Stocks held at record highs Friday as the Dow Jones Industrial Average continues to flirt with the 40,000 mark. Advanced Micro Devices rallied after a report on a deal with software titan Microsoft. And GameStop plunged on the stock market today after announcing preliminary results and a share offering.
In morning action, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 inched lower. And the tech-focused Nasdaq composite dropped 0.1% in morning action.
Early Friday, the 10-year Treasury yield ticked higher to 4.4%. Further, oil prices climbed as West Texas Intermediate futures traded around $78.90 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.1%, while the SPDR S&P 500 ETF added less than 0.1%.
Meme stock mania faded further Friday, as GameStop stock plummeted another 26% in morning action. Early Friday, the company said it expects first-quarter sales to drop from a year ago, with sales expected to be $872 million to $892 million. That was well short of estimates for $1.05 billion. GameStop also said it will sell up to 45 million class A common shares in an at-the-market offering.
Meanwhile, chip giant AMD rallied 1.8% Friday morning on news that Microsoft will offer cloud-computing customers the option of using artificial intelligence chips from AMD instead of Nvidia AI processors.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stock Market Today: Dow Jones Tops 40,000
On Thursday, the Dow Jones Industrial Average made history, crossing the 40,000 mark for the first time on record as Walmart rallied on strong results. But the Dow fell back below that threshold by the close and all three major indexes were down for the day.
Investor's Business Daily's Big Picture column on Thursday said: "Thursday's higher Nasdaq volume meant the composite's loss resulted in a distribution day. It came just one day after the major indexes climbed to new highs. The S&P 500 also carries one day of institutional selling, a stalling day on May 7."
During Thursday's IBD Live show, the IBD Live team discussed the current trading conditions. The team noted a key feature of this market is the high number of buying opportunities from an ever-broadening number of industry groups. This is yet another green light for investors to raise exposure in this strong market
Now is an important time to read The Big Picture column amid the ongoing stock 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
NetApp, PDD, Taiwan Semiconductor Manufacturing and Tradeweb Markets — plus Dow Jones components JPMorgan Chase and Merck — are among the best companies to watch on the stock market today.
JPMorgan and Taiwan Semi are featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Trade Desk broke out past a 94 buy point in a consolidation. Check out the MarketSurge "Near Pivot" list for more 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. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: JPMorgan, Merck
JPMorgan is breaking out past a flat base's 200.94 entry following strong gains in recent weeks. Shares inched higher on the stock market today.
Meanwhile, drug giant Merck is rapidly approaching a flat base's 133.10 entry. Merck stock was down a fraction Friday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, NetApp is trading in buy range above a 108.82 buy point in a double bottom, according to IBD MarketSurge. NetApp shares added 0.4% after the open on Friday.
Temu-parent PDD is breaking out past a cup-with-handle's 142.32 buy point following Thursday's 1.5% rally. Shares rose 0.9% Friday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base in the wake of strong recent gains. The stock gained 0.7% Friday.
Tradeweb is at the top of its buy range past a flat base's 108.04 buy point, despite a 0.2% fall Thursday. The stock was up modestly 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 |
|---|---|---|---|
| American Express | 231.69 | Consolidation | |
| Texas Roadhouse | 157.12 | Flat base | |
| Chipotle | 3,023.98 | Consolidation | |
| Tradeweb Markets | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia and Tesla dropped 0.7% and 1%, respectively, Friday morning.
Nvidia stock reversed 0.3% lower Thursday, holding above a handle entry at 922.20. The artificial intelligence leader is an IBD Leaderboard stock.
Tesla stock rose 0.5% Thursday, finding support at the 50-day line. Shares remain more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Friday's stock market open.
Apple stock inched higher Thursday, holding at its recent highs. Shares are forming a cup base that has a 199.62 buy point, but keep an eye out for a potential handle to offer a lower entry. The stock was up 0.3% Friday morning.
Microsoft shares lost 0.5% Thursday, within striking distance of the software giant's flat base that has a 430.82 buy point. And Microsoft stock fell 0.6% Friday.
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.
