Both the Dow Jones Industrial Average and the S&P 500 closed at all-time highs in the stock market today. The indexes capped a sixth-straight week of gains.
Bullish earnings reports from Netflix (NFLX) and Intuitive Surgical (ISRG) sent those stocks soaring.
Nvidia (NVDA) made a small gain after analysts weighed in on its outlook, and Warren Buffett’s portfolio unloaded more of a top holding. Meanwhile, Tesla (TSLA) faced a new probe on its full self driving vehicles.
The Dow rose 0.1%, while the Nasdaq composite finished 0.6% higher. The S&P 500 gained 0.4% in the stock market today.
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Nasdaq Fades Despite Strong TSMC Report; Taiwan Semi, CB, PANW In Focus
Equity exchanges saw lower trading volume compared with the same time Thursday, although advancers outnumbered decliners on both the Nasdaq and the NYSE.
The Russell 2000 small-cap index fell 0.1%, but remained near 52-week highs.
Among the S&P sectors, energy lagged while others made gains.
3:36 p.m. ET
Fed’s Bostic In No Rush
On Friday, Atlanta Fed chief Raphael Bostic said he was in no rush to bring rates down if inflation stalls above the Fed’s 2% target. According to reports, the Atlanta Fed anticipates rates to fall to 3%-3.5% by the end of 2025.
After jumping eight basis points to around 4.1%, the 10-year Treasury yield dipped two basis points to around 4.07% in the stock market today.
Tesla (TSLA) faced its latest probe into its full self driving vehicles, with four collisions being investigated by the National Highway Traffic Safety Administration. It is the first probe since last week’s robotaxi event. Shares of Tesla are in a cup with handle with a buy point of 264.86 ahead of third quarter results on Wednesday.
1:41 p.m. ET
Nvidia (NVDA) made a small gain after Bank of America analysts weighed in on a “generational opportunity” and observed that its margins outlook can be as high as 45%-50%, twice the average for the Magnificent Seven. Analysts also see those margins flowing into strong free cash flows of $200 billion that could rival Apple’s in the next two years.
Elsewhere, Berkshire Hathaway (BRKB) sold more of its top holding, Bank of America (BAC), according to a Barron’s report on Friday. The new sale amounted to $370 million and reduced Berkshire’s stake to 9.97%. The Warren Buffett stock fell slightly in the stock market today but remains in a buy zone from a cup-with-handle’s 41.05 buy point.
11:53 a.m. ET
Stock Market Movers
Lamb Weston (LW), known for its frozen potato products, was a strong gainer in the index, up 10%, on reports activist investor Jana Partners wants the company to consider a sale.
CVS (CVS) and American Express (AXP) lagged badly in the S&P 500 with losses of 7% and 3%, respectively. CVS fell hard after the company named a new CEO and guided Q3 earnings below estimates. Sellers knocked AmEx lower after earnings topped expectations, but revenue was only in line with estimates.
Apple (ATAT) is an IBD Sector Leader, helped by strong fundamentals and leading price performance. The China stock is trading tightly and holding near highs after it ended a nine-week win streak last week. That’s a true sign of strength.
Outside of China, software provider Alkami Technology (ALKT) extended gains. Shares rallied around 2%. It’s near the top of a 12-week consolidation with a 36 buy point.
10:27 a.m. ET
Netflix, Intuitive Surgical Rally On Earnings
Netflix gapped up for an early gain of more than 10%. Late Tuesday, the company reported better than expected earnings and revenue. Revenue increased 15% year over year to $9.83 billion. Netflix added 5.1 million subscribers in Q3, nicely above the 4 million consensus estimate. Netflix gave an alternative buy signal by gapping above its short-term moving averages.
Intuitive Surgical also gave a buy signal by gapping up to an all-time high and clearing resistance around 496. Shares jumped more than 8%. The robotic surgery leader, with a market capitalization approaching $200 billion, reported its second straight quarter of accelerating earnings and revenue growth. Adjusted profit rose 26% to $1.84 a share, with revenue up 17% to $2.04 billion.
Semiconductor stocks were in focus again on the stock market today after a broad-based rally Thursday. A bullish earnings report from Taiwan Semiconductor (TSM), the world’s largest chip foundry, was the catalyst Thursday.
Early gainers Friday in the Nasdaq 100 included Nvidia (NVDA), up 1%. Nvidia touched an all-time high Thursday, but sellers knocked the stock off highs by the close. A 3.8% intraday gain faded to less than 1%. A new level of resistance in Nvidia’s chart is Thursday’s high of 140.89.
Inside the MarketSurge Growth 250, Alamos Gold (AGI) rallied more than 3%. The gold producer is still on a strong uptrend after a breakout during the week ended Aug. 16. It is rising from support at the 10-week moving average.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.
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