Dow Jones Futures Fall As Tesla Stock Surges On GM Deal. Target Downgraded On Slowing Traffic.
Dow Jones futures dipped amid mixed premarket action early Friday. Tesla (TSLA) stock and General Motors (GM) surged on a deal to expand GM's access to Tesla's SuperCharger network. And Target (TGT) was downgraded to neutral at Citigroup.
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China-based EV maker Nio (NIO) reported mixed first-quarter results Friday and guided to another big drop in electric vehicle deliveries in the second quarter, but a noticeable gain in June. Nio stock fell nearly 2%, to just above 52-week lows.
Another key earnings report includes DocuSign (DOCU). Shares rallied more than 5% early Friday after the company's strong Q1 earnings report.
Stock Market Today
Electric-vehicle giant Tesla, up 10 days in a row, surged more than 6% Friday morning, while General Motors shares raced more than 4% higher. According to GM's press release, the Tesla Supercharger Network will be open to GM drivers starting in 2024, though it will initially require the use of an adapter.
Target shares dropped more than 1% after Citigroup downgraded the stock from buy to neutral, with a lowered price target at 130. The analyst said that Target's sales have peaked and are likely to fall further.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded fractionally lower ahead of today's stock market open.
Dexcom (DXCM), Floor & Decor (FND), Fortinet (FTNT) and Kinsale Capital (KNSL) — as well as Dow Jones stocks Cisco Systems (CSCO), McDonald's (MCD) and Salesforce (CRM) — are among the best stocks to buy or watch in the stock market uptrend.
Tesla is an IBD Leaderboard stock, while McDonald's was featured in this week's Stocks Near A Buy Zone column. Floor & Decor was IBD's Stock Of The Day on Thursday.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday's opening bell, Dow Jones futures fell 0.25% vs. fair value. S&P 500 futures whittled losses to a fraction, while Nasdaq 100 futures traded 0.2% higher 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 down early Friday.
With the Federal Reserve's June meeting just ahead, the 10-year U.S. Treasury yield on Friday rose to 3.74%. On Thursday, the 10-year yield snapped a four-day win streak, still near its late-May highs.
A loss on Thursday put oil prices back to around the middle of their trading range since early May. West Texas Intermediate futures edged up 0.5% Friday, moving above $71.50 a barrel.
Stock Market Action
The Dow Jones Industrial Average rose 0.5%, closing at its highest level since May 1. The S&P 500 climbed 0.6%, a new 2023 closing high. The Nasdaq composite bounced 1%, retaking much of Wednesday's sell-off. And the small-cap Russell 2000 dipped 0.4%, ending a two-day rally.
Thursday's Big Picture column commented, "With the Nasdaq holding near its 2023 highs, IBD's recommended market exposure sits at 60%-80%. The composite still looks extended and continues to test resistance."
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: Cisco, McDonald's, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a 52.56 buy point. Keep an eye out for a potential handle, which is a couple trading days away from forming. That could produce an earlier entry. CSCO stock edged lower Friday premarket.
Dow Jones restaurant giant McDonald's remains below its 10-week moving average, a bearish sign, despite a 1.4% rally Thursday. For now, the stock is holding above the 281.67 buy point from a breakout two months ago. Gains are quickly dwindling.
While the stock is near a buy point, its action suggests to avoid buying right now. Look for a more bullish rebound before considering a purchase of shares. MCD stock traded flat early Friday.
Salesforce rallied past alternative entries at 193.91 and 200.00 in recent weeks, according to Leaderboard analysis.
Last week, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, but are now pulling back. The stock is setting up for a key test of its 50-day line. A decisive rebound would offer an additional entry for the software leader. CRM stock added 0.6% Friday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Dexcom, Floor & Decor, Fortinet, Kinsale
Dexcom continues to form a flat base with a 126.44 buy point, as the stock gained 1.2% Thursday, according to IBD MarketSmith pattern recognition. DXCM shares were down 0.1% Friday.
IBD SwingTrader stock Floor & Decor decisively regained its 50-day line during Wednesday's 5.1% advance, placing the flooring retailer in a new buy area. FND stock is just 5% away from a conventional buy point at 101.39. FND stock rose a fraction early Friday.
Insurance leader Kinsale Capital closed Thursday in the 5% buy area past a 345.75 buy point. The buy zone runs up to 363.04. KNSL stock was up nearly 1% premarket Friday.
Monday's IBD Stock Of The Day, Fortinet, remains below its flat base's 69.07 buy point despite Thursday's 2.9% bounce. Shares were essentially flat premarket Friday.
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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 a Dow Jones leader.
Company Name Symbol Correct Buy Point Type Of Buy Point ASML (ASML) 683.18 Cup with handle Salesforce (CRM) 200.00 Consolidation Cloudflare (NET) 66.20 Double bottom Fortinet (FTNT) 69.07 Flat base
Source: IBD Data As Of June 6, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla rallied 4.6% Thursday, moving further out of buy range beyond a double-bottom's 207.79 buy point. Shares closed Thursday 27% off their 52-week high.
Tesla Stock Hits 2023 High With $32,000 Starting Price For Model 3
TSLA stock looked to add to its extended win streak, rallying more than 6% Friday morning. Shares are set to advance for a fourth-straight week, on pace for a more-than-10% advance.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rebounded 1.55% Thursday, ending a three-day losing streak. Shares hit an all-time high at 184.95 on Monday. The stock continues to hold sharply above a 157.38 buy point and is out of the buy range that ran up to 165.35. AAPL stock rose 0.1% in premarket trade Friday.
Microsoft shares rose 0.6% Thursday, recovering just a small part of Wednesday's 3.1% sell-off. Earlier this week, MSFT stock reached the 20%-25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. 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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Source: Investor's Business Daily
