Stock Market Gains On Consumer Optimism; Chips And Tech Lead Charge

The stock market continued to climb on Friday as consumer sentiment rose. Walt Disney (DIS) and Apple (AAPL) gained, underpinned by strong action in technology and consumer discretionary stocks.


The Nasdaq composite traded 1.8% higher as the market headed into the final hour, while the S&P 500 gained 1.4%. The Dow Jones Industrial Average rose 1% while the small-cap Russell 2000 index gained 1.9%.

Volume fell sharply on the Nasdaq and on the NYSE vs. the same time on Thursday.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 33683.91 +347.24 +1.04
S&P 500 (0S&P5) 4266.70 +59.43 +1.41
Nasdaq (0NDQC ) 13005.80 +225.89 +1.77
Russell 2000 (IWM) 200.10 +3.75 +1.91
IBD 50 (FFTY) 29.92 +0.35 +1.18
Last Update: 3:08 PM ET 8/12/2022

The Innovator IBD 50 ETF (FFTY) gained 1.2%.

Consumer Sentiment Continues Its Climb

Consumer sentiment ticked higher, continuing its climb from an all-time low in June. The University of Michigan’s preliminary August reading of 55.1 beat Econoday’s estimate of 52.2 and was higher than July’s 51.5.

However, not all analysts were convinced by the positive session.

“Consumers are nervous about spending on big ticket items and are increasingly convinced that now is a bad time to buy a vehicle or a major household item” said Jeffrey Roach, chief economist for LPL Financial. “Consumer spending will likely slow in the near term.”

The 10-year U.S. Treasury yield fell three basis points to 2.85%. Crude oil prices fell 2.9% to $91.70 per barrel.

The S&P Technology Select Sector ETF (XLE) jumped 1.7%, outpacing all other S&P sectors.

Apple gained 1.8% after reports said the company is gearing up for an iPhone 14 launch that’s as big, or bigger, than last year’s iPhone 13 launch.

Chip Stocks Lead Stock Market Gains

GlobalFoundries (GFS) jumped 12%. On Tuesday, the contract chipmaker beat Wall Street’s targets for the second quarter and guided higher for the current period.

Chip stocks gained as the S&P Semiconductor ETF (XSD) rose 3.4%.

Illumina (ILMN) stock fell more than 8% after the DNA sequencer broadly lagged Wall Street’s quarterly forecasts and slashed its outlook for the year.

Shares of Rivian (RIVN) gained a mild 0.3% after the electric-vehicle maker reported mixed second-quarter earnings late Thursday, amid layoffs and supply-chain issues.

EV giant Tesla (TSLA) rose 3.7% but the stock continues to face resistance at its 200-day line. Earlier this week, CEO Elon Musk announced the new Tesla Semi will start shipping this year.

Tesla stocks will split 3-for-1 on Aug. 24.

Clean Harbors (CLH) is breaking out of a double-bottom base and is trading above a buy point of 115.10.

Paperboard packaging manufacturer Sonoco (SON) broke out of a cup-with-handle base with a buy point of 64.39. Both stocks have appeared in recent IBD screens, including Stock Spotlight.

Follow Michael Molinski on Twitter @IMmolinski


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