Dow Jones Hovers At Record High As Nvidia Gains On 'Generational Opportunity'; Warren Buffett Unloads Top Holding (Live Coverage)

The Dow Jones Industrial Average edged past Thursday's all-time closing high in afternoon trades in the stock market today. Thursday saw the index defy a spike in yields and make its 39th record close for the year, according to Dow Jones Market Data. Nvidia (NVDA) made a small gain after analysts weighed in on its outlook, while Warren Buffett's portfolio unloaded more of a top holding.

Bullish earnings reports from Netflix (NFLX) and Intuitive Surgical (ISRG) boosted the other major indexes. The Nasdaq composite held the bulk of earlier gains and was 0.8% higher. The S&P 500 gained 0.5% in the stock market today.

↑ X NOW PLAYING Nasdaq Fades Despite Strong TSMC Report; Taiwan Semi, CB, PANW In Focus

Equity exchanges saw lower trading volume compared with the same time Thursday, although advancers outnumbered decliners on both the Nasdaq and the NYSE.

The Russell 2000 small-cap index edged lower Friday but remains near 52-week highs.

Major stock indexes faded well off highs by the close Thursday, partially hurt by a big jump in the 10-year yield. Money flowed out of bonds Thursday after jobless claims, retail sales and the Philadelphia Fed Manufacturing index all supported the notion that the U.S. economy remains on pace for a soft landing.

After jumping eight basis points to around 4.10%, the yield dipped three basis points to around 4.06%.

Nvidia (NVDA) made a small gain after Bank Of America analysts weighed in on a "generational opportunity" and observed that its margins outlook can be as high as 45%-50%, twice the average for the Magnificent Seven. Analysts also see those margins flowing into strong free cash flows of $200 billion that could rival Apple's in the next two years.

Elsewhere, Berkshire Hathaway (BRKB) sold more of its top holding, Bank Of America (BAC), according to a Barron's report on Friday. The new sale amounted to $370 million and reduced Berkshire' stake to 9.97%. The Warren Buffett stock fell slightly in the stock market today but remains in a buy zone from a cup with handle's buy point of 41.05.

11:53 a.m. ET

Stock Market Movers

Lamb Weston (LW), know for its frozen potato products, was a strong gainer in the index, up 10%, on reports activist investor Jana Partners wants the company to consider a sale.

CVS (CVS) and American Express (AXP) lagged badly in the S&P 500 with losses of 7% and 3%, respectively. CVS fell hard after the company named a new CEO and guided Q3 earnings below estimates. Sellers knocked AmEx lower after earnings topped expectations, but revenue was only in line with estimates.

Apple (ATAT) is an IBD Sector Leader, helped by strong fundamentals and leading price performance. The China stock is trading tightly and holding near highs after it ended a nine-week win streak last week. That's a true sign of strength.

Outside of China, software provider Alkami Technology (ALKT) extended gains. Shares rallied around 2%. It's near the top of a 12-week consolidation with a 36 buy point.

10:27 a.m. ET

Netflix, Intuitive Surgical Rally On Earnings

Netflix gapped up for an early gain of more than 10%. Late Tuesday, the company reported better than expected earnings and revenue. Revenue increased 15% year over year to $9.83 billion. Netflix added 5.1 million subscribers in Q3, nicely above the 4 million consensus estimate. Netflix gave an alternative buy signal by gapping above its short-term moving averages.

Intuitive Surgical also gave a buy signal by gapping up to an all-time high and clearing resistance around 496. Shares jumped more than 8%. The robotic surgery leader, with a market capitalization approaching $200 billion, reported its second straight quarter of accelerating earnings and revenue growth. Adjusted profit rose 26% to $1.84 a share, with revenue up 17% to $2.04 billion.

Semiconductor stocks were in focus again on the stock market today after a broad-based rally Thursday. A bullish earnings report from Taiwan Semiconductor (TSM), the world's largest chip foundry, was the catalyst Thursday.

Early gainers Friday in the Nasdaq 100 included Nvidia (NVDA), up 1%. Nvidia touched an all-time high Thursday, but sellers knocked the stock off highs by the close. A 3.8% intraday gain faded to less than 1%. A new level of resistance in Nvidia's chart is Thursday's high of 140.89.

Inside the MarketSurge Growth 250, Alamos Gold (AGI) rallied more than 3%. The gold producer is still on a strong uptrend after a breakout during the week ended Aug. 16. It is rising from support at the 10-week moving average.

Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Catch The Next Big Winning Stock With MarketSurge

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch