The stock market traded higher Friday, buoyed by Apple's earnings and mixed economic data that showed rising labor costs and a drop in personal spending.
The Nasdaq composite gained 1.6%, regaining some of its losses from earlier in the week. The S&P 500's gained 0.9%. The Dow Jones Industrial Average gained 0.3%. Indexes reversed higher at midday after some early weakness.
The small-cap Russell 2000 fell 0.2%. Volume fell on the NYSE and Nasdaq compared with the same time on Thursday.
IBD's market outlook remains "market in correction," which requires investors to raise cash.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 34381.82 | +221.04 | +0.65 |
| S&P 500 | (0S&P5) | 4383.19 | +56.68 | +1.31 |
| Nasdaq | (0NDQC ) | 13624.10 | +271.32 | +2.03 |
| Russell 2000 | 192.61 | +1.09 | +0.57 | |
| IBD 50 | 36.78 | +0.16 | +0.44 | |
Last Update: 12:04 PM ET 1/28/2022 |
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Consumer electronics giant Apple delivered a big December-quarter that beat forecasts despite chip shortages that impacted its supply of iPhones and other devices in the holiday period. In midday trades, Apple stock advanced 6%. If the gains hold, Apple will break an eight-day streak of declines.
Apple's Earnings Lift Stock Market
The Cupertino, Calif.-based company late Thursday forecast "solid" year-over-year sales growth for the March quarter. The impact of chip shortages will be less severe in the current quarter, Chief Financial Officer Luca Maestri said on a conference call with analysts. "We expect to achieve solid year-over-year revenue growth and set a March-quarter revenue record despite significant supply constraints, which we estimate to be less than what we experienced during the December quarter," Maestri said.
Apple's sales rose 11% to $123.9 billion in its fiscal first quarter ended Dec. 25. Earnings jumped 25% to $2.10 a share. Analysts had expected earnings of $1.90 a share on sales of $119 billion in the holiday quarter, according to FactSet.
In the first major earnings report for the energy sector, Chevron reported mixed fourth-quarter results early Friday. Chevron earnings came in $2.56 a share, below expectations. Revenue nearly doubled to $48.31 billion and topped estimates. Chevron shares fell 4% and are on pace to end a four-day win streak.
Energy Select Sector SPDR fell 0.9%, though it remains near record highs. It is extended from the 59.51 buy point of a flat base.
Caterpillar fell more than 6% despite that the heavy machinery company beat profit expectations. Earnings climbed 27% to $2.69 a share as sales rose 23% to $13.9 billion. But Caterpillar said raw materials, labor and supply chain costs cut operating margins.
Caterpillar has been forming a cup with handle base, although the handle is getting a bit deep at more than 12%.
Stock Market Gains Despite Mixed Economic Data
Innovator IBD 50 ETF fell 0.2%, as growth stocks continued to struggle.
New economic reports showed rising costs and a slowing U.S. consumer.
Personal spending fell 0.6% in December.
The employment cost index rose 1% in the fourth quarter, after a 1.3% increase in Q3. The yearly rate climbed to 4%, which Guatieri said is a 20-year peak.
Follow Michael Molinski on Twitter @IMmolinski
