Stock indices strengthened on Friday afternoon and closed at the highest values of the day. However, the Nasdaq composite was the only major index to post a gain for the week.
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The Dow Jones Industrial Average added 1%, while the S&P 500 rose 1.9%. The Nasdaq fared best, gaining 2.7 percent.
For the week, the Dow fell a whopping 2.7%, while the S&P 500 lost 0.8%. The Nasdaq, which relies on Friday’s gains, rose 0.4%.
Nasdaq volume was significantly higher compared to Thursday. NYSE volume was lower.
The Dow traded below its 50-day and 21-day exponential moving averages. The S&P 500 hit resistance at its 200-day moving average. The Nasdaq is above its 50-day mark. Finally, the technology-rich Nasdaq 100 tracking Invesco QQQ trust ETF ( QQQ ) gained 2.7%.
Crude oil jumped 1.5 percent to $81.84 a barrel. Bitcoin futures jumped 5.4% to $22,345.
The Energy Select Sector SPDR ETF (XLE) rose 1%. The benchmark natural gas contract gave back earlier gains, falling 4.9% to below $4 per million British thermal units.
The 10-year Treasury note yield added 9 basis points to 3.49%. Odds for a 25 basis point hike at the Fed’s February meeting rose to 99.2%. That would lift the Fed Funds rate to a range of 4.5%-4.75%, according to the CME Group FedWatch Tool.
The innovator IBD 50 ETF (FFTY) showed its strength, gaining 2.3%.
European stock markets ended the trading week on a positive note, with Germany’s DAX gaining 0.8% and Paris’ CAC 40 up 0.6%. London’s FTSE added 0.3 percent.
Hotel and oil refinery stocks are breaking out
Here are some highlights from the stock market on Friday.
Hyatt Hotels (H) rallied 3.9%, breaking through a long, volatile base and reaching a buy point at 108.20. An international accommodation chain has opened a hotel at Hangzhou International Airport in China. Finally, Hyatt’s relative strength line reached a new high, as indicated by the blue dot on the MarketSmith chart.
Altra Industrial Motion ( AIMC ) rose 1.4% and broke out of a flat base, hitting a buy point at 60.54. Shares are in a 5% buy zone, reaching 63.57. Looking back, shares of the powertrain parts maker have been trending sideways after a huge rally in October. The company raised its 2022 earnings per share guidance at the time.
Valero Energy ( VLO ) gained 3.1%, breaking through a cup-with-handle base and reaching a buy point of 142.26. The energy giant got a boost after Morgan Stanley raised its price target to 170 from 140 and maintained its overweight rating. Valer’s relative strength line has reached a new peak on its scale.
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Online furniture store Wayfair ( W ) rallied 20.3% in heavy volume after announcing plans to lay off 1,750 employees, or 10% of its staff, to save $750 million a year. Wayfair is expected to post big losses in 2022 and 2023.
Netflix ( NFLX ) climbed 8.5% in heavy volume after reporting better-than-expected fourth-quarter subscribers and sales. It also raised sales guidance for the first quarter of 2023. The stock recovered after losing 3.2% in Thursday’s regular session, finding support at its 21-day exponential moving average.
Theme park and media streamer Walt Disney ( DIS ) led the Dow, rising 4.4% as streaming stocks moved in tandem with the likes of Netflix.
Google-parent Alphabet ( GOOGL ) added 5.3% after CEO Sundar Pichai announced plans to cut 12,000 jobs worldwide. The tech giant joins other Nasdaq heavyweights in cutting staff.
SLB ( SLB ) fell 0.1% after reporting better-than-expected fourth-quarter EPS and sales. Management said the business outlook for 2023 remains “very compelling” due to stronger oil and gas demand and tight supply, despite a potential economic slowdown. In addition, SLB announced a dividend increase to 25 cents per share to shareholders of record on February 8.
The oil company’s shares have broken out of a volatile base, reaching a buy point of 56.14 in early January, and are in a 5% buy zone that extends to 58.95.
Salesforce.com (CRM) recouped morning losses, climbing 3.3% after another analyst downgrade. The cloud client management software company recently announced that it will lay off 10% of its employees as part of a restructuring plan.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
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