Dow Jones Indices Rise on Strong Business Activity; AI Stock Rises After Earnings; Tesla’s deliveries in China

The Dow Jones Industrial Average and other indices reached session highs in late trading on Friday. Technical Titan Broadcom (AVGO) rose while retailer Costco (COST) fell, both after gains. Tesla (TSLA) surged after China’s February deliveries increased 13% from January.


The Dow Jones Industrials climbed 1.2%, on track for a third straight gain. The index is bouncing back after testing the December lows.

Equities rose after activity in the services sector picked up again in February. The S&P Global Business Activity Index for services rose from 46.8 in January to 50.6 in February. It effectively ended a seven-month contraction and gave wings to the stock market. On Friday, the Fed’s semi-annual monetary policy report stressed that interest rates would need to continue rising to meet the Fed’s target.

These Dow Jones stocks are outperforming

Dow Jones Stocks Apple (AAPL) and Boeing (BA) did better than Friday. Morgan Stanley analyst Erik Woodring sees a 20% increase for AAPL stock. He raised the price target from 175 to 180 and maintained an overweight rating.

In addition, Boeing’s stock is on track to rise for a fifth day in a row amid increasing orders and deliveries.

The Nasdaq gained 2%, boosted in part by Broadcom’s strong earnings and robust outlook. AVGO was up over 5% in the afternoon.

However, Nasdaq leaders Tesla, Meta platforms (META), Alphabet (GOOGL) and Amazon (AMZN) also rose after stronger signs of a soft landing and a quicker end to rate hikes. Amazon and Alphabet are testing their 50-day lines.

Tesla surged after sales in China rose 13% in February from January and 32% from last year. However, the share remains below the 200-day mark.

Most sectors in the S&P 500 performed well in the afternoon, while defensive consumer staples lagged the rest. The S&P 500 rose more than 1% this afternoon.

Meanwhile, the small-cap Russell 2000 was up 1.3% in afternoon trading. And the Innovator IBD 50 ETF (FFTY) jumped 2.4% higher, outperforming the main indices.

Government bond yields fell, with the benchmark 10-year treasury yield falling 10 basis points to 3.96%.

Crude oil rose more than 1% to $79.57 a barrel. Volume was lower on both the Nasdaq and NYSE compared to the same time on Thursday.

Broadcom, Costco earnings

Shares of Broadcom rose more than 5% in high volume after strong gains. The San Jose, California-based company earned $10.33 per share on revenue of $8.92 billion. That beat the view count of $10.17 per share on $8.9 billion in sales. The outlook for the April quarter was also strong. It expects sales of $8.7 billion, more than $8.58 billion estimated. The stock cleared an entry at 617.11 and its relative strength line is at a 52-week high.

COST fell nearly 3% in its base. Any hope of regaining its 50-day line was dashed when the stock plummeted. Revenue of $55.3 billion showed growth of only 6%, while earnings of $3.30 per share grew 13%.

C3.Ai (AI) shares rose more than 30% after the company beat its own guidance and saw improved sentiment late Thursday. The company announced its quarterly results on Thursday evening. The outlook was rosy based on “improving business sentiment”.

Stocks move outside Dow Jones today

Alteryx (AYX) is near a buy point of 69.56 in a cup base. The stock is the latest addition to the IBD Leaderboard.

Please follow Ramakrishnan for more news about the stock market today.


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