The Dow Jones Industrial Average continued higher early Friday, building on a positive week of trading. The indexes are on track to close higher for the week, ending losing streaks of at least seven weeks.
Investors digested new economic data on Friday. Core personal consumption expenditures — the Federal Reserve's preferred inflation indicator — rose 4.9% in April, slower than March's 5.2% increase, which could signal that price increases are slowing. However, with inflation still near 40-year highs and demand still strong, the Fed seems certain to continue on its tightening path.
Meanwhile, personal spending jumped 0.9% in April, beating expectations, following the upwardly revised 1.4% gain in March.
Dow Jones Today
The Dow Jones Industrial Average traded up 1%, while the S&P 500 was up around 1.8%. The small-cap Russell 2000 rose 1.8%, while the Nasdaq led with a 2.5% gain. Volume was running higher on the Nasdaq and the NYSE vs. the same time on Thursday, a bullish indicator. It's good to see stocks rising in heavier volume, since that indicates institutional buying.
Thursday's The Big Picture column commented, "The stock market finished sharply higher Thursday in bullish action that left the S&P 500 and Nasdaq composite on track to finally end seven-week losing streaks." The market action continues to strengthen after weeks of bearish action.
Lithium producer and Tesla supplier Livent broke out past an early buy point at 29.68 this week. Shares continued advancing 13% early Friday, adding to the stock's 6.8% rise on Thursday. The stock climbed just above the 33.14 entry of a cup base.
Breakouts In Oil And Gas, Medical
The oil and gas sector has shown strength and is hosting several breakouts this week. Another oil and gas stock from the MarketSmith Growth 250 index broke out on Friday. Diamondback Energy rose past a 148.09 entry. The stock was also featured on IBD Live's Thursday show.
FANG stock is up over 13% this week and has been rising in higher-than-normal volume. The relative strength line notched a new high ahead of the breakout as well, a bullish sign. The stock is part of the U.S. Oil & Gas Exploration and Production group, which ranks N0. 6 out of IBD's 197 groups. This group also saw breakouts this week from SM Energy and Northern Oil & Gas.
Elsewhere, medical stock Eli Lilly scored a breakout from a 314.10 flat-base buy point. Shares rose 1.9% on Friday and are up nearly 6% for the week. The stock's RS line also reached a new high this week. An early buy trigger at 309.54 was also topped Thursday by the pharmaceutical giant.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
