Dow Jones Today, Stocks Rise, China Rebounds After Biden/Xi Chat;

Stocks opened higher, then quickly turned mixed Friday, as large health insurers led resistance against the early advance. A phone call between presidents Joe Biden and Xi Jinping of China, and rising optimism toward monetary policy in Europe boosted the early mood across global markets. Earnings news sent Affirm Holdings sharply  higher, while Kroger dived and Zscaler reversed lower after their reports. Chip stocks rallied, with Intel jumping to the head of the Dow Jones today.

X

The Nasdaq Composite thinned its early gain to 0.3%. The S&P 500 pulled back to flat trade. The Dow industrials reversed an opening gain and slipped 0.1% as UnitedHealth Group (UNH) slumped almost 2% on the stock market today.

A healthy mix of market segments led the Nasdaq in early trade. Peloton (PTON) surged 4.5%, aiming to add a fourth day to its rally. Applied Materials (AMAT) leapt 3.4%. Other chip stocks also outperformed, with Micron Technology (MU), Intel (INTC) and KLA (KLAC) leading the pack.

China-based Baidu (BIDU) and JD.com (JD) moved to extend their rebounds, bolstered by the Shanghai Composite’s rise to a six-year-high close.

Miner Freeport McMoRan (FCX) led the the S&P 500, rising 4.1% as as oil and copper prices moved sharply higher. Building security products maker Allegion (ALLE) jumped 2.2%, after Goldman Sachs upgraded the stock to buy, from neutral. The 174 price target was about 22% above where shares closed on Thursday.

IPOs Doximity (DOCS) and DLocal (DLO) traded high in the IBD 50, up 1.9% and 2.6%, respectively.

Among the stocks to watch for Friday, HubSpot (HUBS), Atkore (ATKR), Crocs (CROX) and Builders FirstSource (BLDR) all traded near buy points.

Intel Leads Dow Jones As Chips Rally

Intel rallied 2.9%, leading the Dow Jones today and breaking back above resistance at the stock’s 50-day/10-week moving average. Applied Materials moved to within 4% of a 146.10 entry in what IBD MarketSmith analysis labels a 23-week consolidation. On Semiconductor (ON) popped 3.9%, exiting a buy range above a 44.69 buy point in a cup base.

Chip-tracker ETF VanEck Semiconductor ETF (SMH) rallied 2% in morning action. Leveraged ETF Direxion Daily Semiconductor Bull 3X Shares (SOXL) spring 6.1% higher, breaking into a buy zone above a 48.19 buy point.

Earnings News: Affirm, Zscaler Rally; Kroger Falls

In earnings news, San Francisco0-based Affirm Holdings (AFRM) sailed 22% higher, as revenue surprised in an otherwise mixed fiscal fourth-quarter report. Deutsche Bank raised the stock’s price target to 105 from 67. The January new issue remains deep below its February peak, but aggressive investors might plot an early entry at 101.10. The stock holds a weak Composite Rating of 52 from IBD.

Zscaler (ZS) traded atop the IBD 50 list, up 3.4% as analysts ratcheted price targets higher following a strong fiscal Q4 report late Thursday.

Other earnings rallies included a 10% gain for Dave & Buster’s Entertainment (PLAY) and a 13% rally for apparel…