Dow Jones rises as Tesla shares rise on GM deal. Target downgraded by slowing traffic.
The Dow Jones Industrial Average turned modestly higher on Friday. Meanwhile, Tesla (TSLA) stock and General Motors (GM) breached an agreement to expand GM’s access to Tesla’s SuperCharger network. And Goal (TGT) was downgraded to neutral at Citigroup.
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China-based electric car manufacturer Nine ( NIO ) reported mixed first-quarter results on Friday, leading to another big drop in EV deliveries in the second quarter, but a noticeable increase in June. The Nio share rose almost 4%, just above its 52-week low.
Another important performance report includes DocuSign (DOCU). Shares rose more than 7% early Friday after the company’s strong first-quarter earnings report.
The stock market today
EV giant Tesla, up 10 straight days, rose more than 5% on Friday morning, while General Motors shares also rose 5% higher. According to GM’s press release, the Tesla Supercharger Network will be open to GM drivers starting in 2024, although it will initially require the use of an adapter.
Target shares fell more than 1% after Citigroup downgraded the stock from buy to neutral, with a lowered price target of 130. The analyst said Target’s sales have peaked and are likely to fall further.
Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) traded fractionally higher after today’s market opening.
Dexcom (DXCM), Flooring and furnishings (FND), Fortinet (FTNT) and Kinsale capital (KNSL) – as well as Dow Jones stocks Cisco Systems (CSCO), McDonald’s (MCD) and Salesforce (CRM) – is among the best stocks to buy or watch in the stock market trend.
Tesla is an IBD Leaderboard stock, while McDonald’s was featured in this week’s Stocks Near a Buy Zone column. Flooring and decor was IBD’s Stock of the Day on Thursday.
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Dow Jones today: Oil prices, Treasury yields
After Friday’s opening bell, the Dow Jones Industrial Average pared early losses to rise 0.1%, while the S&P 500 rose 0.4%. The technology-heavy Nasdaq composite climbed 0.9% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.8%, while the SPDR S&P 500 ETF (SPY) rose 0.5% early Friday.
With the Federal Reserve’s June meeting just ahead, the 10-year US Treasury yield rose to 3.75% on Friday. On Thursday, the 10-year yield snapped a four-day winning streak, still near its late May highs.
A loss on Thursday brought oil prices back to around the middle of the trading range since early May. West Texas Intermediate futures rose 0.5% on 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 closing high in 2023. The Nasdaq composite jumped 1%, recouping much of Wednesday’s selloff. And the small-cap Russell 2000 fell 0.4%, ending a two-day rally.
Thursday’s Big Picture column commented: “With the Nasdaq holding close to its 2023 highs, IBD’s recommended market exposure is 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 following 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 buy point of 52.56. Keep an eye out for a potential handle, which is a couple of trading days away from forming. It may provide an earlier entry. CSCO shares were down on Friday.
Dow Jones restaurant giant McDonald’s remains below its 10-week moving average, a bearish sign, despite a 1.4% rally on Thursday. For now, the stock is holding above the buy point of 281.67 from a breakout two months ago. Profits are rapidly diminishing.
While the stock is near a buy point, the action suggests avoiding buying right now. Look for a more bullish rally before considering a stock purchase. The MCD share fell 0.2 percent early Friday.
Salesforce has rallied past alternative entries of 193.91 and 200.00 in recent weeks, according to Leaderboard analysis.
Last week, shares hit the 20% profit zone from a 178.94 cup-with-handle entry, but are now retreating. The stock is setting up for a key test of the 50-day line. A decisive rebound would offer an extra entry for the software leader. CRM stock was up 1.4% on Friday morning.
4 top growth stocks to watch Stock market rally
Best stocks to buy and watch: Dexcom, Flooring & Decor, Fortinet, Kinsale
Dexcom continues to form a flat base with a 126.44 buy point, as the stock rose 1.2% Thursday, according to IBD MarketSmith’s pattern recognition. DXCM shares rose 0.3% on Friday.
IBD SwingTrader stock Floor & Decor decisively regained its 50-day line during Wednesday’s 5.1% advance, placing the flooring retailer in new buy territory. FND stock is just 5% away from a conventional buy point at 101.39. The FND share fell 0.4 percent on Friday.
Insurance leader Kinsale Capital closed Thursday in 5% buy territory past a 345.75 buy point. The buy zone goes up to 363.04. The KNSL share rose 0.3% on Friday.
Monday’s IBD Stock Of The Day, Fortinet, remains below its flat base buy point of 69.07 despite Thursday’s 2.9% bounce. The shares were 0.5 percent higher on Friday.
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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 |
| 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 shares
IBD Leaderboard stock Tesla rose 4.6% Thursday, moving further out of buy territory beyond a double-bottom buy point at 207.79. Shares closed Thursday 27% off their 52-week high.
Tesla stock hits 2023 high with $32,000 Model 3 starting price
TSLA stock looked to add to its extended winning streak, rising more than 5% on Friday morning. Shares are set to rise for a fourth week in a row, with gains of more than 10%.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.55% on Thursday, ending a three-day losing streak. The stock reached a record high of 184.95 on Monday. The stock continues to hold sharply above a buy point of 157.38 and is outside the buy range that went up to 165.35. AAPL shares rose 0.6 percent on Friday.
Microsoft shares rose 0.6% on Thursday, recovering only a small portion of Wednesday’s 3.1% selloff. Earlier this week, MSFT stock reached the 20%-25% profit zone from a buy point at 276.76, so investors could have taken at least some profit there. On Friday morning, MSFT shares were up 1%.
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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