The Dow Jones Industrial Average fell Friday morning after the early release of personal consumption expenditures data for November, a closely watched measure of inflation by the Federal Reserve. Tesla stock soared after CEO Elon Musk said he would not sell any more Tesla shares for at least 18 to 24 months.
Early on Friday, headline inflation data arrived in the form of the PCE price index for November. The PCE price index came in cooler than expected, rising 0.1% in November versus Econoday’s estimate of 0.2% growth from October.
On a yearly basis, the PCE price index rose 5.5%, matching estimates. Personal income rose 0.4% in November, above estimates.
Meanwhile, the core PCE price index came in higher than expected, rising 4.7% year-on-year versus estimates of 4.6%.
electric car giant Tesla (TSLA) stock rose 1% on Friday after Musk’s comments. Technology pioneers at Dow Jones an Apple (AAPL) and Microsoft (MSFT) was trading lower after the stock market opened today.
midpiece (MEDP), IBD stock leaderboard Neurobiological Sciences (NBIX), O’Reilly Auto Parts (orly) f Texas Roadhouse (TXRH) – as well as the names of the Dow Jones Amgen (AMGN), Larva (CAT) f Home Depot (HD) – Among the top stocks to consider on investors’ watchlists. Keep in mind that recent market weakness should keep investors on the defensive.
Neurocrine and Texas Roadhouse are IBD Leaderboard stocks. Caterpillar and Medpace were recent companies in today’s IBD inventory.
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Dow jones today: oil prices and treasury yields
After the opening bell on Friday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 fell 0.15%. The Nasdaq Composite Heavy lost 0.3% in the morning move.
Among US exchange-traded funds, the Nasdaq 100 tracked Invesco QQQ Trust (QQQ) fell 0.3% and the SPDR S&P 500 ETF (SPY) fell 0.15% early Friday.
The 10-year Treasury yield rose 3.72% on Friday morning, with the 10-year yield adding to its already strong weekly gain. Meanwhile, US oil prices rose about 2% on Friday, as West Texas Intermediate crude futures rose above $79 a barrel in morning trading.
The stock market is under pressure
On Thursday, the Dow Jones Industrial Average fell 1.05% and the S&P 500 fell 1.45%. The Nasdaq fell 2.2% while the small-cap Russell 2000 Index lost 1.3%.
The Big Picture column commented on Thursday, “International Investment Bank’s stock market outlook remains ‘bullish under pressure’ after sharp losses in recent sessions. This means that investors should maintain cautious and defensive stances, with already reduced market exposure. IBD readers should avoid most breakouts, unless they happen in stocks with top-notch fundamentals and techniques.”
Now is an important time to read IBD’s Big Picture column amid the ongoing volatility in the stock market.
Five Dow Jones stocks to buy and watch now
Dow stocks to watch: Amgen, Caterpillar, Home Depot
Drugmaker Amgen is building a new flatbed after a breakthrough in mid-November. But stocks are below the 50-day line after sharp losses in recent weeks. At the moment, the correct buy point is 296.77, but the stock needs to retake 50 days decisively first. AMGN stock was trading down 0.4% on Friday.
Dow Jones member Caterpillar broke through the 239.95 buy point on a flat base this week, According to IBD MarketSmith pattern recognition, but it is back below the entry level after Thursday’s decline. To the upside, the stock’s RSI line, a major technical indicator, reached new highs. CAT stock rose 0.5% on Friday.
CAT 98 stock shows a strong 99 IBD perfect composite rating, according to an examination of IBD stock. The composite rating is designed to help investors easily find the highest growth stocks.
Home Depot, a home improvement retailer, is about 4% lower than the $329.77 buy point of a mug with a handle after reversing last week’s breakout move. HD stock was trading down 0.6% on Friday morning.
4 growth stocks to watch in Cursstock market rally
Top stocks to watch: Medpace, Neurocrine, O’Reilly, Texas Roadhouse
Medpace rebounded sharply from its 50-day line this week, rising for the third day in a row Thursday. For now, the correct buy point is looming at 235.82, but early entry at 220.09 is also in play. MEDP shares fell 0.3% on Friday.
IBD Leaderboard’s Neurocrine stock rose for the fifth consecutive session Thursday, rising 1.7% and continuing to bounce off support at the 50-day level. The strong rebound is bullish for the immediate outlook for the stock and the stock is likely to form the right side of a new base. NBIX stock rose 0.3% on Friday.
O’Reilly Auto Parts is also finding much needed support at the 50 day line this week and it remains squarely above the flat 750.98 entry level. A big bounce off the 50-day line may lead to a follow-up entry point, but the uptrend in the market is under pressure at present, which increases the risk of buying stocks. ORLY shares fell 0.1% on Friday.
Texas Roadhouse is showing a new buy point at 101.85 in a flat base, but is now consolidating below the 50 day line. IBD Leaderboard stock will look to reclaim this key benchmark over the coming days, and Thursday’s bullish reversal was off to a promising start. TXRH stock was trading slightly higher on Friday morning.
Stocks to watch
These are the top five stocks to watch in the stock market today, including three Dow leaders.
|The Company’s name||Code||The right point of purchase||base type|
|Texas Roadhouse||(TXRH)||101.85||Flat base|
|Home Depot||(HD)||329.77||mug with handle|
Source: IBD data as of December 22, 2022
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Tesla stock rally on Elon Musk’s comments
Tesla stock fell 8.9% on Thursday, extending its losing streak to five sessions and reaching a 52-week low. Shares rebounded 1% on Friday morning. Late Thursday, Musk vowed not to sell any more Tesla shares for at least 18 to 24 months.
You definitely have my commitment that I won’t sell the shares until, I don’t know, maybe two years from now. Certainly not next year under any circumstances, probably not next year,” Musk commented in a Twitter Spaces call. Musk also said that the decision to buy back the company’s shares could be severely affected by any economic downturn.
“The board is very open to buying back,” Musk said. “It wouldn’t be smart to buy back and then find a recession worse than 2009,” he added.
Meanwhile, Wedbush lowered its price target for the electric car giant, lowering the target from 250 to 175 due to “demand cracks.” The brokerage firm maintained its Outperform stock rating. The lower price target is approximately 40% above Tesla’s closing prices on Thursday.
Canaccord also lowered its price target, to 275 from 304, and maintained the buy rating on the stock.
On Thursday, TSLA stock hit a new 52-week low, trading as low as 122.26. The shares closed about 69% from their 52-week high.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones shares, Apple shares sold up 2.4% Thursday, closing near a 52-week low, set on June 16, at 129.04. The stock is up about 28% from its 52-week high. Shares traded down 0.5% on Friday.
Microsoft stock fell 2.55% on Thursday, ending a two-day winning streak, but holding above the 50-day line. The software giant is still about 30% off its 52-week high. MSFT shares fell 0.6% early on Friday.
Be sure to follow Scott Lehtonen on Twitter at @employee Learn more about developing stocks and the Dow Jones Industrial Average.
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