Small caps spearheaded a broad stock market advance Friday as indexes made record highs, but many growth stocks got left behind.
XThe Nasdaq added 0.7% and climbed 2.1% for the week. It was the third straight week of gains for the Nasdaq. The S&P 500 rose 0.9% and closed at session highs. For the week, the S&P 500 climbed 1.7%, its second consecutive up week.
The Dow Jones Industrial Average rose 0.8% as the index tries to firm up above the 30,000 level. Caterpillar (CAT) led the Dow with a 4.3% increase that took the heavy machinery stock to a record high.
Small caps led Friday's stock market as the Russell 2000 rallied 2.3% and reached an all-time high as well. The index has been surging since early November.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 30217.77 | +248.25 | +0.83 |
| S&P 500 | (0S&P5) | 3699.13 | +32.41 | +0.88 |
| Nasdaq | (0NDQC ) | 12464.23 | +87.05 | +0.70 |
| Russell 2000 | (IWM) | 188.23 | +4.31 | +2.34 |
| IBD 50 | (FFTY) | 39.67 | +0.17 | +0.43 |
Last Update: 4:06 PM ET 12/4/2020 |
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But Innovator IBD 50 ETF (FFTY) rose only 0.4%. Big Lots (BIG) and Marvell Technology Group (MRVL) sold off after they reported quarterly results. Another drag was Pool (POOL), which fell nearly 3% and ended the week down more than 6%.
The IBD 50s struggles were part of an underwhelming day for growth stocks in general. The iShares Russell 1000 Growth ETF (IWF) rose 0.6% while iShares Russell 1000 Value ETF (IWD) rallied 1.3%.
Major stocks such as Microsoft (MSFT), Amazon.com (AMZN) and Facebook (FB) were quiet. That's why Invesco QQQ Trust (QQQ), an ETF that tracks the Nasdaq 100 index, rose 0.4%, or about half as much as the Nasdaq composite.
Advancing stocks led decliners by 10-3 on the NYSE and by 14-5 on the Nasdaq.
While Friday's breakouts of Rambus (RMBS) and Novocure (NVCR) were solid, a well-known apparel stock also broke out.
Skechers USA (SKX) rose above the 36.22 buy point of a cup-with-handle base. Volume was about one-third larger than average. In a year in which the footwear stock has struggled, Friday's breakout offers new hope for better gains. The relative strength line has not caught up with the stock price, which is a weak spot for the breakout.
Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia
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