The Dow Jones Industrial Average overcame higher inflationary pressures to end the trading day 1% higher. Technology leaders advanced on Friday while healthcare stocks fell. Negotiations on the federal debt ceiling appeared to be taking a positive turn in the run-up to Memorial Day.
The proposed deal would raise the debt ceiling from $31.4 trillion for two years while imposing multiple spending caps. A firm agreement between House Speaker Kevin McCarthy and the White House is reportedly just $70 billion away.
The S&P 500 was up sharply by the closing bell, up 1.3%, while the Nasdaq took the clear lead, up 2.2% to a high last seen in August. Marvell technology (MRVL) fueled the ongoing chip rally. Software stocks also continued to rise working day‘s (WDAY) results.
Cummins (CMI) spin off Atmus filtration (ATMU) is up 11% in its trading debut on the NYSE. The company manufactures filter parts for cars and trucks. The company has priced an offering of 14.1 million shares at 19.50, which is in the middle of a proposed 18-21 range.
Early data showed that volume on the NYSE and Nasdaq fell compared to the same time on Thursday.
Small-cap ETF Russell 2000 is up 1.1% as of 4:00 p.m. ET, while growth-focused innovator IBD 50 (FFTY) ETF is up 1%.
Crude oil was up less than 1% to trade at $72.47 a barrel. The benchmark 10-year government bond yield was unchanged at 3.81%.
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Marvell surged after announcing its earnings. Shares narrowly broke the cup base buy point at 49.59 on Thursday and hit a 13-month high on Friday, charts from IBD MarketSmith show.
Chip stocks and AI stocks continued to rally, driven by a strong quarter and forecasts of Nvidia (NVDA). rival modern micro devices (AMD) hit a profit target of 20% intel (INTC) regained Thursday's loss.
IBD Ranking Match ASML (ASML) added to recent gains and extended from a buy point at 683.28. Nvidia, also on the IBD leaderboard, had a bullish insider's day. Taiwan Semiconductor (TSM) rose after Thursday's breakout and was extended from its buy point at 95.92 on a double bottom basis.
Among software leaders, Workday broke out of a cup base at 206.78 after revenue for the fiscal first quarter beat expectations. The outlook for the current quarter, which ends in July, was in line with Wall Street's expectations. The enterprise software inventory is in the 21st industry group of the 197 industries tracked by IBD. The relative strength line, which is at a 52-week high, is also showing support for the price action.
On IBD SwingTrader, oracle (ORCL) declined slightly but continued to trade above the 50-day moving average. Shares are extended from a handle entry at 91.32.
Costco Wholesale (COST) rose even though earnings in the fiscal third quarter included declining sales and earnings came in below expectations. The settled stock approached the 50- and 200-day moving average lines. Network giant and Dow Jones component Cisco systems (CSCO) has also broken the 50-day moving average as it trades on a flat basis with an entry at 52.66.
Shares of ford (F) rose nearly 7% thereafter on strong volume Tesla Elon Musk, CEO of (TSLA), said Ford will have 12,000 Tesla Superchargers available by 2024. Ford shares surged above the 50-day moving average while Tesla attempted to move above its 200-day moving average, which is currently just above the 200-day price.
Elsewhere, EV rival Nikola (NKLA) fell more than 4% as it faces a possible delisting from the Nasdaq. NKLA ended at an all-time low of 59 cents a share.
PDD (PDD) up more than 18% on earnings on strong volume. The stock regained the 50-day moving average but remained in a severe correction.
The Personal Consumption and Spending Index, the Fed's preferred indicator of inflation, rose 0.4% in April. According to CME FedWatch, the probability of a 25 basis point rate hike rose to 66.5% in June.
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