The Dow Jones Industrial Average reversed higher on Friday after key inflation data, with the early release of the Personal Consumption Expenditures Price Index. Meanwhile, chipmaker Dow Jones Intel (INTC) lost up to 10% due to a shortfall.
Investors received a breakdown of personal income and spending for December, as well as monthly PCE inflation data, from the Commerce Department at 8:30 a.m. ET. The PCE price index rose 0.1% for the month, above unchanged expectations. The annual inflation rate fell from 5.5% to 5%, in line with estimates. Core PCE prices rose 0.3% as the core inflation rate fell to 4.4% from 4.7%; the two estimates matched.
The Fed’s favorite gauge of inflation, the PCE core price index, fell at an annual rate of 3.85% in the fourth quarter, according to new data released Thursday along with the GDP report.
The fourth quarter earnings season continued on Friday, with results coming in from members of the Dow Jones American Express (AXP), Chevron (CVX), Intel and Visa (V), as well as KLA (CLUTCH).
Shares of American Express jumped 6.5%, while Chevron fell about 2%. CVX stock completes the right side of a cup base with a buy point of 189.78, according to IBD MarketSmith Pattern Recognition.
Intel shares plunged 7.8% after the company missed Wall Street’s fourth-quarter targets and tipped much lower than expected for the current period.
Visa stock rose 2% on Friday after topping both high and low estimates. Visa shares closed Thursday in a buy range above a buy point of 220.08 in a long pattern. The 5% buy zone rises to 231.08.
Finally, KLA exceeded expectations for its fiscal second quarter. But its outlook for the current period was lower than estimated. KLAC stock fell 5.5%.
stock market today
Electric vehicle leader Tesla was up about 2% on Friday morning, looking to add to Thursday’s big gains. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.
IBD Ranking Stock Axon Enterprise (AXON), Recent IBD Stock Of The Day Etsy (ETSY), monster drink (MNST) and Vertex Pharmaceuticals (VRTX) – as well as Dow Jones stocks JPMorgan Chase (JPM) – are among the best stocks to buy and watch, with continued strength in the market rally.
Axon is an IBD ranking title. Etsy and Vertex were the IBD stocks of the day recently. Axon and JPMorgan were featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Price, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average was up 0.5%, reversing from early losses, and the S&P 500 was up 0.4%. The tech-heavy Nasdaq composite rose 0.6% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3% and the SPDR S&P 500 ETF (SPY) rose 0.2% early Friday.
The 10-year US Treasury yield rose to 3.55% on Friday morning. The yield is poised to break a three-week rally that drove the 10-year yield near its lowest level since mid-September.
Oil prices rose more than 1% on Friday, with West Texas Intermediate futures rising above $82 a barrel. Oil prices are flat for the week, near their highest since early December after two weeks of strong gains and ahead of the Organization of the Petroleum Exporting Countries next week.
Stock market rally
On Thursday, the Dow Jones Industrial Average rose 0.6% and the S&P 500 gained 1.1%. The Nasdaq composite rebounded 1.8%, while the small-cap Russell 2000 gained 0.7%.
Thursday’s The Big Picture column commented: “IBD’s stock market outlook is in a ‘confirmed uptrend’ amid strong gains since early January, when the Nasdaq signaled a trailing day on Jan. 6. Given the current strength of the market, it makes sense to methodically increase your exposure if your trades are doing well, with an invested percentage of 40% to 60%. Profitable trading should get you closer to the 60% threshold, especially after Thursday’s tech gains. »
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: JPMorgan
Banking giant JPMorgan is back above a fixed base buy point of 138.76 amid a five-day winning streak. JPM shares were up 0.6% on Friday morning.
JPM stock is posting a solid 94 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. The composite rating is designed to help investors easily find the highest growth stocks.
4 best growth stocks to buy and watch in the market Stock market rally
Top Stocks to Buy and Watch: Axon, Etsy
Security leader Axon rose 0.2% on Thursday, moving higher in the 5% buy range above a buy point of 189.72 in a cup basis with handle. The buy zone peaks at 199.21. Axon shares were slightly higher on Friday morning.
Past: Formerly known as Taser International, the company has capitalized on the business opportunity presented by public demands for greater oversight of police departments. Its range of body cameras and accompanying software are now market leaders. The Scottsdale, Arizona-based company also has a cloud-based digital evidence platform.
Etsy broke above a buy point of 137.01 in a mug with handle on Monday, but fell even lower with a 1% loss on Thursday. If the stock retakes the buy point, the 5% buy zone rises to 143.86. ETSY stock lost 3% on Friday.
Past: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their wares. It has a unique business model that over the past few years has grown from an e-commerce niche market to a premier shopping destination in many categories.
Monster, buy points Vertex Eye
Monster Beverage is poised to break above the buy point of 104.75 on a flat basis after Thursday’s 0.4% gain. MNST stock was down 0.5% on Friday.
Past: Monster Beverage runs an energy drink duopoly with privateer competitor Red Bull. The Company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.
Monster dominates energy drinks in the United States and claimed a 39% market share last year, according to Jefferies data, generating a record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the US energy drink market in 2021. Celsius (CELH), which is experiencing impressive growth, claimed 4.9% of the market.
Recent IBD stock of the day, Vertex Pharmaceuticals, is closing in on a buy point of 324.85 in a cut basis after a fifth consecutive gain on Thursday. VRTX stock rose 0.2% on Friday.
Past: The company is well known for its treatments for cystic fibrosis – a market that Vertex estimates has 88,000 patients. Of these, there are another 20,000 patients who could receive his old-fashioned oral treatments. But analysts are watching for new Vertex, including an updated three-drug regimen that could strengthen Vertex’s position against its rival. AbbVie (ABBV).
Stocks to buy and watch in the stock market rally
These are the top seven stocks to buy and watch in today’s stock market, including three leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Basic type|
|Axon||(AXONE)||189.72||Mug with handle|
|Etsy||(ETSY)||137.01||Mug with handle|
|JP Morgan||(JMP)||138.76||Flat bottom|
|Visa||(V)||220.08||Mug with handle|
Source: IBD data as of January 27, 2023
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock jumped 11% on Thursday after the company’s strong fourth-quarter results, extending a winning streak to five sessions. After their strong rebound, stocks are back above their 50-day line, but still below their 200-day line. Tesla stock closed about 62% off its 52-week high.
Shares of the electric vehicle giant rebounded 2.2% on Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 1.5% on Thursday, ending a four-day winning streak. Stocks remain above their 50-day line after strong gains in recent sessions. Still, the stock is around 20% off its 52-week high. Apple will release its quarterly results on February 2. AAPL stock traded down 0.1% on Friday.
Microsoft stock rose 3.1% on Thursday, decisively retracing its 50-day line, which is bullish for the stock’s immediate outlook. Still, shares remain 22% off their 52-week high. Shares rose 0.3% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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