The stock market was solidly higher near midday Friday after a key reading on inflation didn't reveal any big surprises. Apple stock outperformed in the Dow Jones Industrial Average, but Nike lagged in the blue-chip index, down more than 2% on an earnings miss.
Apple picked up 1.5% after Citigroup initiated coverage with a buy rating and 24o price target. Apple's market capitalization topped $3 trillion, making it the first company to reach that milestone.
Other top gainers in the Dow Jones today included Microsoft, Intel and Visa. Intel is holding support at its 21-day exponential moving average after a short-lived breakout over a 33.84 buy point.
After soaring nearly 3% Thursday, Visa tacked on an additional 1% and is still in buy range after a breakout from a 235.57 entry.
Inside the Commerce Department's personal income and outlays report for May, personal income rose 0.4%, in line with estimates. The personal consumption expenditures (PCE) price index rose 0.1% on the month, with an annual increase of 3.8%. Both numbers met estimates. The core PCE price index rose 0.3% on the month, with a 4.6% annual increase, both slightly cooler than expected.
Bond yields weakened a bit on the news. The 10-year Treasury yield was trading just below 3.87% ahead of the data. Near midday, the yield was trading around 3.82%, down 4 basis points.
The Nasdaq composite was up more than 1%, on pace for its best first half since 1986, according to Dow Jones Market Data. The Nasdaq 100 picked up 1.5% Friday and is on pace for its best first-half performance on record. Winners beat losers on the Nasdaq by a 3-2 margin.
Outside The Dow Jones
The S&P 500 added 1%, led by strong performances from Carnival and Nvidia. Carnival soared around 8% after Jefferies upgraded the cruise line operator to buy from hold. Jefferies also lifted CCL's price target significantly, to 25 from 9.
Breadth was better on the NYSE, with advancing stocks beating decliners by more than 2-to-1.
Leaderboard stock Royal Caribbean Cruises was a beneficiary of the CCL news. Shares were up 2% to 103.75. RCL joined the Leaders list on May 17 at 79.78.
Nvidia, another Leaderboard name, rallied 3% after Daiwa upgraded the stock to outperform and raised NVDA's price target to 475.
The Nasdaq and S&P 500 marked powerful follow-throughs on March 29, putting the stock market back on a confirmed uptrend. Growth stocks have started to outperform again after months of underperformance.
The crop of breakout stocks expanded in the stock market today. Besides Visa in the Dow Jones, names like Tidewater and insurer Gallagher topped buy points Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Inside the MarketSmith Growth 250, technology stocks like Super Micro Computer, Aehr Test Systems and Coherent outperformed during the first hour of trading.
ASML Recovers
Meanwhile, a top-performing chip-equipment stock in the IBD Leaderboard model portfolio came under early selling pressure, but pared losses.
Netherlands-based ASML fell 1.1% early, but turned slightly positive after the Dutch government said it will introduce export control measures for chipmaking equipment, following the lead of the U.S., which introduced similar controls to prevent China from using chip technology for "advanced military applications."
One day after joining Leaderboard, Rambus was poised for its fourth straight gain, up nearly 3% on the day.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
