The Nasdaq composite and S&P 500 closed 0.5% higher in the stock market today but still finished the week lower.
After surging 2.8% on Thursday, the Nasdaq and S&P 500 erased mild early losses and held gains into the close. Both indexes fell for a fourth straight week, although both pared most of the week's losses.
The Dow Jones Industrial Average closed 0.1% higher and above its 50-day moving average, where it had met resistance the past three days. The Dow also fell for the week.
Meanwhile, the small-cap Russell 2000 lagged with a loss of 0.2% on the stock market today.
Volume was slightly higher on the Nasdaq and lower on the NYSE, according to preliminary data. Decliners beat advancers by a small margin on the Nasdaq and were nearly even on the NYSE.
In the bond market, the 10-year Treasury yield shed five basis points to 3.94% Friday. After weaker-than-expected jobless claims Thursday, CME FedWatch thinks there's a 50/50 chance that the Federal Reserve will cut the federal funds rate by 50 basis points to a range of 4.75% to 5% in September.
U.S. crude oil prices were up 0.8% to around $76.75 a barrel.
Among the Magnificent 7 stocks, Meta Platforms led the way, up 1.6%. Meta is back near highs after flashing a sell signal from a 514.01 entry.
1:35 p.m. ET
Stock Market Today
The stock market is still in a correction, which means new buys should generally be avoided. But the session served up plenty of strong gainers.
Birkenstock added to gains after surging 3.7% Thursday. The stock is only 5% off its high and is near the top of a flat base with a 61.83 buy point.
Some security software stocks have come back to life, including Palo Alto Networks, which jumped back above its 50-day moving average with a 4% gain. IBD's security software industry group was poised for its fourth straight gain, up 0.5%.
Several weak performing industry groups were among the top gainers Friday. In the computer sector, Agilisys rallied for the fourth straight session after a nice test of the 50-day line. It led the Computer-Integrated Systems group to a gain of 1.5%.
Inside the MarketSurge Growth 250, private equity and venture capital firm StepStone Group soared 7.7% after reporting an 85% increase in quarterly profit. Revenue edged up 5% to $186.4 million. The stock is bouncing nicely off its 10-week moving average after a breakout during the week ended May 24.
Aircraft maker Embraer rallied sharply for the second straight session after reporting earnings Thursday. The stock is closing in quickly on an all-time high after a volatile drop below its 50-day moving average last week.
1:45 p.m. ET
Stocks To Watch
Besides Akamai Technologies, online travel firm Expedia also moved well in the S&P 500, up 9%. Investors seemed to focus on better-than-expected results rather than a lukewarm outlook. After earnings sell-offs for competitors Booking Holdings and Airbnb, Expedia said it expects annual gross bookings at the low end of the company's prior guidance of mid- to high-single digits.
Despite the strong gain, Expedia is still on a downtrend and below its 200-day moving average, a potential resistance level to watch.
Eli Lilly also outperformed in the S&P 500, up nearly 6%. The additional strength comes after the drugmaker reported strong Q2 results Thursday. Eli Lilly gave a buy signal with a decisive move above its 50-day moving average in strong volume. Lilly rejoined the Leaderboard model portfolio as a result. But keep in mind that market risk is quite high for any stock purchase.
In the security software group, CyberArk Software also followed through on the heels of a strong earnings report Thursday. But with the stock now up nearly 15% since its Aug. 5 low, prospective buyers should proceed cautiously. As CyberArk approaches its mid-July high, it could start to drift lower in light volume. Price action like this often ushers in a new entry.
Group peer Fortinet is holding gains after surging on earnings earlier in the week. It's another example of a stock that could present a new buy point soon, especially if it continues to trade tightly near highs.
12:02 p.m. ET
Stock Market Today: Cava Stock Gets Bonus Boost
Sweetgreen catapulted 23% higher in huge volume after the restaurant chain beat second-quarter sales estimates but reported a loss that was slightly larger than expected. Management, however, raised its 2024 revenue outlook and same-store sales growth projections.
Cava Group surged nearly 8% possibly in sympathy with Sweetgreen stock. Shares reclaimed their 50-day line on the stock market today. The Mediterranean restaurant chain announced it will report its second-quarter results Aug. 22 after the market close.
Akamai Technologies soared more than 10% in heavy volume after the cloud services provider reported higher-than-expected second-quarter adjusted profit and revenue. It also updated its full-year 2024 sales outlook, and topped estimates with it.
The stock reclaimed its 50-day line and was the biggest gainer on the S&P 500 Friday. Akamai is on track for its largest increase since Oct. 30, 2018, when it jumped 16.92%, according to Dow Jones Market Data.
Insulet trimmed larger morning losses to under 8% following the miss on its second-quarter adjusted earnings estimates with higher sales than views. Shares are in a long cup-with-handle base with a 209.35 buy point, but the 14% handle is deeper than ideal.
The insulin management systems stock is testing its 200-day moving average on the stock market today and seeking support. Shares have been weak, losing around 15% so far this year.
10:48 a.m. ET
Elf Beauty Looks Ugly
Elf Beauty tumbled more than 15% in heavy volume after the skin care and cosmetics company topped fiscal first-quarter earnings and sales estimates, but gave a fiscal 2025 earnings outlook that was below forecasts. The stock fell further below its 50-day line and undercut its 200-day line.
Meanwhile, Nvidia stock jumped back and forth between positive and negative ground, after scoring a gain of more than 6% in Thursday's rally. Nvidia stock sank 0.3% on the stock market today.
New Market Rally Setting Up; AI Stocks Flexing As Nvidia Struggles
Stock Movers: Taiwan Semi, Trade Desk, Doximity
Nvidia chipmaker Taiwan Semiconductor also experienced some choppy morning trading. The company reported July sales grew 45% from July 2023. Shares dipped 0.4% and are finding resistance at the 50-day line.
Trade Desk jumped more than 8% following the company's better-than-expected profit and revenue for the second quarter. The stock pushed past its 50-day line and into a buy zone. It is working on its fifth straight daily rally.
Doximity rocketed nearly 34% higher and surged through the buy zone out of a cup-with-handle base with a 30.50 entry. The company beat fiscal first-quarter adjusted earnings and sales.
A more appropriate entry would be 34.45, the high of the first five-minute price bar, with a buy range stretching to 36.17. Shares reached a 52-week high on the stock market today.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
