The Dow Jones Industrial Average dropped 175 points Friday amid key inflation data, including the release of the personal consumption expenditures (PCE) price index. Meanwhile, Amazon surged on strong earnings results.
Ahead of Friday's market open, the Commerce Department issued its personal income and outlays report. Personal income rose 0.3% in September vs. the estimate for 0.4% growth.
The PCE price index increased 0.4% on the month, slightly cooler than the 0.5% estimate, with an annual gain of 3.4% that matched estimates. The core PCE price index rose 0.3% on the month, with a 3.7% year-over-year increase. Both core PCE readings met Wall Street's targets.
Further, the University of Michigan's consumer sentiment survey showed one-year inflation expectations at 4.2% in October vs. the 3.8% estimate.
Amazon stock jumped nearly 7% Friday after the company reported third-quarter earnings and revenue growth that topped Wall Street's estimates.
Elsewhere on the earnings front, Chipotle Mexican Grill, Deckers Outdoor, Dexcom and Intel were key movers Friday.
Chipotle stock jumped 4% in early trade, while Deckers shares soared 15%. DXCM stock leapt 12%, as Intel shares rallied more than 10% in early action.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 moved down less than 0.1%. The tech-heavy Nasdaq composite rallied 0.65% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.6%, while the SPDR S&P 500 ETF moved slightly lower early Friday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.86% Friday morning. On Thursday, the benchmark settled at 4.84%.
Oil prices rebounded Friday morning, after falling on Thursday. West Texas intermediate futures rose nearly 2%, trading around $84.50 a barrel.
Stock Market Correction
Thursday's market action delivered more bearish news, with the Dow Jones Industrial Average down 0.8% by the session's close. The S&P 500 ended the day down 1.2% while the tech-heavy Nasdaq composite sold off 1.8%.
Thursday's The Big Picture column commented, "During a market correction, the potential risk is high enough that sitting on the sidelines is preferable to buying. Keep in mind that leading stocks usually correct 1.5 to 2.5 times the general market. That can make a big negative impact in your portfolio. You can gain a lot of market outperformance by keeping exposure low in bad markets and avoiding huge drawdowns."
Now is an important time to read The Big Picture, with the current outlook back in market correction status. Be sure to read how to handle changing market forces.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Electric-vehicle giant Tesla rallied 0.6% early Friday, as Nvidia moved up 0.5%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
International Seaways, Lululemon Athletica, Light & Wonder and Tradeweb Markets — as well as Dow Jones stocks Walmart and UnitedHealth — are among the best stocks to watch in the deepening stock market correction.
International Seaways and LNW stock are recent IBD Stocks Of The Day.
Dow Jones Stocks: Walmart, UnitedHealth
Dow Jones retail giant Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. This week, shares regained their key 50-day line and are about 2% away from their latest entry. WMT stock fell 0.4% Friday.
Health care giant UnitedHealth is adding a handle to a giant consolidation. It's showing a new buy point at 546.78. UNH stock inched lower Friday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Tradeweb Breaks Out
International Seaways is rapidly nearing a cup with handle's 48.40 entry, and within striking distance of the buy trigger. INSW stock moved up 1.1% Friday morning.
Lululemon dropped 2% Thursday, still below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was up 0.4% Friday morning.
Casino game maker Light & Wonder slid 1.2% Thursday, as shares continue to trace a flat base with a 79.97 buy point. LNW stock was up 0.3% early Friday.
Tradeweb broke out of a flat base's 87.53 buy point Thursday after the company's third-quarter earnings. Keep in mind that the market correction should keep you from buying breakout stocks. But Tradeweb is showing unusual strength in a weak environment. TW stock gained 0.8% in early trades Friday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company | Symbol | Correct buy point | Type of buy point |
|---|---|---|---|
| International Seaways | 48.40 | Cup with handle | |
| UnitedHealth | 546.78 | Handle entry | |
| Lululemon | 406.94 | Flat base | |
| Tradeweb Markets | 87.53 | Flat base |
Source: IBD Data As Of Oct. 26, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock skidded 3.1% Thursday, finishing further under the 200-day line. Shares are trying to find support at that long-term level, and are around 30% off their 52-week high.
Shares moved up almost 1% early Friday, looking to bounce back from Thursday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple lost 2.5% Thursday, giving up support around the 200-day line. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares rose 0.4% early Friday.
Microsoft stock sold off 3.75% Thursday, as shares gave up two earlier entries — a 336.14 buy point and a 340.86 buy trigger. On Friday morning, MSFT stock rose 1.5%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
