Dow Jones Gains 275 Points on Cool Fed Inflation Data; Nike Stock Slides On Earnings
The Dow Jones Industrial Average rose 275 points on Friday after the Federal Reserve’s favorite inflation gauge, the PCE price index, came out before the market opened. Meanwhile, Nike shares fell sharply after missing results. And the 10-year US Treasury yield is trying to break out above its recent trading range during the second quarter’s final session.
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Early Friday, the Commerce Department’s personal income and spending 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 figures met the estimates. Furthermore, the core PCE price index rose 0.3% on the month, with an annual increase of 4.6%, both slightly cooler than expected.
The Dow Jones giant Nike (NKE) ended the financial year 2023 with mixed financial results for the fourth quarter late Thursday. Nike stock received several price target downgrades last week as inventory issues remain the Achilles heel of the Dow Jones athletic footwear and apparel giant. Shares fell more than 2% in early trading Friday.
Meanwhile, Constellation Brands (STZ) was down around 1.4% after its first quarter financial results.
The stock market today
Electric vehicle giant Tesla ( TSLA ) added 2% Friday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was higher after today’s market opening.
Other leaders in the stock market rally include Google parent Alphabet (GOOGL) and Facebook parent Meta Platforms (META). Alphabet shares and Meta shares both rose sharply in morning trading.
Chipotle Mexican Grill (CMG), MongoDB (MDB) and Lamb 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 pullback in the stock market.
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
After Friday’s opening bell, ahead of the holiday-interrupted week of July 4, the Dow Jones Industrial Average rose 0.8%, while S&P 500 futures rose 1.2%. The Nasdaq rose 1.6% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 1.6%, while the SPDR S&P 500 ETF (SPY) rose 1.2% early Friday.
The 10-year US Treasury yield briefly ticked up to 3.87%, attempting to break above its recent trading range ahead of the final session of the second quarter. The yield settled higher on Thursday at 3.85%, the highest closing level since early March.
Oil prices rose modestly on Friday morning, continuing to hold close to recent lows. West Texas Intermediate futures traded just above $70 a barrel, effectively flat for the week and down not quite 4% from June 21.
Stock market action
On Thursday, the Dow Jones Industrial Average led the stock market higher, rising 0.8%. In the Dow 30, Intel (INTC) fell 2%, falling further below the buy point of 33.84. So far, however, there is no sell signal.
On the upside, Goldman Sachs ( GS ) and JPMorgan Chase were big winners, rallying on Fed stress test news. Goldman shares rose 3% but remain below the 50-day mark. JPM stock rose 3.5%, bounced off the 50-day line and re-topped a flat base at 143.37.
Elsewhere, the S&P 500 climbed nearly 0.5% and the Nasdaq composite finished slightly lower. The small-cap Russell 2000 rose 1.2%, helped by 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 decline in the stock market still in normal shape, IBD’s recommended market exposure remains sitting 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 pulls back.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Merck, Salesforce
Dow Jones bank 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 shares rose 0.4% on Friday morning.
Drug giant Merck is forming a flat base with a buy point of 119.65 as the stock rose 1% on Thursday. An early entry at 114.91 is also in play. The MRK share went down on Friday.
Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 50-day line. The megacap tech earlier edged past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
Over the past few weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock rose 0.8% on Friday morning.
4 top growth stocks to buy and watch 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 buy point of 2,139.88, according to IBD MarketSmith pattern recognition.
An early entry at 2,092.51 was also available due to a trend line. Chipotle was a recent IBD Stock Of The Day. CMG shares rose 0.6% on Friday morning.
IBD SwingTrader stock Lam Research moved above an early buy point at 615.80 and a three-week tight pattern with an entry at 630.72 during this week’s rally. LRCX shares rose 0.7% early Friday.
MongoDB is trading closely following its recent earnings-driven jump, offering a new entry. The three-week tight formation shows a buy point at 398.89, while aggressive investors could have used a trendline entry around 386. MDB stock was up 2.9% on Friday morning.
Learn how to time the market with IBD’s ETF Market Strategy
Best shares to buy and watch in stock market rally
These are the four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Year | (YEAR) | 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 shares
IBD Leaderboard stock Tesla extended a winning streak to three sessions Thursday, rising 0.5%. Amid the recent rally, Tesla shares remain well outside buy territory beyond a double-bottom buy point at 207.79.
TSLA stock looked to extend Thursday’s gains, rising more than 2% on Friday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple stock hit another record high on Thursday, trading as high as 190.07. Shares continue to hold sharply above a buy point of 157.38. By early Friday, shares were up 1.4% after Citi initiated coverage on AAPL stock with a buy rating and a price target of 240.
Microsoft shares fell 0.2% on Thursday, ending a two-day rally. On June 16, MSFT shares reached a record high of 351.47.
In recent weeks, the stock reached the 20% to 25% profit zone from a buy point of 276.76, so investors could have taken at least some profit there. And on Friday morning, Microsoft shares were up 1.7%.
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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