Pathetic meanderings in the stock market disappeared as major indexes finished on a high note Friday. A weaker jobs report lifted hopes of a rate cut sooner rather than later. Apple soared after it announced its biggest buyback ever and second-quarter results.
Warren Buffett's Berkshire Hathaway approached the 50-day moving average ahead of its quarterly report.
Major indexes jumped to or above the 50-day moving averages in the stock market today. The Dow Jones Industrial Average gained more than 450 points, or 1.2%, on Friday and finished the week with a 1.1% gain. Breadth was strong with advancers in the lead by 3-to-1 on the NYSE and nearly 2-to-1 on the Nasdaq.
The economy added 175,000 jobs in April, whereas economists had expected 243,000 jobs. The unemployment rate inched higher to 3.9% vs. views of 3.8% The cooler jobs data increases the chances of a rate cut earlier. Hopes of a cut as early as July gave wings to stocks Friday.
The yield on the benchmark 10-year Treasury note plunged 7 basis points to 4.50%.
The S&P 500 gained 1.3% while the Nasdaq had a solid lead, climbing 2% in the stock market today and moving slightly above its 50-day line. Most sectors gained, although energy declined.
Volume on the NYSE was lower and higher on the Nasdaq, according to preliminary data.
The small-cap Russell 2000 gapped above its 50-day line but retreated and closed below the line, with a nearly 0.9% gain.
The Innovator IBD 50 ETF closed 1.5% higher.
Dow Jones Stocks
Apple soared 6% after earnings beat views. The Cupertino, Calif.-based tech giant raised its dividend and announced a share buyback plan of $110 billion. It is reportedly the biggest buyback in history by any company. Amgen was an even bigger gainer, up nearly 12%, and led Dow stocks after its first-quarter results and progress on an obesity drug.
Other techs in the Dow fared well. Salesforce rose 0.6%, while Microsoft, up 2.2%, approached its 50-day moving average. Energy, finance and health stocks were mixed in the Dow.
Market Makes Bullish Move, Nvidia A Buy; Five AI Stocks On Tap
Stocks Market Today
Earnings moved several stocks in the stock market today. MercadoLibre soared 8% after beating first-quarter estimates. Shares have rebounded from the 50-day moving average as the stock forms a base with a buy point of 1,825, according to IBD MarketSurge.
Meanwhile, cryptocurrency exchange Coinbase fell and continued to face resistance at the 50-day line after first-quarter results beat estimates. Custodial fees as well as revenue from transactions and subscriptions soared. In the digital payments industry, Block initially rose after first-quarter results but reversed lower.
DraftKings gave up gains early in the day. Shares were 2.9% lower on Friday after meeting resistance at the 50-day moving average, even though first-quarter sales showed strong growth.
In the IBD MarketSurge Growth 250, Tidewater gained nearly 14% after its earnings report.
Warren Buffett's Berkshire Hathaway closed nearly flat ahead of its earnings report over the weekend. Though the stock is still a ways off from a buy point, a strong rebound from the 50-day moving average after earnings could present an entry.
Meritage Homes tried to break out at 179.69 as lower interest rates lifted homebuilders. Pulte Group and Toll Brothers pared some gains after gapping up. The iShares U.S. Home Construction ETF climbed above the 50-day line but closed back below it.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
