The stock market remained fairly steady in the last hour of trading, with the major indexes posting solid gains on Friday, led by the Nasdaq. Investors were comforted after June inflation numbers were mostly in line with expectations.
The Nasdaq composite outperformed with a 1.9% lift in stock market action. The Dow Jones Industrial Average closed the day 0.5% higher and the S&P 500 rose 1%. Meanwhile, the small-cap Russell 2000 held its own by adding 1.4%.
The Nasdaq showed its strength to close the week with a respectable 2% gain. The Dow ended its long winning streak on Thursday, but racked up a 0.7% gain on the week and the S&P 500 rose 1%.
Nasdaq 100-tracking Invesco QQQ Trust ETF added 1.8%. And Innovator the IBD 50 ETF outperformed the major indexes, rising 2.3%.
NYSE volume and Nasdaq volume fell vs. the same time on Thursday, in preliminary numbers.
The June year-over-year PCE inflation rate came in at the expected 3% and marked a decline from May's 3.8% increase. The core PCE inflation rate of 4.1% lagged the 4.2% consensus and was below May's 4.6%.
June personal income rose 0.3% vs. the 0.4% forecast, while personal consumption expenditures increased 0.5%, outpacing the 0.4% expected.
The final July University of Michigan Consumer Sentiment Index reading of 71.6 lagged the 72.6 consensus and June's 72.6 reading. The metric gives insight into consumers' attitudes and spending, with a higher number reflecting rising consumer sentiment, which is key as consumer spending accounts for more than two-thirds of the economy and can affect the stock market.
The final July University of Michigan consumer year-over-year inflation expectations number came in at the expected 3.4%.
Stock Movers: Roku Stock Soars Over 30%
DexCom stock spiked 2.3% after the maker of continuous glucose monitoring systems for diabetics posted second-quarter profit and sales above expectations. DexCom impressed with 100% EPS growth on 25% sales growth. Analysts project 39% full-year 2023 EPS growth and 24% in 2024.
Shares are in the buy zone of a 126.44 flat base buy point. The buy zone goes up to 132.76.
Roku stock rallied 31.4% after the streaming video device company late Thursday posted a smaller-than-expected second-quarter loss and sales that exceeded views. Shares regained the 75.45 cup-with-handle buy point in heavy volume. The stock, which has more than doubled this year, offers an alternative entry at 79.39.
Dow component Intel popped 6.6% after the chipmaker reported a surprise Q2 profit and higher-than-projected revenue. The stock is nearing a 37.11 buy point of a cup base. Intel stock was the Dow Jones' biggest gainer Friday. Analysts expect full-year 2023 profit to drop 71% this year then explode 212% higher in 2024.
Procter & Gamble, another Dow component, climbed 2.8% after beating June-ended quarterly sales and earnings estimates. It is nearing the 158.11 buy point of a cup base.
Shares of Enphase Energy sold off 7.5% in heavy price action, after the company reported a miss on second-quarter sales estimates and gave third-quarter revenue guidance well below analysts' estimates. The stock fell further below its 50-day moving average.
Market Rally Powers Higher; Apple, Tesla Lead 10 Stocks To Watch
Other Stock Market Action: Solar Stock Shines
Booz Allen Hamilton jumped 6.1% after the consulting and analytics company reported better-than-expected quarterly sales and profit estimates.
First Solar rallied 4.8% after volatile price action to start the day. The company posted a beat on second-quarter top and bottom lines on Thursday.
Huron Consulting Group stock soared 18.1% and broke out of a cup base with an 87.44 buy point. The move came after the health care and education consulting firm posted higher-than-expected second-quarter profit and revenue Friday. The stock is thinly traded, with an average daily volume of 114,000 shares.
Reata Pharmaceuticals rocketed 54% in huge volume on news that Biogen will buy the biopharmaceutical company for $172.50 per share in cash, or an enterprise value of $7.3 billion. Shares of Biogen advanced 0.9% on the news.
Follow Kimberley Koenig for more stock market news on Twitter @IBD_KKoenig.
