Stocks were sharply higher Friday afternoon, putting the S&P 500 and Dow Jones Industrial Average on track to post their biggest weekly gains since early November.
The Dow and S&P 500 were up 1.1% and 1.2%, respectively, in recent trading, while the Nasdaq Composite added 1.7%. The major indexes closed lower on Thursday, one day after posting their best performance in two months, as big-name technology stocks slumped. The major indexes are poised to post weekly gains for the first time in three weeks.
Large-cap tech stocks were higher across the board on Friday, led by AI investor favorite Nvidia (NVDA) and EV maker Tesla (TSLA), which rose 3.5% and 5%, respectively. Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN) and Meta Platforms (META) were also gaining ground.
Chipmaker Intel (INTC) was up 9%, leading S&P 500 advancers, amid ongoing takeover rumors. The stock is still down more than 50% over the past year.
Crypto-related stocks were also moving higher as bitcoin jumped above $104,000, its highest level since mid-December. Shares of MicroStrategy (MSTR), a software maker that has become one of the world’s largest holders of bitcoin, was up more than 6%, while crypto exchange Coinbase Global (COIN) and bitcoin miner MARA Holdings (MARA) rose 5% and 13%, respectively.
Financial services stocks were also in focus today after several regional banks released quarterly results. Truist Financial (TFC) was up 5%, while Citizens Financial (CFG) and Huntington Bancshares (HBAN) also rose. Regionals Financial (RF) was down slightly.
The economic data calendar was light on Friday. Earlier this week, better-than-expected inflation data revived investor hopes that the Federal Reserve will be in a position to cut interest rates again. The encouraging report on consumer prices sent Treasury yields sharply lower and gave stocks a big boost.
The yield on the 10-year Treasury fell as low as 4.57% early this morning, its lowest level in two weeks. The yield, which is correlated with interest rate expectations, was at 4.61% recently, in line with yesterday’s close.
Gold futures were little changed at around $2,755 an ounce, while crude oil futures fell 0.5%.
Intel Shares Surge to Lead S&P 500 Gainers
29 minutes ago
Intel shareholders would probably rather forget 2024. This year is off to a better start.
Shares of the chipmaker were up 9% in recent trading to lead S&P 500 advancers, leaving them up nearly 7% in January, outpacing the S&P 500. That doesn’t change what’s in the rear-view mirror—Intel (INTC) is still off more than 50% over the past 12 months—but the signs of life are notable nonetheless.
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What investors may be buying into are signs of change in the wake of the retirement of CEO Pat Gelsinger late last year. One such development, which helped lift the stock this week: news that the company plans to make its venture fund a stand-alone entity, with the company remaining an investor.
Meanwhile, news services circulated a report from a tech newsletter indicating that Intel might be a takeover target. A sale of Intel, currently valued around $84 billion per Visible Alpha, would be a huge deal, but similar narratives have driven interest in the stock in recent months.
Intel is slated to report its latest quarterly financial results later this month, and investors will surely be watching that announcement and the conference call that follows for clues about how else management might seek to execute that plan.
Wall Street analysts are in wait-and-see mode for now. Visible Alpha doesn’t track a single one with a “buy” rating on the shares—it mostly logs “hold” ratings, with a few “sell” labels—though the share-price rise implied by the mean price target is more than 20% from recent levels.
J.B. Hunt Stock Sinks Amid ‘Challenging Freight Environment’
1 hr 43 min ago
Shares of J.B. Hunt Transport Services (JBHT) tumbled Friday, a day after the big shipping firm reported a drop in sales as volumes fell.
The company reported fourth-quarter revenue tumbled 5% year-over-year to $3.15 billion, with earnings per share (EPS) of $1.53. Both were short of Visible Alpha estimates.
