The Dow Jones Industrial Average surged 450 points Friday after the Labor Department's pivotal April jobs report came in stronger than expected. Beaten-down bank stocks rebounded sharply in early trade. And Apple stock jumped on a strong quarterly earnings report.
Nonfarm payrolls rose by 253,000 in April, easily topping Wall Street's estimates for a 178,000 increase and ahead of March's 236,000 new hires. Average hourly earnings rose 0.5% for a year-over-year increase of 4.4%. That topped estimates for a 0.3% earnings increase and a 4.2% year-over-year hike. Further, April's unemployment rate came in at 3.4%, below the 3.6% estimate.
Late Thursday, iPhone maker Apple beat Wall Street's targets for its fiscal second quarter on strong sales in iPhones and services. Apple also raised its quarterly dividend and share repurchase plan. AAPL stock rallied more than 4% in response.
Other key earnings movers Friday morning include Carvana, DraftKings, Fortinet and Square-parent Block.
Carvana soared 26% after the online used-car seller reported an upbeat second-quarter forecast.
DraftKings reported better-than-expected first-quarter earnings and sales results. The company lost 87 cents a share on sales of $769.6 million. Wall Street expected the company to lose 88 cents per share on sales of $704.3 million, per FactSet. DraftKings also raised its full-year revenue guidance. DKNG stock soared more than 17% early Friday.
Cybersecurity leader Fortinet reported first-quarter profit, revenue and billings that topped analyst estimates. FTNT stock moved up more than 4% Friday morning.
Block reported first-quarter earnings and revenue that topped Wall Street targets. SQ stock reversed lower in morning trade.
Stock Market Today
Electric-vehicle giant Tesla traded up 1.8% Friday morning. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Lam Research, IBD Leaderboard stock HubSpot, Nvidia and Paccar — as well as Dow Jones stocks Nike and Visa — are among the best stocks to watch in the struggling stock market uptrend.
JPMorgan was featured in this week's Stocks Near A Buy Zone column. Nvidia was a recent IBD Stock Of The Day topic. Nike received an IBD Stock Analysis close up on Thursday, while Paccar got the IBD Stock Analysis treatment last week.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average rose 1.4%, and the S&P 500 moved up 1.3%. The tech-heavy Nasdaq composite gained 1.2% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1.2%, while the SPDR S&P 500 ETF traded up 1.3% early Friday.
The 10-year U.S. Treasury yield on Friday traded up to 3.44%, set to snap a three-day losing streak. Despite the early gains, the 10-year Treasury yield is on pace for another sharp loss this week.
U.S. oil prices rebounded nearly 4% Friday morning after a string of heavy losses. West Texas Intermediate futures remain near their lowest level since March, around $70 barrel — and still on pace to finish sharply lower for the week.
Stock Market Rally: Make Profit Taking A Priority
On Thursday, the Dow Jones Industrial Average sold off 0.9%, while the S&P 500 declined 0.7%. The tech-heavy Nasdaq composite dropped 0.5%. All three extended losing streaks to four sessions. The small-cap Russell 2000 fell 1.2%, hitting its lowest level since March 24.
Thursday's Big Picture column commented, "The stock market volatility is a major reason to remain on the defensive instead of aggressively buying breakout stocks. This means new buys should only be on stocks with top-notch fundamentals and technicals, and profit-taking should be a priority in your winners. IBD's recommended exposure in stocks remains at 20% to 40% of your portfolio."
Now is an important time to read IBD's The Big Picture column with the stock market still struggling to maintain its uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Nike, Visa
Nike shares fell 2.4% Thursday, ending further below a cup-with-handle's 127.59 buy point, according to IBD MarketSmith pattern recognition. NKE stock gained 2.2% early Friday.
Visa shares closed further below a 230.15 cup-with-handle buy point after Thursday's 0.2% loss. If the stock retakes the entry, the buy range will go up to 241.66. V stock was up 1.1% Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Nvidia, Paccar
Nvidia shares finished Thursday further below a 280.10 buy point in a short consolidation after the session's 0.9% drop, according to IBD MarketSmith. NVDA stock was up 0.8% Friday morning.
Backstory: On Monday, Rosenblatt Securities analyst Hans Mosesmann named Nvidia one of seven semiconductor stocks likely to benefit from the surge in spending by tech companies around artificial intelligence. Nvidia sells graphics processing units, accelerators, software tools and other offerings for AI projects.
Paccar skidded further below its 50-day line Thursday, falling 0.85%. Shares continue to build a flat base with a 76.82 buy point, and an early entry at 75.83 is also in play, though they continue to drift further away from those entries. Paccar shares rose 1.7% Friday morning.
Backstory: The producer of heavy-duty semi-trucks topped first-quarter estimates on April 25, reporting a 96% earnings spike. At CES 2022, Paccar exhibited connected and autonomous trucks. The company behind the Kenworth, Peterbilt and DAF nameplates showcased three vehicles.
HubSpot, Lam Research
IBD SwingTrader stock Lam Research remains close to an early entry at 533.19, while forming a flat base with a 548.95 buy point. LRCX stock was up 1.5% Friday morning.
Backstory: Lam Research supplies wafer fabrication equipment to the semiconductor industry. It is one of just three companies involved in etching and deposition for chip production. Lam also makes equipment used in NAND flash memory modules. These account for roughly half of total sales.
IBD Leaderboard stock HubSpot soared 7.4% Thursday on strong first-quarter earnings results. The earnings gap up displays an alternate entry near 455.68, the high of the first 5-minute bar during Thursday's action. HUBS stock added 1% Friday morning.
Backstory: The Cambridge, Mass., firm specializes in helping businesses automate marketing and sales operations. Its cloud-based platform also assists clients in social media, search engine optimization and website content management. Earnings and sales have grown sharply over most of the past eight quarters. In the first quarter, profit growth accelerated for the third straight period, up 122%. Revenue increased 27% to $501.6 million.
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 three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Nvidia | 280.10 | Consolidation | |
| Nike | 127.59 | Cup with handle | |
| Visa | 230.15 | Cup with handle | |
| HubSpot | 455.68 | Earnings Gap Up |
Source: IBD Data As Of May 4, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock inched higher Thursday, still trading near its recent lows. In early April, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level. The stock closed Thursday 50% off its 52-week high.
TSLA stock looked to add to Thursday's gains, trading up 1.8% early Friday.
Dow Jones Leaders: Apple Earnings, Microsoft
Among Dow Jones stocks, Apple shares lost 1% Thursday, falling for a fourth consecutive session. They remain solidly above a 157.48 buy point and out of the buy range that ran up to 165.35. AAPL stock rallied 4.3% Friday after the company's strong earnings report.
Microsoft shares are sharply above a flat base's 276.86 buy point amid more tight action Thursday. The 5% buy area went up from the buy point to 290.70. MSFT stock hit a 52-week high last week. On Friday morning, MSFT stock gained 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
