The Dow Jones Industrial Average dropped slightly while the Nasdaq showed respectable gains to close out the trading week Friday. Some bitcoin stocks rebounded with the rise in the cryptocurrency while a voice technology stock backed by Nvidia soared yet again on the stock market today.
The Nasdaq finished near session highs with a 0.9% gain and set a new record close in the process. The tech-heavy index is closing in on the 20,000 mark. Also in the black was the small-cap Russell 2000, which trimmed its gains to 0.4% as the index tried to reclaim Thursday's losses.
The S&P 500 struggled to stay positive and crept up a modest 0.3%. But the benchmark index managed to set a new closing high in the final trading day of the week, beating out Wednesday's record.
Meanwhile, blue chips on the Dow Jones index sank 0.3%, retreating for a second straight day. The Dow continued to feel the weight of UnitedHealth Group, which plunged yet again after one of its executives was killed Wednesday.
On the Nasdaq exchange, rising stocks topped falling issues by 3-2. On the New York Stock Exchange, losers topped winners roughly 5-4.
The 10-year Treasury yield shed three basis points to 4.15%. U.S. crude oil slid to around $67.20 a barrel. And bitcoin was back in rally mode Friday afternoon and reclaimed the $100,000 level. The cryptocurrency was trading around $101,300.
3:40 p.m. ET
Stock Market Today: Bitcoin Issues Rebound, Nvidia-Backed Firm Soars
Crypto exchange operator Coinbase bounced back after reversing sharply lower Thursday in higher volume. Share reached the 20% profit zone of a late-stage choppy base with a 283.48 buy point.
MicroStrategy advanced more than 2% after falling 4.8% Thursday. The company is the largest corporate holder of bitcoin, and its stock tends to follow the fluctuations in bitcoin prices.
In other stocks, Victoria's Secret jumped more than 11% in heavy trading after the intimate apparel retailer reported a smaller-than-expected loss for its fiscal third quarter and beat views on sales. Shares have climbed around 78% so far this year. The stock holds a 97 Relative Strength Rating from Investor's Business Daily and is revisiting levels not seen in two years.
SoundHound AI popped in heavy volume after the company announced a deal Thursday with Torchy's Tacos to use its technology at all 130 of the restaurant's locations. The company makes voice-enabled technology with artificial intelligence and is backed by Nvidia.
It was SoundHound's third-straight double-digit jump. Shares were priced under 9 as recently as Tuesday. Nvidia stock fell 1.8% but remains in a buy zone up to 147.80.
Hewlett Packard Enterprise surged more than 10% following the company's beat on fiscal fourth-quarter adjusted profit and revenue estimates. Shares are extended from the buy zone of a cup-with-handle base with a 21.09 buy point. The stock reached an all-time high in hefty volume on the stock market today.
2:27 p.m. ET
UnitedHealth Continues Slide, Asana Rockets Higher
Dow Jones stock UnitedHealth fell more than 5% in recent action, on top of a 5.2% drop Thursday. Shares hit a sell signal as they fell further below the stock's 50-day moving average in heavy volume.
The health insurance giant continued to feel the effects after the chief executive of its United Healthcare unit, Brian Thompson, was gunned down in New York early Wednesday morning.
Elsewhere, Asana catapulted more than 40% in gigantic volume after the work management software developer reported a smaller-than-expected loss during the third quarter, and higher sales than analysts had predicted. Its annual losses have dwindled with a 15 cent loss-per-share expected in fiscal 2025, down from 20 cents per share in fiscal 2024, and a two cents-per-share loss projected in fiscal 2026.
Still, the stock has a long way to go from its current price of around 22.30 back to its high of 145.79 reached in November 2021.
Shopify jumped 4% after Loop Capital upgraded the stock to buy from hold and raised its price target to 140 from 110. The stock is extended from a profit zone of a late stage cuplike base with a 91.57 buy point.
