The Dow Jones Industrial Average fell on Friday on warmer-than-expected inflation data ahead of the Federal Reserve’s interest rate policy meeting next week. Broadcom, Costco and Lululemon were the gainers before the market opened on Friday, while Netflix jumped on an analyst update.
Wholesale inflation data came out on Friday with the release of the Labor Department’s Producer Price Index at 8:30 am. Producer prices rose 0.3% in November, above estimates of 0.2%. PPI rose 7.4% year-on-year, higher than the estimate of 7.2%.
Broadcom (AVGO), Costco Wholesale (COST) and Lululemon ( LULU ) announced its quarterly earnings results Thursday afternoon.
Shares of chipmaker Broadcom rose 3% after the company reported earnings and revenue that beat Wall Street’s targets for its fiscal fourth quarter. Costco fell 1% after missing earnings and sales estimates. LULU shares fell more than 10% in morning trade after the apparel company beat quarterly expectations, but warned stocks could be higher.
The streaming giant Netflix ( NFLX ) rose more than 4% after Wells Fargo upgraded the stock to overweight from equal weight with a 400 price target. The electric car giant Tesla ( TSLA ) rose 3% on Friday. Dow Jones technology leaders apple (AAPL) and Microsoft (MSFT) is down after today’s stock market open.
Allegro Microsystems (ALGM), an IBD Leaderboard stock Dexcom (DXCM), QLA (KLAC) and Trane Technologies (TT) – also names Dow Jones Caterpillar (CAT), Chevron and Home Depot (HD)—among the best stocks to buy and watch.
Dexcom and Trane are IBD Leaderboard stocks. Caterpillar and Home Depot are featured in this week’s Stocks Near the Buy Zone column. Allegro was recently an IBD 50 Stocks to Watch pick. Caterpillar and Dexcom were recent IBD Stock Of The Day companies.
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Dow Jones today: Oil prices, Treasury yields
After Friday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose less than 0.1%. The tech-heavy Nasdaq composite lost 0.1% in morning action.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) lost 0.3% and the SPDR S&P 500 ETF ( SPY ) lost 0.25% on Friday.
The 10-year Treasury yield rose to 3.52% on Friday morning. The 10-year Treasury yield rose to 3.49% on Thursday, near its lowest level since September.
Meanwhile, US oil prices rose modestly again in early trade. Recent early rebounds have been marred by five straight losses, sending West Texas Intermediate futures to a new 2022 low below $72 a barrel on Thursday. On Friday, WTI futures settled slightly below $72.
Stock market rally
The stock market rallied again on Thursday as the Nasdaq composite and S&P 500 snapped long-term losing streaks.
On Thursday, The Big Picture column commented, “Investors should maintain their cautious positions amid this week’s swing market. For now, the Nasdaq is holding its 50-day line, but further weakness in the tech-heavy composite will push it below that benchmark. , it’s important to monitor.” is a support level. A breach of this level will likely lead to further declines.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, Home Depot, Chevron
Dow Jones member Caterpillar continues to pull away from its cup base’s 238 buy point, After gaining 0.85% on Thursday, according to IBD MarketSmith model recognition. CAT shares rose 0.2% on Friday.
The CAT stock shows a solid 94 out of a perfect 99 IBD Composite Rating according to the IBD Stock Check.
Energy giant Chevron climbed back another 0.6% on Thursday, still well below a 182.50 buy point on a consolidation base. The stock is trying to break out of support at its 50-day line. CVX shares lost 1.2% on Friday morning as oil prices were expected to bounce back on the back of this week’s decline.
Home improvement retailer Home Depot ended Thursday about 2% below its 329.77 buy point on a handle mug base. HD shares fell 0.6% on Friday.
4 Best Growth Stocks to Watch on Current Stock Market Rally
Best stocks to buy and watch: Allegro, Dexcom, KLA, Trane
Allegro MicroSystems ended Thursday’s buy range past the 32.07 buy point of the handle cup after a 2.5% rally on the day. ALGM shares fell 0.5% on Friday.
IBD Leaderboard stock Dexcom is trying to break through a 123.46 buy point on a flat base and is just below the entry. Dexcom shares fell 1.2% on Friday.
Chip leader KLA finished Thursday in a buy range above the 392.60 buy point, according to IBD MarketSmith chart analysis. A key technical strength is the stock’s strong RS line, which made another new high during Thursday’s action. KLA shares fell 1.4% on Friday.
Trane Technologies ended the session nearly 2% below a 181.72 buy point in a cup with a handle after rising 1%. Shares were unchanged Friday morning.
Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live
Tesla shares fell 0.3% on Thursday, extending their losing streak to four sessions. Shares are down 11% for the week.
Despite the losses, the stock is above its 52-week low set in mid-November. Shares are about 57% off their 52-week high. Meanwhile, the stock is seeing some resistance around the 200 price level, which is a key area to watch as the stock may attempt another rally. For now, the stock appears headed for a test of the 2022 lows.
Shares were up 3% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.2% on Thursday, snapping a four-day losing streak off recent lows. The stock is about 22% below its 52-week high. Apple shares fell 1.1% on Friday.
Microsoft rose 1.2% on Thursday as shares continued to hold support at the 50-day line. The software giant remains about 30% below its 52-week high. Microsoft shares were down 1.15% on Friday morning.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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