Dow Jones backtracks on key inflation data; Intel plunges 10% in Miss profit
The Dow Jones Industrial Average reversed higher on Friday after key inflation data, with the early release of the Personal Consumption Expenditures price index. Meanwhile, chipmaker Dow Jones Intel (INTC) was down as much as 10% due to a failure in earnings.
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Investors received a breakdown of personal income and expenses for December, and monthly PCE inflation data, from the Department of Commerce at 8:30 am ET. The PCE price index rose 0.1% on the month, above the unchanged expectation. The annual inflation rate decreased from 5.5% to 5%, in line with estimates. Core PCE prices increased 0.3% as the core inflation rate fell from 4.7% to 4.4%; both estimates coincide.
The Fed’s favorite inflation gauge, the core PCE price index, declined at an annual rate of 3.85% in the fourth quarter, new data released with the GDP report on Thursday showed.
Fourth-quarter earnings season continued on Friday as results came from Dow Jones members amexpress (AXP), Chevron (CLC), Intel and Visa (V), as well as ELK (CLUTCH).
American Express shares rose 6.5%, while Chevron’s fell about 2%. CVX shares are completing the right side of a cup base with a buy point of 189.78, according to IBD MarketSmith Pattern Recognition.
Intel shares plunged 7.8% after the the company missed Wall Street targets for the fourth quarter and guided much lower than expected for the current period.
Visa shares advanced 2% on Friday after exceeding the upper and lower line estimates. Visa shares closed Thursday in a buy range above a buy point of 220.08 in a long pattern. The 5% buy area rises to 231.08.
Finally, KLA beat expectations for its fiscal second quarter. But his outlook for the current period was below estimates. KLAC shares fell 5.5%.
stock market today
Electric vehicle leader Tesla was up about 2% on Friday morning, looking to increase Thursday’s Big Gains. Dow Jones technology giants Apple (AAPL) Y Microsoft (MSFT) were then mixed stock market today opened.
IBD Classification Table values Axon Company (AXON), recent IBD inventory of the day etsy (etsy), monster drink (MNST) Y Vertex Pharmaceuticals (VRTX), as well as Dow Jones stocks JPMorgan Chase (JPM), are among the top stocks to buy and watch, with continued strength from the market rally.
axon is a IBD Classification Table values. etsy Y Vertex were recent IBD stocks of the day. Axon and JPMorgan were featured in Stocks column near a buy zone this week.
Dow Jones Today: Oil Prices, Treasury Yields
After the opening bell on Friday, the Dow Jones industrial average rose 0.5%, reversing early losses, and the S&P 500 rose 0.4%. The Nasdaq technology composite rose 0.6% in morning action.
Among us exchange traded fundsNasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3% and the SPDR S&P 500 ETF (TO SPY) was trading 0.2% earlier on Friday.
The 10-year US Treasury yield rose to 3.55% on Friday morning. The yield is about to break a three-week rally that brought the 10-year yield near its lowest level since mid-September.
Oil prices rose more than 1% on Friday, with West Texas Intermediate futures trading above $82 a barrel. Oil prices are flat for the week, near their highest prices since early December, after two weeks of strong gains and ahead of next week’s Organization of the Petroleum Exporting Countries meeting.
stock rally
On Thursday, the Dow Jones industrial average rose 0.6% and the S&P 500 gained 1.1%. The Nasdaq Composite rose 1.8%, while the small-cap Russell 2000 gained 0.7%.
Thursday’s The Big Picture column commented, “IBD stock market perspective is in a ‘confirmed uptrend’ amid strong gains since early January, when the Nasdaq signaled a follow-up day on January 6. Given the current strength of the market, it makes sense to methodically increase your exposure if your trades go well, with 40% to 60% invested. Profitable trading should get you closer to the 60% threshold, especially after Thursday’s tech-driven gains.”
