The Dow Jones Industrial Average rallied more than 350 points Friday after the Labor Department's strong May jobs report. Meanwhile, Lululemon Athletica surged after reporting earnings late Thursday.
The U.S. economy added 339,000 jobs in May, sharply above Wall Street's estimates that had employer payrolls growing by 180,000. The unemployment rate rose to 3.7%, above the 3.5% estimate. Average hourly earnings rose 0.3% on the month, in line with estimates.
Meanwhile, the U.S. Senate passed the House-approved bill to raise the debt ceiling, sending the legislation to President Joe Biden's desk. He is expected to sign it Friday.
Lululemon Surges On Earnings
Athleisure apparel giant Lululemon reported strong first-quarter results and a full-year outlook late Thursday. Shares soared more than 15% in morning trade.
Asana reported a narrower-than-expected loss for the first quarter while the software maker's revenue edged by views. The company's own revenue outlook met expectations, sending ASAN stock up more than 9% in early trade.
Samsara surged 21% Friday morning after the company reported a narrower-than-expected loss for the first quarter while revenue topped Wall Street targets. Also, the company's sales outlook came in above expectations.
But SentinelOne shares crashed 35% following the company's quarterly sales miss. The cybersecurity firm's revenue outlook also fell short of views.
Stock Market Today
Electric-vehicle giant Tesla traded 1.5% higher Friday morning. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Arista Networks, IBD Leaderboard stock ASML, Cloudflare and Taiwan Semiconductor — as well as Dow Jones stocks Boeing, Cisco Systems and Salesforce — are among the best stocks to buy or watch in the stock market uptrend.
Arista was a recent IBD Stock Of The Day, while ASML and Salesforce are IBD Leaderboard stocks. And Cisco 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 rose 1.1%, while the S&P 500 gained 0.9%. The tech-heavy Nasdaq composite climbed 0.8% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up 0.5%, while the SPDR S&P 500 ETF rose 0.4% early Friday.
The 10-year U.S. Treasury yield on Friday traded up to 3.63% following the jobs number. On Thursday, the 10-year yield extended a losing streak to three sessions.
U.S. oil prices continued to rebound Friday morning, adding to Thursday's bounce. West Texas Intermediate futures climbed more than 1% Friday, sending it above $71 a barrel.
Stock Market Action
The Dow Jones Industrial Average on Thursday rose 0.5%, ending a two-day skid. It rebounded from its long-term, 200-day line. The S&P 500 rallied 1%, closing at its highest level since Aug. 19. The tech-heavy Nasdaq composite jumped 1.3%, logging a new 2023 closing high. And the small-cap Russell 2000 advanced more than 1%, snapping a two-day losing streak.
Thursday's Big Picture column commented, "With the Nasdaq at a new closing highs, IBD's recommended market exposure sits at 40%-60%. The composite still looks extended and is testing resistance."
Now is an important time to read IBD's The Big Picture column after the recent bullish change in the market's outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Cisco, Boeing, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a 52.66 buy point. Keep an eye out for a potential handle, which would show an earlier entry. CSCO stock rose 0.5% Friday.
Aerospace giant Boeing climbed 1.1% Thursday, moving further above its 50-day line. Shares are still forming a flat base with a 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved up 1.1% early Friday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Shares reached the 20% profit zone from a 178.94 cup-with-handle entry ahead of Thursday's sharp earnings-fueled drop. CRM stock gained 0.5% Friday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Arista, ASML, Cloudflare, TSMC
Networking giant Arista Networks remains below its 171.54 buy point, according to IBD MarketSmith pattern recognition. ANET stock gained 1.1% Friday morning.
IBD Leaderboard stock ASML remains just out of buy range past a 683.28 buy point in a cup with handle amid Thursday's 0.5% rise. ASML added 0.6% Friday morning.
Cybersecurity leader Cloudflare broke out Wednesday past a 66.30 buy point in a double bottom. Shares closed Thursday just out of the 5% buy area, which ran up to 69.62. NET stock moved up 3.1% Friday.
Chip foundry Taiwan Semiconductor rose nearly 0.3% Thursday, in buy range from a double-bottom's 95.92 buy point. The 5% buy area runs up to 100.72. TSM stock rallied 2% Friday morning.
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 two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | 683.28 | Cup with handle | |
| Salesforce | 200.10 | Consolidation | |
| Boeing | 221.43 | Flat base | |
| Arista Networks | 171.54 | Cup base |
Source: IBD Data As Of May 31, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 1.8% Thursday, breaking out past a cup base's 207.89 buy point, but closing just below the entry. The stock is above its long-term 200-day line for the first time since Sept. 21. Shares closed Thursday 35% off their 52-week high.
TSLA stock looked to add to Thursday's gains, moving up 1.5% Friday morning and back above their buy point.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple hit a 52-week high Thursday, rising 1.6%. The stock continues to hold sharply above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock rose 0.6% in morning trade.
Microsoft shares ended a two-day skid Thursday, climbing 1.3%. They are just off their recent 52-week high at 335.94. Shares have reached the 20%-25% profit zone from a 276.86 flat-base buy point, so investors could take at least some profits here. On Friday morning, MSFT stock was up 0.55%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
