Stocks Finish Powerful Week; Vertiv, Expand Energy, JPMorgan Chase In Focus

0:00In moments of seismic change, through crisis and transformation, it is our real-world experience that delivers. FTI Consulting. Experts with impact.

0:24Good afternoon, everyone, and welcome to Stock Market Today for Friday, November 28th, the day after Thanksgiving. My name is Ken Shreve. On today's show, we'll talk about major stock indexes extending their win streaks on a shortened day of trading, Just a half day of trading on this day after Thanksgiving. We saw health care stocks lag again, or not lag again, but health care stocks lagged today. But overall, another decent day for stocks. Before we talk about the day's action, let me bring in our news editor, Ed Carson, who has got three stocks to watch. Good afternoon, Ed. Good afternoon, Ken.

1:06I want to take a look at three stocks, Vertiv, Expand Energy, and JPMorgan Chase. Okay, three different stocks, three different industry groups. Let's start by taking a look at the NASDAQ composite and run through the major stock indexes here. Start by taking a look at the NASDAQ composite. You can see five days in a row of gains here. Tell you what, that sharp downdraft for the NASDAQ composite on this day here, You can see it has done a very good job overcoming those sharp losses from last week. We have broken out of a downtrend here. The NASDAQ composite ends higher by close to seven-tenths of a percent today.

1:51Obviously, not much volume. We've got the S &P 500. Let's check in on the S &P, see that that, too, was up by about five-tenths of a percent today. We've got the Dow Jones Industrial Averages. Lots of blue-chip gainers today. Saw some financials doing well today. Dow also up five sessions in a row, up six-tenths of a percent. Small caps lagged a little bit, seeing the Russell 2000 up three-tenths of a percent, maybe four-tenths of a percent or so. Just check in on the semiconductors today. Did see NVIDIA lag today. but the SMH did extend gains today for five straight sessions. Great day for Intel, INTC.

2:43We'll talk about that in just a little bit, but NVIDIA did lag today down. I think NVIDIA was down, yeah, just nearly 2 % or so today. So, and just going back to the NASDAQ today, It was half day of trading, more gains. The market has been very, very impressive since that volatile session last week. Yeah, I mean, this is why we talk about not trying to predict where the market is, just accepting what the market does. I mean, that Thursday drop was such an expectation breaker. And then the market originally just said, no, no, we're going to break expectations again, came right back. You know, all the indexes went through their back above their 50 day lines and got above the, you know, they're above recent highs, you know, kind of thing.

3:37They broke down trends. A lot of leading stocks showed strength. So, again, everything looked really bad just over a week ago. I mean, a lot of heavy damage and it looked like it was going to take a while. I mean, even if things got better, but it was, I mean, honestly, very impressive. so investors have to take note of that and and may you know just sort of be adding some exposure not necessarily in the old leaders some of them did bounce back some did not but you know see what the market is doing and react to that and it was a really really impressive week across the board yeah i mean weekly gains for the market very impressive this week 4.9 percent gain for the NASDAQ this week.

4:19We are looking at monthly loss for the NASDAQ, actually. Not by much for the month right now, down about 1.5%. Not sure if that's completely settled yet, but NASDAQ did break a monthly win streak here. You can see one, two, three, four, five, so about seven months in a row up. So it did break a monthly win streak here. Just take a look at the S &P 500 and to see what it did for the week. Nice weekly gain for the NASDAQ. Like I said, 4.9 % weekly gain for the NASDAQ. The S &P 500, not far behind, up about 3.7%. Let's check in on the Russell 2000. That had a really nice weekly gain, powering higher through its 10-week moving average.

5:09That was up 5.3 % for the week. And the Dow Jones Industrial Average ends with a weekly gain of almost 3.1%. And we've seen the market breadth broadening out quite a bit. And we did want to just check in on some ETFs here. Probably the most impressive performance this week was the materials and mining ETF. This ETF was up about 9.5 % this week. This is filled with a lot of gold stocks. The top-weighted gold name in XME is Hecla Mining, HL. This stock was up a whopping 26 % this week. So this is a big reason why XME had the weekly gain that it did. It was up more than 9 % at last check. Newmont Mining.

