The Dow Jones Industrial Average charged higher as the stock market held near session highs. Tesla (TSLA) jumped as Elon Musk eyes a new facility. Warren Buffett stock RH (RH) surged on results. Apple (AAPL) closed in on a key benchmark.
Volume was mixed, running higher on the Nasdaq but slipping on the New York Stock Exchange vs. the same time Thursday.
The yield on the benchmark 10-year Treasury note edged two basis points higher to 3.31%. West Texas Intermediate crude oil rose nearly 4% to almost $87 per barrel.
Positive signs for the economy helped the market shake off hawkish noises from some senior Federal Reserve officials, according to Oanda senior market analyst Edward Moya.
“Economists are slightly lowering their inflation forecasts and that could mean the Fed won’t have to take rates above 4%,” he said in a note to clients. “Another round of hawkish speak from both the Fed’s Bullard and Waller was not able to derail today’s stock market rally.”
Nasdaq Leads As Small Caps Shine
The Nasdaq was faring best out of the major indexes as it rose around 2%. Cybersecurity stock Zscaler (ZS) was a top performer here, rocketing nearly 20% on earnings.
The S&P 500 also muscled higher, popping 1.5% and rising back above its 50-day line. Dish Network (DISH) impressed here as it rose more than 7%.
The S&P 500 sectors were all positive, with communication services, technology and energy the best gainers. The defensive utilities area lagged.
Small caps shined, with the Russell 2000 up nearly 2%. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, also impressed, rising 1.6%.
Dow Jones Today: Apple Stock Gains As Salesforce Leads
The Dow Jones industrials lagged the other major indexes but still rose about 400 points, or 1.3%.
Apple stock is closing in on the key 50-day moving average after gaining nearly 2%. It remains well shy of a handle entry of 176.25.
Earlier this week, the company announced its iPhone 14 smartphone family at a media event titled “Far Out.”
Tesla Stock Gains As Elon Musk Eyes Move
Tesla stock got a boost on the news it is considering building a lithium processing facility in Texas. The electric-vehicle giant, which is led by Elon Musk, is looking into a facility to refine lithium hydroxide on the Gulf Coast of Texas.
If the project is approved, Tesla says it could start construction by the fourth quarter, with commercial production beginning by the end of 2024.
Tesla stock has formed a consolidation with a 402.73 buy point, according to MarketSmith analysis. It remains a long way from its entry. Adventurous investors may choose to use the retaking of the 200-day line Friday as an entry, though this would be a very aggressive move.
Elon Musk also revealed in a tweet that he has had some “promising conversations” with iPhone giant Apple about using SpaceX’s Starlink system for connectivity.
Warren Buffett Stocks Pops On Earnings
RH, formerly known as Restoration Hardware, jumped following its latest earnings report. Warren Buffett is a fan of the home furnishings retailer, with his firm Berkshire Hathaway (BRKB) currently holding more than 2 million shares.
The legendary investor has reason to smile after RH posted an earnings report that surpassed Wall Street expectations. EPS of $8.08 came in well above analyst views, while revenue of $992 million also beat.
It wasn’t all good news though, as the firm said it expects Q3 net revenue to be down 15% to 18%. The firm’s CEO, Gary Friedman, said that the economy is now in a recession.
Outside Dow Jones: New Leader Passes Entry
With the market rally gaining steam once more, now is a time to be looking for actionable stocks.
Palo Alto Networks popped above a trendline entry near 560. It is also eyeing a higher cup-with-handle buy point of 578.89.
Food processing giant Archer-Daniels-Midland broke past a cup-with-handle entry of 91.54. This is a third-stage base, which means gains from the next breakout could be limited.
The relative strength line has been moving higher even as the stock formed its handle, a bullish sign. The stock is in the top 6% of stocks in terms of price performance over the past 12 months, while earnings growth has also been strong. Analysts see profits ballooning by 31% in 2022, according to MarketSmith data.
Burger King parent Restaurant Brands tested a cup-with-handle buy point of 61.19, coming within a few pennies of passing the entry.
The restaurant chain is in the top 11% of stocks in terms of price performance over the past 12 months. It holds a strong Composite Rating of 95.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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Read More: Dow Jones Jumps; Tesla Surges As Elon Musk Eyes This Move; Warren Buffett Stock Pops