Dow Jones Rallies After Digesting Powell’s Remarks; Tesla Rises On $20 Billion Potential

Major indexes reversed higher from losses after Federal Reserve Chair Jerome Powell’s speech Friday morning. The Dow Jones Industrial Average rose 0.7% at the closing bell Friday.


Fed Chair Powell showed an unflinching stance toward potential further restrictive measures in his remarks at Jackson Hole, Wyo., Friday. But the Fed chief also indicated the need to “proceed carefully” with additional rate hikes.

Of the three economic segments he identified in his speech, core goods and housing services have fallen recently but the large non-housing services sector needs to show “further progress,” he said. Yields, which had fallen on indications of economic slowdown after Wednesday’s manufacturing data, reversed. The benchmark 10-year Treasury note rose 1 basis point to 4.24%.

The S&P 500 also reversed and rose 0.7%. Software and chip stocks took the lead and gained, boosting the Nasdaq by 1% on Friday. Tesla (TSLA) rose after a key analyst covering the EV company put out a positive note.

Volume was lower on the NYSE and the Nasdaq compared with the same time on Thursday.

The small-cap Russell 2000 was up 0.6% at 4 p.m. ET.

The Innovator IBD 50 ETF (FFTY) outperformed and gained 0.8%.

Crude oil fell less than 1% to trade at $78.45 a barrel.

Dow Jones Stocks

In the Dow, Salesforce (CRM) approached its 10-week moving average ahead of earnings next week.

Health care stocks Merck (MRK) and Johnson & Johnson (JNJ) retook their 50-day moving averages. Amgen (AMGN) carved a handle with a 268.24 entry.

Stocks Moving Today

Marvell Technology (MRVL) fell after second-quarter earnings late Thursday, though cloud infrastructure and AI demand helped it deliver higher than its midpoint guidance. Sales and earnings fell for the second sequential quarter. Earnings of 33 cents a share were down 42% from 57 cents the prior year’s same quarter. The company expects further deceleration in the third quarter with sales falling 6% to $1.4 billion. Cash flow from operations more than halved. Shares undercut their base on Friday and fell 6%.

Rally Attempt Fights On, What To Do Now; Tesla Leads 7 Stocks To Watch

Outside the Dow Jones, TurboTax maker Intuit (INTU) reported fourth-quarter and full-year results on Thursday. Sales grew 13% for the year and 12% during the quarter. Products for small businesses saw growth while those for consumers showed more mixed results. Earnings grew 50%. Its first-quarter midpoint guidance suggests 10.5% sales growth with earnings growing 19%. Intuit gained 6% at the hour and topped a buy zone from a 490.83 entry.

Tesla stock rose nearly 4% on Friday. According to reports on Friday, Wedbush analyst Dan Ives noted that the EV leader stands to make $20 billion by 2030 from its supercharger network partnerships with Ford (F) and General Motors (GM). The key Tesla analyst has been bullish on Tesla and believes “Tesla’s supercharger business will be roughly 3%-6% of total revenues, translating to a $10 billion-$20 billion business by 2030.” The analyst also sees tailwinds for the stock in “the government’s plan to reduce carbon emissions to zero by 2050” as well as growing orders for the Cybertruck ahead of its launch.

Workday (WDAY) rose after topping views in its earnings report late Thursday. The company anticipates further momentum going into the second half of its fiscal year. The price action is supported by other factors as well. The company reported a healthy subscription backlog that will likely contribute to projected 17% subscription revenue growth in the third quarter. Analysts at Needham raised their price target to 250 from 220, while maintaining a buy rating. WDAY stock rose above its 50-day line in strong volume in the stock market today 

Among other earnings movers in retail, Nordstrom (JWN) fell after sales decelerated and results late Thursday showed earnings growth also tapered. Gap (GPS) rose from its 50-day line after earnings surged 325%, though comparable sales drove revenue down. Ulta Beauty (ULTA) dropped, though the specialty retailer raised its outlook for the year after Q2 earnings.

Please follow VRamakrishnan on Twitter for more news on the stock market today.


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