The Dow Jones industrial average soared more than 3.2% and closed near session highs Friday in an impressive display of buying on Wall Street. Stocks today showed strength in virtually all sectors, from tech to transports. The Dow Jones transportation average hauled more than 3.8% ahead, further affirming renewed confidence in the world No. 1 economy.
XApple (AAPL) also joined the rebound, but in limited fashion. After sinking 10% on Thursday due to a shocking cut in its quarterly revenue for fiscal Q1, the iPhone, MacBook and digital services titan managed to rise less than 4%. Still trading more than 36% below an all-time peak, Apple is currently not in position to stage a potential breakout and help lead the market higher.
Please read this recent Stock Market Today column on when long-term holders of Apple should consider selling shares to lock in remaining profits.
Nonetheless, Apple's megacap status certainly weighs heavily on all major indexes.
The Nasdaq composite outperformed, up more than 4.1%. Small caps outperformed large caps. The Russell 2000 gained more than 3.7%. At 1380, the Russell is now up 2.3% since Jan. 1.
Other sector indexes bulged. At 9225, the Dow Jones transports index now holds a 0.5% gain since Jan. 1. The iShares PHLX SOX Semiconductor (SOXX) ETF rallied more than 4.5%.
Volume ran a tinge higher vs. the same time Thursday on the NYSE, but fell mildly on the Nasdaq, according to early data. One major reason for the drop in Nasdaq turnover? Apple's volume gushed nearly double its 50-day average on Thursday to 91 million shares. On Friday, Apple turnover was heavy again, yet fell vs. Thursday's gigantic total, to 57 million shares.
These Stocks May Also Beat The Dow Jones This Year
On Leaderboard, Ciena (CIEN) is in a far better position to help lead the market higher. The fiber optic equipment expert rose more than 4% to 34.42, moving further past a 32.43 proper buy point.
In the Sector Leaders list, Salesforce.com (CRM) and ServiceNow (NOW) have also outperformed Apple lately. Both are forming new bases. The software sector remains a long-term leader in the market.
Use the IBD 50, Big Cap 20 and Sector Leaders lists to find additional stocks that could be primed to break out and produce solid gains for investors who use stock charts to time buys.
Innovator IBD 50 (FFTY), which lost 16.8% in 2018 following a 34% advance the prior year, gained 3.6% to break a two-day selling streak. The ETF still remains sharply below its falling 50- and 200-day moving averages.
In Other Financial Markets
U.S. Treasuries sold off as investors bought back stocks following dovish comments from Federal Reserve chief Jerome Powell. Speaking at a symposium in Atlanta, he indicated flexibility toward the future pace of monetary tightening. Earlier in the day, stocks got a huge boost of confidence in the U.S. economy on a glowing December jobs report.
Nonfarm payrolls rocketed up by a net 312,000 new jobs. The growth in jobs for November got revised higher to a net addition of 176,000.
The yield on the benchmark 10-year U.S. Treasury bond rose 10 basis points to 2.66%. Just one day ago, the yield plummeted 10 basis points.
Crude oil jumped 2% as gold fell 0.7%.
The Cboe Market Volatility Index, or the VIX, plunged 16% to 21.28. You can track the VIX on a daily chart via IBD's Psychological Market Indicators section.
Please follow Chung on Twitter at @IBD_DChung for more on growth stocks, good bases, breakouts, chart analysis and financial markets.
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