The Dow Jones Industrial Average jumped but the Nasdaq shined brightest as stocks fought back. Twitter (TWTR) plunged on a move by You’re here (TSLA) CEO Elon Musk. Warren Buffett stocks Western Petroleum (OXY) offered a rebound entry while Apple (AAPL) was a top blue chip.
Beaten down tech stocks were among the best performers, with DocuSign (DOCU) turning in a handsome gain. ARK Innovation, ticker symb=ARKK], an embattled ETF led by Cathy Wood, exploded 11% higher.
Volume was down on both the Nasdaq and the New York Stock Exchange according to early data. This is not ideal when a market is trying to rally.
Meanwhile, the yield on the benchmark 10-year Treasury note spiked 12 basis points to 2.94%. Oil surged again, with West Texas Intermediate crude rising 4% to over $110 per barrel.
Nasdaq Surges As Growth Stocks Excel
The Nasdaq was the top major index, rising 3.8%. EV-maker Lucid Motors (LCID) was one of the top performers here, rising 14.8%.
The S&P 500 ended the session with a strong gain of 2.4%. Enphase Energy (ENPH) impressed here with a gain of 12%.
US Stock Market Today Overview
Last Updated: 4:08 PM ET 5/13/2022
The S&P sectors were all green. Consumer discretionary, technology and energy fared. Utilities and health made the weakest gains.
Small caps finally punched back against the bears, with the Russell 2000 surging 3.2%.
But it was growth stocks that had the best day of all. The Innovator IBD 50 ETF (FFTY), a bellwether for growth stocks, closed with a gain of 3.9%.
Dow Jones Today: Index Jumps As Apple Stock Pops
The Dow Jones Industrial Average rallied into the close as it turned in a gain of almost 500 points. It ended the session up 1.5%. It has now fallen for seven straight weeks though.
Apple stock was a winner Friday as it rose 3.2%. Nevertheless, the stock finished the week down 6.5% according to MarketSmith data.
But it was Nike (NKE) that was the biggest winner on the Dow Jones today. It popped 4.7%.
Johnson & Johnson (JNJ) led the downside, but only fell 0.6%.
New Market Rally Underway: Get Ready, Get Set, But Don’t Go Just Yet
Twitter Spanked On Elon Musk Move, Tesla Stock Rallies
Twitter stock stood out like a sore thumb among tech stocks as it got hammered lower.
It came after Tesla CEO Elon Musk, who is trying to buy the company, shares some potentially ominous news on the social media network.
“Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” the eccentric executive tweeted,
However, he later added that he is “still committed” to the acquisition, which has become a major focus due to Musk’s views on free speech.
Twitter stock plunged 9.7%. It now sits well below the 54.20 price offered by Musk to take the firm private. The price disparity suggests a rising risk that the takeover may not be finalized.
In contrast, EV stock Tesla surged, rising 5.7%. It remains rooted below its major moving averages however. TSLA stock has been hit amid fears Twitter may distract Musk from the EV business.
Donald Trump PSPC Digital World Acquisition (DWAC), which is set to home the former president’s rival social media network Truth Social, rose 8.3%.
Cathy Woods ETF Vaults As Beaten Down Tech Rallies
Beaten down tech stocks were among the best gainers on Friday. DocuSign mightily impressed as it vaulted 13.4%. While it remains shy of its 50-day line, it was a top performer on the Nasdaq today.
Riskier names did the best for the day, with Teladoc Health (TDOC) jumping 9.4% and Warren Buffett favorite Snowflake (SNOW) rocketing 12.4%.
Big tech was also gaining. Microsoft (MSFT) pink 2.2%; Amazon (AMZN) popped 5.7%, parent Facebook Meta Platforms (FB) jumped 3.9% and Google parent Alphabet (GOOGL) closed up 2.8%.
The performance of beaten down tech stocks has given a much-needed boost to the ARK Innovation ETF, which is led by Cathie Wood. But while it rose 11.9% Friday, it remains down 55% for the year.
One area outside tech making a notable move was casinos. They turned in some of the best gains on the stock market today, with the likes of Las Vegas Sands (LVS) and Wynn Resorts (WYNN) shining brightest with gains of 15% and 13.2% respectively.
Outside Dow Jones: Warren Buffett Stock Offers Entry
While it is risky to add stocks to one’s portfolio during a correction a couple of energy names stood out as they made bullish moves.
Warren Buffett stock Occidental Petroleum was bouncing away from its 10-week moving average. This serves as an entry with an ideal buy point of 59.26. It is actionable as high as 65.19.
The relative strength line has been outstanding through 2022 and looks to be turning higher again.
Legendary investor Warren Buffett is a big fan of the stock. His firm Berkshire Hathaway (BRKB) is now the company’s largest shareholder with a 15.2% stake.
Occidental is the largest acreage holder in the Permian Basin, located in Texas and New Mexico.
New Fortress Energy is also offering a buying opportunity as it bullishly rebounds off its 10-week line. The ideal entry here is 39.92 and it is buyable up to 43.91.
The New York-based company is aiming to change the power market, with liquefied natural gas a key component of its strategy. It operates in the US, the Caribbean, Europe and Latin America.
Both stocks won spots on the prestigious IBD Leaderboard list of leading stocks Friday.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
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