For the majority of Friday, the Dow Jones Industrial Average fluctuated, consolidating recent gains amidst positive coverage. By 1:30 p.m. ET, the index was steady.
In the realm of equities, both the S&P 500 and Nasdaq saw a modest 0.2% uptick. However, both stocks initially traded in the negative territory during the morning session.
Compared to the same period on Thursday, trading volume on the NYSE and the Nasdaq exhibited a decrease.
Ideal conditions favored small-cap stocks, with the Russell 2000 surging by over 1%.
The Innovator IBD 50 ETF (FFTY) outperformed, boasting a 1.4% increase.
Crude oil prices soared by 4%, closing at $76.03 per barrel on Friday, thereby bolstering oil-related stocks. While sectors like contact services and healthcare lagged, the energy industry emerged as the top performer among S&P sectors.
The yield on the standard 10-year Treasury note held steady at 4.44%.
In October, housing starts surpassed expectations, reaching 1.37 million units, while building permits surged to 1.49 million, defying projections. Wall Street had anticipated 1.46 million units, according to Econoday.
Dow Jones Equities
Chevron (CVX), a key player in the Dow Jones, benefited from the uptick in oil prices, emerging as the top gainer in afternoon trading. Despite declines in the tech and healthcare sectors, Caterpillar (CAT), American Express (AXP), and Walgreens (WBA) all witnessed growth.
Following its Q4 earnings release, Applied Materials (AMAT) experienced a 5% decline. Although sales remained stagnant compared to the previous year, earnings per share rose by 4% to \(2.12. The company anticipates a \)6.5 billion profit in the upcoming quarter. While shares from a twin bottom base were initially in the buy zone, they have since dipped below that level. Reuters reported that the company is currently under a national judicial investigation concerning its exports to China, which contributed to dragging down the Nasdaq 100.
The tech index’s downturn was exacerbated by Alphabet (GOOGL), Google’s parent company. The launch of Microsoft’s conversational AI tool, Gemini, was delayed by Google, its AI competitor (MSFT). GOOGL’s stock is once again testing the 50-day moving average amidst uncertainties surrounding the court’s impending decision in its antitrust case.
Gap (GPS) surged by nearly 30%, with a 390 basis point increase in gross margins, despite a decline in Q3 sales and earnings compared to the previous year. The company foresees consistent online sales in the fifth quarter. Abercrombie & Fitch (ANF) also experienced an upturn, with revenue results slated for November 21.
Recent Market Developments
Ross Stores (ROST) observed an 8% increase post-earnings report, with sales and earnings both showing significant growth. Conversely, Children’s Place (PLCE) faced a 9% decline following third-quarter results in the retail apparel sector, projecting modest revenue growth for the current quarter.
BJ’s Wholesale (BJ) witnessed a drop below its 50-day moving average despite a 0.3% increase in comparable sales from the previous year. Although earnings per share dipped for the third consecutive quarter, total sales saw a 3% uptick.
Post Q3 report, Atkor (ATKR) continued to lag below its 50-day moving average for construction equipment, with sales and earnings on a downward trajectory for the past three quarters.
ChargePoint Holdings (CHPT), a provider of EV battery networks, faced a 30% decline following preliminary third-quarter results, citing lower-than-expected sales due to delays in vehicle and fleet deliveries.
Stocks of Interest
Targa Resources (TRGP) and Philips 66 (PSX) are reclaiming the 50-day moving average within the oil and gas sector.
D. R. Horton (DHI), a prominent stockholder on the IBD Leaderboard, seems to be forming a cup base handle.
Li Auto (Li) is approaching a potential entry point at 43.37 in the IBD 50. The first fully electric vehicle from China is set for mass production in February. Cloudflare (NET) is nearing the 76.07 buy point in a cup base pattern. With a buy point at 228.79, Dow Jones component Salesforce (CRM) is currently trading in a double-bottom pattern.
