The Dow Jones Industrial Average dropped 150 points Friday, extending losses from Thursday's stock market sell-off. Apple stock sold off in morning trade, while DraftKings surged 16% after reporting its fourth-quarter results, as its revenue topped $800 million for the first time ever.
Among other earnings reporters, chip giant Applied Materials, AutoNation, BJ's Restaurants, Deere, DoorDash and Texas Roadhouse were on the move Friday morning.
AMAT shares climbed 0.5% after topping Wall Street's targets for its fiscal first quarter and guiding higher for the current period. AutoNation stock rallied more than 4% in morning trade, while shares of BJ Restaurants tumbled 4.1%.
Deere advanced 3.7%, as DoorDash jumped 3.7% on mixed quarterly results. Finally, Texas Roadhouse shares dropped 5% in early trade.
Stock Market Today
Electric-vehicle leader Tesla inched lower Friday morning. Dow Jones tech giants Apple and Microsoft were both down around 2% after today's stock market open.
IBD Leaderboard stock Airbnb Dexcom, Inspire Medical Systems and Wingstop — as well as Dow Jones stocks Caterpillar, JPMorgan Chase and Salesforce — are among the top stocks to buy and watch, amid the recent rally in the stock market.
Snowflake is an IBD Leaderboard stock. Inspire and Dexcom each were recently named IBD Stock Of The Day. And Salesforce was featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average dropped 0.5%, while the S&P 500 moved down 1%. The tech-heavy Nasdaq composite lost 1.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 1.3% and the SPDR S&P 500 ETF fell 1% early Friday.
The 10-year U.S. treasury yield rose to 3.84% Thursday, its highest close since Dec. 30, after hotter-than-expected wholesale inflation data triggered bond sales. Then, the 10-year yield ticked higher to 3.88% Friday morning, on pace for a solid weekly gain.
Oil prices threatened to extend a losing streak to five sessions, falling more than 3% Friday morning. West Texas Intermediate futures traded near $76 a barrel.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average dropped 1.3% and the S&P 500 lost 1.4%. The Nasdaq declined 1.8%, and the small-cap Russell 2000 fell 1%. After four straight days of closing near session highs, indexes closed at the day's lows.
Thursday's Big Picture column commented, "Midday, St. Louis Federal Reserve President James Bullard said that he pushed for a higher interest-rate increase at the most recent Fed meeting and could see a more aggressive rate hike ahead. News of his comments appeared to send the market averages back to their session lows."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan, Salesforce
Top Dow Jones stock Caterpillar remains in a buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares dropped 0.9% Thursday, but are still holding above the 50-day line. CAT stock dipped 0.1% Friday morning.
Banking giant JPMorgan remains in the 5% buy range above a 138.76 flat-base buy point after a 1.4% loss Thursday. The 5% buy zone tops out at 145.70. JPM shares fell 0.7% early Friday. JPM stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Featured in this week's Stocks Near A Buy Zone column, Salesforce is building a cup with handle that has a 178.94 buy point. Shares lost 1.75% Thursday, ending about 5% away from the entry. CRM stock was down 1.1% early Friday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Airbnb, Inspire
New IBD Leaderboard stock Airbnb soared more than 13% Wednesday, surging past a 121.50 buy point out of a cup with handle. While it's extended from this entry, the breakaway gap places an alternative entry at 135 — and the stock is in buy range above that price. ABNB stock moved down 1.65% Friday morning.
Backstory: The firm operates an online marketplace for lodging. Its primary offerings are homestays for vacation rentals. While tourism was badly hit by the coronavirus pandemic, it continues to roar back following strict lockdowns.
Recent IBD Stock Of The Day Inspire Medical Systems fell back into the 5% buy area past a flat base's 262.64 buy point during Friday's 2.9% drop, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 84 IBD Composite Rating. INSP stock was down 0.5% early Friday.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
Dexcom, Wingstop Eye Latest Buy Points
Dexcom shares dropped 2.4% Thursday, snapping a four-day win streak that saw them move sharply up the right side of a cup base with a 125.65 buy point. Shares could also form a handle, so keep an eye out for a potential lower entry. The stock dipped 0.5% Friday.
Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom's newest continuous glucose monitor, or CGM, gains steam in the U.S. and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration cleared Dexcom's new device, G7, last year.
Wingstop is squarely in buy range above a 169.04 buy point in a cup with handle after Thursday's 0.9% fall in the wake of this week's breakout move. WING stock was down 0.6% Friday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Inspire Medical Systems | 262.64 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Airbnb | 135.00 | Breakaway Gap | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 169.04 | Cup with handle |
Source: IBD Data As Of Feb. 15, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 5.7% Thursday after "recalling" 362,000 vehicles due to its Full Self-Driving software potentially causing crashes, the National Highway Traffic Safety Administration announced. The "recall" will involve a free "over-the-air" software update.
Despite their strong rebound since Jan. 6, shares are still below the 200-day line and that key level looms as a potential resistance area. Shares closed Thursday around 47% off their 52-week high.
Shares threatened to add to Thursday's losses, falling 0.1% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 1% Thursday, giving back a part of this week's gains. Shares are around 14% off their 52-week high and are moving up the right side of a new base. Apple stock sold off 1.5% Friday.
Microsoft shares declined 2.7% Thursday, falling sharply for a second straight day. Shares are above their 200-day line and about 17% off their 52-week high after recent gains. MSFT stock was down 0.8% Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
