The Dow Jones Industrial Average dropped Friday, as Wall Street reacted to another round of inflation data. Meanwhile, Tesla stock tumbled despite new purchases from famed investor Cathie Wood.
After the opening bell, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite inched lower in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down slightly, while the SPDR S&P 500 ETF lost 0.1%.
Also, oil prices extended Thursday's gains, as West Texas Intermediate futures rallied more than 3% Friday morning. WTI futures jumped past $74 a barrel.
The 10-year Treasury yield was down at 3.92% Friday after the Labor Department's Producer Price Index inflation report. On Thursday, the Treasury yield closed at 3.97% despite a hotter-than-expected Consumer Price Index.
The PPI fell 0.1% on the month of December, with a 1% annual increase. Both were cooler than Econoday estimates. Core producer prices were flat on the month with a 1.8% annual rise. Both readings were also lower than expected.
Stocks ended the day relatively flat Thursday after the release of the Bureau of Labor Statistics' Consumer Price Index inflation report. That showed consumer prices rising 0.3% for December, with an annual increase of 3.4%. Wall Street expected a 0.2% monthly increase, with a 3.2% annual rise.
Tesla Stock Slides On China Price Cuts
Tesla stock slid more than 2% after the company cut China prices on its Model 3 and two Model Y variants and temporarily suspended most car production at its factory near Berlin. The Elon Musk-led company cited a lack of components due to shifts in transport routes because of attacks on vessels in the Red Sea.
On Thursday, Cathie Wood's Ark Invest ETFs bought more than 112,000 shares of Tesla stock, a purchase worth more than $25.5 million using Thursday's TSLA closing price. Tesla stock is the second-largest position in the ARK Innovation ETF, coming in at 7.68%.
Tesla stock skidded another 2.9% Thursday, closing below its 200-day line for the first time since November. The EV giant has a big double-bottom pattern with conventional buy point of 278.98. Meanwhile, an early buy trigger is at 265.13.
Big Bank Earnings
Wall Street's banks launched their fourth-quarter earnings results Friday, with JPMorgan Chase, Bank of America, Citigroup and Wells Fargo reporting.
JPM stock rallied 2.3% in early action, while Bank of America shares dropped 2.3%. Citigroup jumped 1.6% in early trade. And Wells Fargo shares moved down 2.9%.
Further, Delta Air Lines and UnitedHealth also reported.
Delta stock tumbled more than 4%, while UNH stock fell 3% in morning trades.
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Dow Jones Rebounds
On Thursday, the Dow Jones Industrial Average inched higher, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite edged up a fraction. And the small-cap Russell 2000 declined nearly 0.8%.
Thursday's Big Picture column commented, "The Nasdaq continues to see resistance around 15,000, a key psychological level to watch. Still, with the stock market near new highs, IBD recommends an exposure level of 80% to 100%."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch
Magnificent Seven players Alphabet and Amazon, along with MercadoLibre, Netflix and Novo Nordisk — plus Dow Jones components Amgen, Caterpillar and Merck — are among the best stocks to buy and watch in the current market rally.
Amgen and Novo Nordisk were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Merck Nears Buy Point
Biotech leader Amgen slipped 0.5% Thursday, just out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock rose 0.8% early Friday.
Heavy machinery giant Caterpillar ended Thursday just below its 293.88 buy trigger, amid a 0.4% drop. CAT stock was up 15 Friday morning.
Drug maker Merck is trying to break out past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. MRK stock dropped 0.3% Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
MercadoLibre Nears Buy Point
Alphabet slipped 0.1% Thursday, easing from a new high and still above a 139.42 buy point in a cup with handle, according to IBD MarketSmith. GOOGL stock rose 0.2% early Friday.
IBD Leaderboard stock Amazon ended further out of buy range beyond a cup base's 145.86 buy point, with a 0.9% rally Thursday. AMZN stock sank 0.4% Friday morning.
MercadoLibre is forming a flat base that has a 1,660 buy point, as it rebounds from its 50-day line. MELI stock gained 1.5% early Friday.
IBD SwingTrader stock Netflix rallied 2.9% Thursday, retaking a 482.70 buy point in a cup with handle. NFLX stock climbed another 0.5% Friday.
Weight-loss drug maker Novo Nordisk ended Thursday down 1.8%, holding just above a 105.69 flat-base buy point. NVO stock moved up 0.3% early Friday.
Best Bets In Today's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Caterpillar | 293.88 | Cup base | |
| Netflix | 482.70 | Cup with handle | |
| Snowflake | 192.66 | Cup with handle |
Source: IBD Data As Of Jan. 11, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia
Magnificent Seven stock Nvidia traded down 0.3% in morning action Friday.
Nvidia rallied 0.9% Thursday, hitting another record high. The stock is extended past a flat base's 505.48 buy point. Nvidia is also an IBD Leaderboard stock.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher after Friday's stock market open.
Apple fell 0.3% Thursday, remaining below a 192.93 buy point and the 50-day line. AAPL gained 0.1% Friday morning.
Microsoft stock rallied 0.5% Thursday, breaking out past a flat base's 384.30 buy point. MSFT was Wednesday's IBD Stock Of The Day. And the software giant was up 0.2% Friday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
