April Webinar RegistrationApril Webinar Registration


A Surprise Big-Cap Breakout As Stocks Open June With Two-Day Rally

X Stocks closed higher Friday, launching June with a two-session run-up that left the Nasdaq, Dow industrials and S&P 500 at record closing highs.

The Nasdaq scored a runaway win, up 0.9%, as the S&P 500 climbed 0.4% and the Dow Jones industrial average took a 0.3% gain. Small caps also showed some hustle, with Russell 2000 futures bagging a nearly 0.7% advance.

Preliminary data showed volume was weaker than on Thursday, across both the NYSE and the Nasdaq exchanges.

Before the open, the Labor Department reported weaker-than-expected jobs growth in May which, along with another session of weak oil prices, led to Friday's dicey first hour of trade. But a decrease in the unemployment rate — to a 16-year low — provided a positive headline number to bolster confidence and drive stocks to midafternoon highs before drifting into the close.

For the week, the Nasdaq climbed 1.5%, its sixth gain in the past seven weeks. The S&P 500 added 0.9% and the Dow tacked on a 0.6% advance.

Microsoft Hits High, FedEx Breaks Out, Broadcom Exits Buy Range

Makers of RVs and mobile homes posted the day's best gain among industries, as Winnebago Industries (WGO), Skyline (SKY) and Cavco Industries (CVCO) all surged. Winnebago led, up more than 4%. Industry leader Thor Industries (THO) rose 1%, ahead of its fiscal third-quarter report scheduled for after the close on Monday.

Oil prices tumbled 4% in a second straight weekly decline, putting a damper on energy sector trading. Exxon Mobil (XOM) and Chevron (CVX) were the loss leaders on the Dow, each down more than 1.1%.  Oil and coal groups posted seven of the 10-worst losses on Friday, and for the week, among the 197 industry groups tracked by IBD.

Microsoft (MSFT) led the Dow, rising more than 2% to a new high, leaving it extended after a May rebound from 10-week support.

FedEx (FDX) cracked a 2.3% gain in strong trade, breaking out but remaining in buy range above a flat-base buy point of 201.67. Volume finished more than 60% above its 50-day average, a good sign of solid institutional demand.

IBD Global Leader Broadcom (AVGO) scrambled up 9% in powerful trade after reporting  healthy fiscal second-quarter sales late Thursday that beat expectations. The gain sent the stock out of buy range above a 227.85 buy point in a flat base.

TTM Technologies (TTMI) led the IBD 50 list, jumping 3.5% in quiet trade as it works on a four-month flat base with a 17.96 buy point.

Slated for release on Monday: first-quarter productivity and labor-cost numbers, April factory orders and May estimates from services purchasing managers. Purchasing mangers indexes are due out Sunday night in China and Japan.

RELATED:

Politics May Upstage Apple's Big Show: Investing Action Plan

As The OPEC/Shale Oil Wars Rage, Consumers Chalk Up A Rare Win