The Dow Jones Industrial Average reversed lower on Friday, threatening to tumble after Thursday’s powerful stock market rally. The chip giant Dow Jones Intel (INTC) slipped after JPMorgan downgraded the stock to a sell rating.
Electric vehicle giant You’re here (TSLA) was trading down 2.5% on Friday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.
Among the best stocks to buy and watch, Albemarle (ALB), IBD Ranking Watch List Stock Arista Networks (A NET), CF Industries (CF) and GlobalFoundries (GFS) – as well as Dow Jones names caterpillar (CAT) and UnitedHealth Group (UNH) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard watchlist stock. Albemarle was featured in this week’s Stocks Near A Buy Zone column, along with three other stock ideas. GlobalFoundries was a recent IBD Stock of the Day.
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Dow Jones Today: Oil Price, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite gained 0.4% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.3% early Friday, and the SPDR S&P 500 ETF (SPY) rose 0.2%.
Meanwhile, US oil prices rose more than 3% as the easing of some of China’s Covid-related restrictions indicated a possible increase in global energy demand. West Texas Intermediate futures rose above $89 a barrel. WTI futures are again trying to find support around their 50-day moving average.
On Thursday, the 10-year Treasury yield plunged more than 30 basis points to 3.82%, settling at its lowest level since early October. This is the largest one-day drop in yield since March 18, 2009, according to Dow Jones Market Data.
The bond market was closed Friday for Veterans Day.
Stock market rally struggles
On Thursday, the Dow Jones Industrial Average jumped 3.7%, while the S&P 500 jumped 5.5%. The tech-heavy Nasdaq composite climbed 7.35%. All rallied after the Labor Department’s consumer price index showed easing inflationary pressures in October.
Thursday’s The Big Picture commented: “Right now it’s important to be flexible. Despite Thursday’s torrid gains, investors should remain cautious, limiting exposure to no more than 40%. Wait for further confirmation from the Continued strength before adding more exposure. . An immediate distribution would be a sign to stay more defensive.”
Now is an important time to read IBD’s The Big Picture column.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Caterpillar, UnitedHealth
Dow Jones Member Caterpillar Approaches Cup Base 238 Buy Point, according to IBD MarketSmith pattern recognition. Shares of CAT rose 0.1% on Friday.
Healthcare giant UnitedHealth is trying to retake a cup with the handle’s buy point of 553.23. The shares rose 0.65% on Thursday, ending about 2% below their last entry. UNH stock lost less than 0.1% on Friday morning.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Albemarle, Arista, CF, GlobalFoundries
Lithium producer Albemarle exceeds the buy point of 308.34 by a cup basis. Shares jumped 6.9% on Thursday, closing in the 5% buy zone that rises to 323.76. ALB stock climbed 0.9% early Friday.
IBD Leaderboard Arista Networks watchlist stock is squarely below the buy point of 132.97 from a choppy base despite Thursday’s 3.3% advance. ANET stock was trading down 0.4% on Friday morning.
CF Industries is holding above its 50-day line amid Thursday’s 3.7% advance. Stocks are building a cut base which has a buy point of 119.70, according to IBD MarketSmith pattern recognition. CF stock posted a 1.2% gain on Friday.
Tuesday’s IBD stock GlobalFoundries is trading around 5% off a buy point of 66.06 in a cut base after this week’s rally. Stocks may be looking to form a handle after the recent price surge. GFS stock traded down 0.4% on Friday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock jumped 7.4% on Thursday, ending a four-day losing streak. Stocks hit a new 52-week low this week and hit their lowest level since November 2020 before rebounding. The stock is more than 50% off its 52-week high and significantly below its 50- and 200-day moving averages.
Shares of the electric vehicle giant were down around 2.5% on Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 8.9% on Thursday, rebounding from recent lows. The stock was trading down 0.8% on Friday.
Microsoft climbed 8.2% on Thursday, resuming its 50-day line. The software giant remains around 31% off its 52-week high. Microsoft shares rose 0.3% on Friday morning.
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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