The Dow Jones Industrial Average rallied Friday, as third-quarter earnings season kicked off — with results from UnitedHealth and banking giant JPMorgan Chase. Meanwhile, streaming giant Netflix slid on an analyst downgrade.
The University of Michigan's consumer sentiment index is due out at 10 a.m. ET. The index is expected to rise to 68.1 in October, vs. 67.5 for September. Inflation expectations are included in the consumer survey. In September, year-ahead inflation expectations measured 3.2%.
Key earnings reports Friday included Dow Jones stocks UnitedHealth and JPMorgan, along with Citigroup and Wells Fargo.
UNH stock rallied 1.8% in early trade, while JPMorgan shares climbed more than 4%. Citigroup shares moved up 3%, while Wells Fargo advanced nearly 3% in morning trade.
Further, Netflix stock sold off nearly 2% after Wolfe Research downgraded it from outperform to peer perform. NFLX stock is already below its long-term 200-day moving average, and about 25% off its 52-week high.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 gained 0.5%. The tech-heavy Nasdaq composite moved down a fraction in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust inched higher, while the SPDR S&P 500 ETF moved up 0.5% early Friday.
The yield on the 10-year U.S. Treasury bond tumbled to 4.61% Friday morning, on pace to finish with sharp weekly losses.
Oil prices jumped Friday morning after a complex week of trade. Concerns of a widening war in the Middle East, a surge in weekly stockpiles and tightened U.S. sanctions on Russian oil exports all factored into the action. West Texas Intermediate futures traded up more than 4% Friday to near $86 a barrel — up almost 4% for the week.
Stock Market Rally
On Thursday, indexes closed well off session lows, but still finished solidly in the red. The Dow Jones Industrial Average dropped 0.5%, while the S&P 500 lost 0.6%. The tech-heavy Nasdaq composite also declined 0.6%, and the small-cap Russell 2000 sold off 2.2%.
Three of the four indexes — not the Russell 2000 — remain up for the week heading into Friday session.
Thursday's Big Picture column commented, "The Nasdaq faces a key test of resistance around its 50-day line. A decisive retake would be bullish for the uptrend, while further weakness would indicate a need to reduce exposure."
The Dow faces resistance at the 200-day level as it looks to snap a three-week decline.
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing a new uptrend. Be sure to read how to handle the newfound stock market strength and raise your exposure methodically.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Tesla lost 1% early Friday, while Nvidia moved down 0.8%. Dow Jones tech icons Apple and Microsoft traded higher ahead of today's stock market open.
IBD Leaderboard member Arista Networks, DraftKings, Meta Platforms and Modine Manufacturing — as well as Dow Jones stocks Salesforce and UnitedHealth — are among the best stocks to buy and watch in the new stock market uptrend.
Meta is an IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column. DraftKings was IBD's Stock Of The Day on Wednesday.
Dow Jones Stocks: Salesforce, UnitedHealth
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock gained 0.2% Friday morning.
Health insurer UnitedHealth is still in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis. The 5% buy area goes up to 541.65. UNH stock moved up nearly 2% Friday after the company's earnings results.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: DraftKings Makes Bullish Move
Arista ended a two-day pullback Thursday, rising 0.6%. A bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. Meanwhile, shares are just shy of a 198.70 buy point out of a flat base. ANET reports third-quarter results Oct. 30. Shares rose 0.3% early Friday.
DraftKings is building a consolidation that has a 34.49 buy point, according to IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are trying to find support around their 50-day moving average. DKNG stock edged higher Friday morning.
Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. And now META stock is trying to move past a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. META stock declined 0.4% Friday.
Tuesday's IBD 50 Stocks To Watch pick, Modine, is breaking out past a 49.60 buy point in a flat base, but fell sharply during Thursday's 2.9% decline. MOD stock was slightly higher Friday morning.
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 |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Duolingo | 167.53 | Double bottom with handle | |
| DraftKings | 32.65 | Consolidation |
Source: IBD Data As Of Oct. 11, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Hits Buy Point
Tesla stock dropped 1.6%, still holding above its 50-day line and just above an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 6% away from that entry. Tesla reports quarterly results Oct. 18.
Shares moved down 1% early Friday in morning trades.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.5% Thursday, moving further above its 50-day line. If AAPL stock can extend its rebound, it likely would have a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares gained 0.5% early Friday.
Microsoft shares fell 0.4% Thursday, above their 50-day line after solid gains in recent sessions. A new base is forming, with an early entry at 340.86. Earnings results are out Oct. 24. And on Friday morning, MSFT stock was up 0.4%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
