Stocks diverged at the starting bell, then gained strength Friday, as a steep miss in April jobs data sent tech stocks sharply higher. Miners advanced, as strong data from China helped boost copper prices to a new record high. Earnings winners Roku and Spectrum Brands saw little effect from the payrolls miss. Meanwhile, Nike jumped to the top of the Dow Jones today, retaking a key level of technical support.
XThe Nasdaq Composite swept up 1.3% early Friday, extending its rebound from the 50-day line. The S&P 500 climbed 0.75% on the stock market today. The Dow Jones Industrial Average shook off an brief, early loss and gained 0.4%. Both the Dow and the S&P 500 clocked new record highs.
The Labor Department reported non-farm employers added 266,000 new workers in April, sharply below March's 916,000 hirings and fraction of the 938,000 new positions projected by economists. The unemployment rate ticked higher, to 6.1%, up from 6.0% in March and disappointing estimates for a decline to 5.8%.
Expedia (EXPE) muscled to the top of both the Nasdaq 100 and the S&P 500, up 5.9% as a handful of analysts scrambled to raised their price targets after the company reported strong first-quarter results late Thursday. The highest target, from Wells Fargo, was at 235.
Microchip Technology (MCHP) swung up 2.3%. Both Morgan Stanley and Mizuho raised their price targets on the stock after fiscal fourth-quarter earnings came in well above forecasts, and management hoisted its first-quarter earnings guidance more than expected.
DraftKings (DKNG) cooled its premarket rally, rising 0.6% in opening trade as investors dug in after what appeared to be a strong revenue beat for the company's first quarter. DraftKings stock currently has no valid buy points, but is testing support at its 200-day moving average.
IBD 50 stocks Cloudflare (NET) and Square (SQ) rallied on earnings. Among the top stocks to buy and watch, Deere (DE) and CF Industries (CF) are in or near new buy zones.
Ore miners were also stocks to watch early Friday, as copper prices jumped almost 3%, after taking a 2% leap on Thursday. Copper futures on Friday traded at $4.72 a pound — a record high — up 34% for the year and 3% above the commodity's prior record from January 2011.
Miners Alcoa (AA) and Rio Tinto (RIO) rose around 1% each. IBD Global Leader Rio is in a buy range, above a cup-with-handle buy point at 88.38.
IBD Leaderboard listing Teck Resources (TECK) gained 1.3%. Teck is just beyond a buy range above a cup-with-handle base buy point at 22.90.
Nike Leads Dow Jones Today
Nike (NKE) led the early action on the Dow Jones today, surging 3.4% after holding its quarterly dividend steady at 27.5 cents. The stock currently yields about 0.8%.
The early move sent Nike shares back above their 50-day moving average for the first time since March. The decisive move, in very heavy trade, marked a bullish change of direction in the stock's four-month consolidation.
Salesforce rose 1.8%, Apple notched a 1.3% gain. Apple is aiming to extend its rebound from 50-day support to a third day, and sits below a 135.63 buy point in a cup-with-handle base.
Earnings News: Square, Spectrum Brands
Bill.com Holdings (BILL) was an early leader, sparking 15% higher after its fiscal third-quarter report. GoPro (GPRO) and Roku (ROKU) each jumped more than 8% after delivering results.
Square earnings boomed, sending shares 2.4% higher in premarket trade. Both revenue and earnings easily beat views, but the digital payments leader said fading stimulus cash will slow CashApp growth. Square (SQ) stock fell 3.4% on Thursday, falling further below the 50-day line. SQ stock came close to breaking out on April 14 but has reversed sharply lower since then. Square is also an IBD an Leaderboard listing.
Cloudflare punched 6.6% higher. Its small adjusted loss was in line with views, while revenue and sales outlook were strong. NET stock plunged nearly 13% on Thursday to 69.07, diving below its 50-day line. Friday's move lifted shares back above that line of support, but left them still short of their 21-day line.
Spectrum Brands Holdings (SPB) popped 3.8% in early action. The diversified manufacturer's fiscal second-quarter earnings soared past estimates, and management adjusted full-year guidance above expectations. The move set Spectrum up for an early breakout past a 92.22 buy point, in a buy range that runs to 96.83.
On the downside, Monster Beverage (MNST) fell to the bottom of both the Nasdaq 100 and the S&P 500, down 5.3% after reporting an earnings miss. The company also warned of an industrywide shortage of aluminum cans.
Dow Jones Today Eyes Another Record High
The Dow Jones industrials head into Friday's session up 2% for the week, trading at fresh highs and with a year-to-date gain of 12.9%. Meanwhile, the S&P 500 managed a 0.5% advance for the week through Thursday, and is up 11.8% since Dec. 31.
The Dow has a four-day rally under its belt. Both the Dow and the S&P 500 appear to be riding firm support at their 21-day moving averages.
For more detailed analysis of the current stock market and its status, study the Big Picture.
At the same time, the Nasdaq Composite snapped a four-day losing streak on Thursday, showing some support at its 50-day moving average. The index is down 2.4% for the week and tracking toward its third-straight weekly loss. The index has a 5.1% gain for the year.
Even with the Dow Jones today sitting at new highs, and the S&P 500 nearby, the market's recently shifty behavior leaves its status at "uptrend under pressure."
That suggests investors should be more selective with stock purchases while the market negotiates this rough spot," according to Wednesday's Big Picture article. "Taking some profits to raise cash is another smart move."
2021 Top Performers: Nasdaq vs. Dow
Nike and Apple (AAPL) are two of the weakest performers among Dow Industrials so far this year. Nike has dropped 5.6%. Apple has a 2.2% loss.
Apple stock deteriorated over the past two weeks. Nike is working on a second-straight weekly gain, advancing since an April 21 bounce off its 200-day line.
Goldman Sachs (GS) holds the upside title on the Dow Jones today, up more than 38% on the year. The IBD SwingTrader stock is in a buy range above a cup-base buy point at 356.95. The buy range runs to 374.80.
Goldman shares are extended, up 9.3% from the SwingTrader buy point at 334.90, plotted at the rebound from 50-day support.
Among the Nasdaq's best performers so far this year, Applied Materials (AMAT) is looking for some volume support as it attempts to rebound from its 50-day/10-week moving average. The chip equipment maker is up 52.6% since Dec. 31.
Walgreens Boots Alliance (WBA), a top performer on both the Nasdaq and the Dow industrials, has a year-to-date gain of 36.6%. It is also rebounding from 10-week support.
Another Nasdaq leader, Alphabet (GOOGL) is in a buy range, just above a three-weeks-tight buy point at 2,306.22. The IBD Leaderboard listing, up 33.4% so far this year, is also seeing some rising volume in a two-day rebound from support at its 21-day exponential moving average.
Another Nasdaq leader, also a chip equipment maker, is Lam Research (LRCX). The stock is attempting a rebound from 10-week support. It is also about 8% below what MarketSmith chart analysis plots as a 669.10 buy point in an ascending base begun in January.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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