The Dow Jones Industrial Average closed out the week on a strong note, up 0.9% after a stronger-than-expected September jobs report fueled an early selloff. Walt Disney was a top performer on the Dow Jones today, along with Salesforce, as each posted gains of nearly 3%.
Other Dow Jones stocks with gains of at least 2% included Caterpillar, Microsoft and Honeywell. Meanwhile, sellers hit Walmart, one day after the company suggested that popular weight loss drugs from Eli Lilly and Novo Nordisk are impacting food sales. Walmart shares fell nearly 2%, while Lilly and Novo posted gains of more than 4% and 2%, respectively.
The 10-year Treasury yield hit a high of 4.88% early in the session on the stock market today after the Labor Department said nonfarm payrolls jumped 336,000 in September. That was more than double the 160,000 estimate from economists.
The new data fueled fears that the Federal Reserve might have to hike rates again before the end of the year. But buyers came into an oversold bond market, sending the yield down to 4.79% just after the stock market's close.
Fed funds traders at CME FedWatch think there's a 32% chance the Fed will lift its key lending rate by another 25 basis points at the November meeting. That would bring the fed funds rate up to a range of 5.50% to 5.75%. For December, the chances for a quarter-point hike are slightly higher at around 43%.
Automakers like General Motors, Ford and Stellantis strengthened late in the session after the UAW said it will not expand strikes after a last-minute proposal from GM.
Outside The Dow Jones
The Nasdaq composite jumped 1.6%, helped by strength in large-cap technology stocks like Meta Platforms and Nvidia. META stock is forming a good base and is only 5% off its high. NVDA stock, meanwhile, showed strong technical action by reclaiming its 50-day moving average.
Even with Friday's strong gain, the Nasdaq is still below its 50-day moving average, currently around 13,654. It remains a key technical level for the index to conquer. Nasdaq breadth was nearly 2 to 1 positive.
The S&P 500 picked up 1.2%, helped by a big gain for Pioneer Resources. Several published reports said Exxon Mobil is in advanced talks to acquire the oil and gas producer for $60 billion.
At the New York Mercantile Exchange, WTI crude oil futures settled at $82.79 a barrel up 0.6%. Oil had a bad week, though, down nearly 9%. Winners beat losers on the NYSE by a little more than 2 to 1.
The S&P 500 moved above its 10-day moving average, but the index is still below its 21-day line and 50-day line. For the S&P 500 to continue its rally, it still needs to work through overhead supply.
S&P 500 component Palo Alto Networks also outperformed on a strong day overall for security software stocks. The group was one of the strongest performers in late trading, up nearly 4%. Other strong gainers in the group included CyberArk Software, CrowdStrike and Leaderboard stock Zscaler.
Preliminary data showed higher volume on the Nasdaq and NYSE.
Growth Stocks On The Move
The MarketSmith Growth 250 served up plenty of strong movers outside of the Dow Jones, including China-based PDD Holdings which cleared a 103.60 entry.
Vertiv, a new addition to Leaderboard, gained 4%. After a heavy-volume breakout during the week ended Aug. 4, Vertiv is getting support at its 10-week moving average.
Cadence Design Systems surged above the 240 level in light turnover. Now CDNS has its sights set on a 247.50 entry with a relative strength line in new high ground.
IBD's enterprise software group was another solid gainer, up around 3%. Inside the group, Manhattan Associates rose close to a 207.03 entry in very light volume.
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