The Dow Jones Industrial Average rallied 270 points Friday after the Labor Department's pivotal August jobs report. Broadcom and Lululemon were key earnings movers Friday.
AVGO shares climbed 4% after beating Wall Street's targets and guiding higher for the current quarter. Lululemon stock surged 10% on strong quarterly earnings and sales results, along with lifted full-year guidance.
Electric-vehicle leader Tesla stock rose more than 1% Friday. Among the Dow Jones industrials, tech titans Apple and Microsoft were higher after today's stock market open.
In the stock market's current volatility, Arista Networks, Costco and Ulta Beauty — as well as Dow Jones listing Chevron — are among the top stocks to buy and watch. Keep in mind the market's increased volatility is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of a recent breakout, while Chevron and Ulta Beauty were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After the market open Friday, the Dow Jones Industrial Average rallied 0.7%, while the S&P 500 rose 0.9%. The tech-heavy Nasdaq composite advanced 0.8% in morning trade.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.9%, and the SPDR S&P 500 ETF was up 0.8% in early trade.
Oil Prices Slip; OPEC+ Meets Monday Amid Production Cut Rumors
The 10-year Treasury yield ticked lower to 3.22% early Friday. On Thursday, the 10-year Treasury yield notched its highest closing level since June 21 and is just 6% off its 52-week high.
U.S. oil prices took a modest bounce Friday, looking to snap a three-day losing streak. West Texas Intermediate futures rallied 3% — ahead of an Organization of Petroleum Exporting Countries meeting set for Monday — trading above $89 a barrel.
Jobs Report
Early Friday, the Labor Department released its August jobs report. The U.S. economy added 315,000 jobs during the month, topping estimates that called for a 293,000 increase. The unemployment rate rose to 3.7%, above the 3.5% estimate.
Why You Can't Trust Friday's Jobs Report, And What It Means For The S&P 500
Evidence has mounted that the monthly jobs reports are way off the mark and that the labor market is much weaker than it appears. That suggests a recession may be closer at hand for the U.S. economy than widely believed.
Earlier this week, ADP's private payrolls report said that payrolls added 132,000 positions in August, missing estimates that called for growth of 225,000.
Stock Market Rally Under Pressure
The stock market ended mixed Thursday, as the Dow Jones Industrial Average and S&P 500 reversed higher from sharp declines and the Nasdaq slashed sharp losses.
Thursday's The Big Picture column commented, "In a struggling market uptrend, investors should be playing a ton of defense. Instead of looking for new breakouts, you should have a game plan for your existing positions. Make sure you have an exit strategy in a market that now shows little ability to rebound. If the market is able to stabilize, then it would be time to look for breakout stocks."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron is up about 19% from a mid-July low. It is methodically building a cup base with a 182.50 buy point — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. An early entry at 164.76 is also in play. The stock rose 1.7% early Friday, as oil prices rebounded.
CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, Ulta
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista's relative strength line is starting to give ground, as the stock falls below its long-term 200-day line. ANET shares were up 1% Friday.
IBD Leaderboard stock Costco found much-needed support at its 50-day line Thursday, but remains below its 552.81 buy point from a cup with handle. Wait for a decisive retake of the entry before buying shares. Shares traded up 0.5% Friday.
Cosmetics leader Ulta Beauty is squarely above a 417.08 buy point in a double bottom base following Thursday's 1% gain. ULTA shares were up 0.5% Friday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose 0.6% Thursday, snapping a five-day losing streak. Shares of the electric-vehicle giant gained more than 1% Friday morning, as Piper Sandler raised its price target to 360 from 344, reiterating its overweight rating.
Tesla stock continues to grapple with resistance around its 200-day line, and is trying to find support around its 50-day line, which is a potential support level to watch. Tesla is about 33% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.5% Thursday, finding support at their 50-day line. The stock is about 12% away from a buy point at 176.25 off a cup with handle. Despite the recent losses, the stock's relative strength line is holding near new highs, indicating steady stock market outperformance. Shares rose 0.9% Friday morning.
Microsoft fell 0.4% Thursday, extending a losing streak to five sessions and falling further below its 50-day line. Shares remain sharply below their long-term 200-day line and about 26% off their 52-week high. The stock gained 0.3% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
