What started as a gloomy day improved as Friday's session wore on. Stock market indexes continued to trade well above intraday lows as numerous stocks broke out of well-defined bases.
In afternoon trading, the Nasdaq composite was flat and the S&P 500 was down 0.2%. The Dow Jones Industrial Average fell 0.1%.
The Russell 2000 did better with a 0.3% gain. Volume contracted on the Nasdaq and NYSE compared with the same time on Thursday.
Among major stocks, Tesla pared losses to 3.6%. The EV maker slashed prices for its Model 3 and Model Y in the U.S. and Europe, after Asian price cuts last week. The stock had rebounded from the lowest levels since August 2020, until today's drop.
Other electric-vehicle stocks fell as well.
Rivian Automotive sold off more than 8%, making it the biggest loser in the Nasdaq 100. Lucid also posted big index losses. The Wall Street Journal reported Thursday that some top executives left Rivian.
IBD 50 Outperforms Stock Market
The Innovator IBD 50 ETF outperformed with a 0.7% increase.
Two IBD 50 stocks broke out of bases.
Timken climbed above the 76.43 buy point of a cup base and is in buy range to 80.25. BofA Securities upgraded the industrial components maker from neutral to buy. The investment bank also raised the price target from 71 to 87.
Copa Holdings broke out above an 89.27 handle buy point in heavy volume. JPMorgan upgraded the IBD 50 airline stock from neutral to overweight and lifted the price target from 105 to 132.
MercadoLibre topped an alternate buy point at 1,039.49.
More Breakouts For Stock Market
Apart from the IBD 50, breakouts appeared in TTM Technologies and National Instruments.
Contract manufacturer TTM rose above the 17.05 buy point of a cup-with-handle base. Volume was poor but the relative strength line is at new highs.
National Instruments announced a strategic review that may include a sale of the firm's automated test and measuring equipment. Shares gapped up more than 16%, rising past resistance around 42.
The Nasdaq's win streak will end at five days if it closes lower this afternoon. It is trading just above the 50-day moving average. The 11,000 level has acted as both support and resistance since the second quarter of 2022, and now could cap Nasdaq upside.
Up in four of the past five sessions, the S&P 500 has closed above its 50-day line for three days straight. But it is now hitting resistance at its 200-day moving average and testing a trendline near index highs.
As The Big Picture noted last evening, some indicators suggest the market could be taking a breather.
Futures: Market Clears Resistance; 5 Stocks In Buy Areas
Banks Mostly Lower After Earnings
Big banks pared losses or reversed higher after posting fourth-quarter results in Friday's stock market.
JPMorgan Chase reversed higher. The stock dipped below the 138.76 buy point of its flat base, but regained it midday. The company beat fourth-quarter expectations.
Wells Fargo gapped down at the open but was nearly flat at midday after a mixed Q4 report. It is revisiting December lows.
Bank of America and Citigroup also reversed higher. Both topped analysts views.
Also in the Dow Jones, UnitedHealth was flat in a seesaw session, holding above this week's low as it continues to form a flat base. The managed-care provider beat revenue and profit views for the fourth quarter. However, costs rose nearly as much as premiums.
In the first look at Q4 airline performance, Delta Air Lines beat profit expectations but missed on sales estimates, offering soft first-quarter guidance. The carrier fell 4% in heavy trading but pared an even larger drop.
In economic news, the University of Michigan's preliminary consumer sentiment index rose to 64.6 in January, from 59.7 in December. January was the highest level since April and above economist forecasts.