6:10Yeah, it also had Beyond Gold. It was like copper was strong, steel was strong. I mean, everything. A lot of metals. A lot. It was a heavy metal week, that's for sure. Yeah, no doubt about it. But Newmont Mining also had a very, very strong week. Another top holding of XME, CLF, another strong gainer, another top holding. How about the retail stocks, Ed? XRT. We've seen a really spate of really nice earnings report. It all started with Walmart recently. WMT had a nice earnings report. Then we had some discount retailers. Here's a look at Walmart that reported strong earnings. I think it was just recently last week, it was on this day right here when Walmart reported it extended gains.

7:06We did have some discount retailers. TJX came out and reported earnings. That was followed up by Ross Stores. And then that was followed by Urban Outfitters. And then I think next week, we had a pretty busy week of retail earnings as well, right? I know we have American Eagle. That one pops out tonight. So that one has been acting well. So, yeah, it is surprising. The consumer, some consumer strength here after retailers, many of them not behaving particularly well. I mean, some had, but it seems to be broadening out. Again, that was sort of the story this week. A lot of broadening out this week of the market.

7:46Broadening out, yep. And that XRT ETF, you can see just that went up through its 50-day moving average this week as leadership broadened out. The XRT ETF, that was up 5.5 % this week. So a couple of other retail earnings reports that we're expecting next week. We're going to hear from five below, which is an interesting setup here, kind of climbing to the top of a short consolidation. I think DLTR, you know, we're going to be hearing from next week. So lots of retailers coming up. So this broadening of leadership as we head into the end of the year, Ed, is something that I think is encouraging for stock market bulls because it used to be just about these AI stocks.

8:35Now we're seeing some select AI stocks coming under pressure, but yet we're seeing the financials coming back to life. We're seeing some retailers participating here, and this seems to be a good sign. Yeah, I mean, it's just a really good sign. And it also just means that you really have to be working on your watch lists because don't stick those old leaders and just – and let the market tell you what – let your screens tell you what's working because there are a lot of things working. So you have a lot of options right now, a lot of – I think definitely homework for investors this weekend. Now, what do growth investors that follow top-rated growth stocks?

9:14You still have to pay attention to the FFTY. This is, you know, FFTY has bounced back with the market here five up days in a row. But, you know, a lot of damage done to select, you know, growth stocks in the market here. This is a pretty, you know, sharp pullback down to the 200-day moving average. It's rallied back a little bit, just like ARKK, another growth stock proxy here that's come down quite a bit. But so growth stocks, you know, I mean, are acting better, but it's still a challenging environment. We mentioned NVIDIA was one of the laggards in the NASDAQ 100 today. That's still struggling before below its 50-day moving average.

10:02So seeing some selling among top-rated growth stocks, but still seeing some strength out there as well. I would say that this is why you can keep an eye on NVIDIA, keep an eye on Robinhood, keep an eye on Tesla. These are all stocks that are close to their 50-day lines, but they're not above those 50-day lines. So, I mean, I think you need to watch them. But, I mean, and some of them will power higher, but some may not. This might be a place where they hit resistance, especially if the market cools off. If the market, say, yeah, it drops 1 % next week, well, some of these stocks could start undercutting recent lows, not necessarily Hood or Tesla, but in something like NVIDIA.

10:35So I'm just saying it's like that, you know, that's a key level. And, you know, these are key levels because sometimes they don't work. Sometimes, if it always worked, nobody would care about the 50-day line. So just pay attention. Just be waiting for those kind of signals. Not saying that if it goes above the 50-day line, it's automatically a buy. But that, I think, is you want to be on the right side of that line. Yeah, yeah, definitely. This is Robin Hood, a good shakeout here in Robin Hood as this second leg down here undercut this first leg down, this 120-88 low. So this is starting to work its way higher.

