Stocks Hold Gains As Government Shutdown Ends

Stocks traded near session highs Friday afternoon after President Trump and congressional leaders reached a deal to at least temporarily end the government shutdown.


Trump and Democratic leaders agreed on funding to restore federal operations for three weeks. The shutdown started about a month ago, and its impacts started to become more acute. On Friday, the Federal Aviation Administration delayed or canceled some flights at New York’s La Guardia and other airports because of staffing shortages.

Indexes were little changed as headlines indicated a deal was reached and after the president confirmed the agreement. Earnings reports helped take the market higher, causing a gap up in the main indexes at the open.

The Nasdaq composite led with a 1.3% increase and the S&P 500 added 0.9%. Both were near last Friday’s highs after pulling back modestly to their 50-day moving averages.

The Dow Jones Industrial Average climbed 0.8% despite a 6% drag on shares of Intel (INTC). The chipmaker late Thursday reported earnings above estimates, but sales missed views and Intel’s forecast was weak.

The Dow rose above last Friday’s high. Its monthlong rebound now faces a test as it approaches the 200-day moving average. The small-cap Russell 2000 advanced 1.2%.

Breadth Is Bullish

Volume was higher compared with the same time on Thursday. Advancing stocks led by a 11-3 ratio on the NYSE and by 5-to-2 on the Nasdaq.

Leading stocks outperformed as the Innovator IBD 50 ETF (FFTY) rose 1.5%. Technology stocks were the strongest in the IBD 50. Twitter (TWTR) jumped 4%, Xilinx (XLNX) 4% and CyberArk (CYBR) 3.7%.

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Technology was one of Friday’s top sectors. The data storage industry group led with a 3.7% increase after Western Digital (WDC) rallied on its earnings report. The company missed profit expectations but gave a sunny second-half outlook. Shares romped 7%, even after paring gains.

Globant (GLOB) broke out of a cup-without-handle base, sailing past a 66.51 buy point. But volume was flat. OSI Systems (OSIS) gapped to a new high, breaking out of a flat base with an 83.04 buy point. Volume was heavy after the maker of body scanners used at airports beat profit expectations.

Fiserv (FISV) surged to a new high, breaking out past the 82.89 buy point of a cup-without-handle base in heavy trading. The stock has been rallying since Fiserv announced it will acquire First Data (FDC) for $22 billion in stock on Jan. 16.

Hill-Rom Holdings (HRC) gapped above the 99.91 buy point of a cup without handle in heavy volume. The maker of medical equipment beat profit expectations Friday.


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