Bullish jobs data fueled broad gains in the stock market today, sending the key market indexes sharply higher for the week.
The Nasdaq led Friday’s session with a 0.6% gain, the S&P 500 rose 0.5% and the Dow Jones Industrial Average added nearly 0.2%. Small caps outperformed with the Russell 2000 up 0.9%. Preliminary data showed volume easing slightly on both the NYSE and Nasdaq.
For the week, the Nasdaq rallied 2.7% to its best weekly close since late September. The S&P 500 followed suit with a 2% gain, while the Dow Jones industrials finished up 1.9%. All three indexes are now less than 3 percentage points away from their record highs.
Employment data showed the U.S. added 196,000 jobs in March, well above forecasts for 170,000. That helped ease concerns about a near-term slowdown in the economy.
Surging chip stocks helped boost the Nasdaq during the week. On Friday, IBD 50 name Microchip Technology (MCHP) rose 1.5% to break out past a 91.92 proper buy point of a cup with handle pattern. Volume has come in above the 50-day average for four straight sessions. Keep in mind that the most powerful breakouts often occur in volume at least 40% higher than usual. The IBD 50 stock extended its win streak for a sixth straight session.
Chip ETFs saw big weekly gains. VanEck Vectors Semiconductor (SMH) advanced more than 0.7% Friday, for a near 6% jump on the week. Shares are slightly extended from a 106.37 cup-with-handle buy point. Meantime, iShares PHLX Semiconductor (SOXX) added 0.7%, also bringing its weekly gain to 6%. Likewise, SOXX is just extended past a 189.33 handle entry.
Apple Boosts Nasdaq, Dow
Apple (AAPL), up 0.7% for an eighth straight advance, gave the Nasdaq and the Dow Jones index a lift. The stock closed just shy of a 197.79 buy point of a cup with handle.
Other Dow winners included Chevron (CVX), up 1.3%, and Walgreens Boots Alliance (WBA), up 1%. But the Dow’s newest stock, Dow (DOW), which split off from DowDuPont (DWDP), shed 4%.
Energy, automakers and medical stocks led the upside among the 197 industry groups tracked by IBD. In fact, six of the top 10 performers Friday hailed from the Oil & Gas sector. A 2% rise in West Texas intermediate crude prices to $63.27 a barrel gave oil stocks a boost.
Alcoholic beverage and tobacco stocks represented the biggest losers.
Over in the IBD 50, Innovative Industrial Properties (IIPR) rallied 3.2% in above-average trade. Shares are rebounding off the 10-week moving average. The San Diego, Calif.-based REIT seeks to acquire industrial real estate properties used to grow medical-use cannabis in the U.S.
Also in the IBD 50, Autohome (ATHM) drove up 3.4% to a 10-month high in volume two times faster than normal. The stock is extended from a 96.25 buy point of a cup with handle cleared last week. The China-based company and Leaderboard stock provides online content to car buyers.
The Innovator IBD 50 ETF (FFTY) climbed 0.6% in the stock market today to wrap up the week with a 1.4% gain.
