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Stocks rose at the starting bell on Friday, as strong June retail sales data helped push the Dow back above 35,000. Moderna rallied after being a member of the S&P 500. DocuSign and Starbucks have increased their number of points of purchase. Meanwhile, Salesforce.com and American Express fought for the lead of the Dow Jones today.
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The Dow Jones Industrial Average added about 60 points, up 0.15%. This was enough to regain the 35,000 level, but stopped at a point above the index’s May 10 high at 35,091. The Nasdaq Composite climbed 0.2% and the S&P 500 made a gain of 0.15%.
Small caps showed strength early on, with the Russell 2000 rising 0.8% just after the opening.
Based in Beverly Hills Live entertainment (LYV) jumped 2.3% to dominate the S&P 500 after Goldman Sachs launched cover for the auditorium operator with a buy rating and a price target of 110-38% above. above Thursday’s closing price.
IBD 50 shares Modern (MRNA) rose 9.9%, topping the Nasdaq 100 on news it would join the S&P 500 on July 21. Moderna is in week seven of an eight-week hold rule, having increased 20% in less than two weeks following a breakout in early June.
Industrial uniform company Ribbons (CTAS) jumped 2.9% as analysts improved and raised share price targets after its fourth-quarter tax report Thursday night. Friday’s gain took stocks above an entry of 369.30 in a 30-week consolidation.
Also on the Nasdaq, Starbucks (SBUX) rose 1.2% as Oppenheimer raised its price target to 140 from 135. Starbucks stock on Thursday finished a fraction below a 119.08 buy point in a 12 week cup base.
Arista Networks (ANET), a new name on the IBD 50 list, is near a point of purchase in a tight three-week pattern. Thursday’s IBD 50 action to watch, Element solutions (ESI), is on course to form a flat base with a buy point of 24.80. Both stocks posted small gains on Friday morning.
Dow Jones Today: Intel, Microsoft Climb
Intelligence (INTC) was up 1.6% on the Dow Jones today. The chipmaker was exploring a possible deal to acquire GlobalFoundries, with the Wall Street Journal reporting the deal could be valued at nearly $ 30 billion.
A deal is not certain, and GlobalFoundries has also taken steps to go public as part of an initial public offering. The Abu Dhabi government’s Mubadala Investment Co. owns the Malta, New York-based chip manufacturing company.
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Microsoft (MSFT) climbed 0.7% after Mizuho raised its share price target to 310, from 285. Microsoft shares are extended after crossing a buy point of 263.29 in the middle. June.
Retail sales increase in June
Retail sales jumped 0.6% in June, the Commerce Department reported. This was up from a 1.3% drop in May, and contrary to expectations of a 0.4% drop. Minus vehicles, sales climbed 1.3% from a 0.7% drop in May, beating earlier expectations of a 0.5% increase.
White House warns against Hong Kong
China-based stocks generally held up early in trading on Friday, despite a flurry of negative news. White House gearing up to issue advisory warning U.S. businesses against hike risks of doing business in Hong Kong, because the regulatory circumstances would have deteriorated there.
Shipping stocks increase as ports become a bottleneck in the supply chain
More, Didi Global (HAVE I GOT) fell by 3% while Chinese regulators have drawn attention on the carpooling giant. Bloomberg reported that Chinese regulators are also planning to exempt companies from the cybersecurity review if they opt for public listing on the Hong Kong Stock Exchange rather than the United States.
NLP Education (TAL) and New oriental education (EDU) was under pressure, down 9% and 4.5% respectively.
Vital signs: oil prices, bond yields
Oil prices rebounded slightly after two days of decline, with West Texas Intermediate rising 0.4% to just under $ 72 a barrel. Reuters reported on Wednesday evening that Saudi Arabia and the United Arab Emirates had reached an agreement, potentially opening the door to an OPEC + deal that would ease some of the current 5.8 million barrels per day restrictions on members of the United Arab Emirates. Organization of Petroleum Exporting Countries and a group of partners, led by Russia.
WTI oil futures ended down nearly 4% for the week, heading for a second consecutive weekly decline and their worst week since March. Prices on July 6 hit $ 76.98, their highest level since October 2014.
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Bond yields edged up after a sharp two-day drop. The yield on 10-year bonds climbed to 1.32%, after settling below 1.30% on Thursday. Yields are down more than 4% for the week, heading for their eighth drop in the past nine weeks, and preparing for a test of support at their 40-week moving average.
Chevron, Cummins Agreement
Chevron (CVX) fell 0.7% on the Dow Jones Today, after the diesel engine maker Cummins (CMI) signed a memorandum of understanding with the energy producer to develop opportunities in hydrogen and alternative energies. Cummins shares jumped 0.5% on the news.
“The energy transition is underway and we recognize the critical role that hydrogen will play in our energy mix,” said Amy Davis, vice president and president of New Power at Cummins, in a written statement.
Ranking: Ford, Tesla, DocuSign
Among the actions of the IBD ranking, DocuSign (DOCU), Ford engine (F) and You’re here (TSLA) all registered moderate gains early Friday.
Tesla and Ford may have benefited from data showing car registrations in the European Union rose 10.4% in June. Demand for new cars increased 25.2% in the first half of the year. However, this still lags behind pre-Covid demand.
Tesla is striving to beat its converging moving averages over 50 and 200 days and on the right side of a six-month consolidation. Ford is testing support on its 50-day / 10-week line, amid a three-week pullback. A rebound in the line would create a buying opportunity.
DocuSign gained 2% on Friday morning. The stock is extended after a breakout in June from a double bottom base. IBD MarketSmith’s analysis also indicates that the stock is struggling to break above a buy point of 290.33 in a 43-week consolidation.
DocuSign found support at its 21-day moving average on Thursday. A break below this line would indicate a weakening of the stock.
Nasdaq, S&P 500, Dow Jones today
A tough week for growth stocks on Thursday left the iShares Russell 1000 Growth ETF (IWF) towards its first week of decline since mid-May. The same goes for the Invesco QQQ Trust (QQQ), which slipped 0.1% until Thursday.
The IBD 50 index fell 2.1%, heading for a second weekly decline. Shaky breakouts left the Innovator IBD Breakout Opportunities (BOUT) ETF down 3% through Thursday, and again below its 10-week moving average.
The Dow Jones now holds the advantage, up 0.3% for the week to Thursday, against a 1.1% drop for the Nasdaq Composite and a 0.2% drop in the S&P 500.
While growth stocks struggled, Walt disney (DIS), Honeywell International (DIS) and Visa (V) all posted good weeks. Visa is nearing the top of a buy range above a buy point of 237.60. Honeywell approaches an entry 234.12 in a mug base.
The Dow Jones ended Thursday less than 3% below its high above 35,000, set on May 10. The Dow Jones Industrial Average ETF Trust (DIA) SPDR shows that the index is in a buy range above a buy point of 348.75 in a double bottom base.
Watch the Nasdaq to see if it finds support at its 21-day moving average. And keep in mind that as the market remains in a confirmed bullish trend, IBD’s Big Picture article noted on Wednesday that “some nasty reversals in growth stocks should give readers enough reason to show off. of caution with new purchases for the moment “.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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