The Dow Jones Industrial Average rose as the stock market held near session highs. Tesla (TSLA) jump as Elon Musk looks at a new facility. Warren Buffett Stocks RH (RH) jumped with the results. An apple (AAPL) ended with a key metric.
Volume was mixed, rising on the Nasdaq but falling on the New York Stock Exchange from the same time Thursday.
The yield on the benchmark 10-year government bond rose two basis points to 3.31%. West Texas Intermediate crude rose nearly 4% to nearly $87 a barrel.
Positive signs about the economy helped the market shake off hawkish noise from some senior Federal Reserve officials, according to Oanda senior market analyst Edward Moya.
“Economists are slightly lowering their inflation forecasts, and that could mean the Fed won’t need to take rates above 4%,” he said in a note to clients. “Another round of hawkish rhetoric from both Bullard and Waller at the Fed failed to derail today’s stock market rally.”
Nasdaq leads as small caps shine
The Nasdaq was the best performer of the major indexes, rising about 2%. Cyber Security Actions Zscaler (ZS) was the best performer here, with a nearly 20% jump in revenue.
The S&P 500 was also higher, jumping 1.5% and rising again above its 50-day line. Dish Network (PLATE) impressed here as it rose more than 7%.
S&P 500 all sectors were positive, with communications services, technology and energy earning the best. The defense utilities area was lagging behind.
Small caps shone, with the Russell 2000 up nearly 2%. The Innovator IBD 50 ETF (FFTY), the stock’s growth leader, also impressed, rising 1.6%.
Dow Jones today: Apple shares gain as Salesforce leads
The Dow Jones Industrial Average lagged the other major indexes but still rose about 400 points, or 1.3%.
Apple shares are closing in on the key 50-day moving average after rising nearly 2%. It remains well shy of entering a handle of 176.25.
Earlier this week, the company announced its iPhone 14 family of smartphones at a media event titled ‘Far Out’.
Tesla shares gain on Elon Musk Eyes move
Tesla shares got a boost after news that it is considering building a lithium processing plant in Texas. The electric vehicle giant, which is led by Elon Musk, is eyeing a lithium hydroxide refining facility on the Gulf Coast in Texas.
If the project is approved, Tesla says it could begin construction by the fourth quarter, with commercial production starting by the end of 2024.
Tesla availability has formed a consolidation with 402.73 buy point, according to MarketSmith analysis. Stay away from his entrance. Adventurous investors may choose to use Friday’s retracement of the 200-day line as an entry, although that would be a very aggressive move.
Elon Musk also revealed in a tweet that he had some “promising conversations” with iPhone giant Apple about using SpaceX’s Starlink system for connectivity.
Warren Buffett’s stock rises on earnings
RH, formerly known as Restoration Hardware, jumped after its latest earnings report. Warren Buffett is a fan of the home furnishings retailer with his company Berkshire Hathaway (BRKB) currently owns more than 2 million shares.
The legendary investor has reason to smile after RH posted an earnings report that beat Wall Street expectations. EPS of $8.08 was well above analysts’ views, while revenue of $992 million was also better.
It wasn’t good news, however, as the firm said it expected Q3 net income to fall 15% to 18%. The firm’s CEO, Gary Friedman, said the economy is now in recession.
Outside the Dow Jones: The new leader makes an entry
As the market rally picks up again, now is the time to look for stocks that can act.
Palo Alto Networks bounced above a trend line entry near 560. It is also looking at a higher buy point with a cup handle at 578.89.
Food industry giant Archer-Daniels-Midland surpassed the handle cup entry of 91.54. This is a third-stage base, which means that profits from the next breakout may be limited.
The line of relative strength moves up even as the stock forms its handle, a bullish sign. The stock is in the top 6% of stocks in terms of price performance over the past 12 months, while earnings growth has also been strong. According to analysts, earnings increase by 31% in 2022 MarketSmith data.
Burger King Restaurant Brands tested a cup handle buy point of 61.19, reaching a few cents after crossing the entrance.
The restaurant chain is in the top 11% of stocks in terms of price performance over the past 12 months. It has a strong composite rating of 95.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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