The Dow Jones Industrial Average rose Friday, as the S&P 500 and Nasdaq eyed new highs in the second day of a stock market rally. Artificial intelligence leader Nvidia jumped yet again, hitting more record highs.
After the opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite moved up 0.4% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.4%, while the SPDR S&P 500 ETF rose 0.2%.
Further, oil prices extended Thursday's gains, as West Texas Intermediate futures continued 0.5% higher. WTI futures traded above $74 a barrel.
The 10-year Treasury yield ticked up to 4.18% Friday morning. The 10-year had climbed to 4.14% Thursday, extending a win streak to four sessions.
Nvidia stock jumped more than 1% early Friday, hitting more record highs. The stock is already extended past a flat base's 505.48 buy point. Nvidia is also an IBD Leaderboard stock.
Inflation Report, Earnings Results
Existing home sales from the National Association of Realtors fell to 3.78 million in December. Sales were expected to hold at November's 3.82 million annual rate. A low inventory of homes along with high prices and interest rates have been constraining sales, according to Econoday.
Meanwhile, the University of Michigan's preliminary consumer sentiment survey rose to 78.8 in January. It was expected to fall to 69.2 vs. 69.7 in December. Included in the survey are 1-year inflation expectations, which came in cooler than expected, at 2.9% vs. the 3.1% estimate.
Key earnings movers Friday morning came via results from Ally Financial, Comerica, Regions Financial, SLB, State Street and Travelers.
Ally stock jumped 3% in early trading, while Comerica dropped 0.8%. RF stock inched lower, as SLB moved up 1.6%. Finally, State Street shares jumped 5%. And Travelers surged 5.4% in early action.
Dow Jones Rallies
On Thursday, the Dow Jones Industrial Average climbed 0.5%, while the S&P 500 moved up 0.9%. The tech-heavy Nasdaq composite advanced nearly 1.4%.
Thursday's Big Picture column commented, "With the Nasdaq and S&P 500 just off new highs, IBD recommends an exposure level of 80% to 100%. That means scanning the daily market action for new breakouts and strong rebounds from key support levels."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. 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
Best Stocks To Buy And Watch
Magnificent Seven player Amazon, along with DraftKings, MercadoLibre, Novo Nordisk and Spotify — plus Dow Jones components American Express, Amgen and Merck — are among the best stocks to buy and watch in the current market rally.
MercadoLibre and Spotify were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express In Buy Range
Credit card leader American Express is falling back into buy range past a 175.31 buy point in a cup with handle. AXP stock moved up 0.4% Friday morning.
Biotech leader Amgen rose 0.1% Thursday, holding out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock was up 0.1% early Friday.
Drug maker Merck is trying to break out past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. MRK stock dipped 0.3% Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
DraftKings Retakes Key Level
IBD Leaderboard stock Amazon is moving back out buy range beyond a cup base's 145.86 buy point, with a 1.2% rally Thursday, according to IBD MarketSmith. AMZN stock moved up 0.1% Friday morning
Sports-betting giant DraftKings surged 7% Thursday, retaking the key 50-day line. The strong move put the stock in an early buy zone. Meanwhile, a cup base has an official buy point at 39.35. DKNG stock rose another 1.3% Friday.
MercadoLibre is trying to break out past a flat base's 1,660 buy point, and the breakout regained steam Thursday, rising 1.6%. MELI stock gained 0.2% early Friday.
Weight-loss drug maker Novo Nordisk ended Thursday up 0.8%, further above a 105.69 flat-base buy point. NVO stock slipped 0.5% early Friday.
IBD SwingTrader stock Spotify closed Thursday above a 202.88 buy trigger in a flat base, with a 3.1% advance. SPOT stock rose 0.3% Friday morning.
Best Bets In Today's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| American Express | 175.31 | Cup with handle | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Jan. 18, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla traded down 0.5% in morning action Friday.
Tesla stock skidded 1.7% Thursday, closing at its lowest level since Nov. 9. Tesla stock sits sharply below its 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher after Friday's stock market open.
Apple stock rallied 3.3% Thursday, stopping just short of the 50-day line. A decisive retake of that moving average would be bullish for the stock's immediate prospects. Shares tacked on 0.4% early Friday.
Microsoft stock moved up 1.1% Thursday, further above a flat base's 384.30 buy point. MSFT was a recent IBD Stock Of The Day. And the software giant was up 0.2% Friday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
