The Dow Jones Industrial Average outperformed along with small caps Friday as investors weighed new inflation data alongside more strength in Chinese stocks on the stock market today.
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The Dow was up 0.5%, helped by strong early gains from Visa (V) and Intel (INTC). The blue-chip index has rallied powerfully since a bullish upside reversal on Sept. 11. It’s a leading index now, along with the S&P 500, which marked another all-time closing high Thursday.
The S&P 500 and Nasdaq composite edged higher by 0.1%. Casino operators with exposure to China rose sharply in the S&P 500. Wynn Resorts (WYNN), Las Vegas Sands (LVS) and MGM Resorts (MGM) showed gains of at least 4%.
Nvidia weighed on the Nasdaq with a drop of 1.5%. The artificial intelligence bellwether is still holding above its 50-day moving average after three straight gains.
Bristol Myers Squibb (BMY) was another top gainer on the S&P 500, up more than 1%. The drugmaker broke out over the 51 level but fell sharply off highs. Sentiment was positive after the Food and Drug Administration approved the company’s Cobenfy as a schizophrenia treatment for adults.
Breadth was more than 2-to-1 positive on the Nasdaq exchange and nearly 4-to-1 positive on the New York Stock Exchange.
Small caps also outperformed, with the Russell 2000 up 0.7%.
Stock Market Today: China Fund At Nosebleed Levels
After soaring 11.5% Thursday, the Crane CSI China Internet (KWEB) exchange traded fund was up another 4% on the stock market today, bringing its weekly gain to more than 25%. The fund is at nosebleed levels at this point, more than 25% above its 50-day moving average.
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Chinese indexes soared again overnight. The Shanghai composite jumped another 2.9% and the Hang Seng Index surged 3.5%. Earlier in the week, China announced a round of new stimulus measures. Reports Thursday said that China is also considering injecting more than $100 billion into the country’s top banks.
China-listed names like New Oriental Education (EDU), Trip.com (TCOM), Bilibili (BILI) and Baidu (BIDU) showed early gains of around 4% Thursday.
Personal Income Weak, But Inflation In Line
In economic news, personal income came in weaker than expected, rising 0.2% in August. That was below the 0.4% consensus. But inflation data inside the personal income and spending report didn’t sound any alarms. On a year over year basis, the core personal consumption index increased 2.7%, in line with views but slightly above July’s reading of 2.6%.
Inside the MarketSurge Growth 250, Ensign Group (ENSG) was down 1% on news it’s moving to the S&P MidCap 400 from the S&P SmallCap 600 effective Oct. 1. The MidCap 400 isn’t as widely held as the SmallCap 600. Ensign’s price decline is a result of more small-cap funds selling shares than mid-cap funds buying.
Fast-growing Oscar Health (OSCR) also outperformed on the stock market today with a gain of more than 4% After five straight declines, the stock is making a stand at its 21-day exponential moving average.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.
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