On Friday, the Dow Jones Industrial Average defied premarket losses and surged to record gains with the help of a strong earnings report from JPMorgan. This positive momentum also lifted other major indexes in the stock market.
In morning trading, the Dow climbed by 0.7%, surpassing its previous intraday high set in September. JPMorgan’s impressive 5% jump provided a significant boost to the index and found support at the 50-day moving average. Additionally, American Express and Goldman Sachs, both Dow Jones components, also made significant gains. While AmEx is near an all-time high, Goldman recently broke out over a trendline and remains in a buy zone.
The S&P 500 also saw a 0.6% increase, with Wells Fargo leading the way as a top gainer. Wells Fargo reported strong earnings though revenue fell slightly below estimates. The Nasdaq composite increased by 0.4%, and small caps on the Russell 2000 jumped by 1.3%. While the Nasdaq surpassed a recent high, it has yet to reach its all-time high.
Market breadth was positive on both the Nasdaq exchange and the New York Stock Exchange, indicating broad market strength. The 10-year Treasury yield remained flat, indicating that the market may be adjusting its expectations around future Fed rate cuts.
Tesla’s robotaxi event did not impress Wall Street analysts, causing Tesla’s stock to slump. Meanwhile, Uber’s stock surged as the Tesla robotaxi was not seen as a significant threat to the ride-hailing company. Leaders in the market, such as Nvidia and Bank of America, also performed well.
In economic news, wholesale prices showed a mixed trend, with headline prices slightly exceeding expectations while core prices fell below consensus estimates.
Overall, the market showed resilience and positive momentum, with opportunities for investors to capitalize on strong earnings reports and market trends.
