Dow Jones rises ahead of memorial day on debt settlement, interest rate hikes; Tesla’s rival faces delisting

The Dow Jones Industrial Average weathered higher inflation and ended the trading day 1% higher. Tech leaders rose on Friday while healthcare stocks fell. The federal debt ceiling negotiations appear to be taking a positive turn ahead of Memorial Day.

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The proposed deal would raise the debt ceiling by $31.4 trillion over two years while imposing some spending limits. Based on reportA firm deal between House Speaker Kevin McCarthy and the White House is only $70 billion away.

The S&P 500 rallied 1.3% to close, while the Nasdaq took the clear lead with a 2.2% gain to hit a high seen in August. magic technology (MRVL) has supported the continued chip rally. Software stocks also rose working daybelong to (DAY) result.

Cummins (CMI) extra Atmusic filter (ATMU) rose 11% on its NYSE debut. The company manufactures filter parts for cars and trucks. The company values ​​its offering of 14.1 million shares at 19.50, at the midpoint of its proposed range of 18-21.

Early data showed lower volume on the NYSE and Nasdaq compared to the same time on Thursday.

The small-cap Russell 2000 was up 1.1% at 4 p.m. ET while Innovator focused on growth IBD 50 (FFTY) ETF rose 1%.

Crude oil rose less than 1% to trade at $72.47 a barrel. The yield on the benchmark 10-year Treasury note was unchanged at 3.81%.

Gather gain steam; Tesla leads 9 stocks near buy point

Outside of the Dow Jones: Stocks move today

surprised Strong increase after earnings report. The stock broke through a cup base buy point at 49.59 on Thursday and rallied to a 13-month high on Friday, as seen above. IBD MarketSmith chart.

Chip and AI game stocks continue to recover, supported by a strong quarter and forecasts from Nvidia (NVDA). competitor Advanced micro-devices (AMD) fight 20% profit targetwhile smart (INTC) recouped its losses on Thursday.

IBD Rankings play ASML (ASML) added to recent gains and extended from a 683.28 buy point. Nvidia, also on IBD Charts, has seen a bullish trend during the day. Taiwan Semiconductor (TSM) rallied after Thursday’s breakout and extended from its 95.92 buy point in a double bottom.

Among the software leaders, Workday moved out of the cup base at 206.78 after the first quarter sales of the fiscal year. beat the views. The outlook for the current quarter ending in July meets Wall Street’s expectations. Enterprise software stocks are in the 21st ranked industry group, out of 197 industries that IBD tracks. The relative strength line, at a 52-week high, also shows support for price action.

ABOVE IBD SwingTrader, prophesy (ORCL) fell slightly but continues to trade above the 50-day moving average. Shares are extended from an entry handled at 91.32.

Wholesale Costco (VALUE) rose despite fiscal Q3 earnings showing sales slow while earnings miss views. The stock has broken through the converging 50 and 200-day moving averages. Network and component giant Dow Jones Cisco system (CSCO) has also cleared the 50-day line as it works on a flat base with an entry point of 52.66.

Shares of Ford (F) up nearly 7% on strong volume after Tesla (TSLA) CEO Elon Musk says 12,000 Tesla superchargers will be made available to Ford starting in 2024. Ford stock rose above the 50-day line, while Tesla attempted to move above the 200-day moving average. , which is now just 200 above the stock price.

Elsewhere, rival EV Nicholas (NKLA) fell more than 4% due to possible delisting on Nasdaq. NKLA ended at an all-time low of 59 cents a share.

PDD (PDD) surged more than 18% in post-earnings volume. The stock has regained its 50-day line but is still in a deep correction.

The Consumer Price Index and Personal Spending, the Fed’s preferred measure of inflation, rose 0.4% in April. The likelihood of a 25 basis point increase in June goes up to 66.5%, according to CME FedWatch.

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