The Dow Jones Industrial Average dropped Friday morning on a hotter-than-expected inflation report. And tech titans Amazon.com (AMZN) and Apple (AAPL) were up after reporting strong earnings results late Thursday.
Amazon shares surged 11% in morning trade, while Apple stock popped 2.5% before the market open.
Other key earnings movers Friday morning include energy giants Chevron (CVX) and Exxon Mobil (XOM), First Solar (FSLR) and Dow Jones stock Intel (INTC). Chevron shares rose nearly 4%, while Exxon rallied almost 2%. First Solar gained 4%. Intel dived 11% after badly missing estimates for the second quarter and cutting its outlook for the full year.
Tesla (TSLA) edged higher early Friday. Elsewhere, Dow Jones tech leader Microsoft (MSFT) traded up 0.8% after today’s stock market open.
In the volatile stock market environment, Dow Jones stock UnitedHealth (UNH) — as well as ELF Beauty (ELF), Quanta Services (PWR), Ulta Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) — are among the stocks to watch. Keep in mind that ongoing stock market volatility 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 Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Inflation Report
After Friday’s open, the Dow Jones Industrial Average inched lower, and the S&P 500 gained 0.4%. The tech-heavy Nasdaq rallied 0.6% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 0.4%. And the SPDR S&P 500 ETF (SPY) rose 0.3%.
The 10-year Treasury yield ticked higher to 2.71% Friday morning, regaining a portion of Thursday’s drop to 2.68%. This week, the 10-year Treasury yield hit its lowest level since early April. Meanwhile, U.S. oil prices continue to rebound, as West Texas Intermediate futures rose more than 2% to trade near $99 a a barrel.
The Federal Reserve’s preferred measure of inflation came out out Friday morning, with the personal consumption expenditure price index rising 1% for the month of June and a year-over-year increase of 6.8%, both numbers were hotter than Econoday estimates. Personal income climb 0.6% in June, just above estimates.
The PCE price index is one measure of U.S. inflation, tracking the change in prices of goods and services purchased by consumers throughout the economy.
Stock Market Rally
The stock market uptrend shrugged off the recession signal Thursday, as the Dow Jones Industrial Average and S&P 500 gained 1% and 1.2%, respectively. The tech-heavy Nasdaq rallied 1.1%. The small-cap Russell 2000 advanced 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 uptrend is real, there will be plenty of time to buy stocks and make money. This is an important strategy because prior follow-throughs have failed this year and rallies have been cut short.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, 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 range above its double-bottom-with-handle base’s 518.80 buy point after Thursday’s 1.3% gain, according to IBD MarketSmith chart analysis. Shares inched lower Friday.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current 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 following a two-day win streak. The RS line hit a new high last week, which is a sign of big stock market outperformance. ELF shares fell 0.6% Friday.
Quanta Services broke out decisively past a cup-with-handle base’s 138.56 buy point during Thursday’s 8.45% surge, according to IBD MarketSmith chart analysis. Shares were up almost 1% Friday.
IBD Big Cap 20 stock Ulta Beauty is building a flat base with 429.58 buy point, and is moving further above its 50-day line after Thursday’s 1.35% climb. The base comes in the wake of a failed breakout past a cup-with-handle’s 426.93 entry in June. Ulta shares dropped 1.5% Friday.
IBD Leaderboard stock Vertex Pharmaceuticals is testing support around a cup-with-handle’s 279.23 buy point, as well as the 50-day line amid Thursday’s 2.15% loss. Vertex stock was up 0.3% Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock climbed another 2.2% Thursday, adding to Wednesday’s 6.2% jump. Shares are at their highest level since early May, but are still about 32% off their 52-week high.
Shares inched higher Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.4% Thursday and is 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 rallied more than 2% Friday morning after the company’s earnings results.
Microsoft advanced 2.85% Thursday, rising for a second straight day. The stock closed about 21% off its 52-week high. Microsoft traded up 0.8% in morning trade.
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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