The stock market indexes strengthened Friday afternoon and closed at the highs of the day. However, the Nasdaq composite was the only major index to book a gain for the week.
The Dow Jones Industrial Average added 1% while the S&P 500 rose 1.9%. The Nasdaq fared the best, gaining 2.7%.
For the week, the Dow dropped a hefty 2.7% while the S&P 500 lost 0.8%,. The Nasdaq, tanks to Friday's rally, edged up 0.4%.
Nasdaq volume was considerably higher vs. Thursday. NYSE volume was lower.
The Dow traded below its 50-day and 21-day exponential moving averages. The S&P 500 hit resistance at its 200-day moving average. The Nasdaq is above its 50-day line. Finally, the tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF gained 2.7%.
Crude oil jumped 1.5% to $81.84 per barrel. Bitcoin futures popped 5.4% to $22,345.
The Energy Select Sector SPDR ETF notched up 1%. The benchmark natural gas contract price gave back earlier gains, dropping 4.9%, and is below $4 per million British thermal units.
The 10-year Treasury note yield added 9 basis point to 3.49%. Odds for a 25-basis-point hike at the February Fed meeting rose to 99.2%. That would take the fed funds rate to the 4.5%-4.75% range, according to the CME Group FedWatch Tool.
The Innovator IBD 50 ETF showed its strength, gaining 2.3%.
European stock markets closed the trading week on a positive note, with the German DAX gaining 0.8% and Paris CAC 40 0.6%. The London FTSE added 0.3%.
Hotel And Oil Refiner Stocks Break Out
Here are some highlights of Friday's stock market.
Hyatt Hotels rallied 3.9%, breaking out of a long, choppy base and hitting the 108.20 buy point. The international lodging chain opened a hotel in the Hangzhou International Airport in China. Finally, Hyatt's relative strength line hit a new high, as indicated by the blue dot on the MarketSmith chart.
Altra Industrial Motion rose 1.4% and broke out of a flat base, hitting the 60.54 buy point. Shares are in the 5% buy zone, reaching 63.57. Looking back, shares of the power transmission parts manufacturer trended sideways after a huge gap up in October. The company raised 2022 EPS guidance at that time.
Valero Energy gained 3.1%, breaking out of a cup-with-handle base and hitting the 142.26 buy point. The energy giant got a boost after Morgan Stanley raised its price target to 170 from 140, and maintained its overweight rating. Valero's relative strength line hit a new high on its chart.
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Online furniture retailer Wayfair rallied 20.3% in heavy volume after reporting plans to lay off 1,750 employees, or 10% of its staff, to save $750 million per year. Wayfair is expected to post big losses in 2022 and 2023.
Netflix climbed 8.5% in heavy volume, after reporting higher-than-expected Q4 subscribers and sales. It also raised Q1 2023 sales guidance. Shares rebounded after losing 3.2% in Thursday's regular session, finding support at its 21-day exponential moving average.
Theme park and media streamer Walt Disney led the Dow, rising 4.4% as streaming stocks moved in tandem with peer Netflix.
Google-parent Alphabet added 5.3% after CEO Sundar Pichai announced plans to cut 12,000 jobs across the globe. The tech giant joins other Nasdaq heavyweights in downsizing their staff.
SLB dipped 0.1% after reporting better-than-expected Q4 EPS and sales. Management said the 2023 business outlook remains "very compelling" due to higher oil and gas demand and tight supply, despite a potential economic slowdown. In addition, SLB announced a dividend hike to 25 cents per share, to shareholders of record on Feb. 8.
Shares of the oil services company broke out of a choppy base, hitting the 56.14 buy point in early January, and are in the 5% buy zone that extends to 58.95.
Salesforce.com reclaimed morning losses, rising 3.3% after another analyst downgrade. The cloud-based customer management software firm recently announced it will lay off 10% of its employees as part of a restructuring plan.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
