Dow Jones Futures Rally 200 Points On Cool Fed Inflation Data; Nike Stock Slides On Earnings
Dow Jones futures ramped higher Friday after the Federal Reserve's favorite inflation indicator, the PCE price index, came out before the market open. Meanwhile, Nike stock fell sharply after missing earnings views. And the 10-year U.S. Treasury yield is trying to break out above its recent trading range ahead of the second quarter's final session.
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Early Friday, the Commerce Department's personal income and outlays report for May was released. Personal income rose 0.4%, in line with estimates. The PCE price index rose 0.1% on the month, with an annual increase of 3.8%. Both numbers met estimates. Further, the core PCE price index rose 0.3% on the month, with a 4.6% annual increase, both slightly cooler than expected.
Dow Jones giant Nike (NKE) wrapped up its 2023 fiscal year with mixed fiscal fourth-quarter results late Thursday. Nike stock received multiple price target downgrades last week as inventory issues remain the Achilles heel for the Dow Jones athletic shoe and apparel giant. Shares declined nearly 3% in premarket trade Friday.
Meanwhile, Constellation Brands (STZ) was down around 3% after its fiscal first-quarter results.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) added 1% Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher ahead of today's stock market open.
Other leaders in the stock market rally include Google-parent Alphabet (GOOGL) and Facebook-parent Meta Platforms (META). Alphabet shares and Meta stock both rose 1.2% in morning trade.
Chipotle Mexican Grill (CMG), MongoDB (MDB) and Lam Research (LRCX) — as well as Dow Jones stocks JPMorgan Chase (JPM), Merck (MRK) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market pullback.
Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while MongoDB is featured in this week's Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Heading into Friday's opening bell, ahead of the holiday-interrupted July 4 week, Dow Jones futures rose 0.6% vs. fair value. S&P 500 futures climbed 0.7%, while Nasdaq 100 futures moved up 1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 1%, while the SPDR S&P 500 ETF (SPY) rose 0.6% early Friday.
The 10-year U.S. Treasury yield briefly ticked higher to 3.87%, trying to break out above its recent trading range ahead of the final session of the second quarter. The yield settled higher Thursday at 3.85%, its highest closing level since early March.
Oil prices edged lower Friday morning, continuing to hold near recent lows. West Texas Intermediate futures traded just below $70 a barrel, effectively flat for the week and down not quite 4% from a June 21 high.
Stock Market Action
On Thursday, the Dow Jones Industrial Average led the stock market higher, rallying 0.8%. In the Dow 30, Intel (INTC) slid 2%, falling further below its 33.84 buy point. So far, however, there is no sell signal.
On the upside, Goldman Sachs (GS) and JPMorgan Chase were big gainers, rallying on Fed stress test news. Goldman shares rallied 3% but remain below their 50-day line. JPM stock advanced 3.5%, bouncing off the 50-day line and again topping a flat base's 143.37 entry.
Elsewhere, the S&P 500 climbed nearly 0.5%, and the Nasdaq composite ended slightly lower. The small-cap Russell 2000 moved up 1.2%, with help from rising regional banks.
Thursday's Big Picture column commented, "This week, the Nasdaq successfully defended support at the 21-day exponential moving average, which should offer a shot of confidence to investors. With the ongoing stock market pullback still in normal shape, IBD's recommended market exposure still sits at 60%-80%."
Now is an important time to read IBD's The Big Picture column as the stock market remains in an uptrend but is pulling back.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce
Dow Jones banking leader JPMorgan regained a 143.37 flat-base buy point during Thursday's big gains. The 5% buy zone goes up to 150.54. JPM stock rose 0.5% Friday morning.
Drug giant Merck is forming a flat base with a 119.65 buy point, as the stock climbed 1% Thursday. An early entry at 114.91 is also in play. MRK stock inched lower Friday.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock rose 0.2% Friday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, MongoDB, Lam Research
IBD Leaderboard watchlist stock Chipotle rebounded from support at its 10-week line and is building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition.
An early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock rose a fraction Friday morning.
IBD SwingTrader stock Lam Research moved above a 615.80 early buy point and a three-weeks-tight pattern with a 630.72 entry during this week's gains. LRCX stock gained 0.35% early Friday.
MongoDB is trading tightly after its recent earnings-fueled jump, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could have used a trendline entry around 386. MDB stock moved up 0.5% Friday morning.
Learn How To Time The Market With IBD's ETF Market Strategy
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 Roku (ROKU) 75.45 Cup with handle
Source: IBD Data As Of June 29, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla extended a win streak to three sessions Thursday, rising 0.5%. Amid the recent rebound, Tesla shares remain sharply out of buy range beyond a double-bottom's 207.79 buy point.
TSLA stock looked to add to Thursday's gains, rising 1% Friday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock hit another record high Thursday, trading as high as 190.07. Shares continue to hold sharply above a 157.38 buy point. Early Friday, shares climbed 1.2% after Citi started coverage on AAPL stock with a buy rating and a 240 price target.
Microsoft shares slipped 0.2% Thursday, ending a two-day rebound. On June 16, MSFT stock hit an all-time high at 351.47.
In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Friday morning, Microsoft shares were up 0.8%.
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
