The stock jumped to early gains on Friday, with the Dow and S&P 500 aiming to extend rebounds from support, and the Nasdaq barely rising back above the 13,000 mark. JD.com jumped to lead the Nasdaq 100 on a volatile morning for China-based issues. A recovering Nike led the Dow Jones today, even as China broadened its response to corporate pressure on labor practices in Xinjiang.
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Dow industrialists made a quick gain of 110 points, being traded 0.4% more in the stock market today. The S&P 500 also jumped 0.4%, while the Nasdaq Composite accelerated to a 0.5% advance. President Biden, at his first press conference on Thursday, doubled his government’s vaccination target in the first 100 days, while announcing a decline in unemployment claims and economists’ predictions of growth in the GDP of 6% for the US economy.
JD.com (JD) rose 3.3%, leading the Nasdaq 100. China-based emissions trading in the U.S. went wild after the Securities Exchange Commission said on Wednesday that it started an effort by requiring Chinese companies to allow the regulator the US to review its financial audits. Companies that prevent such a review over a three-year period are subject to exclusion from the NYSE or Nasdaq, according to the new rules approved by Congress in December.
The problems of energy, travel and materials occupied a prominent place in the S&P 500. On top of the S&P 500, Victoria’s Secret’s parent company Limited Brands (LB) jumped 6.8% after increasing its fiscal guidance for the first quarter. Steel Nucor (NUE) rose 5.8%, reaching a new high.
In terms of earnings, security software vendor Telos (TLS) soared 22% after reporting quarterly results. Aspira Women’s Health (AWH) rose more than 8%. The low-priced stock is trading below a 9.27 buying point on a cup base with cable.
On the negative side, Salt Lake City-based biotechnology Co-Diagnosis (CODX) fell by more than 12%. Leader of the electric vehicle charging station Blink Charging (BLNK) got rid of pre-market losses and gained 0.8% with news of profits.
On the radar: Elite Education, VipShop, ArcelorMittal
In the IBD 50 list, VipShop Holdings (VIPS) jumped 6%, recovering a small part of the week’s heavy losses. Taiwan Semiconductor (TSM) gained 2%, as it appears to prevent a six-week reduction.
Also on the IBD 50 list, a gold miner Sibanye Stillwater (SBSW) rose 2.3%, putting the shares in a buying range in a rebound from its 10-week moving average.
IBD Leaderboard Stock ArcelorMittal (MT) jumped 4.6%, leaving the purchase range above a point of purchase based on a 25.86 cup. The shares have struggled to maintain their breakdown, as well as maintain support on their 21-day line. The purchase range is up to 27.15.
Elite Education Group International (EEIQ) is a stock to be observed on Friday, opening 587% higher on its second trading day. 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 stock was quoted at 8 on Thursday and closed at 4 on the first trading day.
Dow Jones Today: Nike, leader of banks
Nike (NKE) increased 2.8%, leading the rise in the Dow Jones today. Baird raised the stock to a better performance, after remaining stable in neutral for the past two years. The target price remained unchanged at 150, and the note projected that current concerns about the supply chain and the Chinese market were temporary.
Chinese state media launched a threat to boycott several companies, including Nike and Sweden H&M (HNNMY), which stopped buying cotton from the Xinjiang region in China. Several investigations have found evidence of state-run concentration camps and forced labor among the region’s Uighur minority. Media sources and the state of China threatened on Thursday with a boycott in the country that generates 19% of Nike’s revenue.
Nike’s shares fell up to 6% on Thursday, recovering to a 3.4% loss at the close. The graphical damage fractured an ongoing grassroots effort, stopping just before a support test on its 200-day line.
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JPMorgan Chase (JPM) and Goldman Sachs (GS) each rose more than 1%, trading higher on the Dow Jones today. The Federal Reserve announced on Thursday that major financial companies could start repurchasing and increasing dividends from June 30, after going through the last round of stress tests. Previously, the Fed had said that higher returns to shareholders could start in the first quarter.
Both stocks are extended. Goldman Sachs is working on its fifth consecutive monthly gain. JPMorgan is building its sixth consecutive monthly advance.
Vital signs of the market: bonds, bitcoin, oil
Asian stock markets rebounded 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. The benchmarks in Europe traded moderately higher in the afternoon’s stock, with the FTSE 100 in London and the DAX in Germany, each showing gains of more than 0.7%.
The bonds extended Thursday’s recovery, with the 10-year Treasury yield rising another 3 basis points to 1.66%. Yields increased rapidly compared to the pandemic record low of around 0.50% in August. They approached pre-pandemic levels at the end of last week, rising above 1.75% – the highest level since January 2020. Yields started in 2020 at around 1.8%, which was around 2 , 7% a year earlier.
Cryptocurrency stocks have soared, with Bitcoin rising above $ 53,000, after dropping to less than $ 51,000 on Thursday, according to CoinDesk. The cryptocurrency reached a record high of $ 61,556 on March 13.
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Oil prices continued to rise wildly, rising sharply early Friday. The markets faced a global oil supply chain trapped by a stranded cargo ship and blocking the mouth of Egypt’s bustling Suez Canal, the daily channel of 10% of the world’s oil supply by sea. The West Texas Intermediate jumped 2.3% to just under $ 60 a barrel. At the end of Thursday’s trading session, WTI fell 4.7% for the week, moving towards a third weekly decline.
Dow Jones today: a weekly gain or loss?
The futures stock suggests that the Dow Jones today continues to hold the high ground in the market, following a rebound in support at its 21-day exponential moving average on Thursday. The Dow Jones ended Thursday’s session with a fractional loss so far for the week. The S&P 500 also fell narrowly, after a rapid jump in its 50-day line. Meanwhile, the Nasdaq had dropped 1.8% in a drop below key support levels and holding just below the 13,000 level.
A 2.3% gain from Russell 2000 on Thursday narrowed the index’s loss for the week to 4.6%. The IBD downgraded its market outlook on Wednesday to an upward trend under pressure, after Monday’s Big Picture article pointed out that the upward trend in the stock market remained delicate.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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