Dow industrialists led a mixed revelation on Friday as the Nasdaq lagged behind after Labor Department’s inflation data in March exceeded expectations. IBD 50 stock Lovesac bolted higher and passed a buying point. The S&P 500 reached another record high. Honeywell today led both the S&P 500 and the Dow Jones, with the increase in analysts.
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The Dow Jones industrial average jumped 135 points at the opening clock, up 0.3%. The S&P 500 rose 0.2%, enough to hit 4,098 highs on Thursday. The Nasdaq Composite reduced its early stock market loss to 0.2% today, threatening its third loss for the week but up 2% since Monday.
Diversified manufacturer Honeywell (HON) climbed 2.1% to lead the Dow and the S&P 500. Boeing (BA) fell below the Dow, by 1.5% lower after reporting new electrical problems in its 737-Max aircraft.
Amazon.com (AMZN) shook off a short early loss and gained 0.5%, as Netflix (NFLX) lowered the other FANG shares. The first day of counting in the company’s employee poll in Alabama, found that ballots are 2-to-1 against union.
IBD 50 stock Lovesac (LOVE) rose 6% higher and jumped past a buying point after BTIG raised the stock’s price target to 77, from 62. The move sent the stock past a buying point at 66.10 and in a buying zone at 69 , 41 amounts.
Floor and decor (FND) also traded high on the IBD 50 list, which had previously risen more than 5%. The trader is just below a 108.74 buy point. IBD Leaderboard stock Boston Beer (SAM) rose 0.7% and rose in a buy range rising 1,298.50.
Shares in China were under early pressure, with JD.com (JD) en Baidu (BIDU) trades at the bottom of the Nasdaq 100. Sohu.com (SOHU) rose by 16%, with no immediate news to explain the move.
At the top of the Russell 2000 are some small biotechnologies, Cellularity (CELC) and Complaint (AFMD), achieved great benefits on the trial on the trial results. In earnings news, WD-40 (WDFC) dives more than 13%, after reporting its results.
March PPI Data Surges
Prices paid to producers rose by 4.2% year-on-year in March, the Labor Department reported. It was sharply above February’s tight increase of 2.8%, exceeding economists’ forecasts for a 3.8% rise. Rising yields from record lows in August, and corresponding concerns about inflation, have drawn increasing attention to the PPI and other inflation indicators.
Honeywell leads Dow Jones today
Honeywell gained a strong early lead over the Dow Jones today, rising 2.3% after JPMorgan raised its share price target to 250 from 200 and achieved its overweight rating. The note cites a strong outlook for the company over the next four years, commenting on the strength of its balance sheet and calling it ‘best in class’ and calling the diversified manufacturer the analyst’s best choice in the sector.
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In addition, Deutsche Bank upgraded Honeywell to buy late Thursday, with a 244 price target.
Honeywell is technically up to 227.64 in a buy range. Like many cycles that emerge from pandemic corrections, Honeywell shares have a weak composition of 12.
Goldman Sachs (GS) rose 0.8% and rose with a ten-week support decline. JMP Securities raised the bank’s price target to 400, from 338, and achieved its better performance rating. Goldman regained its exponential moving average of 21 days on Thursday, a positive development as it rises from its ten-week moving average.
Goldman stock remains up to about 345 in a buy range.
Overseas markets: inflation data hits China
Global market action was mixed on Friday, and China’s markets experienced a difficult day after official inflation data showed that factory prices were rising at their fastest pace in more than 2 1/2 years. The standards in Shanghai and Hong Kong fell by about 1%, and both fell lower this week. Tokyo’s Nikkei 225 scraped out a 0.2% lead and ended the week slightly lower.
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In Europe, market action in afternoon trading remained tight. The CAC-40 in Paris reached the region, with an increase of 0.2%. The benchmarks in London, Frankfurt and Paris traded higher for the holiday-shortened week.
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Crude oil prices, a key indicator of economic recovery, have been steady with West Texas Intermediate around $ 60 a barrel, where it has been trading since mid-March. Copper futures were also well-behaved, near $ 4.07 per pound, which was 0.4% lower on Friday and lower than February’s high of $ 4.30. Gold dropped to $ 1,735 per ounce. It rose about 0.5% this week, but it supported Thursday’s high of around $ 1,756.
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Bonds deteriorated after a three-day advance, giving the ten-year yield above 1.67%. Yields rose 1.63% Thursday, according to CBOE data, from Monday’s intraday high above 1.74%.
Bitcoin has risen more than 2%, to more than $ 58,000, according to CoinDesk. The crypto-currency climbed to a record high of $ 61,556 on March 13th. The rival crypto-currency Ethereum has risen nearly 3% to just over $ 2,000. Ethereum set a new high of more than $ 2,151 on Monday night.
Nasdaq ETFs Approach Points
The Nasdaq Composite rose 2.6% for the week to Thursday, closing the session 2.5% from the index’s record high from mid-February. The Nasdaq 100 is less than 1% of its record.
Among the Nasdaq 100 tracking ETFs, the Invesco QQQ Trust (QQQ) has risen 3.2% so far this week and ended less than 1% below a buy point of 338.29 on Thursday in an eight-week cup basis. ProShares UltraPro QQQ (TQQQ) had a gain of 9.9% for the week and closed at 111.96 a little over 6% below a buy point.
Dow Jones Today: A Strong Week for Apple, Microsoft
The Dow Jones is still facing a new high today, after rising 1.1% for the week to Thursday. This puts the benchmark on track for its third direct advance, which has risen 9.5% since the beginning of the year.
Apple en Microsoft (MSFT) led the Dow’s gains for the week, by 6% and 4.5% respectively. For Apple, the profit included a decisive recovery of support at its moving average of 50 days / ten weeks.
The stock stays deep in an 11-week base project. But the move above critical support, around 126, provided an early buying opportunity for aggressive investors. If you were to consider the listing as an actual buying point, shares would remain in a 5% buying zone up to about 132.30.
Microsoft, an IBD Leaderboard stock, broke Monday at a flat buying point at 246.23. It stays up to 258.54 in a buy range.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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