The stock market indexes strengthened Friday afternoon, with the Nasdaq composite leading the charge.
The Dow Jones Industrial Average inched up 0.8% while the S&P 500 rose 1.6%. The Nasdaq fared the best, gaining 2.4%. Nasdaq volume was considerably higher vs. the same time on Thursday. NYSE volume was lower.
The Dow traded below its 50-day and 21-day exponential moving averages. The S&P 500 nosed above its 50-day line, along with the Nasdaq. Finally, the tech-heavy Nasdaq 100-tracking Invesco QQQ trust ETF (QQQ) gained 2.5%.
Crude oil jumped 1.3% to $81.70 per barrel. Bitcoin futures popped 2.3% to $21,685.
The Energy Select Sector SPDR ETF (XLE) notched up 0.9%. The benchmark natural gas contract price gave back earlier gains, dropping 4.8%, and is below $4 per million British thermal units.
The 10-year Treasury note yield added 10 basis point to 3.48%. Odds for a 25-basis-point hike at the February Fed meeting rose to 99.2%. That would take the fed funds rate to the 4.5%-4.75% range, according to the CME Group FedWatch Tool.
The Innovator IBD 50 ETF (FFTY) gained 1.8%.
European stock markets closed the trading week on a positive note, with the German DAX gaining 0.8% and Paris CAC 40 0.6%. The London FTSE added 0.3%.
Hotel And Oil Refiner Stocks Break Out
Hyatt Hotels (H) rallied 3.3%, breaking out of a long, choppy base and hitting the 108.20 buy point. The international lodging chain opened a hotel in the Hangzhou International Airport in China. Finally, Hyatt’s relative strength line hit a new high, as indicated by the blue dot on the MarketSmith chart.
Altra Industrial Motion (AIMC) rose 1.4% and broke out of a flat base, hitting the 60.54 buy point. Shares are in the 5% buy zone, reaching 63.57. Looking back, shares of the power transmission parts manufacturer trended sideways after a huge gap up in October. The company raised 2022 EPS guidance at that time.
Valero Energy (VLO) gained 2.9%, breaking out of a cup-with-handle base and hitting the 142.26 buy point. The energy giant got a boost after Morgan Stanley raised its price target to 170 from 140, and maintained its overweight rating. Valero’s relative strength line hit a new high on its chart.
Stock Market: Streaming Services Pop
Online furniture retailer Wayfair (W) rallied over 21% in heavy volume after reporting plans to lay off 1,750 employees, or 10% of its staff, to save $750 million per year. Wayfair is expected to post big losses in 2022 and 2023.
Netflix (NFLX) climbed 7.6% in heavy volume after reporting higher-than-expected Q4 subscribers and sales. It also raised Q1 2023 sales guidance. Shares rebounded after losing 3.2% in Thursday’s regular session, finding support at its 21-day exponential moving average.
Theme park and media streamer Walt Disney (DIS) led the Dow, rising 3.5% as streaming stocks moved in tandem with peer Netflix.
Google-parent Alphabet (GOOGL) added 5.1% after CEO Sundar Pichai announced plans to cut 12,000 jobs across the globe. The tech giant joins other Nasdaq heavyweights in downsizing their staff.
SLB (SLB) gave back earlier gains, down 1.1% after reporting better-than-expected Q4 EPS and sales. Management said the 2023 business outlook remains “very compelling” due to higher oil and gas demand and tight supply, despite a potential economic slowdown. In addition, SLB announced a dividend hike to 25 cents per share, to shareholders of record on Feb. 8.
Shares of the oil services company broke out of a choppy base, hitting the 56.14 buy point in early January, and are in the 5% buy zone that extends to 58.95.
Salesforce.com (CRM) reclaimed morning losses, rising 3.4% after another analyst downgrade. The cloud-based customer management software firm recently announced it will lay off 10% of its employees as part of a restructuring plan.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
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