The Dow Jones Industrial Average rose on Friday on the back of another dose of inflation data, the Personal Consumer Spending Index. Amazon shares fell on weak sales expectations, while shares of Apple, Intel and Chevron jumped on the earnings win.
Amazon AMZN shares fell about 10 percent after the company announced third-quarter results late Thursday that outperformed earnings but gave a short outlook. apple AAPL stock is up more than 4% in morning trading. Late Thursday, the tech giant beat Wall Street’s goals in the last fiscal quarter thanks to strong iPhone and Mac computer sales.
Meanwhile, the Fed’s preferred inflation gauge was released Friday morning at 8:30 a.m. ET. The PCE price index rose 0.3% for the month of September, in line with estimates. On a yearly basis, the PCE index rose 6.2%, cooler than the 6.3% estimate. Personal income rose 0.4% in September, slightly above estimates that called for a rise of 0.3%.
The PCE Price Index is a measure of inflation in the United States that tracks the change in the prices of goods and services purchased by consumers throughout the economy.
Stock Market Today: Chevron Earnings, Intel
Another major factor driving the gains on Friday was Dow Jones stocks. chevron (CVX) and Intel Corporation (INTC), together with the energy giant ExxonMobil (XOM) and the leader of renewable energies First Solar (FSLR).
Chevron stock rose 1.9%, while Intel stock jumped 8% after beating lower expectations for the third quarter and lowering its forecast for the fourth quarter. Exxon shares rose about 2%. First Solar’s stock is up more than 2% despite not achieving its earnings and revenue targets.
electric car giant Tesla (TSLA) traded up about 0.5% Friday morning, while technology leader Dow Jones was trading Microsoft (MSFT) was also higher after the stock market opened today.
AutoZone (to avoid), Cardinal’s health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) – So are Dow Jones stock merck (MRK) and United Health Group (UN) – Among the top stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watch lists into action, and to hone their hierarchical style.
Youth rallies often fail, especially those battling bear markets. Pyramiding provides a way to move into increasingly new equity positions, in order to reduce risk to capital.
Cardinal and Texas Roadhouse are IBD Leaderboard shares. UnitedHealth featured in the stocks column near the buy zone for this week, along with three other ideas for top stocks.
Dow Jones today: Treasury yields and oil prices
After the opening bell on Friday, the Dow Jones Industrial Average rose 1.3%, while S&P 500 futures rose 0.7%. The heavy Nasdaq Composite Index is up 0.8% in the morning’s move, with Amazon trading at the bottom of the list.
Among the exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) Index is up 0.2%, and the SPDR S&P 500 ETF (SPY) is up 0.5%.
The 10-year Treasury yield rose to 4.01% on Friday morning, paring this week’s losses. On Monday, the 10-year Treasury yield closed at 4.23%, settling at its highest level since June 2008 before declining in the following three sessions. The 10-year Treasury yield is set to interrupt a 12-week winning streak.
Meanwhile, US oil prices fell more than 1% on Friday, threatening to end a four-day winning streak. West Texas Intermediate futures were trading at less than $88 a barrel.
The stock market continues to rise
On Thursday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 fell 0.6%. The tech-heavy Nasdaq Composite lost 1.6%.
The Big Picture commented Thursday, “Investors should continue to track companies that easily outperform earnings results and have strong bullish reactions, such as Energy Enphase (ENPH), which is Wednesday’s stock of IBD. They could be among the stock market leaders if the market is able to shrug off its recent losses and move higher.”
Now is an important time to read our IBD big picture column. After last week’s strong gains, investors are willing to put their watchlists to work, in order to jump on future breakouts. But not all follow-ups work, so it is important to increase exposure slowly and methodically, as the new uptrend proves itself.
Check IBD stock listings, such as IBD 50 and stocks near the buying zone, for ideas on stocks.
Five Dow Jones stocks to buy and watch now
Dow Jones stocks to buy and watch: Merck, UnitedHealth
Merck extended beyond 93.12 points of double bottom buying after reporting a solid win in the third quarter on Thursday. The buying zone rose 5% to 97.78. Merck shares were trading slightly lower on Friday.
Healthcare giant UnitedHealth is close to buying 553.23 mugs with a handle, According to IBD MarketSmith Pattern Recognition. sThe wild rabbit fell 0.25% Thursday, holding back shy of the stock’s latest entry.
UN stockpiles rose 0.4% on Friday morning.
4 growth stocks to watch at Cursstock market rally
Top Stocks to Buy and Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
The leader in auto parts and IBD’s last-day stockpile, AutoZone is out of purchase after a 2,362.34 buy point for the cup base after the race, up 4.05% on Thursday. The chase area rose 5% to 2480.46. AutoZone shares rose 0.1% on Friday.
IBD Leaderboard stock Cardinal Health is out of purchase after entering 71.22 for a short handle cup, according to IBD MarketSmith chart analysis. Also, the shares are above 72.38 buying points for the flat base. Earnings set for November 4th. CAH stock added 0.7% early Friday.
IBD SwingTrader Eli Lilly stock closed out of its buy range above the 335.43 buy point of the steady base, up 1.9% on Thursday. Shares are up 1.3% on Friday morning, ahead of next Tuesday’s earnings report.
Texas Roadhouse moved further above 95.52 firm base buy points during Thursday’s 1.5% gain. But the stock fell 3.5% after the company’s earnings results.
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla stock rose 0.2% on Thursday, rising for the third consecutive session and continuing to recover after hitting a 52-week low on Monday. Despite its recent gains, the stock closed about 46% from its 52-week high.
Shares of the electric car giant rose about 0.5% on Friday morning.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones shares, Apple shares sold 3.05% on Thursday, falling sharply for the second day in a row. Stocks encountered strong resistance around the 50-day line this week, a key level to watch. Apple stock rose more than 2.5% after the company’s earnings late Thursday.
Microsoft fell another 2% Thursday, heading towards its recent lows. Earlier this week, the stock encountered a clear resistance at the 50-day line. The software giant is about 35% from its 52-week high. Microsoft shares rose 0.4% Friday morning.
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