Stock futures climbed Friday, as the market aimed to wrap the final trading session of May on a positive note. Markets waited on key income, spending and inflation data, as well as details on President Joe Biden’s $6 trillion budget initiative. Ford Motor, eBay and Ulta Beauty were early leaders. IBD 50 stocks Alphabet and Boise Cascade rose in buy ranges. Salesforce.com dominated the Dow Jones today, as it rallied on a big earnings beat.
Dow Jones futures scrambled 0.4% higher in early trade as oil prices rose ahead of the Memorial Day holiday, and interest rates held flat with key inflation due from the Commerce Department. S&P 500 futures traded 0.3% above fair value. Nasdaq 100 futures also rose 0.3% on the stock market today.
President Biden is expected to unveil his $6 trillion federal budget for fiscal 2022 Friday, providing additional detail on massive investment in the U.S. economy planned over the next several years.
On the Nasdaq 100, eBay (EBAY) led the action with a 1.2% gain. Apple also traded high in the mix, up 0.6% as it attempts to reverse its minor loss for the week, and stem a four-week pullback.
Salon chain Ulta Beauty (ULTA) led the S&P 500, grabbing a 5% gain as analysts raised price targets on the stock after a huge first-quarter earnings beat and a 66% rise in same-store-sales, reported late Thursday.
Ford Motor (F) was again on the rise, up 1.1% early after logging an 11.6% gain for the week through Thursday. The prospective electrical vehicle giant, an IBD Leaderboard stock, broke out above a 13.72 buy point in a cup-with-handle base on Wednesday.
In earnings news, Hibbett Sports (HIBB) rallied 7% higher on a solid first-quarter earnings beat. Shares were up 13.4% for the week through Thursday, with a year-to-date gain of 89%.
Dow Jones Today: Salesforce Earnings
Salesforce.com (CRM) powered up nearly 5% in early trade, leading the Dow Jones today, after reporting late Thursday an above-forecast 13% earnings jump and a 23% revenue gain in its first quarter. Management also boosted second-quarter earnings and revenue guidance to above analyst expectations.
CRM stock slipped 1.7% on Thursday, but shares are still tracking toward a third straight weekly gain. Salesforce’s premarket action suggested the stock would open back above its 200-day moving average. But the stock is in the midst of a messy, eight-month consolidation, not yet offering any proper buy points.
Boeing (BA) swung low on the Dow, down 1.3%, after the Wall Street Journal reported deliveries of 787 Dreamliner aircraft would be delayed by Federal Aviation Administration requests for details on quality lapses in production.
Boeing stock gained 6.8% for the week through Thursday, retaking support at its 50-day/10-week moving average and moving up the right side of a n 11-week consolidation.
IBD 50: Boise, Alphabet Bounce
Among IBD 50 stocks, Boise Cascade (BCC) bumped up 1.5%, aiming to continue higher in the buy range on a rebound from the stock’s 10-week moving average. Boise has a 42.6% gain for the year through Thursday. This is the stock’s third rebound from support following a November breakout.
Google-parent Alphabet (GOOGL), also on the IBD 50 list, gained 0.7% after the Wall Street Journal reported the company was close to settling an anti-competition suit in French courts. Shares are in a buy range on a rebound from support at the stock’s 10-week moving average.
Bitcoin Backs Off On Kuroda Comments
Bitcoin continued a volatile week with an 8% drop, to below $37,000 early Friday, according to Coindesk. Bloomberg reported the Bank of Japan’s Haruhiko Kuroda is joining the international chorus of central bank governors warning cryptocurrency volatility and speculative trading.
Bitcoin had traded above $59,000 in early May, after touching a record high above $64,800 on April 14. It dropped below $32,000 last Sunday, briefly narrowing its gain for the year to less than 10%.
Oil Prices Rise Ahead Of Holiday
Oil prices continued their climb ahead of the Memorial Day weekend launch to the summer driving season. AAA forecasts 37 million Americans plan to drive at least 50 miles from home for the holiday.
West Texas Intermediate oil price futures climbed 0.6%, moving above $67 a barrel for the first time since early March. A five-day advance has left WTI oil up more than 5% so far for the week, and edging close to the 33-month high at $67.98 posted on March 8.
Bond yields flattened after a two-day rebound. The 10-year yield traded at 1.61% even with its settle on Thursday, according to CBOE data. Yields had skirted pre-pandemic levels in late March, climbing to almost 1.76%, the highest mark since January 2020.
Dow Jones Today: Conflicting Small Caps
With Monday being a holiday, Friday marks the final trading session of May, set within an economic fight to recover from a historic setback. For the month, the Dow Jones today opens with an advance of 1.7% under its belt. The S&P 500 is up 0.5%. The Nasdaq Composite so far is down 1.6%, and is tacking toward its first monthly decline since October.
For more detailed analysis of the current stock market and its status, study the Big Picture.
For small caps, it’s been a mixed month. The Russell 2000 Index and the Vanguard Russell 2000 Index Fund ETF Shares (VTWO) each ticked 0.3% higher and is leaning toward an eighth monthly gain. Meanwhile, the S&P Smallcap 600 Index posted a 2.3% advance. The corresponding Vanguard S&P Small-Cap 600 Index Fund ETF Shares (VIOO) has climbed 2.4%.
The result has left the VIOO fund in a flat base formed neatly atop support at its 10-week moving average. The fund finished Thursday less than 2% below that base’s 210.48 buy point.
Looking at growth stock gauges, the IBD 50 Index slipped 0.5% for the month through Thursday. The Innovator IBD 50 ETF (FFTY) had a 3% decline, on track for its second monthly slip this year.
Find Alan R. Elliott on Twitter @IBD_Aelliott
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