Dow Jones Rises On Strong Economic Data While S&P 500, Nasdaq Hit New Highs; Apple Stock Trades In Buy Zone

The Dow Jones Industrial Average traded higher in today’s market and closed near its highs of the day. Meanwhile, the S&P 500 also continued higher after notching an all-time high. The Nasdaq composite also reached new highs on Friday amid better-than-expected economic data.


Stock Market Today

At the close, the Nasdaq held a gain of 0.8% and reached a new high of 14,649.11. Meanwhile, the S&P 500 traded 0.7% higher and hit a high of 4,355.43. The Dow Jones industrials held a gain of 0.4%, rising more than 150 points. The small-cap Russell 2000 index lagged, selling off more than 1%. Volume was running lower on the NYSE and on the Nasdaq vs. the close on Thursday, according to early data.

Early Friday, stocks were boosted by the release of stronger-than-expected economic data. According to the Labor Department, U.S. employers added 850,000 jobs in June, well above economist forecasts for 703,000. This was also above the upwardly revised 583,000 new jobs for the month of May.

The unemployment rate ticked up to 5.9% from 5.8% in May. Economists expected a drop to 5.6%.

Technology stocks and consumer discretionary led the upside in the S&P 500 sectors. Meanwhile, energy and financials were lagging. However, declines were small as the Energy Select Sector SPDR ETF (XLE) sold-off 0.2%. The index still remains less than 5% away from new highs.

Growth stocks led on the downside as the Innovator IBD 50 ETF (FFTY) closed down 1.7%. Shares traded back below support at the 50-day line, a bearish sign. Stocks leading the downside included recent IPO stock Cricut (CRCT) and Smith & Wesson Brands (SWBI). Additionally, a handful of IPO stocks weighed heavily on the index including Figs (FIGS) and Global-E Online (GLBE), with losses of over 3% each.

Dow Jones Today

Elsewhere, stocks outperforming in the Dow Jones on Friday included technology giants Apple (AAPL) and Microsoft (MSFT), with gains of 2% and 2.2%, respectively. Both Dow Jones leaders are trading near key buy zones.

Apple stock in now trading inside the buy zone of a cup base with a buy point of 137.17, according to MarketSmith chart analysis. The stock broke out on Wednesday but slipped back below this area. In recent weeks, shares reclaimed their 50-day line, a bullish sign. The stock’s RS line poses a red flag, however, as it remains well off its recent highs.

Elsewhere, Microsoft traded over 2% higher and is now extended from the buy zone of a 263.29 cup base entry. Microsoft stock, up nearly 5% this week, is getting a boost after the unveiling of its new Windows 11, which offers a range of performance and usability improvements.

On the downside, IBM (IBM) fell over 4.5% in heavy volume. Shares are trading below their 50-day line for the first time in four months. President Jim Whitehurst, ex-CEO of Red Hat, is stepping down after three years at IBM.

Stocks In The News

On Friday, a small handful of growth stocks broke out and traded inside buy zones. Computer software play Cerence (CRNC) gapped up in heavy volume and broke out from a 120.10 entry in a cup-with-handle base. The stock found support at the 21-day exponential moving average this week before shares launched into the buy zone. Cerence closed nearly 14% higher.

Meanwhile, casual apparel manufacturer Gildan Activewear (GIL) broke out from a flat base and traded above the buy zone from a 38.24 entry.

But shares pared earlier gains in afternoon trading and closed below the buy area. The stock is definitely one to watch as its RS line is nearing new highs. The firm also maintains a decent 87 Composite Rating and a 89 Relative Strength Rating.

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