The Dow Jones Industrial Average rallied 150 points Friday, as the stock market digested preliminary consumer sentiment readings from the University of Michigan. And JPMorgan Chase jumped after reporting strong second-quarter earnings.
Early Friday, the first of two July consumer sentiment index readings from the University of Michigan arrived. The index jumped to 72.6 vs. 64.4 in June, much higher than the 65.5 estimate. Included in the consumer survey, one-year inflation expectations came in hotter than expected, at 3.4% in July vs. 3.3% last month. Inflation expectations were expected to fall to 3%.
On the earnings front, big banks JPMorgan Chase, Citigroup and Wells Fargo kicked off second-quarter earnings season Friday morning. Meanwhile, UnitedHealth Group also reported.
JPM stock rallied more than 1% on strong results. Citigroup shares moved down almost 1% even after the company beat estimates. Wells Fargo jumped 2.4% after better-than-expected results. Finally, UnitedHealth shares advanced 4% on strong earnings and sales.
Stock Market Today
Electric-vehicle giant Tesla gained 0.2%. Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock rose 1.2%, while Meta shares dipped in early action.
Meta Platforms, On Holdings, Monolithic Power Systems and Nvidia — as well as Dow Jones stocks American Express, Caterpillar and Salesforce — are among the best stocks to watch in the current stock market pullback.
Tesla is an IBD Leaderboard stock, while American Express was featured in this Stocks Near A Buy Zone column. On Holdings was IBD's Stock Of The Day on Thursday. Dynatrace was also a recent pick for IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average rose 0.5%, while the S&P 500 gained 0.3%. The Nasdaq composite climbed 0.6% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.8%, while the SPDR S&P 500 ETF rose 0.3% early Friday.
The 10-year U.S. Treasury yield ticked higher to 3.8% Friday morning. Thursday's cool inflation data pushed the 10-year Treasury yield further below 4%, settling at 3.76% and closing at its lowest level since June 28.
West Texas Intermediate oil prices turned slightly lower Friday morning. WTI futures traded just below $77 a barrel, up almost 4% on the week and eyeing their strongest weekly close since April.
Stock Market Action
On Thursday, the Dow Jones Industrial Average rose 0.1%. The S&P 500 and Nasdaq composite both sharply outperformed the Dow 30, hitting new 2023 highs.
The S&P 500 advanced nearly 0.9%, while the tech-heavy Nasdaq composite jumped 1.6% and sailed above the 14,000 level. The small-cap Russell 2000 rallied 0.9% for a fifth-straight gain.
Thursday's Big Picture column commented, "With the stock market at new 2023 highs, IBD's recommended market exposure remains at 80%-100%. Still, investors should be prepared for any potential market pullback. Make sure you take some profits into strength and quickly sell any losers."
Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: American Express, Caterpillar, Salesforce
American Express is trying to break out past a cup-with-handle base's 177.04 buy point. Shares inched further toward the buy trigger Thursday. Second-quarter earnings are due out July 21. AXP stock rose 0.1% Friday morning.
Industrial giant Caterpillar is in buy range past a 250.89 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock inched lower early Friday.
Salesforce decisively rebounded from its 50-day line Tuesday, entering a new buy area. Shares then broke out past a flat base's 225 buy point, according to IBD Leaderboard analysis, during Wednesday's 2.8% advance. CRM stock rose 0.4% Friday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Meta, On Holding, Monolithic Power, Nvidia
Facebook parent Meta Platforms has tightly consolidated over the past three weeks, putting a new entry at 298.12. Shares are above that entry now. With the stock so far extended from its previous base, this buy point should be used as an add-on entry. Meta shares lost 0.1% Friday.
On Holding is trying to break out past a 33.68 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. Shares closed just below their entry. If ONON stock retakes the buy point, the 5% buy area will run up to 35.36. ONON stock moved down 0.1% Friday morning.
Chip leader Monolithic Power moved further past its 553.64 buy point in a flat base, rising 2.8% Thursday. Shares are in the buy area that goes up to 581.32. MPWR stock rose 0.3% early Friday.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. On Thursday, shares topped a four-week-tight entry at 439.90. Nvidia is an IBD Leaderboard stock. Nvidia shares gained more than 2% Friday morning.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
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 |
|---|---|---|---|
| ASML | 683.18 | Cup with handle | |
| Salesforce | 200.00 | Consolidation | |
| Cloudflare | 66.20 | Double bottom | |
| Roku | 75.45 | Cup with handle |
Source: IBD Data As Of July 13, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla rallied 2.2% Thursday, extending a win streak to three sessions. Amid the recent gains, Tesla shares remain sharply out of buy range beyond a double bottom's 207.79 buy point and just off their 2023 highs.
TSLA stock looked to extend that win streak, trading up a fraction Friday. Tesla plans to report its second-quarter results on Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock tacked on 0.4% Thursday, adding to Wednesday's gains. AAPL stock continues to hold sharply above a 157.38 buy point. The tech giant's fiscal third-quarter results are expected on Aug. 3. Early Friday, shares edged lower in morning action.
Microsoft shares found support at their 50-day line this week, placing the stock in a new buy area. The software giant is set to report its earnings results on July 25. And on Friday morning, Microsoft shares were up 1.5% after UBS upgraded the stock from neutral to buy.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
