September 23, 2023

Dow Jones Rises Ahead on Memorial Day as Debt Deal, Rate Hike Loom; Tesla rival facing delisting

Looking past higher inflationary pressures, the Dow Jones Industrial Average ended the trading day up 1%. Tech leaders gained on Friday, while healthcare stocks fell. Federal debt ceiling negotiations seemed to be taking a turn for the better ahead of Memorial Day.


The proposed deal would raise the $31.4 trillion two-year debt ceiling while introducing several spending caps. According to reports, a firm deal between House Speaker Kevin McCarthy and the White House is only $70 billion away.

The S&P 500 added a strong 1.3% to close the bubble, while the Nasdaq took a clear lead, gaining 2.2% when it last peaked in August. Marvell technology (MRVL) drove the ongoing chip rally. Software stocks also rose further Business day‘s (WDAY) results.

cumin (CMI) spinoff Atmus filtration (ATMU) rose 11% in its trading debut on the NYSE. The company makes filter parts for cars and trucks. The company had priced an offer of 14.1 million shares at 19.50, halfway through a proposed bandwidth of 18-21.

Volume fell on the NYSE and the Nasdaq compared to the same time on Thursday, early data showed.

The small-cap Russell 2000 was up 1.1% at 4pm ET, while the growth-focused Innovator IBD 50 (FFTY) ETF gained 1%.

Crude oil was up less than 1% to trade at $72.47 a barrel. The yield on the benchmark 10-year Treasury bill remained stable at 3.81%.

Rally gains steam; Tesla leads 9 stocks near buy points

Beyond Dow Jones: Stocks move today

Marvell skyrocketed after it reported earnings. Shares rose past a cup base buy point at 49.59 Thursday and moved up to a 13-month high Friday, as seen on the IBD MarketSmith charts.

Chip stocks and AI positions continued to rise, driven by a strong quarter and forecast from Nvidia (NVDA). rival Advanced micro devices (AMD) met a profit target of 20%, while Intel (INTC) took Thursday’s loss well.

Play IBD Leaderboard ASML (ASML) added to recent gains and extended from a buy point of 683.28. Nvidia, also on IBD Leaderboard, saw a bullish inside day. Taiwan semiconductor (TSM) rallied after Thursday’s breakout and extended from the buy point of 95.92 in a double bottom.

Among the software leaders, Workday broke out of a cup base with 206.78 after reporting fiscal first quarter revenue numbers. The outlook for the current quarter ending in July met Wall Street’s expectations. The business software stock is in the 21st ranked industry group, out of 197 industries IBD tracks. The relative strength line, which is at a 52-week high, also shows support for the price action.

On IBD SwingTrader, Oracle (ORCL) pulled back slightly but continued to trade above the 50-day moving average. Shares will be extended from an entry on 91.32.

Costco wholesale (COST) rose even though fiscal Q3 revenue showed slowing revenue, while revenue showed fewer views. The cleared stock converged 50- and 200-day moving average lines. Network giant and Dow Jones component Cisco systems (CSCO) also cleared the 50-day line as it operates on a flat basis with an entry at 52.66.

Shares of ford (F) then rose nearly 7% in strong volume Tesla (TSLA) CEO Elon Musk said 12,000 Tesla superchargers will be available to Ford from 2024. Ford shares rose above the 50-day line, while Tesla attempted to break above its 200-day moving average, which is currently just above the 200 stock price.

Elsewhere, EV rival Nicholas (NKLA) fell more than 4% as it may be delisted from the Nasdaq. NKLA ended at a low of 59 cents per share.

PDD (PDD) rose more than 18% in heavy volume after earnings. The stock retook the 50-day line but remained in a deep correction.

The personal consumption and spending price index, the Fed’s favorite inflation measure, rose 0.4% in April. According to CME FedWatch, the odds of a 25 basis point hike rose to 66.5% in June.

Please follow VRamakrishnan on Twitter for more news about the fair today.


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