Stocks rise ahead of key economic data

Stocks mixed after key inflation data

The Dow Jones Industrial Average rallied on Friday on another dose of inflation data, the Personal Consumption Expenditure Index. Shares of Amazon plunged on weak sales prospects, while shares of Apple, Intel and Chevron all climbed on beats in earnings.




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Amazon (AMZN) slumped nearly 10% after the company released third-quarter results late Thursday that topped earnings but gave an outlook below. Apple (AAPL) stock rebounded more than 4% in morning trading. Late Thursday, the tech titan beat Wall Street targets for its fourth fiscal quarter on strong iPhone and Mac computer sales.

Meanwhile, the Federal Reserve’s favorite inflation gauge came out Friday morning at 8:30 a.m. ET. The PCE price index rose 0.3% for the month of September, in line with estimates. Year-over-year, the PCE index climbed 6.2%, fresher than the 6.3% estimate. Personal income rose 0.4% in September, just above estimates that called for a 0.3% rise.

The PCE price index is a measure of inflation in the United States, which tracks changes in the prices of goods and services purchased by consumers throughout the economy.

Stock Market Today: Chevron, Intel Earnings

The other main drivers of earnings on Friday were Dow Jones stocks Chevron (CLC) and Intel (INTC), alongside the energy giant Exxon Mobil (XOM) and leader in renewable energies First Solar (FSLR).

Chevron stock rose 1.9%, while Intel stock jumped 8% after beating downward expectations for the third quarter and slashing its outlook for the fourth quarter. Exxon shares gained about 2%. And First Solar stock rose more than 2% despite missing earnings and revenue targets.

Electric vehicle giant You’re here (TSLA) was trading down around 2% on Friday morning, while technology leader Dow Jones Microsoft (MSFT) was higher after today’s stock market open.

Auto area (AVOID), Cardinal Health (ACH), Eli Lily (LLY) and Texas Truck Stop (TXRH) – as well as Dow Jones stocks Merck (MRK) and UnitedHealth Group (UNH) – are among the best stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watchlists into action and hone their pyramiding technique.

Young rallies, especially those fighting bear markets, often fail. Pyramiding provides a method of gradually accessing new equity positions to minimize risk to capital.

Cardinal and Texas Roadhouse are IBD rated stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column, along with three other stock ideas.

Dow Jones Today: Treasury Yields, Oil Prices

After Friday’s opening bell, the Dow Jones Industrial Average rose 1.2%, while the S&P 500 rose 0.7%. The tech-heavy Nasdaq composite gained 0.6% in morning action, with Amazon trading near the bottom of the list.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.2% and the SPDR S&P 500 ETF (SPY) rose 0.5%.

The 10-year Treasury yield rose to 4.01% on Friday morning, paring this week’s losses. On Monday, the 10-year Treasury yield closed at 4.23%, settling at its highest level since June 2008 before falling for the next three sessions. The 10-year Treasury yield is expected to post a 12-week winning streak.

Meanwhile, US oil prices fell more than 1% on Friday, threatening to end a four-day winning streak. West Texas Intermediate futures were trading below $88 a barrel.

The stock market rally continues

On Thursday, the Dow Jones Industrial Average rebounded 0.6%, while the S&P 500 fell 0.6%. The tech-heavy Nasdaq composite lost 1.6%.

Thursday’s The Big Picture commented: “Investors should continue to follow companies that easily beat earnings results and have strong upside reactions, such as Enphase Energy (ENPH), which was Wednesday’s IBD stock of the day. They could be among the leaders in the stock market if the market is able to ignore its recent losses and move higher. »

Now is an important time to read IBD’s The Big Picture column. After last week’s powerful gains, investors want to put their curated watchlists to work, in order to jump on future breakouts. But not all follow-ups work, so it’s important to increase exposure slowly and methodically as the new uptrend proves its worth.

Check out IBD stock listings, like the IBD 50 and stocks near a buy zone, for stock ideas.


Five Dow Jones Stocks to Buy and Watch Now


Dow Jones stocks to buy and watch: Merck, UnitedHealth

Merck is extended past the 93.12 buy point of a double bottom after reporting strong third quarter momentum on Thursday. The 5% buy zone rose to 97.78. Merck shares traded a fraction lower on Friday.

Healthcare giant UnitedHealth is approaching the 553.23 point to buy a cup with handle, according to IBD MarketSmith pattern recognition. SHares fell 0.25% on Thursday, holding just short of the headline’s last entry.

UNH stock was up 0.4% on Friday morning.


4 growth stocks to watch in the currentrStock market rally


Top stocks to buy and watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse

Auto parts leader and recent IBD Stock Of The Day AutoZone is out of the buy range past the 2,362.34 buy point of a cut base after rising 4.05% on Thursday. The 5% hunting zone rose to 2,480.46. AutoZone shares rose 0.1% on Friday.

IBD Leaderboard Cardinal Health stock is just off the buy range after entering 71.22 from a short cup with a handle, according to IBD MarketSmith’s chart analysis. Stocks are also above the buy point of 72.38 on a flat basis. Earnings are scheduled for Nov. 4. CAH stock added 0.7% early Friday.

IBD SwingTrader Eli Lilly stock closed beyond its buy range above the buy point of 335.43 on a flat basis, climbing 1.9% on Thursday. Shares rose 1.3% on Friday morning, ahead of next Tuesday’s earnings report.

Texas Roadhouse broke above the 95.52 buy point on a flat basis during Thursday’s 1.5% gain. But, the stock fell 3.5% after the company’s results.


Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live


Tesla Stock

Tesla stock edged up 0.2% on Thursday, rising for a third straight session and continuing to rebound after hitting a 52-week low on Monday. Despite its recent gains, the stock closed around 46% off its 52-week high.

Shares of the electric vehicle giant were down around 2% on Friday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold 3.05% on Thursday, down sharply for a second straight day. Stocks encountered strong resistance around their 50-day line this week, which is a key level to watch. Apple stock rose more than 4% after the company’s results on Thursday night.

Microsoft fell another 2% on Thursday, returning to recent lows. Earlier this week, the stock encountered strong resistance at its 50-day line. The software giant is around 35% off its 52-week high. Microsoft shares rose 0.4% on Friday morning.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.

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