The Dow Jones Industrial Average rose 375 points on Friday after hot inflation data, with the release of critical consumer price data. In the meantime, Ultimate beauty (ULTA) ducked after missing Wall Street sales estimates in the last quarter.
The April Personal Consumption Expenditures Price Index, or PCE, from the Department of Commerce rose 0.4% month over month, with an annual increase of 4.4%, hotter than Wall Street estimates. The core PCE index rose 0.4% this month, up 4.7% year-on-year, also above forecasts.
Ulta Beauty shares plunged nearly 12% Friday morning after missing first-quarter sales estimates.
Other major revenue movers include Auto desk (ADSK), Costco (COST), Deckers outside (DECK), Hole (GPS), Marvell technology (MRVL), Ultimate beauty (ULTA) and Business day (WDAG).
Autodesk shares rose 1.2% in morning trading, while Costco gained 1.1%. DECK shares fell 2.6% higher, while Gap shares rose 10%. Marvell shares were up 25%, while Workday shares were up 9%.
Giant of electric vehicles Tesla (TSLA) was trading nearly 3% higher Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher after today’s market open.
Advanced micro devices (AMD), IBD Leaderboard Share ASML (ASML) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Boeing (BA) and Sales team (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.
ASML and Salesforce are IBD Leaderboard stocks and Boeing was in the stock column this week near a buy zone.
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Dow Jones Today: Oil Prices, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average rose 1.15%, while the S&P 500 gained 1.1%. The tech-heavy Nasdaq composite climbed 1.5% in the morning action.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.5%, while the SPDR S&P 500 ETF (SPY) was up 1.1% early Friday.
The yield on 10-year US Treasuries rose to 3.83% on Friday. The 10-year yield is at its highest level since mid-March.
Oil prices in the US appeared to be recovering Friday morning after Thursday’s heavy losses. West Texas Intermediate futures were up 1% on Friday, taking WTI futures close to $73 a barrel.
Stock market action
On Thursday, the Dow Jones Industrial Average fell 0.1%, extending a streak of losses to five sessions and falling further below the 50-day mark. It is now testing the 200-day line.
The S&P 500 recovered 0.9%, breaking a two-day slide and finding support around its own 50-day line. The technology-heavy Nasdaq composite rose 1.7%, nearly reversing the losses of the past two days. Finally, the small-cap Russell 2000 fell 0.7% to close at its lowest level since May 17.
Thursday’s Big Picture column warned, “There was minor participation in Thursday’s rally. (The) Invesco S&P 500 Equal Weight ETF (RSP) moved slightly lower and (the) First Trust Nasdaq 100 Equal Weight (QQEW) rose only 0.5%. Despite the Nasdaq’s rise, more than twice as many Nasdaq shares fell than rose on Thursday.”
This is an important time to read IBD’s The Big Picture column following the recent bullish shift in the market’s outlook.
Five best Dow Jones stocks to buy and watch right now
Dow Jones Stocks to Buy and Watch: Boeing, Salesforce
Dow Jones aerospace giant Boeing climbed 0.8% on Thursday, still below the 50-day mark. Stocks are still flat with a buy point of 221.43, according to IBD MarketSmith pattern recognition. BA shares rose 0.5% early Friday.
According to Leaderboard analysis, Salesforce surged past alternate entries at 194.01 and 200.10 in recent weeks. Meanwhile, the relative strength line reached a new high this week, a bullish signal. Salesforce reports first quarter results after market close on May 31. CRM shares rose 1.4% Friday morning after Citigroup raised its price target from 210 to 229.
4 Top growth stocks to watch Stock market rally
Best stocks to buy and watch: AMD, ASML, TSMC
Chip leader Advanced Micro Devices moved further out of the buy range above the 102.53 buy point of a cup base, according to IBD MarketSmith pattern recognition, up 11.2% on Thursday. The 5% buy area moved up to 107.66. AMD shares rose 1.3% on Friday.
IBD Leaderboard share ASML bullishly claimed its buy point of 683.28 in a handle cup during Thursday’s 6.25% rise. ASML added 1.2% on Friday morning.
Chip foundry Taiwan Semiconductor was up 12% on Thursday, breaking out past a 95.92 double bottom. The 5% buy area goes up to 100.72, so the stock is slightly expanded. TSM shares rose another 1% Friday morning.
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Best stocks to buy and watch in stock market rally
Here are the top four stocks to buy and watch in the current stock market, including two Dow Jones leaders.
|Company Name||Symbol||Correct point of sale||Point of sale type|
|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 shares rose 0.9% on Thursday, ending a two-day slip. So far, stocks are finding support around their 50-day line as they build a cup base for now with a buy point of 207.89. Keep an eye out for a handle to provide a lower entry. Shares closed 41% from their 52-week high on Thursday.
TSLA shares appeared to be contributing to Thursday’s gains, rising 2.8% on Friday morning.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.7% on Thursday, marking a second consecutive day increase. Shares remain just off their recent 52-week high of 176.39. The stock remains sharply above a buy point of 157.48, falling outside the buy range that rose to 165.35. AAPL shares rose 1.2% on Friday.
Microsoft shares rose 3.85% on Thursday to hit a new 52-week high of 326.90. The shares are significantly above a buy point of 276.86 flat-base. On Friday morning, MSFT shares rose 0.8%.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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