The Dow Jones Industrial Average closed even higher intel (INTC) plummeted on gains. A trio of buys by famed fund manager Cathie Wood surfaced, including Teladoc health (TDOC) as it approaches a record month. Tesla (TSLA) roared as CEO Elon Musk met Biden administration officials.
Meanwhile, a trio of notable stocks attempted breakouts amid the encouraging action: Crate (CRATE), Titan machines (TITN) and Knight Swift Transport (KNX).
Stocks were boosted after the annual rate of change in the personal consumption spending index slowed to 5% in December from 5.5% in November, according to the Bureau of Economic Analysis. This is the preferred measure of inflation used by the Federal Reserve for monetary policy.
Nasdaq slams as IBD 50 fades
The Nasdaq was the strongest of the major indices as it gained 1%. EV share Clear (LCID) was the clear winner here, up 43%. Trading was halted several times due to volatility.
The S&P 500 faded late as it gained 0.3%. S&P 500 sectors were mostly positive. Consumer discretionary and communication services were the best performers, while health care and energy lagged the most.
Small caps also rose, with the Russell 2000 closing up 0.4%. Growth stocks also jumped, with innovator IBD 50 ETF (FFTY) up 0.2%.
Dow Jones wins even if Intel stock crashes
The Dow Jones Industrial Average saw gains dwindle as it closed down just 0.1%.
American Express (AXP) rose 10.5% after forecasting higher for 2023. Earnings fell 5% while revenue fell 17%, both missing Wall Street views.
Intel was trimmed 6.4% after missing Wall Street’s expectations for the fourth quarter while expecting a first-quarter loss.
The company is struggling to compete with weak PC sales, production problems and loss of market share modern micro devices (AMD).
Tesla stock surges amid Elon Musk meeting
Tesla (TSLA) was one of the top performers for the day, up 11%.
It came as CEO Elon Musk met two Biden administration officials to see how they could work together. He met Biden’s senior adviser on clean energy innovation, John Podesta, and Mitch Landrieu, who oversees infrastructure spending.
“John Podesta and Mitch Landrieu met with Elon Musk to discuss common goals related to electrification and discuss how the bipartisan Infrastructure Act and the Inflation Reduction Act will impact EV production and charging, as well as the broader cause of electrification move forward,” a White House spokesman told Portal.
Tesla stock had one of its best days since Jan. 3, 2022, when it surged 13.5%. Up 33.3% for the week, it was Tesla’s best weekly gain since May 2013, when it gained nearly 41%, according to Dow Jones Market Data.
Cathie Wood buys Jump on her way to Monster Month
ARK Invest portfolio manager Cathie Wood, a big Tesla supporter, saw some new purchases on Friday pay off immediately.
Teladoc Health rose 6.5%. It is trying to catch its 200-day moving average after previously resuming its 50-day moving average, MarketSmith analysis shows.
Intellia therapeutics (NTLA) managed to regain above its 50-day moving average after gaining almost 8%. However, the volume was below average.
radiotherapy (BEAM) is trading just below its 200-day moving average after rising 3.3%.
Wood added to all three stocks in her various funds on Thursday. Your famous ARK Innovation ETF (ARKK) is heading for its best month ever. The fund is up more than 29% so far this month.
If it can maintain that performance, it will easily surpass the nearly 26% gain it achieved in April 2020.
Why This Can Be A Life Changing Rally; 4 stocks near buy points
New leader offers early entry
Visteon (VC) is operational after deleting a trendline entry on Friday. It is also approaching a consolidation buy point of 152.20.
The relative strength line is progressing again after a pause during the base building phase. The stock was promoted from Leaders Watchlist to the IBD Leaderboard list of top stocks.
The Detroit-based company is a leading supplier of automotive parts to vehicle manufacturers. It specializes in driving performance and clean air products and systems.
The excellent overall performance is reflected in the IBD Composite Rating of 99. It is one of the industry giants ford (F) and General Motors (GM) among its most important customers.
Outside Dow Jones: 3 stocks test buy points
Play Box database software trades in a buy zone after deleting a flat base entry of 32.10. This is a first tier base.
Overall performance is very strong, with an IBD Composite Rating of a near-perfect 97.
Titan Machinery tested a cup-with-handle entry of 43.59. The move came in small volume, one mistake and the stock closed below the entry.
Knight-Swift Transportation briefly broke a buy point of 62.39 but faded. The move came with a vengeance as the trucking company missed analyst opinion for the most recent quarter.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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