The Dow Jones Industrial Average erased its early gains Friday, as Federal Reserve Chair Jerome Powell gave his speech from Jackson Hole, Wyo. Meanwhile, former President Donald Trump returned to X, formerly known as Twitter, for the first time since 2021.
Powell began speaking at 10:05 a.m. ET at this year's Jackson Hole Economic Symposium. The topic of the conference, "Structural Shifts in the Global Economy," implies something has changed — and not for the better when it comes to inflation.
In his speech Friday, Powell said that inflation is "too high" and that the Federal Reserve is "prepared to raise rates further."
Last month, the Fed lifted its federal-funds rate by a quarter-percentage-point to a range between 5.25% and 5.5%, a 22-year high. The next meeting is Sept. 19-20.
Trump returned to X, posting his mug shot that was taken late Thursday at Georgia's Fulton County Jail. The county booked Trump on racketeering charges related to efforts to overturn the 2020 presidential election. SPAC Digital World Acquisition stumbled 5% in morning trade.
Digital World plans to take Trump Media and Technology Group public in a reverse merger. Trump Media is the parent of the conservative social-media platform Truth Social.
Early Friday, Intuit, Marvell Technology and Workday were key earnings movers.
Intuit shares dropped 0.3% after the company beat analyst estimates for its fiscal fourth quarter but offered a mixed outlook for the current period. Marvell sold off 4.6% after the edging above Wall Street's targets for its fiscal second quarter and providing an in-line outlook for the current period.
Finally, Workday jumped 1.1% after beating Wall Street's second-quarter estimates.
Stock Market Today
Electric-vehicle giant Tesla traded up 2.8% Thursday morning, while Nvidia rose 0.7%. Dow Jones tech icons Apple and Microsoft were higher after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock gained 0.5% and Meta shares rose 0.4% in early action.
Baker Hughes, Costco Wholesale, Oracle and Tidewater — as well as Dow Jones stocks Merck and Visa — are among the best stocks to watch in the ongoing stock market correction.
Tesla and Costco are IBD Leaderboard stocks. Boeing was featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average inched lower after giving up solid gains, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite climbed 0.4% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 1.1%, while the SPDR S&P 500 ETF rose 0.8% early Friday.
Also on Friday, the 10-year U.S. Treasury yield rose to 4.25% ahead of Powell's speech. On Thursday, the yield settled at 4.23%, on pace for modest losses this week.
West Texas Intermediate oil prices looked to extend Thursday's bounce, up more than 1.5% in morning trade Friday. WTI futures traded above $80 a barrel.
Stock Market Action
On Thursday, the Dow Jones Industrial Average dropped 1.1%, while the S&P 500 moved down nearly 1.4%. The tech-heavy Nasdaq composite sold off 1.9%. In a concerning move, all three found stout resistance at their 50-day moving averages, closing at session lows Thursday.
Thursday 's Big Picture column commented, "With Thursday's bearish action, IBD's market outlook remains with the stock market in correction, while the recommended exposure range was reduced to 0%-20%. It had been at 20%-40%. It seems unlikely after Thursday's brutal downside reversal, but a follow-through day is still possible any day. And as long as the Nasdaq remains above its Aug. 18 lows, the rally attempt remains intact."
Now is an important time to read IBD's The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Merck, Visa
Drug giant Merck is fighting to stay above its 50-day line amid Thursday's 1.7% drop. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares inched higher early Friday.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. V stock rose 1.1% Friday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Baker, Costco, Oracle, Tidewater
Drilling and energy company Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock added 0.8% in early morning trade.
Costco threatens to close decisively below its 50-day support level amid the slew of weak earnings reports from retailers, including Dick's Sporting Goods and Macy's. Meanwhile, a handle entry looms at 571.16. COST stock edged higher early Friday.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader threatens to give up support around the 50-day line. ORCL stock rose modestly in early trade.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was up 0.4% early Friday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In 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 |
|---|---|---|---|
| Oracle | 127.54 | Flat base | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Costco | 571.16 | Cup with handle |
Source: IBD Data As Of Aug. 22, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock slipped 2.9% Thursday, snapping a three-day win streak. Shares remain well below their 50-day line. Amid the recent spate of selling, it's clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Friday, Tesla stock looked to rebound from Thursday's losses, rising around 3%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 2.6% Thursday, ending a four-day win streak. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock rose 0.6% early Friday.
Microsoft shares also are trying to rebound from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock remains below its 21- and 50-day lines, so there isn't a buy signal yet. And on Friday morning, the stock moved up 0.9%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
