Dow Jones
The Nasdaq composite extended gains but was slightly off highs after rising 1.2% in the first 15 minutes. But Nasdaq-listed stocks like MongoDB and retailer Lululemon Athletica stood out. Advancing stocks outnumbered decliners on the Nasdaq by about 2.5-to-1
MongoDB soared after the company reported a 180% surge in quarterly profit. Revenue increased 29% to $368.3 million. LULU stock, meanwhile, was poised to end a nine-session losing streak in style. Shares jumped 15% after the retailer delivered another quarter of strong bottom-line and top-line growth.
Tesla, meanwhile, made more progress after topping a 207.79 buy point Thursday. It's a Leaderboard stock.
The S&P 500 and the iShares Russell 2000 ETF picked up 1.4% and 2.4%, respectively. The latter was helped, in part, by a rebound in financial stocks. The SPDR S&P Regional Banking ETF showed key technical action, rising 3% and retaking its 50-day moving average.
Comerica, Zions Bancorp and KeyCorp outperformed in the S&P with gains of more than 4% each.
Winners beat loser on the NYSE by more than 6-to-1.
Growth Stocks On The Move
The Dow Jones outperformed Friday, but the MarketSmith Growth 250 also served up plenty of winners. Kinsale gapped above its 50-day moving average after BMO Capital raised KNSL to outperform from underperform and upped its price target to 389.
Broadcom added 3% in strong volume even though its earnings and revenue growth rates decelerated again, up 14% and 8%, respectively.
Celsius, which joined Leaderboard Thursday when it cleared a trendline, hit an all-time high, rising 4%.
Inside the IBD 50, software stocks like Datadog and Confluent outperformed with gains of more than 5% in heavy trade.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
