Stock Market Fades Ahead Of Long Weekend; Biotech Stocks Rally On Deal News Separator Investor’s Business Daily

The stock market wavered, with the major indexes mostly higher in the past hour of trading Friday, as cool inflation data gave investors some hope. The Dow Jones Industrial Average gave back gains, weighed down by Nike (NKE).


Indexes saw a fast decline starting around 2 p.m. ET, but bounced back. The Dow was nearly unchanged as it gave back earlier gains. The Nasdaq trimmed gains to 0.2% and the S&P 500 also was up 0.2% in the stock market today. The small-cap Russell 2000 led the day with a 0.9% gain.

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, edged up 0.1%. The Innovator IBD 50 ETF (FFTY) was flat.

Volume fell on the New York Stock Exchange and the Nasdaq vs. the same time on Thursday, as investors prepared for the long holiday weekend.

The Commerce Department released its November personal income and spending report Friday morning, with the year-over-year personal consumption expenditures price index rising 2.6% vs. the 2.9% consensus estimate. This was in-line with the revised 2.9% October reading. Core PCE rose 3.2%, below the 3.4% estimate.

November personal income rose 0.4% as expected and was slightly higher than the revised 0.3% increase in October. Personal consumption expenditures increased 0.2% vs. the 0.3% rise expected and also topped the revised 0.1% increase in October.

The bond market had a muted response. The 10-year Treasury yield held at around 3.9%.

Stock Market Movers: Biotech Stock Soars On Deal News

AAR (AIR) plunged more than 9% after the aviation parts and services provider reported a beat on its fiscal second-quarter adjusted earnings estimates but a miss on sales.

Karuna Therapeutics (KRTX) soared 47% on news that Bristol Myers Squibb (BMY) wants to buy the biotech company for around $14 billion. Karuna specializes in treatment for neuropsychiatric and neurodegenerative diseases. BMY gained 1.7% on the news.

Biotech stocks surged in sympathy on the Karuna acquisition news. IBD 50 stock Intra-Cellular Therapies (ITCI) gapped up more than 6%, and is extended from a 63.93 handle buy point. Neurocrine Biosciences (NBIX) also gapped up in heavy trading, and is extended from a 119.29 buy point of a cup-with-handle base.

Dow component Nike gapped down following the footwear and apparel company’s mixed fiscal second-quarter earnings report late Thursday. Earnings topped views while sales lagged, and the company lowered its full-year revenue outlook. Nike undercut its 50-day moving average as the market deteriorated in afternoon trading. Nike was the biggest loser on the Dow and S&P 500 Friday.

Chinese online gaming stock NetEase (NTES) gapped down around 15% on news that China’s National Press and Publication Administration proposed new regulations to limit time and money spent on online gaming. NTES was already below its 50-day line before Friday’s plunge sent it deep below its 200-day moving average.

Chinese online gaming competitor Tencent (TCEHY) also gapped down in heavy volume on the news.

Other Stock Action: Engineering Stock Soars

Aerospace and industrial engineering software stock Ansys (ANSS) gapped up in heavy volume on news it may be a takeover target, according to Bloomberg. The MarketSmith Growth 250 stock reclaimed its 200-day line and topped a 351.23 buy point. ANSS is on track for its largest increase since March 17, 2020, when it rose 13.5%, according to Dow Jones Market Data.

Lastly, Altair Engineering (ALTR) gapped up and is farther up from the 74.60 buy point of a cup-with-handle base after JPMorgan initiated coverage with an overweight rating and 86 price target. Shares hit a 52-week high.

Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.


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