The Dow Jones Industrial Average and other major indexes dug deep and found enough energy to close higher Friday. The Nasdaq picked up momentum in the final hour of trading. China stocks were the big losers in the IBD 50 on the stock market today. Boeing stock got a lift on a new government contract.
Today marked the expiration of a variety of options and futures contracts for stocks and indexes called "triple witching."
The Dow Jones Industrial Average reversed higher in the final moments and closed with a 0.1% gain. Stocks on the S&P 500 acted similarly and also reversed upward with 0.1% increase.
The Nasdaq composite picked up steam and closed 0.5% higher. But all three major indexes still remain below their 200-day moving averages.
Small caps were about status quo in the final hour, with the Russell 2000 closing down almost 0.6%, but much improved from a loss as big as 1.6% earlier in the session.
Volume ended significantly higher on the Nasdaq and higher on the NYSE compared to the same time Thursday, in preliminary numbers. On the Nasdaq exchange, falling stocks topped rising issues by around 3-to-2, while losers beat gainers by around 2-to-1 on the NYSE.
The benchmark 10-year Treasury yield ticked slightly higher to 4.25% Friday afternoon. And oil prices edged up to around $68.19 per barrel.
3:25 p.m. ET
Stock Market Today: China Stocks Top IBD 50 Losers, Boeing Soars
China-based stocks led the losers on the IBD 50 Friday.
Online real estate platform operator KE Holdings fell 3.3% and is on pace for its fourth straight day of losses. Shares retraced after nine straight weeks of gains, as it builds the right side of a cup-without-handle base with a 26.05 buy point. Shares have dropped around 15% this week so far in hefty volume.
The cancer treatment developer BeiGene slid 3.6% and tested its 21-day exponential moving average. Shares remain extended from the buy zone of a cup-with-handle base with a 233.50 buy point and had already reached the 20% profit zone in late February.
PDD Holdings gave back 3.6% of Thursday's nearly 4% gain.
Outside of the IBD 50 and China names, Boeing led the Dow Jones with its 4% rise. President Donald Trump picked the aerospace and defense company for a $20 billion contract to develop its next generation fighter jets, named the F-47. The stock bounced off its 50-day moving average but has been a laggard as seen in its mediocre 47 IBD Relative Strength Rating.
Boeing beat out Lockheed Martin for the government defense contract. Lockheed stock slid 5.6% in huge volume on the stock market today. Shares plunged below their 50-day line and have now lost around 9% so far this year.
Insurance Stock Hits New High
IBD 50 top stock Root jumped 6.5% in heavier-than-average volume and reached a high not seen since July 2021. The insurance app stock is extended from the 20% profit zone of a consolidation with a 118.15 buy point. Shares have climbed around 125% so far this year.
On the downside, China stocks struggled. Fellow IBD 50 name Zai Lab gapped lower at the open and sank 5.5% on the stock market today. Volume was running well below its 50-day average.
Shares in the China-based developer of cancer therapies fell from the buy zone of a cup base with a 36.60 buy point and neared the 7%-stop-loss sell rule. Shares tested the 21-day exponential moving average and seeking support at this key technical level.
12:03 p.m. ET
The B shares of Warren Buffett stock Berkshire Hathaway were down around 1% after six straight gains. Berkshire shares staged a clean breakout from a 12-week cup base on Feb. 24, then pulled back gently to its 21-day exponential moving average before charging higher again. Insurance stocks have been leading the stock market lately as former leaders like Nvidia, Dutch Bros, AppLovin and Cava continue to struggle.
Stock Market Today: Nike Slumps
Nike was a big drag on the Dow Jones. Shares slumped more than 6% despite Nike reporting quarterly revenue that topped expectations. But revenue in North America fell 4%, while China revenue slumped 17%. Investors focused instead on fiscal Q4 revenue guidance for the May-ended quarter, which CFO Matt Friend said would be at the low end of prior guidance. He also said margins would be pressured as a result of tariffs.
Nike has been on a downtrend for more than a year after a focus on e-commerce sales by former CEO John Donahoe didn't drive growth as expected.
Inside the MarketSurge Growth 250, a few biotech stocks continue to outperform. Catalyst Pharmaceuticals was on pace for its sixth straight gain, although volume has been slow to come into the stock. Nonetheless, Catalyst is closing in quickly on a 24.64 buy point.
Vertex Pharmaceuticals has started to come off highs after approaching its Nov. 8 high of 519.88.
Vertex has been under accumulation in recent weeks and the biotech looks like it's trying to add a handle to its current pattern. With the biotech group acting well, Vertex is still a candidate for an upside breakout.
Exelixis, meanwhile, added 1% as it tests support at its 21-day line and a prior 37.59 entry.
The Alameda, Calif., firm develops new small molecules that could become therapies to treat cancer. In the fourth quarter of 2024, Exelixis posted earnings of 55 cents a share, up 67% vs. a year earlier, on an 18% jump in sales to $566.8 million.
According to MarketSurge, the number of mutual funds owning Exelixis shares rose to 901 at the end of Q4 last year vs. 826 at the end of 2023. Fidelity Contrafund (FCNTX) built a new position last quarter with a stake of 300,000 shares. EXEL also commands a solid B+ Accumulation/Distribution Rating.
10:27 a.m. ET
Micron, FedEx Earnings
Wall Street also weighed earnings from Micron and FedEx.
Micron shares slumped more than 5% despite better than expected earnings and revenue and decent guidance. Revenue for the February ended quarter jumped 38% to $8.1 billion. Data center revenue tripled.
Find The Best Long-Term Investments With IBD Long-Term Leaders
FedEx, which has been on a sharp downtrend since late November, slumped more than 10% in massive volume after earnings missed expectations and guidance disappointed again. The company cited weakness in the U.S. industrial economy.
The Dow Jones transportation average sank more than 2%.
The Nasdaq and S&P 500 are in the early stages of their rally attempts as both try to start new uptrends. After three weeks of sharp declines, stocks rallied sharply Wednesday after Federal Reserve Chairman Jerome Powell calmed markets by talking about the underlying strength of the economy. He also said that if inflation stays elevated as a result of President Donald Trump's tariffs, it would be transitory.
But the stock market is still worried about a sharper-than-expected slowdown for the U.S. economy. Stock market bulls want to see the trend of higher-volume declines and lower-volume gains for the major stock indexes eventually turn into higher-volume gains and lower-volume declines. That would be a sign that new money is coming in from the sidelines.
Market Firms As Trump Sees 'Flexibility'; Five Stocks Near Buy Points
Growth Stock Watch
Chinese stocks lagged for the second day after some sharp selling Thursday. Alibaba fell another 1.5% as it makes a key test of its 21-day line. Meanwhile, the iShares China Large Cap ETF, which counts Alibaba as a top holding, gave back 2%. After a bullish move earlier in the week, FXI is now below a 37.49 entry point after first joining the Leaderboard model portfolio on March 5. It's also testing its 21-day line.
In the biotech group, Alkermes outperformed with a gain of nearly 2%. The stock continues to trade tightly above its 10-week moving average after a breakout during the week ended Feb. 14.
Inside the MarketSurge Growth 250, biotech Axsome Therapeutics is also trading tightly after a near first test of its 10-week line. Axsome shares have risen as much as 4.5% for the week. The strength comes after Axsome broke out of a 10-week consolidation in January.
