The Dow Jones Industrial Average rallied 600 points Friday after the release of pivotal inflation data that could tip the scale on interest rate decisions. Meanwhile, Magnificent Seven players Apple, Nvidia and Tesla turned mixed on the stock market today.
After the opening bell, the Dow Jones Industrial Average rose 1.5%, and the S&P 500 climbed 0.9%. The tech-focused Nasdaq composite rebounded 0.7% in morning action.
Early Friday, the 10-year Treasury yield ticked lower to 4.24%. Oil prices eased, with West Texas Intermediate futures trading around $78 a barrel.
Among exchange traded funds, the Invesco QQQ Trust was up 0.7%, while the SPDR S&P 500 ETF gained 0.9% after the open.
Magnificent Seven stocks Apple and Tesla lost 0.5% and 1%, respectively, while Nvidia rose 1.5% in morning trade.
Apple stock turned lower early Friday after Raymond James upped its price target from 200 to 250, holding an outperform rating.
Nvidia stock, an IBD Leaderboard name, fell further below its 50-day line Thursday, while Tesla bounced following Wednesday's 12% earnings-fueled plunge. Early Friday, Tesla received an analyst downgrade. Phillip Securities cut its rating to sell from reduce, with a price-target cut from 145 to 135.
Stock Market Today: Inflation Data
The personal income and outlays report from the Commerce Department showed that the the Federal Reserve's primary inflation gauge, the core PCE index that excludes food and energy, rose 0.2% on the month with an annual increase of 2.6%. It was expected to rise 0.1% for June, with an annual increase of 2.5%, according to Econoday.
Meanwhile, the overall PCE price index climbed 0.1% on the month, with a year-over-year increase of 2.5%. Both matched Econoday estimates.
On Thursday, the core PCE price index rose at a 2.9% annualized rate in the second quarter, down from 3.7% in both the prior quarter and the year-ago quarter. The core PCE was expected to come in at 2.7%.
Key earnings movers include 3M, Bristol-Myers Squibb, AppFolio, Deckers Outdoor and Skechers.
Shares of 3M jumped nearly 16%, as Bristol stock climbed 9% in morning trade. AppFolio moved down 5.8%, and Deckers soared more than 8%. Finally, Skechers rallied 1.8% in early action.
Adjust To Changing Market Conditions, With IBD's New Exposure Levels
Dow Jones Bounces
On Thursday, the Dow Jones Industrial Average climbed 0.2%, clawing back a small part of Wednesday's dive. The S&P 500 lost 0.5%, while the tech-heavy Nasdaq composite declined 0.9% after being up as much as 1.2%. For the Nasdaq, it was the largest three-day decline since Feb. 21, 2023, according to Dow Jones Market Data.
The small-cap Russell 2000 index rebounded 1.3% even after it trimmed gains in afternoon trading. Within the 11 S&P 500 sectors, the energy sector was the best performer, while communication services fell sharply.
Investor's Business Daily's Big Picture column commented, "Wednesday marked another change in character for the stock market, as the Nasdaq closed below its 50-day line for the first time since May 2. And because the tech sector saw more extensive damage, IBD reduced its recommended exposure level to 40%-60%."
During Thursday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing 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
Among the best companies to watch on the stock market today are Badger Meter, GE Aerospace, Palantir Technologies and Tenet Healthcare.
Also on the list are Dow Jones components Amazon, American Express, Apple, Goldman Sachs, IBM and Microsoft.
IBD MarketSurge's Breaking Out Today list had only two stocks Thursday, which makes sense given the stock market weakness. There are only a handful of names on the Near Pivot list, suggesting that many previous tech leaders have some work ahead of them before new buy points emerge.
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: American Express, Goldman Sachs, IBM
Among Dow components, payments giant American Express is further below a flat base's 244.41 entry, according to MarketSurge pattern recognition, following Thursday's losses. And Goldman continues to hold in buy range on the stock market today above a 471.48 flat-base entry.
Meanwhile, IBM staged a breakout Thursday following the company's earnings report. Shares rallied 4.3% to move above a 189.47 cup-with-handle entry. IBM stock inched higher early Friday.
Outside the Dow Jones index, Badger Meter is trying to break out past a 202.81 entry in a flat base, but it rose 0.2% Thursday. Shares were up 1.5% Friday morning.
GE stock's recent breakout past a 170.80 buy point remains under pressure, with shares below their entry. Shares rose 3.5% early Friday.
ServiceNow rallied 13% Thursday, breaking out past a 806.52 handle entry. ServiceNow gained 1.2% early Friday.
And Tenet Healthcare added 3% Thursday, barely extended above a flat base's 142.35 entry. Shares tacked on another 0.3% 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 |
|---|---|---|---|
| Tenet Healthcare | 142.35 | Flat base | |
| KB Home | 74.66 | Flat base | |
| ServiceNow | 806.52 | Handle entry | |
| Newmont | 44.59 | Flat base |
Source: IBD Data as of July 25
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Dow Jones Leaders: Amazon, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon and Microsoft traded higher after Friday's stock market open.
Amazon triggered the 7% loss rule after falling well below a 191.70 buy point in a flat base during Thursday's decline. Shares fell further below their 50-day line. Amazon stock rose 0.6% Friday.
Microsoft shares slipped 2.5% Thursday, further below its flat base's 430.82 buy point and 50-day line. And early Friday the stock was up 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.
