The Dow Jones Industrial Average rose as the stock market ended a three-week losing streak. You’re here (TSLA) surged as Elon Musk considered a new facility. Warren Buffett Stock HR (HR) jumped on the results. Apple (AAPL) moved closer to a key benchmark.
Volume was mixed, rising on the Nasdaq but slipping on the New York Stock Exchange according to early data.
The yield on the benchmark 10-year Treasury note edged up three basis points to 3.32%. West Texas Intermediate crude oil rose nearly 3% to over $86 a barrel.
Positive signs for the economy helped the market shake off hawkish noise from some senior Federal Reserve officials, according to Edward Moya, senior market analyst at Oanda.
“Economists are lowering their inflation forecasts slightly and that could mean the Fed won’t have to take rates above 4%,” he said in a note to clients. “Another round of hawkish rhetoric from the Fed’s Bullard and Waller failed to derail today’s stock market rally.”
Nasdaq leads as small caps shine
The Nasdaq fared the best of the major indexes with an increase of 2.1%. Cybersecurity stock Z-scale (SZ) was one of the top performers here, rising nearly 22% in earnings.
The S&P 500 also strengthened, rising 1.5% and climbing above its 50-day line. Dish Network (PLATE) impressed here as it rose 8.6%.
The S&P 500 sectors were all positive, with communication services, technology and energy the best winners. The defensive utilities sector has lagged.
Small caps shone, with the Russell 2000 ending the session up 2%.
The Innovator IBD 50 ETF (FFTY), an indicator for growth stocks, also impressed, up 1.9%.
Dow Jones Today: Apple Stock Gains as Salesforce Leads
Dow Jones Industrialists lagged other major indexes, but still rose nearly 400 points, or 1.2%.
Key component, Apple stock is approaching the key 50-day moving average after gaining 1.9%. It remains well short of a handful entry of 176.25.
Earlier this week, the company announced its iPhone 14 family of smartphones at a media event called “Far Out”.
Tesla stock gains as Elon Musk’s eyes move
Tesla stock was boosted by news that it was planning to build a lithium processing plant in Texas. The electric vehicle giant, led by Elon Musk, is studying a facility to refine lithium hydroxide on the Gulf Coast of Texas.
If the project is approved, Tesla says it could begin construction by the fourth quarter, with commercial production beginning by the end of 2024.
You’re here Stock formed a consolidation with a buy point of 402.73, according to MarketSmith Analysis. It remains far from its entry but jumped 3.6% for the day.
Adventurous investors may choose to use Friday’s rally in the 200-day line as an entry, although this is a very aggressive move.
Elon Musk also revealed in a tweet that he had “promising conversations” with iPhone giant Apple about using SpaceX’s Starlink system for connectivity.
Warren Buffett Stocks Pops on Earnings
RH, formerly known as Restoration Hardware, surged after its latest earnings report. It ended the session up 4.4%.
Warren Buffett is a fan of the furniture retailer, with his company Berkshire Hathaway (BRKB) currently holding more than 2 million shares.
The legendary investor has reason to smile after RH released an earnings report that beat Wall Street expectations. EPS of $8.08 was well above analysts’ views, while revenue of $992 million also beat.
It wasn’t all good news though, as the company said it expects third-quarter net revenue to be down 15% to 18%. Company CEO Gary Friedman said the economy is now in a recession.
“Anyone who thinks we’re not in a recession is crazy,” Friedman said on the conference call.
Outside of Dow Jones: New Leader Passes Entry
As the market rally gathers momentum once again, now is the time to look for actionable stocks.
Palo Alto Networks popped above a trendline entry near 560. It is also eyeing a higher buy point for a cup with handle at 578.89.
Food processing giant Archer-Daniels-Midland topped a cup-with-handle entry of 91.54, although it closed just below the entry. This is a third leg basis, which means gains from the next breakout may be limited.
The relative force line rose even as the stock formed its handle, a bullish sign. The stock is among the top 6% performing stocks in terms of price performance over the past 12 months, while earnings growth has also been strong. Analysts see profits soar 31% in 2022, according to Data from MarketSmith.
Burger King parent Restaurant Brands tested a cup buy point with handle of 61.19, pennies close to pass entry. It closed within reach, so that’s one to watch.
The restaurant chain is among the top 11% of stocks by price performance over the past 12 months. It holds a strong composite rating of 95.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more growth stock analysis.
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