The Dow Jones, S&P 500 and the Nasdaq compound traded in a narrow intraday range again on Friday, but buyers entered the market at the end of the session. Disney shares were the first to gain in the Dow Jones after reporting profits, but the shares reversed downward. Semiconductor stocks like Applied Materials (AMAT), Intel (INTC), Marvell Technology (MRVL) and Lam Research (LRCX) outperformed the Nasdaq 100 again.
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Peloton (PTON) was another strong winner in the Nasdaq 100, up almost 6%. He recovered well from his 50-day moving average at a higher volume.
Winners included HubSpot (HUBS) and 2U (TWOU). HubSpot, a CRM software developer, reported fourth quarter earnings and revenues well above analysts’ expectations and increased guidance for the first quarter. HUBS ‘shares rose powerfully in a six-week consolidation.
Overview of the US stock market today |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain / Loss | % Change |
| Dow Jones | (0DJIA) | 31458.99 | +28.29 | +0.09 |
| S&P 500 | (0S and P5) | 3934.99 | +18.61 | +0.48 |
| Nasdaq | (0NDQC) | 14095.47 | +69.70 | +0.50 |
| Russell 2000 | (IWM) | 227.23 | +0.61 | +0.27 |
| IBD 50 | (FFTY) | 49.18 | +0.61 | +1.26 |
Last updated: 4:22 PM ET 12/02/2021 |
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2U, a Maryland-based cloud-based software provider for online education, was also left open. Going into Friday, I was near the top of the buy zone with a buy point of 46.80. The stock closed the week at 55.55, up 13%.
But the news was not all good about earnings, as the best-listed software stocks, like Cloudflare (INTERNET), Black line (Mild Datadog (DDOG) took heat. Cloudflare fell and lost almost 6%, but recovered from casualties. BlackLine also fell sharply and ended close to session lows, well at its 50-day moving average. Datadog also recovered casualties, ending above 111.59.
Marijuana stocks, which were defeated on Thursday, rebounded on Friday, but dampened initial gains. Tilray (TLRY) fell by almost 10%; Aphria (APHA) rose 0.4% and Marquise Growth (CGC) returned 0.8%.
Dow Jones Today
Dow Jones industrialists rose 0.1%, with the Nasdaq compound and the S&P 500 up 0.5% each. Preliminary data showed volume on the NYSE and Nasdaq less than on Thursday.
The Nasdaq compound is holding steady close to the 14,000 level, but it is definitely looking extended from its 50-day moving average. Meanwhile, several important growth actions ExOne (XONE), EXP World (EXPI) and Futu (FUTU) have shown superior action. This increases the likelihood of a retracement, although the fact that the indices continue to trade strongly near highs is a sign of strength and support.
The Nasdaq is 7.6% above its 50-day moving average, but the index was almost 12% above its 50-day line before a sharp retraction in early September.
On the positive side, the index shows only one day of distribution, according to The Big Picture.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose another 1.3%, ending with a weekly gain of 5.5%. This is in the wake of an 8.1% gain the previous week. Fourteen stocks on the IBD 50 index of the top growth stocks rose at least 2% on Friday. The best performances were Chegg (CHGG), 360 DigiTech (QFIN), TechTarget (TTC) and PayPal (PYPL).
The innovative IBD Breakout Opportunities ETF (BOUT) added 0.3%, good for its ninth win in 10 sessions. It rose 2% in the week, after rising 9% last week. IShares Expanded Tech-Software Sector ETF (IGV) rose 0.6%, and VanEck Vectors Semiconductor ETF (SMH) rose 1% to another new high. It jumped 8% in the week.
Dow Jones Movers
Walt Disney (DIS) reversed from a 1.5% intraday gain to a 1.7% loss at the close. The company said it now has nearly 95 million paid subscribers to its Disney + streaming service and more than 146 million subscribers to all of its other streaming services, including Hulu and ESPN +.
Disney shares moved out of a flat base on Monday, freeing up a buying point of 183.50. Despite Friday’s sales, Disney ended the week above the buying point and still in the buying range.
The biggest Dow Jones winners included today Intel (INTC), American Express (AXP), JP Morgan (JPM) and Goldman Sachs (GS). The financial sector outperformed, helped by rising earnings. The 10-year Treasury yield totaled 4 points, to 1.20%, the highest level since March.
Outside of Dow Jones, some long-term IBD leaders performed well. Veeva Systems (VEEV) added almost 3% to 318.09. It is still being traded near a 314.09 entry. Thermo Fisher Scientific (TMO) rose sharply above the 500 level, after finding support in its 50-day moving average on Thursday. This puts a new 526.69 point of purchase at stake.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insights.
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