The Dow Jones Industrial Average rose Friday morning, as Wall Street awaited inflation data included in the early release of a consumer sentiment report. Meanwhile, artificial intelligence stock Workday plunged on the stock market today after earnings were announced.
After the opening bell, the Dow Jones industrials gained 0.1%, while the S&P 500 moved up 0.2%. The tech-focused Nasdaq composite climbed 0.3% in morning action.
Early Friday, the 10-year Treasury yield edged up to 4.48%. Oil prices bounced as West Texas Intermediate futures traded above $77 a barrel.
Among U.S. exchange traded funds, the Invesco QQQ Trust climbed 0.3% and the SPDR S&P 500 ETF rose 0.2%.
Stock Market Today: Deckers, Workday Earnings
Ahead of Friday's open, Deckers Outdoor topped fiscal Q4 estimates, sending shares up 12% in morning trading. The stock is breaking out of a cup-with-handle base. Deckers reported a 43% increase in earnings to $4.95 per share while revenue jumped 21.2% to $959.8 million.
Meanwhile, AI leader Workday reported first-quarter earnings that topped analyst consensus estimates while revenue edged by views. But the software maker's guidance came in below expectations. Workday stock plunged 11% in early trading.
Other earnings movers Friday included off-price apparel chain Ross Stores. The stock jumped 8% in early action.
Orders for durable goods climbed 0.7% in April, the third straight month of gains. Economists had forecast a 0.5% decline, according to Econoday. Excluding transportation orders such as aircraft, orders rose 0.4%, also above forecasts.
Up next, the University of Michigan's consumer sentiment index for May is expected to hold steady at 67.4, per Econoday estimates. Consumers' inflation expectations for the year ahead are seen unchanged from the preliminary reading at 3.5%. That report is due out at 10 a.m. ET.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Falls
On Thursday, the Dow Jones Industrial Average sold off 1.5% — its worst day since March 22, 2023. The S&P 500 lost 0.7%. The Nasdaq composite, which had been up as much as 1.2%, reversed lower 0.4%. And the small-cap Russell 2000 declined 1.6%.
Investor's Business Daily's Big Picture column on Thursday said, "Most concerning was the bearish action on the S&P 500 and Nasdaq. Both indexes staged downside reversals from new highs. Both made outside days that saw Thursday's price range engulf the prior several sessions. That warrants more caution."
During Thursday's IBD Live show — which aired before the market saw its worst selling — the IBD Live team discussed the current trading conditions and how investors should handle the stock market rally.
Now is an important time to read The Big Picture column amid the ongoing stock market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
Monday.com, Netflix and Nvidia chipmaker Taiwan Semiconductor Manufacturing — plus Dow Jones components Merck and Microsoft — are among the best companies to watch on the stock market today.
Microsoft was featured in IBD's Stocks Near A Buy Zone column.
An essential resource for breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Intuitive Surgical is trying to break out past a flat base's 403.76 buy point. Check out the MarketSurge "Near Pivot" list for stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Component Merck
Drug giant Merck is building a flat base that has a 133.10 entry. The stock edged higher on the stock market today.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Monday.com has broken out past a cup base's 239 buy point, with solid gains this week, according to IBD MarketSurge. Shares were down a fraction Friday morning.
Streaming giant Netflix declined 0.8% Thursday, falling below the 639 cup entry. Netflix stock rose 0.5% early Friday.
Taiwan Semiconductor is moving out of buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock climbed another 0.1% Friday.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Microsoft | 430.82 | Flat base | |
| Netflix | 639 | Cup base | |
| Robinhood Markets | 20.55 | Cup base | |
| Taiwan Semiconductor | 148.43 | Double bottom |
Source: IBD Data As Of May 22, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia and Tesla moved up 0.1% and 1.4%, respectively, on the stock market today.
Nvidia stock surged more than 9% Thursday after the AI giant's earnings. The company is an IBD Leaderboard stock. Nvidia stock topped a buy point at 974, gapping up to new highs.
Tesla stock skidded another 3.5% Thursday, extending Wednesday's losses. Shares are barely holding above their 50-day line, but remain more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Friday's stock market open.
Apple stock sold off 2.1% Thursday, giving up a substantial part of its recent gains. Shares are forming a cup base that has a 199.62 buy point, and the recent losses could be the start of a potential handle that offers a lower entry. The stock was up 0.7% Friday morning.
Microsoft shares moved down 0.8% Thursday, falling back below a flat base's 430.82 buy point. Early Friday, Microsoft stock fell 0.5%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
