The Dow Jones Industrial Average reversed lower Friday after key economic data, with the release of key manufacturing and services data. Meanwhile, Tesla stock added to Thursday's losses early Friday amid an analyst downgrade after the electric-vehicle giant raised U.S. prices on its Model S and Model X vehicles.
The S&P Global Flash Purchasing Managers' Index, a preliminary reading on private-sector output for April, came out Friday morning. The manufacturing index came out of contraction with a 50.4 reading, while the services index came in at 53.7, higher than estimates.
Key earnings movers Friday morning include CSX, Freeport-McMoRan, HCA Healthcare, Procter & Gamble and SLB.
CSX stock climbed 3.4% in morning trade, while Freeport shares dipped 3.2%. PG stock jumped 2.7%, and SLB slipped 2% in early action. HCA rallied 6.5%.
Stock Market Today
EV giant Tesla reversed 0.5% lower Friday morning, still looking to bounce back from Thursday's big losses. Dow Jones tech giants Apple and Microsoft were lower after today's stock market open.
Crocs, DraftKings, IBD Leaderboard entry Floor & Decor and IBD SwingTrader stock Lululemon Athletica — as well as Dow Jones stocks JPMorgan Chase, Nike and Visa — are among the top stocks to buy and watch with the ongoing market rally.
JPMorgan and Lululemon were featured in this week's Stocks Near A Buy Zone column. Floor & Decor was the IBD Stock Of The Day on Monday.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average dropped 0.1%, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite dropped 0.5% in morning trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.5%, while the SPDR S&P 500 ETF traded down 0.1% early Friday.
The 10-year U.S. Treasury yield on Friday traded down to 3.51%, still on pace for modest gains this week. Last week, the 10-year yield rebounded from its lowest level since mid-September.
U.S. oil prices looked to snap a four-day retreat from their April 12 high above $83 a barrel. Also, West Texas Intermediate futures edged higher, between $77 and $78 a barrel Friday.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average dropped 0.3%, extending a losing streak to three sessions. Verizon Communications was the benchmark's big loser, down 3.65%. The S&P 500 fell 0.6%, and the tech-heavy Nasdaq composite declined 0.8%.
Thursday's Big Picture column commented, "Following big gains on April 13, the stock market has quietly traded sideways, which can be viewed as bullish action. Amid the mostly calm action and light distribution-day count, IBD's recommended exposure remains at 40% to 60%."
Now is an important time to read IBD's The Big Picture column with the stock market in an uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares dipped 0.3% Thursday, holding steady near a flat base's 144.44 buy point in the wake of last week's earnings-fueled surge, according to IBD MarketSmith pattern recognition. JPM stock lost 0.9% early Friday.
Nike shares fell 1% Thursday, still above their 50-day line. The stock is just below a 126.16 early entry and nearing a 131.41 flat-base buy point. NKE stock moved down 0.4% in early trade.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. V stock rose 0.2% in early morning trade. Visa reports fiscal second-quarter results on April 25.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Crocs, DraftKings
Crocs shares climbed 0.9% Thursday, higher in the buy range past a cup base's 143.60 buy point, according to IBD MarketSmith. The 5% buy range goes up to 150.78. CROX stock moved up 0.3% early Friday. The company plans to report first-quarter earnings on April 27.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
DraftKings is rapidly approaching a cup base's 21.72 buy point despite snapping a five-day win streak Thursday. DKNG stock rose 0.1% Friday morning.
Backstory: Boston's DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. Sports-betting prospects look strong, with around 20% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. DraftKings reports first-quarter results on May 4.
Floor & Decor, Lululemon
Floor & Decor is treading water just below a cup-with-handle's 99.47 buy point. Look for a decisive retake of the entry as a signal to buy shares. FND shares were up 0.7% early Friday. Floor & Decor's first-quarter earnings are due May 4.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD Leaderboard watchlist stock Lululemon again broke out past its entry Thursday, rallying 1.8% to close in buy range above a 371.36 buy point in a cup with handle. Shares rose 0.3% Friday morning.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Crocs | 143.60 | Cup base | |
| Nike | 131.41 | Flat base | |
| Visa | 230.15 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of April 20, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Dives On Earnings
Tesla stock plunged 9.75% Thursday after the company reported weaker-than-expected profit margins and revenue. Shares closed at their lowest level since Jan. 26.
In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key level, which is another key sell signal. The stock closed Thursday 55% off its 52-week high.
Late Thursday, Cathie Wood's Ark Invest predicted a $2,000 price in Tesla stock by 2027. Ark ETFs also bought 256,000 Tesla shares on Thursday.
Early Friday, Tesla raised the U.S. prices for its Model S and X premium electric vehicles. The prices of the Model S luxury sedan and Model X SUV were both raised by $2,500. Meanwhile, Tesla stock was downgraded from buy to hold at Truist, which lowered its price target to 154 from 245.
TSLA stock looked to rebound Friday morning, but reversed slightly lower in early trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped 0.6% Thursday. They closed just out of the 5% buy range beyond a 157.48 buy point. AAPL stock dropped 0.5% Friday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares are still in buy range past a flat base's 276.86 buy point, with a 0.8% loss Thursday. The 5% buy area goes up from the buy point to 290.70. And on Friday, MSFT stock lost 0.7%. The company plans to report its fiscal second-quarter results on April 25.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