11:15It still needs to get above that 50-day moving average. And for Robinhood to fully break out of its downtrend here, it's going to need to get back above this 150 level. So again, some pockets of weakness in the growth stock space. Again, AMD, another chip stock like NVIDIA that's come under some pressure, it's trying to get back above its 50-day moving average. But when you look at the SMH, which is sort of the big semiconductor ETF, that is not far from highs. So overall, the health of semiconductor stocks is still looking pretty good. This is a rare case because often you say, oh, by individual names.

11:53But this might be a rare case because Broadcom's extended. NVIDIA's struggling. AMD's below the 50-day line. Well, maybe if there are some things working, SMH may be the way to go. So another broad, like Broadcoms is custom AI chip name. Marvell is another custom AI chip name and they report next week. So that is another one. But, you know, so there's just, there are a lot of names out there, but I think SMH is maybe the way to play chips right now. Trading at Schwab is now powered by Ameritrade, giving you even more specialized support than ever before. Like access to the trade desk, our team of passionate traders ready to tackle anything from the most complex trading questions to a simple strategy gut check.

12:35Need assistance? No problem. Get 24-7 professional answers and live help and access support by phone, email and in-platform chat. That's how Schwab is here for you to help you trade brilliantly. Learn more at schwab.com slash trading. All right. Well, let's take a look at some individual stocks here, including one AI stock. You know, there was a big outage overnight. So when you woke up this morning and were trying to follow futures, you saw a lot of problems with pricing, with futures and individual stocks. stocks. Apparently, there was a data center outage, something to do with some sort of cooling, a data center operated by Cyrus One.

13:23So let's take a look at a provider of cooling solutions to data centers, Vertiv, VRT, which is showing improved technical action, VRT, moving above its 50-day moving average, maybe breaking out of a downtrend here. Yeah, and normally they like to say, no, actually, we're more than cooling. We're AI infrastructure. But today, I'm sure they'd be happy to say we're a cooling play. But yeah, a nice move. Nice move here. I mean, it was huge weekly gain. But today is really the day I think that it was actionable. It made a clear move from the 50-day and 21-day line. It got above the high from that downward reversal day.

14:09It broke the downtrend in this overhaul pattern. You know, it needs some more time to have a full-on base, probably a couple more weeks. But I think if you were going to play this stock, especially since this is one that can often fly up and down, this probably was a day to do it. You know, so, yeah, nice action here. Definitely nice action. Definitely strong fundamentals. These little green arrows pointing up here means that the estimates have been revised higher recently for Vertiv. And again, when you look at the past four reported quarters of earnings here, look at the bottom line and the top line growth at Vertiv.

14:47Just definitely a compelling growth story here. Strong technicals as well, back above its 50-day moving average. And then the weekly chart here, just a longer-term perspective, finding support at the 10-week moving average, maintaining a strong uptrend. And this is just the type of fundamentals and technicals that we like to see in a stock. Saw a lot of outperformance among oil and gas stocks today in the market surge, growth 250. So let's take a look at Expand Energy. This is a company that does the bulk of its work in natural gas as opposed to oil. About 92 % of its production in Q3 was in natural gas.

15:35Stock that tried to break out here but got pulled down during that market's nasty reversal last week. But it reclaimed a handle buy point today, Ed. Yeah, and expand. I wasn't that familiar with it, but I am familiar with it because this is the former Chesapeake Energy. And they changed their name last year when they made another acquisition. So, yes. Yeah, I was a little disappointed to see that reversal. But a lot of things did. And you can see that today the RS line is higher than it was when, you know, any other point in this handle. So the RS line showing strength lately. I mean, it's not at a new high.