Now is an important time to read. IBD’s The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: JPMorgan
Banking giant JPMorgan is back above a flat-based buy point of 138.76 amid a five-day winning streak. JPM shares rose 0.6% on Friday morning.
JPM shares shows a solid 94 out of a perfect 99 IBD Composite Classificationfor him IBD Stock Check. The composite rating is designed to help investors easily find the fastest growing stocks.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top Stocks to Buy and Watch: Axon, Etsy
Safety leader Axon rose 0.2% on Thursday, moving higher in the 5% buy range above a buy point of 189.72 on a cup-handled basis. The buy zone reaches a maximum of 199.21. Axon shares were up slightly on Friday morning.
Background: Formerly known as Taser International, the company has seized the business opportunity offered by public demands for greater oversight of police departments. Their line of body cameras and accompanying software are now market leaders. The Scottsdale, Arizona-based company also has a cloud-based digital evidence platform.
etsy burst passed a buy point of 137.01 on a cup-handle on Monday, but fell further below the entry with a 1% loss on Thursday. If the stock retakes the buy point, the 5% buy area rises to 143.86. ETSY shares lost 3% on Friday.
Background: The company is a provider of an online e-commerce platform where creators of handicrafts, vintage items and other unique products go to sell their wares. It has a unique business model that, in recent years, has grown from a niche eCommerce marketplace to a top shopping destination across numerous categories.
Monster, Vertex Eye Buy Points
Monster Beverage is nearing a break beyond the buy point of 104.75 from a flat base after Thursday’s 0.4% gain. MNST shares fell 0.5% on Friday.
Background: monster drink leads an energy drink duopoly with private competitor Red Bull. The Company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.
Monster dominates energy drinks in the US, grabbing a 39% market share last year, according to Jefferies data, resulting in record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the US energy drink market in 2021. Upstart Celsius (CELH), which is on an impressive growth spurtclaimed 4.9% of the market.
Recent IBD stock of the day, Vertex Pharmaceuticals, is closing in on a buy point of 324.85 on a cup basis after a fifth straight gain on Thursday. VRTX shares rose 0.2% on Friday.
Background: The company is known for its cystic fibrosis treatments, a market Vertex estimates at 88,000 patients. Of those, there are still 20,000 patients who could get their old-school oral treatments. But analysts are watching for Vertex news, including an updated regimen of three drugs that could strengthen Vertex’s position against its rival. AbbVie (ABBV).
Stocks to Buy and Watch on the Stock Market Rally
Here are the top seven stocks to buy and watch in today’s stock market, including three leaders from the Dow Jones.
| company name | Symbol | correct point of purchase | base type |
|---|---|---|---|
| Monster | (MNST) | 104.75 | flat base |
| Vertex | (VRTX) | 324.85 | cup bottom |
| axon | (AXON) | 189.72 | mug with handle |
| etsy | (etsy) | 137.01 | mug with handle |
| JPMorgan | (JPM) | 138.76 | flat base |
| Chevron | (CLC) | 189.78 | cup bottom |
| Visa | (V) | 220.08 | mug with handle |
Source: EII data as of January 27, 2023
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
tesla shares rose 11% on Thursday after the the company’s strong fourth quarter results, extending a winning streak to five sessions. After its strong rebound, the stock is back above its 50-day line, though still below its 200-day line. Tesla shares closed about 62% below their 52-week high.
Shares of the electric vehicle giant rose 2.2% on Friday morning.
Dow Jones Leaders: Apple, Microsoft
Between dow jones stock, Apple shares rose 1.5% on Thursday, snapping a four-day winning streak. Stocks remain above their 50-day line after strong gains in recent sessions. Still, the stock is around 20% below its 52-week high. Apple will report its quarterly earnings on February 2. AAPL shares were down 0.1% on Friday.
Microsoft shares rose 3.1% on Thursday, decisively retaking its 50-day line, which is bullish for the stock’s immediate outlook. Still, shares remain 22% below their 52-week high. Shares rose 0.3% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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