Dow Jones Reverses on Hot Inflation Report; Amazon and Apple rally on profits

The Dow Jones Industrial Average reversed from early losses to rise Friday morning on a warmer-than-expected inflation report. And the titans of technology (AMZN) and Apple (AAPL) rose after reporting strong results on Thursday night.


Shares of Amazon jumped 11% in morning trading, while shares of Apple jumped 2.5% before the market opened.

Other key drivers of Friday morning earnings include energy giants Chevron (CLC) and Exxon Mobil (XOM), First Solar (FSLR) and Dow Jones stock Intel (INTC). Shares of Chevron rose nearly 4%, while Exxon rose nearly 2%. First Solar gained 4%. Intel plunged 11% after missing estimates for the second quarter and slashing its outlook for the full year.

You’re here (TSLA) rose slightly early on Friday. Elsewhere, technology leader Dow Jones Microsoft (MSFT) gained 0.8% after the stock market opened today.

In the volatile stock market environment, the Dow Jones stock UnitedHealth (UNH) — as well as elf beauty (ELF), Quantum Services (REP), Ultimate Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) – are among the stocks to watch. Keep in mind that continued equity market volatility is a reason to remain more cautious despite recent signs of strength.

UnitedHealth and Vertex are IBD stocks. ELF and Ulta were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices, Inflation Report

After Friday’s open, the Dow Jones Industrial Average gained 0.2% and the S&P 500 rose 0.7%. The tech-heavy Nasdaq rose 1.1% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1%. And the SPDR S&P 500 ETF (SPY) rose 0.7%.

The 10-year Treasury yield rose to 2.71% on Friday morning, reversing some of Thursday’s decline to 2.68%. This week, the 10-year Treasury yield hit its lowest level since early April. Meanwhile, US oil prices continue to rebound, with West Texas Intermediate futures rising more than 2% to trade near $99 a barrel.

The Federal Reserve’s favorite inflation measure came out Friday morning, with the personal consumption expenditure price index up 1% for the month of June and up 6.8% year-on-year, the two figures being higher than Econoday’s estimates. Personal income climbed 0.6% in June, just above estimates.

The PCE price index is a measure of inflation in the United States, which tracks changes in the prices of goods and services purchased by consumers throughout the economy.

Stock market rally

The stock market’s uptrend ignored the recession signal on Thursday, as the Dow Jones Industrial Average and S&P 500 gained 1% and 1.2%, respectively. The tech-heavy Nasdaq rose 1.1%. The small-cap Russell 2000 rose 1.3%.

Thursday’s The Big Picture column commented, “Use each buy as a return to the current strength of the market rally. Don’t panic if you miss the first two breakouts. If the stock market uptrend is real, there will be plenty of time to buy stocks and make money This is an important strategy as previous trails have failed this year and rallies have been cut short.

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.

Four Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Health insurance giant and IBD Leaderboard stock UnitedHealth is almost out of the buy range above the 518.80 buy point of its double bottom with handle base after the 1.3 gain % of Thursday, according to IBD MarketSmith’s chart analysis. Shares fell slightly on Friday.

The UNH stock is posting a solid 94 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: ELF, Quanta, Ulta, Vertex

ELF Beauty is about 1% below a buy point of 33.54 in a cup with handle after a two-day winning streak. The RS line hit a new high last week, which is a sign of big market outperformance. ELF shares fell 0.6% on Friday.

Quanta Services decisively breached the buy point of 138.56 from a cup-with-a-handle basis during Thursday’s 8.45% rise, according to IBD MarketSmith’s chart analysis. Shares rose almost 1% on Friday.

IBD Big Cap 20 Ulta Beauty stock is building a flat base with a buy point of 429.58 and is still moving above its 50-day line after Thursday’s 1.35% rise. The base comes on the heels of a failed break after June’s entry of 426.93 from a cup with a handle. Ulta shares fell 1.5% on Friday.

IBD Leaderboard Vertex Pharmaceuticals stock is testing support around the 279.23 one-cup buy point with a handle, as well as the 50-day line amid Thursday’s 2.15% loss. Vertex stock rose 0.3% on Friday.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock soared another 2.2% on Thursday, adding to Wednesday’s 6.2% jump. Shares are at their highest level since early May, but are still around 32% off their 52-week high.

Shares rose slightly on Friday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.4% on Thursday and are building a cushion above their 50-day line after bullish action in recent weeks. Now, stocks are trying to retake their long-term 200-day line, which looms as a resistance level to watch. Apple shares rebounded more than 2% on Friday morning after the company’s results.

Microsoft advanced 2.85% on Thursday, up for a second straight day. The stock closed around 21% off its 52-week high. Microsoft traded up 0.8% in morning trade.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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