Tech stocks led another stock market rally Friday as Wall Street cheered a fresh round of bullish earnings reports. Apple and Chevron led the Dow Jones Industrial Average on Friday, while Amazon.com, chip equipment firm KLA and Tesla outperformed in the Nasdaq 100.
The stock market shrugged off hotter-than-expected inflation components of the Personal Spending and Outlays report, released before the market open.
Investors bought bonds again, sending the 10-year Treasury yield lower by 5 basis points to 2.63%. That's its lowest level since early April. The message from the bond market is that the Federal Reserve will not have to be as aggressive with rate hikes as initially thought. Fed funds futures traders now think there's a 74% chance of a 50-basis-point hike at the September meeting.
Chevron is the best-performing blue chip, up 8.5%, after reporting a 240% jump in quarterly profit. Revenue surged 83% to $68.8 billion. Apple made a strong technical move, gapping up above its 200-day moving average. Shares jumped more than 3%. Apple's relative strength line is on new high ground even with the stock still 11% off its high.
Intel was a sore spot in the Dow Jones today, along with Procter & Gamble.
INTC stock dropped more than 8% after reporting Q2 earnings and revenue well below expectations. It also gave weak revenue guidance.
P&G stock slumped 5% after missing on earnings.
Stock Market Today
The Dow is trading near session highs in this afternoon's stock market, up 0.9%. The S&P 500 picked up 1.3%, bringing its weekly gain to just over 4%. The Nasdaq composite is up 1.7% and currently shows a weekly gain of around 4.5%.
The index cleared a key technical level, rising above the June 2 intraday high of 12,320.
Volume on the NYSE and Nasdaq was lower compared with the same time Thursday. Advancing stocks had just a slight edge over decliners on the Nasdaq. Breadth was a little better on the NYSE, with winners beating losers by more than 2-to-1.
WTI crude oil futures settled at $98.62 a barrel, up 2.3%.
AMZN stock is the outright leader in the Nasdaq 100, up more than 10% after reporting Q2 revenue of $121.2 billion, up 7% from the year-ago quarter and above the Refinitiv consensus of $119.1 billion. Amazon Web Services, the company's cloud segment, booked revenue of $19.74 billion, up 33% and slightly ahead of expectations.
How To Know It's Time To Sell Your Favorite Stock
W.W. Grainger is the top gainer in the benchmark index, up more than 7% on strong Q2 results. The first buy signal for GWW stock triggered when it jumped above the 50-day moving average Wednesday in heavy volume. But it would have been risky to buy with earnings so close. GWW gapped out of a 16-week consolidation today.
Energy and consumer discretionary industry groups were the top-performing S&P 500 sectors. The Energy select sector SPDR fund was up more than 3.5%. After rallying off the 200-day moving average, XLE now has its sights set on the 50-day line. Several top-weighted stocks in the fund report earnings next week, including Occidental Petroleum, EOG Resources and Pioneer Natural Resources.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Inside The IBD 50
IBD 50 component Sarepta Therapeutics joined the breakout ranks, jumping more than 8% after the biotech said it will seek accelerated approval by the Food and Drug Administration for its Duchenne muscular dystrophy treatment. Sarepta isn't profitable yet but shows strong revenue growth in recent quarters.
Inside the MarketSmith Growth 250, Leaderboard stock Heico followed through after Thursday's setup day, soaring 5%. HEI stock joined Leaderboard Thursday and the position was increased Friday.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
