Buyers stepped in during the final hour of trading Friday as small caps outperformed while the Nasdaq composite and S&P 500 rose for a fifth straight session and made weekly gains.
The S&P 500 closed 0.5% higher and 2% above its 50-day moving average. The Nasdaq composite climbed nearly 0.7%. The Dow Jones Industrial Average climbed 0.7% even though it closed off session highs.
Small caps outperformed, with the Russell 2000 up 2.5%. The small-cap index rebounded from a pullback to its 40-week moving average, erasing much of last week's 5.7% drop.
For the week, the Nasdaq rose nearly 6%, the S&P 500 4%, the Dow 2.7% and the Russell 2000 4.3%.
Advancing stocks beat declining ones on the Nasdaq by better than a 3-to-1 ratio. Winners stomped losers on the NYSE by 11-2, according to FactSet.
Volume was lower on the NYSE and on the Nasdaq, according to early data.
In the bond market, the 10-year Treasury yield shed three basis points to 3.65%.
3:21 p.m. ET
Stock Movers: Uber Jumps, Aerospace Stock Breaks Out
Uber Technologies popped 5.6% on news that it is partnering with Waymo to offer rides in Waymo's self-driving cars in Austin and Atlanta. Shares are in a long consolidation and have an official buy point of 82.14, but it also has an alterative entry at 74.48.
Uber stock is rising from support around the 50-day line. Uber's 2024 profit is expected to increase 23% then an impressive 111% in 2025. But the stock has a suboptimal 59 IBD Relative Strength Rating due to its long consolidation, and a mediocre 58 Composite Rating.
GE Aerospace gained 4.8 % and broke out past a 177.20 buy point. The stock is in a buy zone up to 186.06. The aerospace and defense stock reached its highest since April 2008 in the stock market today.
1:57 p.m. ET
Garmin Sinks On Downgrade
Garmin sank 5.7% in heavy volume after Barclay's downgraded the stock to underweight from equal-weight and slashed its price target to 133 from 181. Shares gave back gains from a flat-base breakout and fell below the 171.64 buy point.
The stock undercut its 50-day moving average. Garmin stock is on pace for its largest decrease since July 27, 2022, when it fell 8.7%, according to Dow Jones Market Data. Garmin makes fitness tracking devices and GPS systems.
Alamos Gold tacked on 3.1% and reached the 20% profit zone from a 17.29 buy point. The gold explorer hit a 52-week high on the stock market today. Alamos gave updated three-year production and operating guidance on Thursday, with a 4% increase for 2024. Jefferies increased its price target to 23 from 21 and maintained its buy rating on the gold stock Friday.
11:58 a.m. ET
Boeing Falls On Factory Strike
Boeing moved well off lows after dropping 2.8% in the first hour. Factory workers voted to go on strike after overwhelmingly rejecting a contract offer from the troubled aerospace giant.
Security products firm Allegion rallied just over 1% and topped a 139.78 handle buy point.
F5 Networks followed through after closing just above a 205.92 buy point Thursday. Shares were up another 1.7% at midday.
Wheaton Precious Metals tried to clear a 62.61 entry but was only barely above the buy point.
Interactive Brokers jumped 4% in solid volume. It's vying for a breakout over a 128.98 buy point.
10:19 a.m. ET
Intel, AmEx Lead Dow Jones Industrials
Early leaders in the Dow Jones today included Intel, American Express and Goldman Sachs.
The Nasdaq performed well despite a big drop for Adobe. The stock swooned around 10% after the company reported a 14% increase in earnings, with revenue up 11% to just over $5.4 billion. But the company's guidance for the November-ended quarter was a little light.
Adobe's weakness was offset by another strong showing for Oracle, which added 3%. The catalyst was bullish guidance and several analyst price-target hikes. Oracle gapped out of an eight-week base Tuesday after reporting strong earnings. It's not buyable now after a big price gain in recent days. But if Oracle can hold gains from here and trade tightly near highs, an alternate entry could emerge.
Stock Market Today
Amid plenty of strength in the retail sector, RH soared nearly 20% after earnings and revenue topped expectations. The company, formerly known as Restoration Hardware, said it now expects full-year revenue growth of 5% to 7%, below a prior outlook for 8% to 10% growth. Investors seemed to focus on positive comments from TD Cowen, which reiterated a buy rating while raising RH's price target to 350 from 325.
Gauge Market Health With IBD's ETF Market Strategy
RH has a tiny float of 13.1 million shares. About 1.95 million shares were held short heading into Friday, or 15% of the float. That's a fairly healthy short position that suggests a lot of short covering is occurring today.
The retail sector continues to be a nice pocket of strength in the stock market today as names like Walmart and Costco continue to outperform.
In the semiconductor space, Arm Holdings was up more than 3% after Raymond James initiated coverage with an outperform rating and 160 price target. Arm gapped above its 50-day line, but the stock will have more overhead supply to work through after a 49% pullback.
Besides Arm, several other tech stocks outperformed in the Nasdaq 100, including Micron Technology, Lam Research and Applied Materials. Gains ranged from 2% to 3%.
China-based e-commerce giant PDD slumped more than 3% after the Biden administration moved to close a loophole that made shipping goods from China very cheap. PDD's discount shopping site Temu has been gaining market share in the U.S.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight and Kimberley Koenig for more stock market news on X, @IBD_KKoenig.
