Energy and consumer discretionary stocks helped lead the stock market out of overbought territory on Thursday. Traders in shares of oil companies like ^BHI^ and retailers like ^LOW^ will likely encounter significantly oversold conditions when the market opens on Friday.
Among the day’s big gainers was ^NVDA^ which we highlighted in yesterday’s 7 Stocks You Need to Know. NVDA finished Thursday up nearly 14%.
Here are 7 Stocks You Need to Know for Friday.
^MSFT^ rallied by well over 2% to close at a new short-term high above the 200-day moving average ahead of trading on Friday. The move higher puts the stock back in overbought territory for the first time in more than a week.
Up more than 2% and following-through above the 200-day moving average was ^DELL^. Shares of Dell had been trading just below their 200-day for the past few months.
In addition to the pullbacks in oil companies and retailers, telecommunications stocks like ^VZ^ and ^T^ (below) pulled back after several days of increasingly overbought conditions.
Shares of T closed at their lowest levels since mid-December.
Pulling back by more than 2% on Thursday, ^SLB^ closed lower for the second out of the past three sessions. Additional selling in the stock could put SLB in oversold territory above the 200-day going into the weekend.
Down three out of the past four trading days were shares of ^USB^ (below).
USB climbed back above its 200-day moving average in early December. The stock closed in oversold territory for the second time in the past three trading days.
Defense contractors were among the best performing stocks of the S&P 100 on Thursday. Gaining more than 2% and 1% respectively and becoming increasingly overbought below the 200-day moving average were shares of both ^RTN^ and ^LMT^ (below).
LMT has closed higher for fout out of the past five trading days heading into Friday’s open.
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David Penn is Editor in Chief of TradingMarkets.com