The Dow Jones Industrial Average reversed lower Friday, threatening to fall after Thursday's powerful stock market advance. Dow Jones chip giant Intel slid after JPMorgan double-downgraded the stock to a sell rating.
Stock Market Today
Intel shares declined more than 2% Friday morning as JPMorgan resumed coverage on Intel with an underweight rating. The brokerage said it would take time for the company to retake ground lost to Advanced Micro Devices in the market for server chips. The note placed a price target at 32 — not quite 8% above where shares closed on Thursday.
Chinese stocks rallied Friday after China eased some Covid restrictions. Alibaba rallied 4.9%, JD.com jumped 7.5% and Pinduoduo climbed 5.2%. The KraneShares CSI China Internet ETF rallied 5.6%.
Electric-vehicle giant Tesla traded down 2.5% Friday morning. Dow Jones tech leaders Apple and Microsoft were mixed after today's stock market open.
Among the top stocks to buy and watch, Albemarle, IBD Leaderboard watchlist stock Arista Networks, CF Industries and GlobalFoundries — as well as Dow Jones names Caterpillar and UnitedHealth Group — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard watchlist stock. Albemarle was featured in this week's Stocks Near A Buy Zone column, along with three other top stock ideas. GlobalFoundries was a recent IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite gained 0.4% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up 0.3% early Friday, and the SPDR S&P 500 ETF rose 0.2%.
Meanwhile, U.S. oil prices traded up more than 3%, as the easing some of the China's Covid restrictions pointed to a possible increase in global energy demand. West Texas Intermediate futures rose above $89 a barrel. WTI futures are once again trying to find support around their 50-day moving average.
On Thursday, the 10-year Treasury yield dived more than 30 basis points to 3.82%, settling at its lowest level since early October. It was the largest one-day yield decline since March 18, 2009, according to Dow Jones Market Data.
The bond market was closed Friday for Veterans Day.
Stock Market Rally Struggles
On Thursday, the Dow Jones Industrial Average surged 3.7%, while the S&P 500 jumped 5.5%. The tech-heavy Nasdaq composite soared 7.35%. All rallied after the Labor Department's consumer price index showed inflation pressure easing in October.
Thursday's The Big Picture commented, "At this time, it's important to be flexible. Despite Thursday's torrid gains, investors should remain with a cautious posture, limiting exposure to no more than 40%. Wait for more confirmation of continued strength before adding more exposure. Immediate distribution would be a sign to stay more defensive."
Now is an important time to read IBD's The Big Picture column.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, UnitedHealth
Dow Jones member Caterpillar is nearing a cup base's 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares rose 0.1% Friday.
Health care giant UnitedHealth is trying to retake a cup with handle's 553.23 buy point. Shares rose 0.65% Thursday, ending about 2% below their latest entry. UNH stock lost less than 0.1% Friday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: Albemarle, Arista, CF, GlobalFoundries
Lithium producer Albemarle is breaking out past a cup base's 308.34 buy point. Shares surged 6.9% Thursday, closing in the 5% buy zone that goes up to 323.76. ALB stock climbed 0.9% early Friday.
IBD Leaderboard watchlist stock Arista Networks is squarely below a choppy base's 132.97 buy point despite Thursday's 3.3% advance. ANET stock traded down 0.4% Friday morning.
CF Industries is holding above its 50-day line amid Thursday's 3.7% advance. Shares are building a cup base that has a 119.70 buy point, according to IBD MarketSmith pattern recognition. CF stock notched a 1.2% gain Friday.
Tuesday's IBD Stock Of The Day, GlobalFoundries is trading about 5% away from a 66.06 buy point in a cup base following this week's rally. Shares could look to form a handle after the recent jump in price. GFS stock traded 0.4% lower Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock surged 7.4% Thursday, snapping a four-day losing streak. Shares hit a new 52-week low this week and reached their lowest level since November 2020 before rebounding. The stock is more than 50% off its 52-week high and sharply below its 50- and 200-day moving average lines.
Shares of the EV giant moved about 2.5% lower Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 8.9% Thursday, rebounding from recent lows. The stock traded down 0.8% Friday.
Microsoft soared 8.2% Thursday, recapturing its 50-day line. The software giant remains about 31% off its 52-week high. Microsoft shares rose 0.3% Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
