The Dow Jones Industrial Average was choppy Friday morning, as Wall Street weighed Federal Reserve Chairman Jerome Powell’s comments at the Jackson Hole Economic Symposium. Early gainers included in today’s stock market Netflix (NFLX), which got a decent increase in target price from Loop Capital.
Stock market gains faded after Powell said inflation remains too high and the Fed is ready to raise interest rates further if necessary.
Netflix stock rose 1.6% after Loop Capital upgraded shares to buy-from-hold with a target of $500. NFLX shares climbed above its 50-day moving average earlier in the week, but shares fell sharply with the broad market on Thursday, down about 5%. % in light turnover. Like a lot of other growth stocks at this point, Netflix is stuck below its 50 day moving average.
The 10-year Treasury note rose to 4.26%. Fed funds futures traders believe there is an 80% chance that the Fed will leave the federal funds rate unchanged at the September meeting, in a range of 5.25% to 5.50%. But the odds have risen to around 50/50 for a further 25 basis point rate hike at the November meeting.
Among the top gainers in the Dow Jones today sales force (Customer relationship management), Nike (Nicky) And Microsoft (MSFT). Salesforce leads another busy week of earnings in the software sector. Results are due on the Wednesday after closing.
outside the Dow Jones index
The Nasdaq Composite was down slightly at 10:37 AM ET. The breadth of range was again thin with the winners having only a small advantage over the losers.
nvidia (NVDA) was roughly flat after a difficult session on Thursday which saw sellers push NVDA to session lows at the close. Shares rose more than 6% early Thursday, but the gains faded to 0.1% at the close. NVDA’s price action is a classic example of what a stall action looks like on a daily chart. Significant volume without further price advances can be seen in major stock indices or individual stocks. For the NASDAQ and S&P 500, the company is considering some form of distribution in certain cases.
Adobe shares jumped 1.7%. The software giant is showing its strength by holding support at its 10-week moving average.
And while the Dow Jones and Nasdaq rose briefly above the 50-day lines on Thursday, the S&P 500 didn’t quite get there. The index reached a high of 4,458 on Thursday, about 1 point below the stock’s 50-day line.
The S&P 500 and Dow Jones trimmed their gains to less than 0.1%. The gainers outperformed the losers by less than 2 to 1.
Among the profit winners was the giant enterprise software company a work day (day). After a wild Thursday session that saw WDAY stock fall sharply, shares rose in morning trade. Late Thursday, the company reported a 72% increase in its quarterly profit, with revenue up 16% to $1.79 billion.
Alta beauty (Ulta), which had been on a downtrend since May, extended its losses after reporting earnings and revenue growth that slowed from the previous quarter. ULTA stock is approaching a major test of the 400 level.
IBD growth screens
In the Marketsmith growth 250Sellers knocked Marvell technology (MRVL) fell after the stock suffered an offshore downtrend on Thursday on very heavy volume. Earnings fell for the third straight quarter and revenue fell 12% to $1.34 billion. The results were mostly in line with expectations. Revenue guidance for the current quarter was also in line.
intuit (You and) reversed higher after earnings exceeded expectations. TurboTax raised its dividend by 15%, but revenue guidance was light. Intuit stock is still in a bullish technical setup, just above its long consolidation zone after finding support at the 10-week moving average.
Follow Ken Sheriff on Twitter @IBD_KShreve For more stock market analysis and insight.
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