The major market indexes closed mixed Friday as investors awaited a key inflation report next week. Meanwhile, a top Fed official said it was too early to think of cutting interest rates after Friday's inflation data.
The Dow Jones Industrial Average rose 0.3% on the stock market today, while the S&P 500 held a smaller 0.2% gain in the stock market today. The tech-dominated Nasdaq gave up morning gains and was almost unchanged at closing bell.
Taiwan Semiconductor Manufacturing soared after April sales surged on demand for AI chips. Top gainers in the Nasdaq 100 included Datadog, Broadcom, Micron and ASML.
Inflation Data Looms
The University of Michigan Consumer Sentiment Survey for May came in at 67.4 vs. estimates of 77, according to Econoday. But inflation expectations for the year ahead were higher than expected, at 3.5% vs. views of 3.2%. On Wednesday, the consumer price index for April is expected to climb 0.4% from the previous month and 3.5% annually.
The longer-term higher inflation expectations in the consumer survey lifted the yield on the benchmark 10-year Treasury note 5 basis points to 4.5%. That also prompted Dallas Fed President Lori Logan's stern stance on Friday that it was too early to think of interest-rate cuts. Her comments echoed other Fed officials who sound reluctant to cut rates.
Volume on the NYSE and on the Nasdaq was lower, according to preliminary figures. Decliners outnumbered advancers by about 3-to-2 on the NYSE and the Nasdaq.
The small-cap Russell 2000 fell 0.7%.
The Innovator IBD 50 ETF fell less than 0.1%. Sweetgreen was a top performer in the IBD 50, up 34% after the company's earnings report came out. Also in the IBD 50, Natera soared 10% to the highest price since November 2021 after its earnings report, in which the prenatal genetic testing company raised its outlook.
Arista Networks broke out of a cup base in heavy trading. The stock is in a buy zone from the 307.74 buy point to 323.13. The relative strength line also made new highs, in a bullish sign for the breakout.
Dow Jones Stocks
Home Depot fell ahead of its first-quarter results due on Tuesday. Cisco Systems rose ahead of its report on Wednesday, but the stock remains in a downtrend.
Walmart follows with its quarterly results on Thursday. Walmart stock is holding the 50-day moving average ahead of earnings and is in a flat base with a 61.66 buy point, according to IBD MarketSurge.
Merck edged lower and Microsoft rose 0.6%. Both are featured in Stocks Near A Buy Zone and are in proper bases.
Stock Market Today
Taiwan Semiconductor rose 4.5% and closed near a buy point of 148.43 after April sales rose 59% to $7.28 billion from the same month in 2023. The world's largest contract chip manufacturer is a holding on IBD Leaderboard.
Shares of online review platform Yelp fell 7% and broke below the 50-day moving average after the company announced first-quarter results and gave a weak revenue forecast. Bitcoin miner CleanSpark reversed below its 50-day line even after fiscal second-quarter results showed growth in both sales and earnings.
Novavax soared over 98.7% in heavy volume after the drugmaker entered into a partnership with Sanofi to commercialize a combined Covid-19 and flu shot.
Five Stocks Near Buy Points; Inflation Data Due
Martin Marietta Stock Climbs
Nvidia is also in a proper base with a buy point of 974. Meanwhile, supplier of building cement and aggregates and other heavy building products Martin Marietta rebounded from the 50-day moving average. Both are in IBD Leaderboard.
Martin Marietta has a near-ideal Composite Rating of 97 and EPS Rating of 98. Shares are also just below a three-weeks-tight buy point of 617.08. Rising profit estimates for 2024 and 2025 are also strong points in favor of the heavy materials stock. Its full-year revenue guidance suggests sales of $7.1 billion.
Samsara and Williams-Sonoma, both in the IBD MarketSurge Growth 250, broke out but pulled back just below their buy points in the stock market today.
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