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Stocks jumped early Friday, as the Dow and S&P 500 looked to extend support’s rebounds, and the Nasdaq fell slightly above the 13,000 mark. JD.com jumped to lead the Nasdaq 100 in a volatile morning for China-based issues. A rebound from Nike drove the Dow Jones up today, even as China amplified its response to corporate pressure on labor practices in Xinjiang.
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Dow industrials grabbed a quick 110 point gain, trading 0.4% higher in the stock market today. The S&P 500 also jumped 0.4%, while the Nasdaq Composite accelerated to 0.5%. President Biden, in his first press conference Thursday, doubled his administration’s vaccination target for its first 100 days, while touting a drop in jobless claims and economists’ forecast for GDP growth of 6 % for the US economy.
JD.com (JD) was up 3.3%, ahead of the Nasdaq 100. Trading in US-based China-based issues was unleashed after the Securities Exchange Commission said on Wednesday it had started an effort demanding companies Chinese authorities to allow the American regulator to review their financial audits. Companies that prevent such a three-year review are subject to delisting from the NYSE or Nasdaq, according to new rules passed by Congress in December.
Energy, travel and materials issues were high on the S&P 500. At the top of the S&P 500, the parent of Victoria’s Secret Limited brands (LB) jumped 6.8% after raising its budget forecast for the first quarter. Steelmaker Nucor (NUE) rose 5.8%, hitting a new high.
On the profit front, security software provider Telos (TLS) climbed 22% after releasing quarterly results. Aspira Women’s Health (AWH) increased by more than 8%. The low-priced action is trading below a buy point of 9.27 in a cup base with handle.
In contrast, Salt Lake City-based biotechnology Co-diagnosis (CODX) fell more than 12%. Leader in charging stations for electric vehicles Flashing charging (BLNK) avoided pre-market losses and gained 0.8% on earnings news.
On the radar: Elite Education, VipShop, ArcelorMittal
On the IBD 50 list, VipShop Fund (VIPS) jumped 6%, regaining a small portion of the week’s heavy losses. Taiwan Semiconductor (TSM) gained 2% as it appears to stop a six week draw.
Also on the IBD 50 list, Gold Miner Sibanye Stillwater (SBSW) gained 2.3%, putting the stock in a buy range on a rebound from its 10-week moving average.
IBD Ranking Stock ArcelorMittal (MT) jumped 4.6%, breaking out of the buy range above a base buy point of 25.86 cups. Stocks struggled to maintain their breakout, as well as maintaining support at their 21 day line. The buying range extends to 27.15.
Elite Education Group International (EEIQ) is a stock to watch on Friday, opening 587% more on its second day of trading. The Ohio-based company “facilitates study abroad and post-study services for Chinese students in the United States,” according to the Dayton Business Journal. The action was priced at 8 on Thursday and closed at 4 in its first day of trading.
Dow Jones Today: Nike, Head of Banks
Nike (NKE) rose 2.8%, leading the Dow Jones higher today. Baird improved on the title to outperform after staying at a neutral level for the past two years. The price target was unchanged at 150, and the note predicted that current concerns about the supply chain and the Chinese market were temporary.
Chinese state media launched a boycott threat against several companies, including Nike and Sweden H&M (HNNMY), which had stopped buying cotton from China’s Xinjiang region. Several investigations have found evidence of state-run concentration camps and forced labor among the region’s Uyghur minority. Chinese public and media sources threatened Thursday to boycott the country which generates 19% of Nike’s revenue.
Nike stock fell as much as 6% on Thursday, recovering to a loss of 3.4% at the close. The damage to the card fractured an ongoing baseline effort, stopping just before a test of support at its 200-day line.
ETF stock market strategy and how to invest in the current uptrend
JPMorgan Chase (JPM) and Goldman Sachs (GS) each rose more than 1%, trading today at a high level on the Dow Jones. The Federal Reserve announced Thursday that large financial firms can begin buybacks and dividend hikes from June 30, after passing the latest round of stress tests for the first time. Previously, the Fed said those higher returns to shareholders could begin in the first quarter.
Both stocks are extensive. Goldman Sachs is working on its fifth consecutive monthly gain. JPMorgan builds on its sixth consecutive monthly lead.
Vital Market Signs: Bonds, Bitcoin, Oil
Asian stock markets rallied on Friday, ending the week on a positive note as global markets responded, in part, to the Fed’s updated banking rules and President Biden’s positive comments on Thursday. Benchmarks in Europe were moderately higher in the afternoon’s action, with the FTSE 100 in London and the German DAX each posting gains of over 0.7%.
Bonds extended Thursday’s rebound as the 10-year Treasury yield rose an additional 3 basis points to 1.66%. Yields rose rapidly from record lows in the pandemic of around 0.50% in August. They approached pre-pandemic levels at the end of last week, climbing above 1.75% – the highest level since January 2020. Yields had started 2020 at around 1.8%, down from around 2%. , 7% a year earlier.
Cryptocurrency stocks rose as Bitcoin broke above $ 53,000, after falling below $ 51,000 on Thursday, according to CoinDesk. The cryptocurrency hit a record high of $ 61,556 on March 13.
IBD Live: a new tool for daily stock market analysis
Oil prices continued to float wildly, rising sharply early on Friday. Markets are grappling with a global oil supply chain pinched by a stranded cargo ship and blocking the mouth of the Suez Canal in Egypt, the daily channel of 10% of the world’s oil supply by sea. West Texas Intermediate jumped 2.3% to just under $ 60 a barrel. As trading ended Thursday, WTI was down 4.7% for the week and heading for a third weekly decline.
Personal income, declining expenses; The trade deficit widens
Personal income fell 7.1% in February, the Commerce Department reported, a slowdown from January’s 10.1% plunge and slightly better than forecast for a 7.2% drop. Consumer spending slipped 1%, more than economists’ forecast of a 0.7% decline, and reversed a 3.4% increase in January.
The United States’ trade deficit widened to $ 86.7 billion in February, from $ 83.7 billion in January. Imports fell 1.4%, exports fell 3.8% during the month. Retail inventories in the United States were flat during the month, while growth in wholesale inventories slowed to 0.5%, from a 1.4% increase in January.
Dow Jones Today: A Weekly Gain or Loss?
The futures action suggests that the Dow Jones continues to hold the market high today, after support rebounded to its exponential 21-day moving average on Thursday. The Dow Jones ended Thursday’s session with a fractional loss so far for the week. The S&P 500 was also slightly lower, after a rapid rebound on its 50-day line. Meanwhile, the Nasdaq had lost 1.8% in a slide below key support levels and was holding just below the 13,000 level.
A 2.3% gain by the Russell 2000 on Thursday reduced the index’s loss for the week to 4.6%. IBD downgraded its market outlook on Wednesday, to an uptrend under pressure, after Monday’s Big Picture article pointed out that the stock market’s uptrend remains delicate.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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