The stock market gained sharply on Friday, closing out the week with all three major indexes up over 5% for the week and snapping a three-week losing streak. New data showed the economy continued to slow, feeding investor enthusiasm and signaling inflation may be coming down and the Federal Reserve may ease its tight monetary policy.
The Nasdaq closed up 3.3%, the S&P 500 gained 3.1% and the Dow Jones Industrials closed up 2.7%.
Top gainers in the Dow Jones today, with gains of at least 5%, included Salesforce.com (CRM), Goldman Sachs (GS) and Boeing (BA).
The Russell 2000 index of small caps gained 3.1%. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, rose 1.6%.
Volume rose sharply on both the Nasdaq and the New York Stock Exchange due to rebalancing of the Russell indexes.
U.S. Stock Market Today Overview
|Last Update: 4:16 PM ET 6/24/2022|
For the week, the Nasdaq gained 7.6%, the S&P 500 rose 6.5%, and the Dow Jones climbed 5.2%.
New Data Point To A Slowing Economy
Two days of Fed Chairman Jerome Powell testifying before Congress ruled the headlines this week. Powell stated his intention to do whatever it takes to bring down inflation, even if it means risking a recession.
On Friday, new economic data confirmed the United States could indeed be headed for a slowdown. The consumer sentiment index published Friday by the University of Michigan came in at 50.0 in June, down from 58.4 in May. It was roughly in line with Econoday expectations.
New home sales rose 10.7% month-over-month to 696,000, above economists’ estimates of 587,000. But “demand remains well below peak pandemic levels,” said Peter Essele, head of Portfolio Management for Commonwealth Financial Network. “Coupled with the softening economic environment and slowdown in hiring as of late, it’s reasonable to assume that the housing market is due for a correction in the coming quarters.”
All S&P sectors gained, with consumer discretionary and technology stocks leading the way. Amazon (AMZN), Microsoft (MSFT), Google-parent Alphabet (GOOGL) and Tesla (TSLA) all soared more than 2%.
Health Care Adds To Weekly Stock Market Gains
The 10-year U.S. Treasury yield rose 3 basis points to 3.125%, after easing down from a high of 3.3% on Tuesday. Crude oil prices rose 3% to $107 a barrel.
FedEx (FDX) gave stronger-than-expected fiscal 2023 guidance late Thursday after narrowly missing revenue and earnings views for the fourth quarter. FedEx stock jumped Friday, topping its 200-day moving average, a key support level.
“As we move forward, our focus will be on revenue quality and lowering our cost to serve,” CEO Raj Subramaniam said in an earnings release.
The S&P Health Care Select Sector ETF (XLV) jumped nearly 8% this week as investors anticipated that the health care sector could benefit as a recession-resistant investment.
Merck (MRK) gained 1.2% on news that it is working on a deal to acquire biotech company Seagen (SGEN). Seagen closed 2.5% higher. Merck’s stock is in a 5% buy zone above a 89.58 buy point.
Johnson & Johnson (JNJ) was up 1.5% and broke out of a double-bottom base, passing the buy point of 181.84.
Follow Michael Molinski on Twitter @IMmolinski
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