All its divisions posted sales losses. Intermodal revenue was down 2% to $1.60 billion on changes in mix of freight, customer rates, and fuel surcharge revenue. It slid 5% to $839 million at its Dedicated Contract Services unit because of lower average truck revenue. The Integrated Capacity Solutions division revenue dipped 15% to $308 million as volume sank 22%. Sales were lower at Final Mile Services (-6%) and Truckload (-7%) segments as well.
CEO Shelley Simpson said 2024 “was a continuation of the challenging freight environment,” according to a transcript of the earnings call provided by AlphaSense. Simpson added that the company is focused on “a path to repair and improve our financial performance,” and that while market dynamics “remain uncertain around the timing and magnitude of a potential inflection, our focus in 2025 is to grow and begin to repair our margins.”
J.B. Hunt shares were down 7% in recent trading and have lost about 10% in the past year.
Apple Stock Levels to Watch After Yesterday’s Big Decline
2 hr 50 min ago
Apple shares gained ground in early trading Friday after suffering their worst one-day decline since August yesterday, following news that the tech giant lost its coveted position as China’s largest smartphone seller last year.
The stock has lost 8% of its value so far this year, after rising 30% in 2024. Apple shares were up 1% at around $230.50 in recent trading.
Since an evening star pattern marked the stock’s all-time high (ATH) last month, Apple shares have trended sharply lower. Selling pressure intensified on Thursday, with the price falling decisively below the lower trendline of an ascending triangle, raising the possibility of a significant breakdown.
It’s also worth pointing out that the stock recorded its highest volume yesterday since December’s triple witching trading session, indicating that larger market players participated in the sell-off.
Investors should watch key support levels on Apple’s chart around $218 and $207, while also monitoring important resistance levels near $235 and $250.
Read the full technical analysis piece here.
Fastenal Shares Slip After Results Miss Expectations
3 hr 22 min ago
Shares of Fastenal (FAST) stumbled in early trading Friday after the industrial parts company’s fourth-quarter results came in short of what analysts had expected.
Fastenal reported $262.1 million in net income, or $0.46 per share, on $1.82 billion in sales, all below analysts’ consensus estimates compiled by Visible Alpha.
Sales rose 3.7% year-over-year, but stripping out an extra selling day compared with 2023, net daily sales increased 2.1%. Profit declined 1.6%.
Fastenal said its sales growth was slow due to a “continuation of the soft manufacturing environment” present for much of 2024. Sales also were affected by more customers performing “unusually sharp production cuts” in late December as factories closed for the holidays, and foreign exchange rates having a negative impact compared with a positive one the prior year.
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Fastenal shares were down 2% in recent trading. The stock has gained 15% over the past year, significantly lagging the performance of the S&P 500 over the period.
UnitedHealth Levels to Watch Amid Post-Earnings Slump
4 hr 23 min ago
UnitedHealth Group (UNH) shares were down slightly in premarket trading Friday after falling sharply yesterday, when the health insurer reported fourth-quarter results below Wall Street’s expectations and issued a lackluster outlook amid higher medical costs.
UnitedHealth shares were the biggest decliners on the S&P 500 on Thursday, falling 6% to $510.59. The stock, which is down nearly 20% from its record high set in November, is virtually unchanged from a year ago, while the S&P 500 has gained 25% in the last 12 months.
After rallying from their mid-December low, UnitedHealth shares ran into selling pressure near the 200-day moving average, with Thursday’s drop following several failed attempts by the bulls to close above the closely watched indicator.
Moreover, Thursday’s selling occurred on the highest trading volume since the stock’s sharp move lower last month, opening the door for further downside.
Investors should watch key support levels on UnitedHealth’s chart around $475 and $436, while also monitoring important overhead areas near $550 and $605.
Read the full technical analysis piece here.
Futures Point to Higher Open for Major Indexes
4 hr 46 min ago
Futures tied to the Dow Jones Industrial Average were up 0.5%.
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S&P 500 futures were up 0.6%.
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Nasdaq 100 futures added 0.8%.
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