Dow Jones futures briefly reversed lower Friday morning after hot inflation data, with the release of the PCE price index. Ulta Beauty (ULTA) dived after missing Wall Street’s sales estimates in its latest quarter.
The Commerce Department’s April Personal Consumption Expenditures Price Index, or PCE price index, rose 0.4% on the month, with a 4.4% annual increase, hotter than Wall Street’s estimates. The core PCE price index climbed 0.4% on the month, with a 4.7% annual rise, also above forecasts.
Ulta Beauty shares dived nearly 9% Friday morning after missing sales estimates in the first quarter.
Other key earnings movers include Autodesk (ADSK), Costco (COST), Deckers Outdoor (DECK), Gap (GPS), Marvell Technology (MRVL), Ulta Beauty (ULTA) and Workday (WDAY).
Autodesk shares rose 1.2% in premarket trade, while Costco dropped 0.5%. DECK stock declined nearly 3%, as Gap shares jumped 12%. Marvell stock surged 19%, while Workday shares rallied 9%.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded 0.8% higher Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML) and Taiwan Semiconductor (TSM) — as well as Dow Jones stocks Boeing (BA) and Salesforce (CRM) — are among the best stocks to buy and watch in the stock market uptrend.
ASML and Salesforce are IBD Leaderboard stocks, and Boeing was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures gained 0.15%. Tech-heavy Nasdaq 100 futures climbed 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.2%, while the SPDR S&P 500 ETF (SPY) edged higher early Friday.
The 10-year U.S. Treasury yield on Friday traded up to 3.83%. The 10-year yield is at its highest level since mid-March.
U.S. oil prices looked to rebound Friday morning after Thursday’s sharp losses. West Texas Intermediate futures rose 1% Friday, sending WTI futures near $73 a barrel.
Stock Market Action
On Thursday, the Dow Jones Industrial Average fell 0.1%, extending a losing streak to five sessions and falling further below its 50-day line. It is now testing the 200-day line.
The S&P 500 rebounded 0.9%, snapping a two-day slide and finding support around its own 50-day line. The tech-heavy Nasdaq composite jumped 1.7%, nearly erasing the past two days of losses. Finally, the small-cap Russell 2000 dropped 0.7%, closing at its lowest level since May 17.
Thursday’s Big Picture column cautioned, “There was narrow participation in Thursday’s advance. Invesco S&P 500 Equal Weight ETF (RSP) inched lower and First Trust Nasdaq 100 Equal Weight (QQEW) moved up just 0.5%. Despite the Nasdaq’s surge, more than twice as many Nasdaq stocks fell than rose on Thursday.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce
Dow Jones aerospace giant Boeing climbed 0.8% Thursday, still below its 50-day line. Shares are still forming a flat base with a 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved up 0.5% early Friday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, its relative strength line hit a new high this week, a bullish signal. Salesforce reports first-quarter results after the market close on May 31. CRM stock jumped 1.5% Friday morning after Citigroup raised its price target from 210 to 229.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, ASML, TSMC
Chip leader Advanced Micro Devices moved further out of buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 11.2% surge Thursday. The 5% buy area went up to 107.66. AMD shares rallied 2.4% premarket Friday.
IBD Leaderboard stock ASML bullishly reclaimed its 683.28 buy point in a cup with handle during Thursday’s 6.25% advance. ASML added 1.2% Friday morning.
Chip foundry Taiwan Semiconductor soared 12% Thursday, breaking out past a 95.92 double-bottom entry. The 5% buy area runs up to 100.72, so the stock is slightly extended. TSM stock rose another 1% Friday morning.
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Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|ASML||(ASML)||683.28||Cup with handle|
|Advanced Micro Devices||(AMD)||102.53||Cup base|
Source: IBD Data As Of May 25, 2023
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Tesla stock moved up 0.9% Thursday, ending a two-day skid. So far, shares are finding support around their 50-day line, as they build a cup base with a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry. Shares closed Thursday 41% off their 52-week high.
TSLA stock looked to add to Thursday’s gains, moving up nearly 1% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 0.7% Friday, rising for a second straight day. Shares remain just off their recent 52-week high at 176.39. The stock continues to hold sharply above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock rose 0.2% in premarket trade Friday.
Microsoft shares jumped 3.85% Thursday, hitting a new 52-week high at 326.90. Shares are significantly above a 276.86 flat-base buy point. On Friday morning, MSFT stock was down 0.4.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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