The stock market closed higher as the main indexes extended their win streaks to four days. The Nasdaq and S&P 500 made all-time highs.
The Nasdaq composite and S&P 500 climbed 1%. Stock indexes closed near session highs.
For the week, the Nasdaq rose about 3%, its best week since April. The Nasdaq 100 matched that gain. The Nasdaq composite held above its 50-day moving average the past week, and found support at the 10-week moving average on the weekly chart. The S&P 500 added 2% for the week, the best week since June.
The Dow Jones Industrial Average rose 0.7% Friday and closed above 35,000 for the first time. It made a positive price reversal for the week, after rebounding from a dip below the 50-day line.
U.S. Stock Market Today Overview
Last Update: 4:16 PM ET 7/23/2021
Some positive chart action also could be seen in small caps. The Russell 2000 rose 0.5% and found support at its 10-week line as the index reversed higher the past week.
Volume rose on the NYSE and Nasdaq, according to unconfirmed data.
Breakouts Highlight Stock Market Gains
A few standout breakouts added to Friday’s bullish tone, including some internet and consumer leaders.
Roku (ROKU) also found a home in Leaderboard after the video streaming company broke out past the 463.09 buy point of a double-bottom base with a handle. Roku will announce earnings Aug. 4 after the close.
Skechers (SKX) broke out of a flat base in heavy trading, clearing a 53.24 buy point. The footwear company beat Q2 expectations, and Morgan Stanley raised its price target from 58 to 63 a share. The breakout was straight up from the base’s lows. That’s normally a risk for a breakout, but the base was relatively shallow, less than 15% in depth.
The Communications Services Select Sector SPDR (XLC) led S&P sector ETFs with a gain of 2.5%. Facebook (FB) and Alphabet (GOOGL) dominate the sector, and both rallied to new highs. Alphabet is extended from a 2,431.48 buy point, and Facebook reached the 20% profit target from its 299.81 handle entry.
Social Media Stocks Shine
Social media stocks appeared to rise in sympathy with Snap and Twitter (TWTR), which also reported a strong second quarter. Global X Social Media ETF (SOCL) rose nearly 2% and bounced off its 50-day line this week.
Innovator IBD 50 ETF (FFTY) outperformed most of the stock market, rallying 2.6%. The ETF made it back above its 50-day moving average after spending 14 sessions below it. Snap and Roku contributed substantially to the fund’s rally.
Chinese stocks were broadly lower after Beijing expanded a crackdown. EV stocks Nio (NIO), Xpeng Motors (XPEV) and Li Auto (LI) skidded. Chinese education stock TAL Education (TAL) plunged to the lowest level since October 2015. Peer New Oriental Education and Technology (EDU) at one point plunged below its January 2016 low.
Reports said a government memo applies new restrictions on the education sector.
The iShares China Large-Cap ETF (FXI) dropped 2.6%.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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