The Dow Jones Industrial Average rallied as much as 200 points Friday morning after cooler-than-expected inflation data coming from the early release of the PCE price index. Meanwhile, Nike stock surged on strong earnings.
Early Friday, the personal consumption expenditures, or PCE, price index rose 0.4% on the month, below the 0.5% estimate, with an annual increase of 3.5% that matched estimates.
The core PCE price index, which strips out volatile food and energy prices, rose 0.1% in August, below the 0.2% expected increase. The 12-month core inflation rate slipped to 3.9%, the lowest level since September 2021, from 4.2% in July.
Key earnings reports overnight included Dow Jones apparel giant Nike. Nike stock soared more than 9% after the the company reported earnings well above estimates and gave a bullish outlook late Thursday, despite missing on sales.
Cruise line Carnival also reported, with shares jumping around 1% in morning trades.
Stock Market Today
Electric-vehicle giant Tesla traded up 1.2% Friday morning, while Nvidia gained 1.5%. Dow Jones tech icons Apple and Microsoft both climbed after today's stock market open.
DraftKings, social media giant Meta Platforms, NOV and Uber Technologies — as well as Dow Jones stocks Amgen and Caterpillar — are among the stocks to watch in the ongoing stock market correction.
NOV is an IBD Leaderboard stock, while Meta 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 0.3%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite moved up 1% vs. fair value.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1%, while the SPDR S&P 500 ETF moved up 0.7% early Friday.
Early action also showed the 10-year U.S. Treasury yield falling to 4.52%, extending Thursday's losses. Still, the 10-year Treasury is holding just off its long-term highs.
Oil prices rebounded Friday morning after Thursday's retreat. West Texas Intermediate futures traded around $93 a barrel.
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Stock Market Correction
On Thursday, the Dow Jones Industrial Average climbed nearly 0.4%, while the S&P 500 rose 0.6%. The tech-heavy Nasdaq composite rallied 0.8%, and the small-cap Russell 2000 advanced 0.9%.
Thursday's Big Picture column commented, "A new stock market rally attempt started Wednesday with modest gains on the Nasdaq and S&P 500. That means a follow-through day could occur as soon as Monday, the fourth day of the rally attempt."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen finished Thursday further above a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition. Shares inched higher Friday morning.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock rose 1.3% Thursday, just retaking the 50-day line. Shares gained 0.4% Friday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: DraftKings, Meta, NOV, Uber
DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch, after a solid rebound in recent days. DKNG stock rose 3.5% early Friday.
Social media giant Meta Platforms is tracing a base with 326.20 buy point. A handle appears to show a 312.87 buy point, but it is slightly in the lower half of the pattern. Meta stock reclaimed its 50-day line during Thursday's 2.1% advance. Shares gained 1% in morning trading.
Meanwhile, energy industry player NOV bullishly regained a 20.98 buy point in a cup with handle during Wednesday's session. Shares edged lower Friday morning.
Uber Technologies bullishly regained its 50-day line, rising 2.1% Thursday. Uber is forming a flat base with a 49.49 entry, with an early entry at 49.19. Shares ticked up 1.4% Friday.
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Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Uber Technologies | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Sept. 28, 2023
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Tesla Stock
Tesla stock rebounded 2.4% Thursday, ending a two-day skid. Shares remain below their 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 12% away from that entry.
With Tesla likely to report its third-quarter deliveries on Monday, Wall Street now predicts the number will lag the EV giant's record-setting 466,140 vehicles in the second quarter. Until recently, analysts had forecast Tesla's third-quarter deliveries would outpace the second quarter.
On Friday morning, TSLA stock rose 1.2%, looking to add to Thursday's gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple rebounded from early losses to rise 0.15% Thursday, still near its recent lows. Shares are sharply below their 50-day line after sharp losses in recent weeks. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares rose 1% Friday morning.
Microsoft shares moved up modestly for a second consecutive session Thursday after hitting a recent low during the session. And on Friday morning, the stock moved up 1.2% in early trades.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