16:08So, I mean, it could be better. The fundamentals. Yeah. Look at those fundamentals. And some of that is because, look, natural gas prices go up. Natural gas prices are trending up. I think there's expectations of them being strong because AI demand for any energy. There's still pretty good export demand. So people probably feel like the prices are probably going to do pretty well. If you look on a weekly, you can see both the fundamentals and the stock has had various ups and downs. And so there is that. But it can go on, you know, it's actually, you know, formed a better little area. It sort of undercut some recent bases, but it isn't in this long downtrend.

16:46So fundamentals look great right now. Some of it's easy comparisons, but there's a lot. There's a lot like in right here. This was added to leaderboard, correct? Yes, it was. Yes, it was. We think that this one has a good chance of working, coming out of this cup-shaped base here. Market looking good. The industry group is still in the bottom half of our industry group rankings, but we were encouraged. Inside this group, we saw a lot of positive action today, Ed. Not only did Expand Energy breakout, we saw CRK, a group peer. This is Comstock Resources. Also made a nice breakout today, CRK. And also a name that our colleague, Patman David Saito Chung, has brought up before, BKV.

17:38BKV, another oil and gas producer. Also, slightly different look here, but stock was up 4.6 % today. Made a nice move above its 10-day moving average. So three strong movers in the oil and gas production group. And then also another natural gas firm, EQT. Throw that one in there as well that I noticed in the market surge. Growth 250 made a nice, broke out of a downtrend today. This is actually an integrated firm in a different industry group, but excellent fundamentals here as well. Trying for a breakout year over a 61-26 buy point here as Webby is throwing his computer around over here in front of me.

18:27Calm down, Webby. All right. So anyway, a couple of few bonus oil stocks here. All right, Ed, after that, I'm glad we're talking about some financial stocks because those were some nice movers in the Dow today, J.P. Morgan and Goldman Sachs. So let's take a look at J.P. Morgan in the Dow Jones. Yeah, that one bounced off, rebounded back above the 50-day line. Really, today it bounced from the 50-day line. I think you could be actionable from there. I mean, I think you could still use the 3.1801 buy point. You could say, well, that buy point is no longer out. I think you could still use it. So this was just it was just acting well here.

19:13Yeah, there was definitely a lot of financials, a lot of banks that showed strength late in the week. And it's probably, you know, expectations of Fed rate cuts, maybe just a generally more positive hopes for for the economy, you know, going forward. We'll have to see. But I think that partly, you know, just like all these other breaths, that breath in many ways is a reflection of expectations of stronger performance in the economy. And this is showing it. So this may be a place, too, that people could have entered. Yeah, yeah, no doubt about it. And Dave and I just recently were talking about this KRE ETF, that regional banking ETF, just recently made a nice little move above its 50-day moving average.

19:57So this still, it's got a little overhead resistance to move, to get through as it moves higher. But even seeing the financials starting to outperform here. And besides J.P. Morgan in the Dow, Goldman Sachs making a nice move here, trying to re-break out of a consolidation. So back near highs as well. So, all right. Well, we are going to keep this Friday video on the short side. day after Thanksgiving. And Ed, appreciate your insight on this Friday. Hope you had a great Thanksgiving and hope you have a great weekend. We'll see you on Monday. All right. That's going to do it for this Friday on a shortened day of trading.

20:47Hope you all had a great Thanksgiving. We'll be back here on Monday for a full day of trading and hope this year-end rally continues as we get ready for the month of December and the final month of trading. So we'll be back for another edition of Stock Market Today on Monday and always IBD Live. We'll be back on Monday, so be sure to join us. If you haven't checked out IBD Live, be sure to go to investors.com forward slash IBD Live. check out our full stock market show every morning we start at 9 20 a.m eastern time every morning discussing actionable stocks and a lot of great sector and stock market information so have a great weekend everyone we'll see you back here on monday take care

21:54This podcast is brought to you by ReliaQuest. Cyber criminals are constantly attacking. They want your data. They want your identity. They want your innovation. ReliaQuest fortifies your business with agentic defense, AI that detects, contains, and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest, agentic defense for the enterprise. Learn more at ReliaQuest.com. That's R-E-L-I-A-Q-U-E-S-T dot com.