Key indexes wrapped up a volatile week with big gains in the stock market today, despite a weaker-than-expected jobs report. Apple led the Dow Jones Industrial Average, which reclaimed key support.
XThe Nasdaq, S&P 500 and Dow Jones Industrial Average each rallied 1.4%. Small caps tracked by the Russell 2000 lagged slightly, up 1%. Preliminary data showed lower volume on the NYSE and Nasdaq vs. Thursday, however.
The Dow and S&P 500 regained their 50-day moving average lines after losing them earlier in the week. For the week, the Nasdaq found support at its 40-week line for a 0.4% advance. The S&P 500 and Dow Jones sharply trimmed their weekly losses to 0.3% and 0.9%, respectively.
Jobs data was mixed. The U.S. economy added 136,000 jobs in September, below forecasts for 145,000. Of those, the private sector created 114,000 jobs, missing views for 135,000. The unemployment rate fell to a four-decade low of 3.5%.
Apple (AAPL) gapped up and rose 2.8% to lead the Dow Jones index. That sent the stock back above a 221.47 flat-base buy point it's been flirting with the past three weeks. Apple, which marked a new closing high, remains in the 5% chase zone from the entry, according to MarketSmith chart analysis. Keep in mind: All buys are riskier than usual with the market uptrend under pressure.
Apple hiked iPhone 11 production by up to 10%, the Nikkei Asian Review reported, signaling strong demand for the new smartphones. Wedbush Securities said in a client note that China is one of the main drivers of demand.
Broad Rally Lifts Dow Jones
Other blue chip winners included Merck (MRK) and JPMorgan Chase (JPM), up more than 2% each. In all, 20 of the 30 Dow stocks added more than 1% apiece. There were no losers.
The broad rally lifted SPDR Dow Jones Industrial Average ETF Trust (DIA) to a 1.4% gain. Invesco QQQ Trust (QQQ), which holds an 11% weighting in Apple, rose 1.5% to retake its 50-day line. SPDR S&P 500 (SPY) added 1.3%.
Homebuilders, software and telecom stocks led the upside among IBD's 197 industry groups. But oil, automakers and other transport-related plays lagged.
Over in the IBD 50, medical technology stock InMode (INMD) surged 9%. Payment company Qiwi (QIWI) and SolarEdgeSEDG rallied more than 5% each. Software leaders continued to rebound as ServiceNow (NOW), Veeva Systems (VEEV) and Atlassian (TEAM) rose about 3% apiece.
ServiceNow reclaimed its 50-day line as it works on a three-month consolidation. Veeva has been consolidating for about three months. Atlassian is still below its 50-day line as it continues building a base started in late July. All three stocks are about 12% off their 52-week highs.
The Innovator IBD 50 ETF (FFTY) rallied nearly 2%, extending Thursday's 1.4% advance.
Follow Nancy Gondo on Twitter at @IBD_NGondo
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