Shares reached a level not seen since January 2022. The commerce platform stock holds best-possible scores of 99 in Composite and Earnings Per Share Ratings from Investor's Business Daily. Shopify stock was added to IBD SwingTrader Friday.
IBD 50 name Samsara tumbled in heavy volume after the company reported third-quarter earnings and revenue that topped estimates. The company's sales outlook, however, disappointed.
12:13 p.m. ET
Stock Market Movers
Some of the stock market's leading growth stocks outperformed by a wide margin again, with names like Palantir, AppLovin and Affirm up sharply. It's tempting to chase performance like this, but all three stocks are nowhere near proper entry points.
Technology stocks like Salesforce, IBM and Amazon.com outperformed in the Dow Jones today. Salesforce stock continues to show strength and support after gapping up Wednesday on strong earnings.
IBM broke out of a cup base at a 237.37 buy point and hit an all-time high, while Amazon looked poised to extend its winning streak to six sessions.
Inside the MarketSurge Growth 250, GitLab tried to break out from a cup-with-handle base with a 68.69 entry. But an 11% intraday gain faded badly.
While several leading growth stocks are quite extended past proper entries, a few stocks are trying to clear bases. China-based online travel firm Trip.com rallied more than 2% and is near the top of a nine-week consolidation with a 69.67 buy point.
In the software sector, Manhattan Associates is vying for a breakout from an eight-week cup base with a 307.50 entry.
10:21 a.m. ET
Stock Market Today: Jobs Data Released
Sentiment was generally positive on the stock market today on news the economy created 227,000 jobs in November, a little better than the 200,000 forecast from economists.
The unemployment rate ticked higher to 4.2% from 4.1%, while the labor force participation rate edged lower. The latest job growth was much higher than October's paltry payroll gain of 12,000. That number was revised higher to 36,000 but was skewed by Hurricane Milton.
Over at CME FedWatch, futures traders now think there's an 87% chance that the Federal Reserve will cut rates by another 25 basis points this month. But rate cut expectations for next year, at least for now, have been dialed back quite a bit.
Time The Market With IBD's ETF Market Strategy
Ulta Beauty and Lululemon Athletica brought more good cheer to the retail sector with decent earnings reports.
Ulta stock surged higher despite another quarter of lackluster growth. Adjusted profit inched up 1%, while revenue edged up 2% to just over $2.5 billion. Ulta bumped up its full-year earnings and revenue outlook, but the new earnings prediction seemed to be in line with views from analysts polled by FactSet.
Meanwhile, after a strong rally off lows, Lululemon soared after fiscal third-quarter revenue growth accelerated from the previous quarter, rising 9% to nearly $2.4 billion.
Results were helped by strong growth in international markets, with same-store sales in China up a better-than-expected 4%. Total revenue increased 2% in the Americas and 33% internationally, although international revenue is still a small portion of total revenue.
Nasdaq Nears 20,000 But This Risk Rises
More Earnings: Veeva, Docusign, Rubrik
Several other earnings reports made headlines. Veeva Systems, a provider of software to the life sciences industry, gapped out of a lengthy consolidation. Shares jumped after the company reported a 31% rise in quarterly profit, with revenue up 13% to $699.2 million.
E-signature leader Docusign soared after results topped expectations. The company also lifted its full-year revenue outlook. Like many other growth stocks currently, Docusign was quite extended headed into its report.
The weekly chart shows a breakout from a handle the week of Sept. 27. The stock still hasn't tested its 10-week moving average after a big run. A pullback and bounce off the key support level would put Docusign in an alternate buy zone.
In the security software group, recent initial public offering Rubrik vaulted higher after the company reported fiscal third-quarter revenue of $236.2 million, up 43% year over year.
Rubrik didn't show great price action when it went public April 25 at 32 a share. Rather than rally a bit from the IPO price, it immediately started moving sideways. But a 23-week consolidation yielded a powerful breakout during the week of Oct. 11.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight and Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
