The Dow Jones Industrial Average moved past a higher inflation print and rose 1% at 3 p.m. ET. Tech leaders gained while healthcare stocks fell. Federal debt ceiling negotiations appeared to be taking a positive turn ahead of Memorial Day.
The proposed deal would raise the debt ceiling by $31.4 trillion for two years while putting in place several spending caps. According to reports, a firm deal between House Speaker Kevin McCarthy and the White House is just $70 billion.
The S&P 500 added a solid 1.4% on the hour, while the Nasdaq took a clear lead with a 2.2% gain as it aimed for a high last seen in August. Marvell Technology (MRVL) fueled the continued rally in chips. Software values also rose on Working dayresults of (WDAY). Cummins (CMI) spin-off Atmos Filtration (ATMU) jumped nearly 12% in its New York Stock Exchange debut. The company manufactures filtration parts for automobiles and trucks. The company priced an offer of 14.1 million shares at 19.50, in the middle of a proposed range of 18-21.
Volume fell on the NYSE and Nasdaq from the same time Thursday.
The small-cap Russell 2000 gained 1% while the growth-focused ETF Innovator IBD 50 (FFTY) gained 1.2%.
Crude oil rose less than 1% to trade at $72.47 a barrel. The yield on the benchmark 10-year Treasury note remained stable at 3.81%.
Outside of Dow Jones: Stocks move today
Marvell surged after reporting earnings. Shares edged above a cup base buy point at 49.59 on Thursday and hit a 13-month high on Friday, as seen on IBD MarketSmith charts.
Chip stocks and AI games continued to recover, fueled by a strong quarter and forecasts of Nvidia (NVDA). Rival Advanced micro-systems (AMD) hit a profit target of 20%, while Intel (INTC) picked up Thursday’s loss.
Play IBD leaderboard ASML (ASML) added to recent gains and is extended a buy point of 683.28. Nvidia (NVDA), also on IBD Leaderboard, sees a bullish inside day on time. Taiwan semiconductor (TSM) rose after Thursday’s breakout and is extended from its buy point of 95.92 in a double bottom basis.
Among the software leaders, Workday came off a low base at 206.78 after fiscal first-quarter sales topped views. The outlook for the current quarter ending in July met Wall Street expectations. Enterprise software stock ranks 21st in the industry group, out of 197 industry IBD tracks. The relative strength line, which is at a 52-week high, is also showing support for the price action.
On IBD SwingTrader, Oracle (ORCL) continued to trade above the 50-day moving average. Stocks are extended from a handful entry at 91.32.
Wholesale Costco (COST) rose even as fiscal third-quarter revenue showed slowing sales while revenue missed views. The stock clears the 50- and 200-day converged moving averages. Network giant and component of the Dow Jones Cisco Systems (CSCO) also erased the 50-day line as it is operating on a flat basis with an entry at 52.66.
Shares of Ford (F) increased sharply after You’re here (TSLA) CEO Elon Musk has said 12,000 Tesla Superchargers will be available to Ford from 2024. Ford’s stock has passed the 50-day line as Tesla tries to break its 200-day rolling average , which is currently slightly above 200.
Elsewhere, rival EV Nicholas (NKLA) was on pace for a four-day losing streak as it faces possible delisting from the Nasdaq. NKLA is trading at an all-time low of 60 cents per share.
PDD (PDD) jumped more than 18% in volume after earnings. The stock is trying to cross the 50-day line and remains in a deep correction.
The Consumer Price Index and Personal Expenditures, the Fed’s preferred gauge of inflation, rose 0.4% in April. The probability of a 25 basis point hike in June has risen to 64.2%, according to CME FedWatch.
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