The Dow Jones Industrial Average moved sideways for much of Friday, consolidating recent gains amid encouraging housing data. The index was flat at the closing bell.
The S&P 500 and the Nasdaq closed with gains of 0.1% each. Both indexes had traded sideways in the morning in the stock market today. All three major indexes posted the third straight week of gains.
Preliminary data showed lower volume ahead of the Thanksgiving holiday.
It was a good day for small caps. The Russell 2000 rose more than 1% after a volatile week.
The Innovator IBD 50 ETF (FFTY) also gained over 1%.
Crude oil rose nearly 4% to trade at $75.86 a barrel and helped oil stocks on Friday. The energy sector was the biggest gainer among S&P sectors, while communication services, real estate and health care lagged.
The yield on the benchmark 10-year Treasury note was unchanged at 4.44%.
Housing starts in October rose to 1.37 million and topped consensus views of 1.35 million. Building permits also surprised to the upside and rose to 1.49 million. Wall Street expected 1.46 million, according to Econoday.
Dow Jones Stocks
Higher oil prices lifted Dow Jones component Chevron (CVX), which was among the biggest gainers in the index in afternoon trading. Caterpillar (CAT), American Express (AXP) and Walgreens (WBA) also gained, while tech and health care components underperformed. Visa (V) tried to break out of a cup base with a buy point of 250.06.
In the tech sector, Applied Materials (AMAT) fell 4% after its Q4 earnings report. Sales were flat from a year ago while earnings per share of $2.12 rose 4%. The company expects revenue of $6.5 billion in the current quarter. Shares were in a buy zone from a double bottom base but are below the buy point now. Reuters reported the company faces a federal criminal investigation into its exports to China. The chip-gear maker dragged the Nasdaq 100.
Google parent Alphabet (GOOGL) added to the tech index’s decline. The search giant and AI contender to Microsoft (MSFT) is postponing the release date for its conversational AI tool, Gemini. GOOGL stock is back to testing its 50-day moving average. Shares also fell as the judge’s ruling on its antitrust case remains uncertain.
Gap (GPS) gapped up and held its 30% gain to the finish Friday. Q3 sales and earnings declined from the prior year but gross margins improved by 390 basis points. The company expects fourth quarter net sales to remain flat. Abercrombie & Fitch (ANF) rose in sympathy. A&F earnings are due Nov. 21.
More Retailers Report Results
Also outside the Dow Jones, Ross Stores (ROST) gapped up 7% as well after its earnings report. Earnings of $1.33 per share increased 33% while sales also rose by 8%. Shares have broken out of a flat base with a buy point of 122.70. The stock is now extended. Also in apparel retail, Children’s Place (PLCE) fell 9% after third-quarter results. The company expects revenue growth in the low single digits for the current quarter.
Among other earnings movers, BJ’s Wholesale (BJ) fell further below its 50-day moving average. Comparable sales in the third quarter rose by 0.3% from the prior year. Total sales increased 3% while earnings per share fell for the third straight quarter.
In the construction equipment space, Atkor (ATKR) gapped further below its 50-day moving average after its Q3 report. Shares pared some losses in the afternoon. Sales and earnings have been declining for three straight quarters now.
EV battery network provider ChargePoint Holdings (CHPT) plunged over 35% after preliminary third-quarter results warned of lower-than-expected sales due to delays in vehicle and fleet deliveries.
Global-E Online (GLBE) rose. Cathie Wood’s Ark Fintech Innovation ETF (ARKF) bought 90,420 shares of the stock, according the company’s disclosure. Earlier, GLBE plunged after earnings disappointed Wednesday. Shares remain below the 50-day moving average.
Stocks To Watch
Palantir (PLTR) broke out of a cup base with a buy point of 20.24. But volume was merely average. Warrior Met Coal (HCC) broke out and is above a buy point of 52.99. Volume was light. Floor maintenance products maker Tennant (TNC) is just above a buy point of 87.53.
In the IBD 50, Li Auto (Li) is nearing an alternative entry of 43.37. The China EV maker plans on a mass production of its first full EV in February. Cloudflare (NET) is nearing a buy point of 76.07 in a cup base. Dow Jones component Salesforce (CRM) is in a double-bottom base with a buy point of 228.79.
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