Major indices experienced a robust rally at the end of the week, with the Dow Jones Industrial Average closing nearly 400 points higher, or 1.2%, reaching the day’s peak. Despite concerns about a cooling economy, the Dow Jones index posted a 0.7% gain for the week, maintaining stability around the converged 50- and 200-day moving averages.
Consumer sentiment for November fell below the consensus forecast at 60.4, compared to the expected 63.5, according to Econoday. This news, coupled with Federal Reserve Chair Jerome Powell’s cautious remarks, likely contributed to investor apprehension. Powell’s uncertainty about the adequacy of policy tightening weighed on stocks late Thursday, causing the Dow and the S&P 500 to test their 50-day moving averages before rebounding.
In Friday’s market activity, the S&P 500 rose by 1.6%, while the Nasdaq led with a 2% gain. Both indices showed signs of recovery following a distribution day on Thursday. Preliminary data indicated lower trading volume on the NYSE and Nasdaq, with advancers surpassing decliners by almost 3-to-1 on the NYSE and less than 2-to-1 on the Nasdaq.
The Russell 2000, representing small-cap stocks, added 1.2%, and the Innovator IBD 50 ETF (FFTY) outperformed, gaining 1.5%. Meanwhile, the yield on the benchmark 10-year Treasury note remained unchanged at 4.62%.
Dow Jones Stocks and Notable Highlights:
- Intel (INTC), Microsoft (MSFT), Boeing (BA), Caterpillar (CAT), and Apple (AAPL) led gains, with Microsoft reaching an all-time high.
- Copart (CPRT) broke out, showing a relative strength line at a new high.
- Affirm (AFRM) declined over 7% below a buy point, triggering a sell signal after a fading breakout.
- Trade Desk (TTD) faced losses after a weak outlook despite edging past Q3 views.
- Unity Software (U) reported a 7% gain after a strong sales increase of 69%, despite increased losses.
Other Market Movers:
- Plug Power (PLUG) plummeted over 40% on third-quarter results, including a warning of potential funding shortages.
- Taiwan Semiconductor (TSM) lifted chip stocks, reporting a 35% rise in October revenue. Cathie Wood’s ARK Invest has been accumulating TSM shares.
- Marvel Technology (MRVL), Axcelis Technologies (ACLS), and Aehr Systems (AEHR) gained 4% to 5.7%.
- Illumina (ILMN) fell over 10% to a 10-year low after flat third-quarter sales and a lowered 2023 revenue outlook.
- Wynn (WYNN) reported sales acceleration but saw a decline, recovering partially by the closing bell.
- Blink Charging (BLNK) maintained gains, rising above the 50-day moving average after a 151% growth in sales.
- Doximity (DOCS) gapped above its 50-day moving average after an 11% growth in sales and unchanged earnings.
