Major indexes rallied in the stock market today to cap a wild week as the Nasdaq and small caps led, and the Dow Jones Industrial Average found key support.
XThe Nasdaq surged 1.7% Friday, the S&P 500 soared 1.4% and the Dow Jones Industrial Average advanced 1.2%. Small caps tracked by the Russell 2000 stormed 2.2% higher. But preliminary data showed lower volume on the NYSE and Nasdaq vs. Thursday.
The Dow Jones index bounced off support at its 200-day moving average, which it had given up on Wednesday. All three major indexes extended their losses for a third straight week. The Nasdaq closed out the week with a 0.8% loss, the S&P 500 1.1%, and the Dow 1.7%.
Five Dow Jones stocks rose 2% or more Friday, including Apple (AAPL), 3M (3M) and JPMorgan Chase (JPM).
Apple has been finding support along its uptrending 50-day moving average. It's about 4% below a 215.41 buy point. UBS expects strong demand to boost sales of Apple's AirPods and Apple Watch.
JPMorgan is trading near its 200-day line after recent weakness. Intel (INTC), Cisco (CSCO) and Microsoft (MSFT) each added more than 1.5%.
Financials, chips and electronics stocks led the upside among IBD's 197 industry group gainers (see the daily change at IBD Data Tables). Gold miners and dairy products makers were among the few losers.
SPDR S&P Regional Banking (KRE) and SPDR S&P Bank (KBE) rose more than 2.5% each. Both are trading below their 50-day and 200-day lines and about 20% off their highs.
Chip Stocks Rebound
Rallying chip stocks boosted VanEck Vectors Semiconductor (SMH) and iShares PHLX Semiconductor (SOXX) to gains of nearly 3% each. They're trying to get past resistance at the 50-day line.
Nvidia (NVDA) gapped up 7% in heavy volume after the graphics-chip designer's Q2 results topped views late Thursday. The stock is trying to regain its 50-day and 200-day lines after a recent failed breakout past a 174.05 buy point in a first-stage bottoming base.
Among other chip stock winners, Advanced Micro Devices (AMD) and Monolithic Power Systems (MPWR) leapt more than 4% each.
Over in the IBD 50, PagSeguro Digital (PAGS) gapped up and surged 11% to a new high in nearly triple normal trade. It's extended from a bounce off its 10-week moving average. The Brazilian payments company late Thursday reported Q2 sales that beat views.
Other financial-related IBD 50 stocks fared well too. Los Angeles-based investment manager Ares Management (ARES) rallied 4% to retake its 50-day line. StoneCo (STNE), a Brazilian financial technology company, popped 4% to hold support at its 50-day line. Payroll software maker and Sector Leader Paylocity (PCTY) and private mortgage insurance provider Essent Group (ESNT) rose more than 3% each.
But Palo Alto Networks (PANW) plunged 7%, sliding well below its 50-day line for the first time in over a month. Kirkland Lake Gold (KL) lost 2% but remains above its rising 50-day line.
The Innovator IBD 50 ETF (FFTY) rose nearly 2% in today's stock market.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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