The Dow Jones, S&P 500 and Nasdaq compos traded in a tight intraday range again on Friday, but buyers entered the market late in the session. Disney shares were an early gain in the Dow Jones after reporting its earnings, but the stock reversed lower. Semiconductor stocks such as Applied materials (AMAT), Intel (INTC), Marvell Technology (MRVL) and Lamb research (LRCX) again performed better in the Nasdaq 100.
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Peloton (PTON) was another strong gain in the Nasdaq 100, by almost 6%. It jumped off its higher moving average of 50 days well.
Earnings winners included HubSpot (HUBS) and 2U (TWO). HubSpot, a CRM software developer, reported earnings and revenue in the fourth quarter well above analyst expectations and increased its lead in the first quarter. HUBS shares have risen sharply from a six-week consolidation.
US stock market overview today |
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|---|---|---|---|---|
| Index | Symbol | Price | Profit / loss | % Change |
| Dow jones | (0DJIA) | 31458.99 | +28.29 | +0.09 |
| S&P 500 | (0S & 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: 16:22 ET 2/12/2021 |
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2U, a provider of cloud-based online education software in Maryland, has also emerged. As of Friday, it was near the top of the buying zone from a buying point of 46.80. Shares closed at 55.55 this week, up 13%.
But the news was not all good on the earnings front, as software stocks were rated with the best Cloudflare (ONLY), Swartlyn (BL) and Datadog (DDOG) got heat. Cloudflare fell and lost almost 6%, but it rose lower. BlackLine also fell sharply, ending near the lowest sessions, at its 50-day moving average. Datadog also hit lows and finished above a 111.59 entry.
Marijuana stocks, which plummeted Thursday, recovered early Friday, but early gains faded. Tilray (TLRY) dropped almost 10%; Africa (APHA) increased by 0.4% and Cap Growth (CGC) returned 0.8%.
Dow Jones Today
The Dow Jones industrial average rose 0.1%, with the Nasdaq Composition and S&P 500 up 0.5% each. Preliminary data showed the volume on the NYSE and Nasdaq lower than Thursday.
The Nasdaq composition sticks to the 14,000 level, but it certainly looks extended from its 50-day moving average. Meanwhile, several top-growth stocks ExOne (XONE), EXP World (EXPI) and Futu (FUTU) showed the best action. This increases the likelihood of a downturn, although the fact that indices are still trading near the highs is a sign of strength and support.
The Nasdaq is 7.6% above its 50-day moving average, but the index was nearly 12% above its 50-day line just before a hard setback in early September.
The advantage is that according to The Big Picture, the index only shows one day of distribution.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) climbed another 1.3% and ended with a weekly gain of 5.5%. This is on the heels of a rise of 8.1% the previous week. Fourteen shares in the IBD 50 index of leading growth stocks rose by at least 2% on Friday. The best performers were Chegg (CHGG), 360 DigiTech (QFIN), TechTarget (TTC) and PayPal (PYPL).
The Innovator IBD Breakout Opportunities ETF (BOUT) added 0.3%, good for its ninth gain in ten sessions. It rose 2% for the week after rising 9% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.6%, and the VanEck Vectors Semiconductor ETF (SMH) reached 1% to a new high. It jumped 8% this week.
Dow Jones Movers
Walt Disney (DIS) reversed from an intraday gain of 1.5% to a loss of 1.7% at the end. The company said it now has nearly 95 million paid subscribers on its Disney + streaming service and more than 146 million total paid subscribers in all its other streaming services, including Hulu and ESPN +.
Disney shares jumped from a flat base on Monday, clearing a 183.50 buy point. Despite Friday’s sale, Disney ended the week above the buying point and still in the buying range.
Top winners in the Dow Jones today included Intel (INTC), American Express (AXP), JPMorgan (JPM) and Goldman Sachs (GS). Finances perform better, aided by rising returns. The ten-year treasury yield added 4 points to 1.20%, the highest level since March.
Outside the Dow Jones, some IBD long-term leaders have performed well. Veeva Systems (VEEV) added almost 3% to 318.09. It is still trading close to a 314.09 entry. Thermo Fisher Scientific (TMO) rose sharply above the 500 level after finding support on Thursday on its 50-day moving average. This introduces a new buying point of 526.69 in the game.
Follow Ken Shreve on Twitter @IBD_KShreve for more stock market analysis and insight.
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