All three major indexes closed a choppy week of trading with gains on Friday, but the Dow Jones Industrial Average and S&P 500 still logged a weekly loss for the fourth consecutive week.
Friday's session was defined, in part, by more mixed economic data. Core capital orders increased by more than forecast, but growth in durable goods orders rose less than expected. Altogether the data did nothing to reassure a market that's concerned about a slowing recovery amid waning federal financial help for businesses and the unemployed.
"Risk assets remained stable following the economic releases as last month’s readings were revised upwards, but cyclical assets continue to experience bouts of selling due to the growing global economic worries," Gorilla Trades notes.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Against that backdrop, tech stocks once again took center stage as investors scramble for growth in a recessionary environment, with Microsoft (MSFT), Apple (AAPL) and Salesforce.com (CRM) being among the Dow's top gainers. For the record, the blue-chip average rose 359 points, or 1.3%, to finish at 27,174.
The usual anxieties surrounding the imminent end of fiscal stimulus, a mixed economic picture and rising COVID-19 cases will likely take center stage next week, as the corporate earnings calendar is pretty light. Highlights include a report from Micron Technology (MU) on Tuesday, and results from Pepsico (PEP) Thursday.
Other action in the market today:
- The Nasdaq Composite gained 2.3% to close at 10,913.
- The S&P 500 added 1.6% to finish at 3,298.
- The small-cap Russell 2000 closed up 1.6% at 1,474.
- Boeing (BA) shares rose 6.9% on news that the European regulatory ban on the 737 MAX jet could be lifted in November.
Keep an Open Mind About Under-the-Radar Tech Stocks
At the risk of sounding like a broken record, tech stocks have been a safe haven in an otherwise tough market and look poised for more outperformance ahead.
Indeed, tech is one of the few sectors expected to report revenue growth for the third quarter. When investors think of tech stocks, no doubt their minds go to well-known tech behemoths in the Dow and other mega-players such as Google-parent Alphabet (GOOGL), Amazon.com (AMZN) and Facebook (FB). But as remunerative -- and popular -- as those names may be, they represent only a part of the tech landscape.
For example, as much as they might offer exposure to Artificial Intelligence, there are a host of ways to make cheap, concentrated bets on AI through exchange-traded funds. The same goes for investors looking to benefit from the rollout of 5G networks or the rapid growth of cloud computing.
Lastly, there are plenty of smaller, under-the-radar tech names set for outsized growth as they cater to the latest trends. These stocks might be relatively anonymous, but that doesn't mean they can't generate returns like the big boys.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Being an Executor is a Thankless Job: Do It Well AnywayYou can be a "good" executor of an estate, even though carrying out someone's final wishes can be challenging.
-
Question: Are You Planning for a 20- or 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
