The Dow Jones Industrial Average rose modestly Friday, as the stock market looked to close out of a week of solid gains. The stock market will close early Friday at 1 p.m. ET.
China-related stocks showed weakness Friday, as China’s new Covid-19 cases hit a record high. Nearly 30,000 infections were recorded Wednesday, surpassing the previous record in April. Alibaba (BABA) and JD.com (JD) both declined around 3% in morning trade.
Electric-vehicle giant Tesla (TSLA) traded up almost 1% Friday morning. Early Friday, China’s market regulator said Tesla planned to conduct over-the-air fixes — software updates that don’t require a visit to the dealer — of about 80,000 cars in China due to issues with its battery management systems and seat belts.
Activision Blizzard (ATVI) dropped more than 4%, to the bottom of the Nasdaq Composite and S&P 500, after news reports on Wednesday said the Federal Trade Commission was likely to file an antitrust lawsuit to block Microsoft‘s (MSFT) $69 billion takeover of the video game leader.
Dow Jones tech leaders Apple (AAPL) and Microsoft were mixed after today’s stock market open.
IBD Leaderboard stock Arista Networks (ANET), KLA (KLAC), Shoals Technologies (SHLS) and Ulta Beauty (ULTA) — as well as Dow Jones names Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Ulta Beauty was featured in this week’s Stocks Near A Buy Zone column. Shoals was a recent IBD 50 Stocks To Watch pick.
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Dow Jones Today: Oil Prices, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 moved down 0.1%. The tech-heavy Nasdaq composite declined 0.5% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.6% early Friday, and the SPDR S&P 500 ETF (SPY) lost 0.2%.
The 10-year Treasury yield ticked higher to 3.73% Friday morning, still near its recent lows and threatening to extend a losing streak to three sessions. Meanwhile, U.S. oil prices rebounded Friday morning, but were still on pace for heavy weekly losses. West Texas Intermediate futures rose more than 2%, to above $79 a barrel.
Stock Market Rally
On Wednesday, the stock market posted modest gains. The Nasdaq composite rallied 1%, while the S&P 500 gained 0.6%. The Dow Jones Industrial Average climbed just 0.3%.
Wednesday’s The Big Picture commented, “Initially, major indexes enjoyed mild gains during the first 90 minutes of trading, then backtracked to break-even levels. But the release of minutes from the Nov. 1-2 Federal Reserve meeting added credence to the belief among traders that the U.S. central bank will, for now, take a break from raising interest rates in three-quarter-point salvos.”
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market volatility.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron
Dow Jones member Caterpillar is close to retaking its cup base’s 238 buy point, according to IBD MarketSmith pattern recognition, and is less than 1% below the entry. CAT inched lower Friday.
CAT stock boasts an impressive 96 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Energy giant Chevron is in the buy range above a consolidation’s 182.50 buy point despite Wednesday’s 0.9% decline. The 5% buy area goes up to 191.63. CVX shares climbed 0.2% Friday morning, rising in line with oil prices.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: Arista, KLA, Shoals, Ulta
IBD Leaderboard stock Arista Networks moved further above a choppy base’s 132.97 buy point after Wednesday’s 0.85% gain. ANET stock traded a shade lower Friday.
KLA is closing in on a cup-with-handle’s 392.60 buy point amid Wednesday’s 0.9% climb. Bullishly, the stock’s relative strength line hit a new high last week, a sign of big outperformance vs. the S&P 500. KLAC stock was down 0.5% Friday.
Shoals Technologies is still out of buy range past a 28.57 buy point and moved further above the entry following a 1.6% rally Wednesday. The 5% buy zone topped out at 30. Wait for an orderly pullback into the buy range before considering a purchase of shares. SHLS stock inched down 0.3% early Friday.
Ulta Beauty moved back into buy range Wednesday, falling 0.6%. The 5% buy zone past a 426.99 buy point in a cup with handle runs up to 448.34. Ulta reports third-quarter results on Dec. 1. The stock traded up 0.3% Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock surged 7.8% Wednesday, on pace for a weekly gain of 1.7%, set to snap a three-week losing streak. On Tuesday, the stock hit its lowest level since Nov. 23, 2020, reaching a new 52-week low price at 166.19. Tesla shares are around 54% off their 52-week high and sharply below their 50- and 200-day moving average lines.
Shares of the EV giant traded up nearly 1% Friday morning despite recalling around 80,000 cars in China.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose for a second straight day Wednesday, moving up 0.6%. The iPhone maker is holding above its recently recaptured 50-day line and is about 17% off its 52-week high. The stock traded down 2.2% Friday, as the company faces challenges with labor protests at iPhone contract manufacturer Foxconn in Zhengzhou, China. News reports said 20,000 workers have walked away from their jobs.
Microsoft rose 1% Wednesday, extending a win streak to three sessions. Shares continue to hold above the 50-day line and are their highest level since Oct. 25. The software giant remains around 28% off its 52-week high. Microsoft shares edged higher Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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