October jobs numbers and other economic reports pushed stock market gains higher in afternoon trading on Friday, with all major indexes gaining momentum as the day went on. But Dow Jones component and tech bellwether Apple didn't partake in the party, as it couldn't pull ahead in the wake of its earnings report.
Helping the market gains were October nonfarm payrolls, which rose by 150,000 vs. the 179,000 consensus. That also was down from September's revised 297,000, according to Econoday. Private payrolls grew 99,000 vs. the 143,000 expected and lagged September's revised 246,000.
As a result, the jobless rate inched up to 3.9% vs. the 3.8% projection. Average hourly earnings rose 0.2%, short of the 0.3% expected gain, while the yearly increase of 4.1% exceeded the 4.0% forecast.
Meanwhile, the slowdown in job gains pushed the yield on the benchmark 10-year Treasury note lower. It dropped 12 basis points to 4.52%.
Gains In Business Activity
Also in economic news, the S&P Global U.S. Services Purchasing Managers Index showed a gain in business activity for October. The index came in at 50.6 vs. September's 50.1 reading, but was down from the early projection of 50.9.
S&P said new orders dipped while business rose to its highest level in four months. In addition, the report noted that service providers saw a slower increase in input costs and output charges.
Further, the October Institute for Supply Management Services Index came in a 51.3 vs. the 53.0 forecast and lagged the 53.6 reading in September. A number above 50 indicates expansion.
Apple Disappoints As Stock Market Indexes Rally
Apple stock skidded after the tech giant beat its fiscal fourth-quarter earnings and sales expectations, but said revenue fell for the fourth consecutive quarter. The iPhone maker projected flat sales for the holiday quarter.
AAPL stock retreated back below its 50-day moving average, finding resistance after breaching the benchmark on Thursday. The stock has a buy point of 198.23 within a consolidation.
On the general market, the Dow Jones Industrial Average added 0.8% while the Nasdaq composite climbed 1.3% on the stock market today. The S&P 500 advanced 1.1%, and the small-cap Russell 2000 rallied 2.8%.
The Nasdaq successfully tested its 50-day moving average on Friday. Meanwhile the S&P 500 and the Dow both retook their 50-day lines.
On pace for a 6.2% gain, the Nasdaq 100 is headed for its best weekly performance since Nov. 11 of last year, according to Dow Jones Market Data.
Volume rose modestly on the New York Stock Exchange and was nearly flat on the Nasdaq from Thursday's levels at the same time of day.
The Invesco QQQ Trust exchange traded fund, which tracks the Nasdaq 100, added 1.1%. The Innovator IBD 50 ETF notched up 1.9%.
Other Stock Action: Cloud Security Stock Goes Sky High
Gartner stock surged around 16% following the market research company's stronger-than-expected earnings and sales in its third quarter. Shares broke out of a flat base in heavy trading and hit the 377.88 buy point. IT stock is in the 5% buy range reaching to 396.77.
The stock's RS line hit a fresh peak as shares soared to an all-time high. Gartner is on pace for its steepest one-day percentage increase since Nov. 13, 2008, when it soared 17.61%. IT shares were a top gainer on the S&P 500 on Friday.
Qualys rocketed more than 10% after the company beat top- and bottom-line expectations, then raised its fourth-quarter and fiscal 2023 earnings outlook. The stock is extended from the buy zone of a cup-with-handle base with a 154.85 buy point, although the handle is deeper than ideal. Shares of the cloud security and compliance provider hit an all-time high on Friday's move in heavy trading.
Monster Beverage gapped up more than 6% after the energy drink maker beat third-quarter earnings estimates and produced record-level revenue. Earnings grew 43% on 14% sales growth.
MNST stock retook its 50-day and 200-day lines on Friday's pop. The stock is on track for its largest one-day percentage increase since Nov. 4, 2022, when it jumped 7.52%.
Drug Stock Breaks Out
Cardinal Health broke out of an irregular cup-with-handle base and hit a 94.37 buy point in heavy volume. The gap-up of more than 8% came after the drug distributor beat fiscal first-quarter profit and sales expectations and raised its adjusted earnings outlook. Shares surged through their 5% buy zone, which reaches to 99.09.
CAH stock is on pace for its largest one-day percentage increase since March 30, 2020, when it surged 9.15%. The stock and its relative strength line hit 52-week highs.
Expedia gapped up more than 16% in heavy trading after the online travel service beat Q3 sales and profit estimates and authorized a $5 billion share-buyback program. Earnings per share grew 34% as sales climbed 9%. The stock reclaimed its 50-day and 200-day lines on Friday's jump.
DraftKings rallied more than 17% after the online sports betting firm reported a smaller third-quarter loss and higher sales than expected. The company raised its full-year 2023 revenue outlook to $3.67 billion from $3.72 billion and gave a 2024 sales forecast of $4.5 billion to $4.8 billion.
DKNG stock reclaimed its 50-day line on Friday's jump. Shares are in consolidation with a 34.49 buy point.
Stock Market Movers: Online Review Stock Hits A High
Yelp stock gapped up more than 5% after the online review platform operator beat third-quarter sales forecasts. Yelp's relative strength line hit a new high, according to MarketSmith.
Carvana soared around 10% after the online used-car trader reported higher-than-expected Q3 earnings but missed on sales estimates. Revenue dropped for the fifth straight quarter.
Block gapped up in heavy volume after the software company reported better-than-expected earnings and sales for the third quarter. The point-of-sale software developer issued a 2024 outlook on earnings before interest, taxes, depreciation and amortization — a key metric known as EBITDA — that was well ahead of views.
Fortinet shares tumbled in heavy volume after the cybersecurity company reported a Q3 profit beat but a miss on sales. The firm gave an outlook on both fourth-quarter and full-year 2023 revenue that was below analyst estimates. FTNT stock fell further below its 50-day line.
Atlassian eased from larger earlier losses after the company reported lower adjusted earnings for its fiscal first quarter, but higher revenue. The collaboration software developer gave a second-quarter revenue outlook of $1.01 billion to $1.03 billion, in line with analyst projections for $1.02 billion. Shares are bumping up against the 200-day line.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
