The Dow Jones Industrial Average overcame higher inflationary pressures to end the trading day 1% higher. Technology leaders advanced on Friday while healthcare stocks fell. Negotiations on the federal debt ceiling appeared to be taking a positive turn in the run-up to Memorial Day.
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The proposed deal would raise the debt ceiling from $31.4 trillion for two years while imposing multiple spending caps. Accordingly reportsA firm deal between House Speaker Kevin McCarthy and the White House is just $70 billion away.
The S&P 500 was up sharply by the closing bell, up 1.3%, while the Nasdaq took the clear lead, up 2.2% to a high last seen in August. Marvell technology (MRVL) fueled the ongoing chip rally. Software stocks also continued to rise working day‘S (WDAY) Results.
Cummins (CMI) spin off Atmus filtration (ATMU) rose 11% in its trading debut on the NYSE. The company manufactures filter parts for cars and trucks. The company has priced an offering of 14.1 million shares at 19.50, which is in the middle of a proposed 18-21 range.
Early data showed that volume on the NYSE and Nasdaq fell compared to the same time on Thursday.
Small-cap Russell 2000 is up 1.1% as of 4:00 p.m. ET, while growth-oriented innovator IBD 50 (FFTY) ETF up 1%.
Crude oil was up less than 1% to trade at $72.47 a barrel. The benchmark 10-year government bond yield was unchanged at 3.81%.
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Marvell skyrocketed after earnings were announced. Shares narrowly broke the cup base buy point at 49.59 on Thursday and hit a 13-month high on Friday, as seen on IBD MarketSmith charts.
Chip stocks and AI stocks continued to rally, driven by a strong quarter and forecasts of Nvidia (NVDA). rival modern micro devices (AMD) blow a profit target of 20%while intel (INTC) was able to make up for Thursday’s loss.
IBD ranking play ASML (ASML) contributed to recent gains and extended from a buy point of 683.28. Nvidia, also on the IBD leaderboard, saw an upward trend inside day. Taiwan Semiconductor (TSM) rose after Thursday’s breakout and was extended from its buy point at 95.92 on a double bottom basis.
Among software leaders, Workday broke out of the cup base at 206.78 by revenue for the fiscal first quarter beat views. The outlook for the current quarter, which ends in July, was in line with Wall Street’s expectations. The enterprise software inventory is in the 21st industry group of the 197 industries tracked by IBD. The relative strength line, which is at a 52-week high, is also showing support for the price action.
At IBD SwingTrader, oracle (ORCL) declined slightly but remained trading above the 50-day moving average. Shares are extended from a handle entry at 91.32.
Costco Wholesale (COSTS) increased despite reporting fiscal third quarter results sales fell while profits fell short of expectations. The settled stock approached the 50- and 200-day moving average lines. Network giant and Dow Jones component Cisco systems (CSCO) has also surpassed the 50-day moving average as it is operating on a flat basis with an entry at 52.66.
Shares of ford (f) rose nearly 7% thereafter on strong volume Tesla (TSLA) CEO Elon Musk said Ford will have 12,000 Tesla Superchargers available by 2024. Ford stock surged above the 50-day moving average while Tesla attempted to move above its 200-day moving average, which is currently just above the 200 stock price.
Elsewhere, EV rival Nikola (NKLA) fell more than 4% as a possible delisting from the Nasdaq looms. NKLA ended at an all-time low of 59 cents a share.
PDD (PDD) up more than 18% on earnings on strong volume. The stock regained the 50-day moving average but remained in a severe correction.
The personal consumption and spending price index, the Fed’s preferred indicator of inflation, rose 0.4% in April. Accordingly, the probability of a rate hike rose by 25 basis points in June to 66.5% CME FedWatch.
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