Major stock market indexes finished above their 50-day moving averages, although they came off their daily highs at the closing bell. This was primarily due to a soft October payrolls report, which boosted stocks. The Dow Jones Industrial Average gained 0.7%, the S&P 500 rose 0.9%, and the Nasdaq led with a 1.4% increase. However, Nonfarm payrolls for October fell below consensus estimates at 150,000, and September’s payroll data was revised lower. Advancers outnumbered decliners, and the small-cap Russell 2000 outperformed with a surge of 2.7%.
Among the Dow Jones stocks, most of the 30 components gained, except for Apple, which reported declining sales for the fourth quarter in a row. Walt Disney rebounded above its 50-day line ahead of upcoming earnings. Outside of the Dow Jones, Cardinal Health saw a breakout in its stock price after reporting strong fiscal Q1 earnings. Ferrari also experienced a breakout from its 50-day line after its earnings report, as did gaming software maker NetEase. Other notable moves included Expedia gapping up above its moving averages after Q3 earnings growth and Fluor gapping up above its 50-day line following strong results and an increased earnings outlook for the year. Insulet and Fortinet also experienced significant stock movements after quarterly reports.
In terms of upcoming stock movements, Warren Buffett’s Berkshire Hathaway is set to report its quarterly results over the weekend, with expectations of rising operating earnings. Additionally, several stocks in the IBD 50 are nearing buy points, including Copart, Medpace, and Adobe. Overall, the stock market saw a positive end to the week, primarily driven by the soft payrolls report and various company earnings reports.
