Stocks jumped into early gains on Friday, as the Dow and S&P 500 aimed to expand rebounds from support, and the Nasdaq narrowly backtracked above 13,000. JD.com jumped to lead the Nasdaq 100 on a fleeting morning on China-based issues. A recovering Nike led the Dow Jones today, even as China reinforced its response to corporate pressures on labor practices in Xinjiang.
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The Dow industrials posted a quick gain of 110 points, 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 doubled his administration’s vaccination target for the first 100 days at his first press conference on Thursday, while praising a decline in jobless claims and economists projecting 6% GDP growth for the US economy.
JD.com (JD) rose 3.3% and led the Nasdaq 100. China-based US trading had gone wild after the Securities Exchange Commission said on Wednesday it had begun an attempt to require Chinese companies to allow the US regulator Review their financial audits. Companies that prevent such a review for a three-year period will be subject to NYSE or Nasdaq deletion, under new rules passed by Congress in December.
Problems with energy, travel and materials were high on the S&P 500. At the top of the S&P 500 was Victoria’s Secret parent company Limited brands (LB) jumped 6.8% after boosting its fiscal forecast for the first quarter. Steelmaker Nucor (NUE) was up 5.8% and peaked to a new high.
In terms of revenue, security software provider Too loose (TLS) shot up 22% after reporting quarterly results. Aspira Womens Health (AWH) was up more than 8%. The low-priced shares are trading below a buying point of 9.27 in a handle cup.
On the other hand, biotech in Salt Lake City Co-diagnostics (CODX) was down more than 12%. Leader of charging stations for electric vehicles Blinking Charging (BLNK) shook off premarket losses, gaining 0.8% on earnings news.
On The Radar: Elite Education, VipShop, ArcelorMittal
On the IBD 50 list, VipShop Holdings (VIPS) jumped 6% and cut back a small portion of the week’s heavy losses. Taiwan Semiconductor (TSM) gained 2% as it appears to stop a six-week admission.
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 the 10-week moving average.
IBD Leaderboard stock ArcelorMittal (MT) jumped 4.6% and left the buying range above a 25.86 cup-base buy point. The stocks have struggled to keep their breakthrough and to hold support on their 21-day line. The buying range runs to 27.15.
Elite Education Group International (EEIQ) is a stock to watch on Friday, opening 587% higher on the second trading day. The Ohio-based company “facilitates study-abroad and post-study services for Chinese students in the US,” according to the Dayton Business Journal. The stock was listed on Thursday 8 and closed at 4 a.m. on the first trading day.
Dow Jones Today: Nike, Banks Lead
Nike (NKE) rose 2.8%, leading the advantage on the Dow Jones today. Baird improved the stock to outperform after being stable at neutral for the past two years. The price target remained unchanged at 150, and the note predicted that current supply chain and Chinese market concerns were temporary.
The Chinese state media launched a boycott threat against several companies, including Nike and Sweden H&M (HNNMY), which halted the purchase of cotton from China’s Xinjiang region. Multiple studies have found evidence of state-run concentration camps and forced labor among the region’s Uyghur minority. The Chinese state and media sources on Thursday threatened a boycott in the country that generates 19% of Nike revenues.
The Nike stock fell a whopping 6% on Thursday and recovered to a loss of 3.4% at the close. The card damage broke a basic effort in progress and stopped just before a test of support on the 200-day line.
Stock Market ETF Strategy and How to Invest in Current Upward Trend
JPMorgan Chase (JPM) and Goldman Sachs (GS) are up more than 1% each and traded high on the Dow Jones today. The Federal Reserve announced on Thursday that large financial companies could begin buybacks and dividend hikes starting June 30, having passed the latest round of stress tests. Earlier, the Fed had said those higher shareholder returns could start in the first quarter.
Both stocks have been expanded. Goldman Sachs is working towards its fifth consecutive monthly profit. JPMorgan is building on its sixth consecutive monthly advance.
Market Vital Signs: Bonds, Bitcoin, Oil
Stock markets in Asia recovered on Friday and ended the week on a positive note as global markets reacted in part to the Fed’s updated banking rules and positive comments from President Biden on Thursday. Benchmarks in Europe traded slightly higher during the afternoon action, with the FTSE 100 in London and the German DAX each showing gains of more than 0.7%.
Bonds extended Thursday’s recovery, with 10-year Treasury yields up another 3 basis points to 1.66%. Revenues have risen rapidly from the pandemic’s record lows of 0.50% in August. They approached pre-pandemic levels late last week and climbed above 1.75% – the highest level since January 2020. Revenues had started at about 1.8% in 2020, down from about 2.7% a year earlier .
Cryptocurrency shares rallied as Bitcoin moved above USD 53,000, after falling below USD 51,000 on Thursday, according to CoinDesk. The cryptocurrency climbed to a record high of $ 61,556 on March 13.
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Oil prices continued to rise wildly and rose sharply at the beginning of Friday. Markets grappled with a global oil supply chain that was cut off by a cargo ship that ran aground blocking the mouth of Egypt’s busy Suez Canal, the daily routing of 10% of the world’s oil supply by sea. West Texas Intermediate jumped 2.3% to just under $ 60 a barrel. At the end of trading on Thursday, the WTI fell 4.7% this week, following a third weekly decline.
Personal income, lower expenses; The trade deficit is increasing
Personal income plunged 7.1% in February, the Commerce Department reported, slowing from the 10.1% plunge in January and slightly ahead of forecasts for a 7.2% decline. Consumer spending fell 1%, more than the 0.7% decline predicted by economists, reversing a 3.4% increase in January.
The US trade deficit reached $ 86.7 billion in February, from $ 83.7 billion in January. Imports fell 1.4%, exports fell 3.8% during the month. US retail inventories were stable this month, while wholesale inventory growth slowed to 0.5%, versus an increase of 1.4% in January.
Dow Jones Today: A Weekly Profit or Loss?
Futures action suggests the Dow Jones continues to hold the market high today, following a rebound in support at its 21-day exponential moving average on Thursday. The Dow ended Thursday’s session so far with a fractional loss for the week. The S&P 500 was also slightly lower, after a quick jump from its 50-day line. Meanwhile, the Nasdaq had lost 1.8% in a drop below key support levels and just below the 13,000 level.
A 2.3% gain by the Russell 2000 on Thursday narrowed the index’s loss for the week to 4.6%. IBD lowered its market outlook on Wednesday to move up under pressure after Monday’s Big Picture article underlined that the stock market’s upward trend remained delicate.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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