Dow Jones reverses on hot inflation report; Amazon, Apple Rally on Revenue

The Dow Jones Industrial Average reversed early losses to turn higher Friday morning on a warmer-than-expected inflation report. And technical titans (AMZN) and apple ( AAPL ) was up after reporting strong earnings results late Thursday.


Amazon shares rose 11% in morning trading, while Apple shares fell 2.5% before the market opened.

Other key earnings drivers on Friday morning include energy giants Chevron (CVX) and Exxon Mobil (XOM), First Solar (FSLR) and Dow Jones shares Intel (INTC). Chevron shares rose nearly 4%, while Exxon rose nearly 2%. First Solar rose 4%. Intel plunged 11% after missing second-quarter estimates and cutting its full-year outlook.

Tesla ( TSLA ) rose early Friday. Elsewhere, Dow Jones tech leader Microsoft (MSFT) traded up 0.8% after today’s market opening.

In the volatile stock market environment, the Dow Jones stock is UnitedHealth (UNH) — as well as ELF beauty (ALV), Quanta services (PWR), Ulta beauty (ULTA) and Vertex Pharmaceuticals (VRTX) — is among the stocks you should watch. Remember, ongoing volatility in the stock market is a reason to stay more conservative despite recent signs of strength.

UnitedHealth and Vertex are IBD Leaderboard stocks. ELF and Ulta were featured in this week’s Stocks near a buying zone column.

Dow Jones today: Treasury yields, oil prices, inflation report

After Friday’s open, the Dow Jones Industrial Average rose 0.2%, and the S&P 500 rose 0.7%. The technology-heavy Nasdaq rose 1.1% in morning trading.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1%. And the SPDR S&P 500 ETF ( SPY ) rose 0.7%.

The 10-year Treasury yield ticked up to 2.71% on Friday morning, recouping some of Thursday’s drop to 2.68%. This week, the 10-year government yield reached its lowest level since the beginning of April. Meanwhile, US oil prices continue to recover, as West Texas Intermediate futures rose more than 2% to trade near $99 a barrel.

The Federal Reserve’s preferred measure of inflation came out Friday morning, with the personal consumption price index rising 1% for the month of June and a year-over-year increase of 6.8%, both numbers hotter than Econoday’s estimate. Personal income rose by 0.6% in June, just above estimates.

The PCE price index is one measure of US inflation, and tracks the change in the prices of goods and services purchased by consumers throughout the economy.

Stock market rally

Uptrends in the stock market shrugged off recession signals on Thursday, as the Dow Jones Industrial Average and the S&P 500 rose 1% and 1.2%, respectively. The technology-heavy Nasdaq rose 1.1 percent. The small-cap Russell 2000 rose 1.3%.

Thursday’s The Big Picture column commented: “Use each purchase as feedback on the current strength of the market rally. Don’t panic if you miss the first couple of breakouts. If the stock market rally is real, there will be plenty of time to buy stocks and make money. This is an important strategy because previous follow-ups have failed this year and collections have been cancelled.”

If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Health insurance giant and IBD Leaderboard stock UnitedHealth is nearly out of buy territory above its double-bottom-with-handle buy point of 518.80 after Thursday’s 1.3% gain, according to IBD MarketSmith chart analysis. Shares fell on Friday.

UNH stock scores a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

4 top growth stocks to watch right nowra stock market rally

Top stocks to watch: ELF, Quanta, Ulta, Vertex

ELF Beauty is about 1% below a 33.54 buy point in a cup with handle after a two-day winning streak. The RS line reached a new high last week, which is a sign of big stock market returns. The ELF share fell 0.6 percent on Friday.

Quanta Services decisively broke out past a cup-with-handle base’s 138.56 buy point during Thursday’s 8.45% rise, according to IBD MarketSmith chart analysis. Shares rose nearly 1% on Friday.

IBD Big Cap 20 stock Ulta Beauty is building a flat base at 429.58 buy points, moving further above its 50-day line after Thursday’s 1.35% gain. The base comes in the wake of a failed breakout past a cup-with-handle 426.93 entry in June. Ulta shares fell 1.5 percent on Friday.

IBD Leaderboard stock Vertex Pharmaceuticals is testing support around a cup-with-handle buy point at 279.23, as well as the 50-day line amid Thursday’s 2.15% loss. Vertex shares rose 0.3% on Friday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla shares

Tesla shares climbed another 2.2% Thursday, adding to Wednesday’s 6.2% jump. The shares are at their highest level since the beginning of May, but are still approx. 32% lower than 52 weeks.

Shares rose Friday morning.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.4% on Thursday, building a cushion above its 50-day line after bullish action in recent weeks. Now shares are trying to retake their long-term 200-day line, which looms as a resistance level to watch. Apple shares rose more than 2% Friday morning after the company’s earnings results.

Microsoft rose 2.85% on Thursday, rising for the second day in a row. The stock closed about 21% off its 52-week high. Microsoft traded up 0.8% in morning trading.

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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