The Nasdaq Composite fell 0.6%, as quarterly results were sent Starbucks (SBUX), and Amazon.com (AMZN) at the bottom of the Nasdaq 100. The S&P 500 traded down 0.3%. The Dow Jones Industrial Average defended a fractional gain because chenille (CAT) increased by more than 2%, following an upgrade to buy from UBS.
IBD 50 actions Atlassian (TEAM) led the Nasdaq, rallying more than 13% after posting strong profits and income gains for its first fiscal quarter. A rebound from support to the stock’s 10-week moving average puts Atlassian in a buy zone at 423.89.
Of the other companies that reported Thursday evening, American steel (X) climbed 14%. On the decline, Zendesk (ZEN) plunged nearly 20% and Western digital (WDC) fell more than 11%. Also on the injured list, Werner Enterprises (WERN) fell 76%, while Starbucks lost 7.5%.
The first reports on Friday’s results have been lifted AdvanSix (ASIX) 7,6%, Hunter (HUN) 3.3% et AbbVie (ABBV) 2.1%. VeriSign (VRSN) and WW Grainger (GWW) topped the S&P 500, up 5.8% and 4.6%, respectively, on earnings beats.
Facebook (FB), which is rebranded as Meta Platforms, rose 2.4 %% at the start of trading. The company’s ticker is expected to become MVRS on December 1, when the company’s name change also becomes official.
IBD Ranking Stock Dutch brothers (BROS) jumped 3.3%, placing it nearly 15% above a buy point of 62.10 on a three-week IPO basis. Peer Ranking Tesla (TSLA) gained 0.3%, aiming to extend its lead to 11 days. The stock is extended, after erasing a 38-week base last week.
Dow Jones Today: Chevron Rallies, Apple Slips
Chevron (CVX) jumped 1.6% on the Dow Jones today, as high oil prices drove strong third-quarter earnings and revenue gains. The initial gain allowed Chevron to break above a buy point at 113.21, in what IBD MarketSmith analysis plots as a 23-week cut base.
Apple fell behind on the other end of the Dow Jones, down 4% after posting mixed fourth-quarter financial results on Thursday night. A 70% increase in profits just hit analysts’ target. Sales rose 29%, stopping below expectations.
Apple stock topped the broader market in October, posting a 7.8% increase on Thursday since the start of the month. This places it nicely on the right side of an eight week cup base with a buy point of 157.36. Friday’s early pullback sent stocks to retest support at the stock’s 50-day / 10-week moving average.
Inflation data and vital signs: oil, bond yields, Bitcoin
The markets received readings of several indicators of inflation and consumer spending. The employment cost index of the Ministry of Labor jumped 1.3% for the third quarter, against an increase of 0.7% in the second quarter and exceeding economists’ forecasts for a gain of 0.9% . Year over year, the gauge rose 3.7% – up from 2.9% in the second quarter and more than double economists’ estimates.
September data on personal spending and consumer prices from the Commerce Department were mixed. Personal income plunged 1%, against a 0.2% gain in August and against expectations of a 0.1% drop. Personal spending rose 0.6%, slower than in August, but above projections.
Prices rose 0.3%, just below estimates, while base prices rose 0.2%, as expected.
Oil prices continued to decline, with West Texas Intermediate futures down 0.6% and close to $ 82 a barrel. Oil climbed more than 10% in October, but is heading for its first weekly decline in 10 weeks. Bond yields rose, taking the 10-year Treasury yield 3 basis points to 1.61%. The yield started in October at just under 1.53%, after hitting a March year high above 1.76%.
Bitcoin traded flat on Friday morning, holding above $ 61,000, according to CoinDesk. The cryptocurrency rebounded nearly 37% in October.
Stock ETF strategy and how to invest in the current uptrend
Stocks to watch: Ford, ArcBest, STMicro, Cleveland Cliffs
ArcBest (ARCB) plunged 0.2% at the start of trading on Friday. The stock ended Thursday in a buy range above a buy point of 91.43 in a cup base with handle. The buy zone extends to 96.
Ford engine (F) is also in a buy zone, until 17.38. The stock is heading into the seventh week of a rally pointing it to a gain above 19% for October. Ford stock gained a fraction early Friday.
STMicroelectronics (STM) erupted Thursday after a buy point of 47.48 on a five-week flat basis. The buy range extends to 49.85. Shares fell 3% on Friday morning, leaving them below the entry.
7.6% increase Thursday sent Service Corp. International (SCI) after an entry of 65.83 in a 10 week flat basis. The shares remained in the base buy range, which stands at 69.12.
Cleveland Cliffs (CLF) added 1.1% in early trade, seeking to stem a two-day pullback. Stocks rose to just below a buy point of 26.61 on a 10 week basis on Tuesday. The steelmaker was IBD’s action of the day on October 22.
Nasdaq, S&P 500 and Dow Jones today: a solid October
As the last trading day in October approaches, the major indices are sitting on their best gains for the month since 2015. Heading into the fourth week of its rebound, the Nasdaq Composite posted a gain of 6.9% until now for October. The index hit a new high on Thursday, after two days of fighting resistance. Friday’s action will be a test to show if the Nasdaq is ready to break through this resistance, or if it has more consolidation ahead.
Alongside the Nasdaq, the Invesco QQQ Trust (QQQ) is breaking out and is in a buy range above a buy point of 382.88.
The S&P 500 is ahead 6.7%, and is also riding a four-week rally, while finding some support at its previous high in early September. In addition, the SPDR S&P 500 ETF Trust (SPY) is also appearing, in a higher buy range than what IBD MarketSmith analysis presents as an entry of 454.15 in a six week cut base.
For a more detailed analysis of the current stock market and its state, study the big picture.
Early market action is steering the Dow Jones today into yet another test of support to its short-term 10-day moving average. A four-week rally left the index sitting on a 5.6% gain for October. The Dow Jones ended Thursday within 1% of its Tuesday high, although Wednesday’s action pulled the index below previous highs set in August.
Action on major benchmarks dovetails perfectly with the market’s confirmed uptrend status. The Nasdaq’s showdown with the resistance raises a flag of moderate caution.
Investors should also note reversals and saw moves among some leading stocks. Breakouts are still valid targets, but remember to cut losses when stocks aren’t performing well, take at least some profit when possible, and keep an eye out for possible consolidation.
You can find Alan R. Elliott on Twitter @IBD_Aelliott
YOU MAY ALSO LIKE:
Want to get quick profits and avoid big losses? Try SwingTrader
Best growth stocks to buy and watch
IBD Digital: Unlock premium stock listings, tools and analytics from IBD today