The Dow Jones industrial average rallied Friday as third-quarter earnings season began — with results United Health (UNH) and the banking giant JP Morgan Chase (JPM) Meanwhile, the streaming giant Netflix (NFLX) An analyst slid into the download.
The University of Michigan’s consumer sentiment index is due out at 10 a.m. ET. The index is expected to rise to 68.1 in October and 67.5 against September. Inflation expectations are included in the Consumer Survey. In September, year-on-year inflation expectations stood at 3.2%.
UNH shares rose 1.8% in early trading, while JP Morgan shares rose more than 4%. Citigroup shares rose 3%, while Wells Fargo advanced nearly 3% in morning trading.
Also, Netflix stock sold off nearly 2% after Wolfe Research downgraded it from Outperform to Peer Perform. NFLX stock is already below its long-term 200-day moving average, and 25% off its 52-week high.
Dow Jones today: Oil prices, Treasury yields
After the opening hours on Friday, the Dow Jones industrial average rose 0.8%, while the S&P 500 added 0.5%. The tech-heavy Nasdaq composite moved a fraction lower in morning action.
The yield on the 10-year U.S. Treasury note fell to 4.61% on Friday morning, on pace to end a sharp weekly loss.
Oil prices rose on Friday morning after a troubled week of trading. Concerns about an escalating war in the Middle East, a surge in weekly stocks and tightening US imposes embargo on Russian oil exports Factor in all the action. West Texas Intermediate futures traded up more than 4% on Friday near $86 a barrel — up nearly 4% on the week.
Stock market rally
On Thursday, the indices closed lower but still finished firmly in the red. The Dow Jones industrial average fell 0.5%, while the S&P 500 lost 0.6%. The tech-heavy Nasdaq composite also fell 0.6%, while the small-cap Russell 2000 sold off 2.2%.
Three of the four indices — not the Russell 2000 — are up for the week heading into Friday’s session.
In Thursday’s Big Picture column, “The Nasdaq faces a key test of resistance around its 50-day line. A decisive retest would be bullish, and weakness could signal the need to reduce exposure.”
The Dow faces resistance at the 200-day level as it looks to see a three-week low.
Now is an important time to read IBD’s The Big Picture column, as the stock market outlook shows a new uptrend. Read on to learn how to harness your newfound stock market strength and systematically increase your exposure.
Learn how to time the market with IBD’s ETF Market Strategy
Stock market today
IBD Leaderboard Member Arista Networks (Aneta), Draft Kings (D.K.N.G), Meta platforms (Meta) and Production of mod (MOD) — as well as Dow Jones stocks Sales force (CRM) and United Health (UNH) — is one of the best stocks to buy and watch in the new stock market boom.
Meta is an IBD swing trader stock, while Arista is near a buy zone on this stock. DraftKings is IBD’s Stock of the Week for Wednesday.
Dow Jones stocks: Salesforce, UnitedHealth
Software leader Salesforce is battling resistance at its key 50-day line. If the stock retraces that key level, it will move closer to the 228.79 buy point in the double-bottom floor. CRM stock was up 0.2% on Friday morning.
According to IBD MarketSmith chart analysis, health insurer United Health is still in a buy range above the 515.86 buy point on a cup base. 5% buy area goes up to 541.65. UNH stock was up nearly 2% on Friday after the company’s earnings results.
4 Best Growth Stocks to Buy and Watch Stock market rally
Stocks to Buy and Watch: DraftKings Makes Bullish Move
Arista rose 0.6% Thursday to end a two-day slide. A bullish rebound from the 50-day line in recent sessions has put the stock in fresh buy territory. Meanwhile, shares are out a flat base just shy of the 198.70 buy point. ANET reports third quarter results on October 30. Shares rose 0.3% in early Friday trading.
According to the IBD MarketSmith model consensus, DraftKings is forming a consolidation with a 34.49 buy point. An early entry is at 32.65. Stocks are trying to find support around their 50-day moving averages. DKNG shares rose on Friday morning.
Social media giant MetaPlatforms is in buy range after a strong move above the 312.87 buy point. Now the META stock is trying to cross the official buy point of a cup floor at 326.20. The company reports third quarter results on October 25. META shares fell 0.4% on Friday.
Tuesday’s IBD 50 Stocks to Watch pick, Modine, broke through a 49.60 buy point in a flat base, but fell sharply during Thursday’s 2.9% decline. MOD stock was slightly higher on Friday morning.
Best stocks in today’s stock market action
These are four of the best stocks to buy and watch in today’s stock market, including the Dow Jones leader.
|Name of the company||Symbol||Perfect buying point||Type of point of purchase|
|Meta platforms||(Meta)||312.87||Handle the entry|
|Sales force||(CRM)||228.79||Double bottom|
|Duolingo||(By)||167.53||Double bottom with handle|
Source: IBD data as of October 11, 2023
Tesla stock hits a buy point
Tesla stock fell 1.6%, still above its 50-day line and above alternative buy territory. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle floor with a buy point at 278.98, and shares are 6% away from that entry. Tesla reports quarterly results on October 18.
Shares fell 1% in morning trading on Friday.
Dow Jones Leaders: Apple, Microsoft
In Dow Jones shares, Apple rose 0.5% Thursday and moved above its 50-day line. If AAPL stock can extend its recovery, it will have a double-bottom base with a buy point at 189.98. Apple presents its fiscal fourth quarter report on November 2. Shares were up 0.5% in early Friday trading.
Shares of Microsoft fell 0.4% on Thursday, above their 50-day line after solid gains in recent sessions. A new floor is formed with an initial entry at 340.86. The earnings results are out on October 24. On Friday morning, MSFT stock was up 0.4%.
Don’t forget to follow Scott Lehtonen on X/Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
You may also like:
Best growth stocks to buy and watch
Learn how to time the market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD Long-Term Leaders
MarketSmith: Research, charts, data and training all in one place
How to Research Growth Stocks: Why This IBD Tool Makes the Search for the Best Stocks Easy