The stock market demonstrated solid gains near midday on Friday as investors digested a key inflation reading and corporate earnings news. Apple stood out as a top performer, propelling the Dow Jones Industrial Average, while Nike faced a decline following an earnings miss.
The market also witnessed notable gains from Microsoft, Intel, and Visa. With the Nasdaq composite on track for its best first half since 1986 and the S&P 500 showing strength, market breadth appeared favorable.
Additionally, breakout stocks like Visa, Tidewater, and Gallagher showcased promising buy points. Amidst the market’s positive momentum, chip-equipment stock ASML faced early selling pressure due to export control measures, while Rambus continued to gain momentum after joining the Leaderboard.
Apple Leads Dow Jones as Market Capitalization Surpasses $3 Trillion: Apple (AAPL) surged 1.5% after receiving a buy rating and a $240 price target from Citigroup.
This propelled Apple’s market capitalization past the $3 trillion milestone, making it the first company to achieve this feat. The positive outlook from Citigroup contributed to investor enthusiasm and drove Apple’s stock higher.
Market Leaders Microsoft, Intel, and Visa Display Strength: Microsoft (MSFT), Intel (INTC), and Visa (V) also experienced gains during Friday’s trading session.
Intel held support at its 21-day exponential moving average after a brief breakout over a 33.84 buy point. Visa continued its upward trajectory, adding 1% to its value and maintaining its position within the buy range following a breakout from a 235.57 entry.
Inflation Data and Bond Yields Impact
The Commerce Department’s personal income and outlays report for May indicated that personal income rose 0.4%, meeting expectations. The personal consumption expenditures (PCE) price index, a measure of inflation, increased 0.1% month-on-month, in line with estimates.
However, the core PCE price index rose 0.3% month-on-month, slightly cooler than expected. These figures had a minor impact on bond yields, with the 10-year Treasury yield trading around 3.82% at midday, down 4 basis points from earlier in the day.
The Nasdaq composite saw a gain of over 1%, positioning it for its best first half since 1986. The Nasdaq 100 followed suit with a 1.5% increase, on track for its best first-half performance on record.
The market breadth on the Nasdaq favored winners over losers by a 3-2 margin. The S&P 500 also demonstrated strength, adding 1% to its value, propelled by notable performances from Carnival and Nvidia.
Visa’s breakout in the Dow Jones caught attention, while other breakout stocks emerged in the stock market. Tidewater and Gallagher showcased buy points worth considering.
In the MarketSmith Growth 250, technology stocks like Super Micro Computer, Aehr Test Systems, and Coherent exhibited outperformance during the early trading hours.
ASML, a top-performing chip-equipment stock in the IBD Leaderboard model portfolio, faced initial selling pressure due to the Dutch government’s announcement of export control measures for chipmaking equipment, aligning with similar measures introduced by the U.S. to restrict China’s access to advanced chip technology.
However, ASML managed to reverse losses and turn slightly positive. Meanwhile, Rambus continued its upward trajectory after joining the Leaderboard, poised for its fourth consecutive gain.
In conclusion, the stock market demonstrated resilience and positive momentum during the trading session, buoyed by a key inflation reading and corporate earnings news.
Apple led the Dow Jones with its impressive performance, propelling the company’s market capitalization above $3 trillion for the first time.
Microsoft, Intel, and Visa also showcased strength and contributed to the market’s gains. The Nasdaq composite and S&P 500 displayed notable strength, with the Nasdaq on track for its best first half since 1986.
Breakout stocks like Visa, Tidewater, and Gallagher offered promising buy points, while technology stocks showed resilience and outperformed during early trading. However, the market experienced some fluctuations due to the impact of inflation data on bond yields.
ASML faced initial selling pressure but managed to recover, while Rambus continued to gain momentum after joining the Leaderboard.
Overall, the market’s positive performance reflected investor optimism and resilience in the face of economic indicators.