The Dow Jones Industrial Average traded at session lows Friday morning after preliminary inflation expectations from the University of Michigan. Ride-hailing company Lyft crashed 35% on weak fourth-quarter earnings results.
On the economic front, the University of Michigan's preliminary consumer sentiment survey came out at 10 a.m. ET. Consumer sentiment topped estimates, improving to 66.4, up from 64.9 in January.
Included in the report are 1-year and 5-year inflation expectations. Expectations for 1-year inflation came in at 4.2%, higher than the 4.0% reading, while 5-year inflation forecasts met estimates at 2.9%.
More earnings movers Friday include Alteryx, Cloudflare, Dexcom, and PayPal.
Alteryx surged 12%, while Cloudflare jumped 10% on strong fourth-quarter results.
Dexcom rallied around 7.5% after the beating Wall Street's fourth-quarter expectations and reiterating its sales outlook for 2023. And PayPal rose 2% after beating fourth-quarter estimates. PayPal said Chief Executive Dan Schulman will retire as of Dec. 31.
Stock Market Today
Electric-vehicle leader Tesla traded down 4.7% Friday morning, while Dow Jones tech giants Apple and Microsoft were sharply lower after today's stock market open.
IBD Leaderboard stock Snowflake, Inspire Medical Systems and Wingstop — as well as Dow Jones stocks Caterpillar and JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Snowflake is an IBD Leaderboard stock. Inspire was a recent IBD Stock Of The Day. Caterpillar 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 fell 0.3%, and the S&P 500 moved down 0.4%. The tech-heavy Nasdaq composite lost 0.9% in morning action,.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 0.9% and the SPDR S&P 500 ETF fell 0.4% early Friday.
The 10-year U.S. treasury yield rose to 3.68% Thursday, on pace for big weekly gains. The 10-year yield ticked higher to 3.69% Friday morning.
Oil prices rebounded Friday morning after Russia said it would cut output by 500,000 barrels a day in March, in retaliation for price caps imposed by the U.S. and European Union. West Texas Intermediate futures rallied more than 1%, to near $79 a barrel — up more than 7% for the week, and on track for their strongest weekly gains since early October.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average shook off an early advance and dropped 0.7%, and the S&P 500 declined 0.9%. Meanwhile, the Nasdaq composite sold off 1%.
Thursday's The Big Picture column commented, "Volume rose on the Nasdaq and the NYSE vs. the prior session. Indexes had avoided distribution days for the greater part of January and this month. But Thursday's declines in higher volume gave the S&P 500 a second distribution day, while the Nasdaq received a fresh session of institutional selling."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan
Top Dow Jones stock Caterpillar is back in 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 were down 1% Thursday. CAT stock inched higher Friday morning.
Banking giant JPMorgan is still in the 5% buy range above a 138.76 flat-base buy point despite a 1.6% decline Thursday. The 5% buy zone tops out at 145.70. JPM shares traded down 0.5% early Friday.
JPM stock shows a strong 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.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Inspire, Snowflake, Wingstop
Recent IBD Stock Of The Day Inspire Medical Systems is breaking out past a flat base's 262.64 buy point, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 84 IBD Composite Rating. Shares rose 0.7% Friday morning.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
New IBD Leaderboard stock Snowflake is approaching an early entry at 178.80, as the software leader moves up the right side of a deep cup base that features a 205.76 buy point. SNOW stock was down 1.3% early Friday.
Backstory: The software firm offers a new way for enterprises and large organizations to access, arrange and analyze their data. To help customers maximize their investments in data analytics, Snowflake charges by time of usage. Earnings are due out March 1.
Wingstop is close to adding a handle to a cup base, which would lower the correct entry to 169.04 from 170.97. WING stock was down 0.6% Friday morning.
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, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
How Did Your Online Broker Do In IBD's 2023 Best Online Broker Survey?
Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Inspire Medical Systems | 262.64 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Snowflake | 205.76 | Cup base | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 170.97 | Cup base |
Source: IBD Data As Of Feb. 9, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock climbed another 3% Thursday, extending a win streak to eight sessions and closing at its highest level since Nov. 4. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Thursday about 46% off its 52-week high.
Shares threatened to give up a large part of Thursday's gains, falling 4.7% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 0.7% Thursday, falling for a second straight day. Shares are around 15% off their 52-week high and are moving up the right side of a new base. Apple stock traded down 0.4% Friday.
Microsoft stock added to Wednesday's fall, sliding 1.2% Thursday. Shares are rebounding from their 200-day line and are about 17% off the 52-week high. Microsoft shares were down 0.6% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
