The Dow Jones Industrial Average rose on Friday after the release of key economic data, as the stock market looked to add to Thursday’s gains. AI Stock Market Leader C3.ai (AI) soared 23% after the company’s better-than-expected earnings results, in which Chief Executive Thomas Siebel touted a “dramatic shift” in sentiment for C3’s AI solutions. ai.
x
Economic data due for release on Friday morning includes the S&P Global Services Purchasing Managers’ Index, or PMI, and the Institute for Supply Management’s services index, or ISM. The PMI Services Index slightly beat estimates with a reading of 50.6, while the ISM Services Index fell to 55.1 in February, beating estimates that called for a drop to 54.5 from a reading of 55.2. from January.
On the earnings front, broadcom (AVGO), costco (COST) and Z scaler (ZS) were on the move.
Broadcom shares rose 3%, while Costco shares fell 2.3% in morning trading. Zscaler shares plunged 11% after the company posted revenue growth that barely beat analyst estimates.
Bitcoin fell nearly 5% on Friday morning as investors weighed in on the latest financial losses at a cryptocurrency-focused bank. Silvergate Capital (YEAH). Meanwhile, US senators questioned cryptocurrency exchange Binance over its money laundering controls, calling it a “hotbed of illegal financial activity.” Bitcoin traded around $22,400 in morning trade.
stock market today
electric vehicle giant tesla (TSLA) rose 3.2% on Friday morning, after a hectic week of trading that left stocks heading for a weekly loss on Thursday. Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) were higher after the stock market opened.
IBD Classification Table Watch List Palo Alto Networks (BREAD), deere (DELAWARE), toll brothers (To land Sales force (CRM), as well as Dow Jones stocks amexpress (AXP), cisco systems (CSCO) and JPMorgan Chase (JPM), are among the top stocks to watch amid recent stock market weakness.
Palo Alto is an IBD Leaderboard Watch List stock. Deere was a recent selection of IBD’s Stock Of The Day. And American Express appeared in the Stocks column near a buy zone this week.
IBD’s latest newsletter, MarketDiem, brings you actionable insights for stocks, options, and cryptocurrencies straight to your inbox.
Dow Jones Today: Oil Prices, Treasury Yields
After the market opened on Friday, the Dow Jones Industrial Average rose 0.3% and the S&P 500 rose 0.7%. Technology composite Nasdaq rose 1.1%, as chipmaker Marvell Technologies (MRVL) lost more than 9% on weak first-quarter earnings guidance.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.1% and the SPDR S&P 500 ETF (SPY) was up 0.7% early Friday.
The 10-year Treasury yield jumped to 4.07%, closing at its highest level since Nov. 9 and on track to extend a weekly winning streak to six. Early Friday morning, the 10-year yield fell sharply to 3.98%.
US oil prices came to a halt after solid gains this week, falling 0.5% on Friday morning. West Texas Intermediate futures traded just below $78 a barrel, up about 2% on the week and aiming for its first weekly gain in three weeks.
Stock Market Recovery Struggles
On Thursday, the Dow Jones Industrial Average rose nearly 1.1% and the S&P 500 rose 0.8%. The Nasdaq rose 0.7% and the small-cap Russell 2000 followed with a 0.2% gain.
Thursday’s Big Picture column commented: “Still, the market’s uptrend isn’t over yet, so keep an eye out for new market leadership that could emerge, such as Duolingo (DUOL), and stocks that continue to reach new highs, such as first lot (FSLR).”
Now is an important time to read IBD’s The Big Picture column amid the now-struggling stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: American Express, Cisco, JPMorgan
American Express, listed in the Stocks column near a buy zone this week, is building a giant cup-handle base that shows a buy point of 182.25. Shares are just 3% below their buy point as they fell 0.3% on Thursday. Bullishly, the stock’s relative strength line is at new highs, a particularly positive sign ahead of a potential breakout. AXP shares were up 0.1% on Friday morning.
Banking giant JPMorgan is in the buy range above its flat-based buy point of 138.76 despite a 1% loss on Thursday, according to IBD MarketSmith chart analysis. Stocks are recovering from their key 50-day moving average last week. JPM shares rose early Friday morning.
JPM shares show a solid 95 out of a perfect 99 IBD composite rating, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
Cisco Systems rose 0.4% on Thursday, still holding well below the buy point of 50.81 on a flat basis. Stocks are trying to stop their slide around their 50-day line and are about 4% below the entry. CSCO shares rose 1.3% on Friday.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top Stocks to Buy and Watch: Palo Alto, Salesforce
IBD Palo Alto Networks leaderboard watch list stocks are building on the right side of a base that has a buy point of 193.01 after jumping more than 10% last week. PANW shares were down 0.1% on Friday morning.
Background: Last week, the cybersecurity giant announced strong results for the quarter ending in January, with earnings reaching $1.05 per share, up 81% from a year earlier, with earnings up 26%. revenue to $1.7 billion.
Dow Jones leader Salesforce gapped up past a buy point of 178.94 in strong fourth quarter results. Shares were up 11.5% on Thursday and are in the 5% buy zone rising to 187.89. CRM shares rose 1.2% on Friday.
Background: Salesforce sells software under a subscription model. Its software helps companies organize and manage sales operations and customer relationships. The company has expanded into marketing, customer services, and e-commerce. Salesforce said it has dissolved its “mergers and acquisitions committee,” meaning it will not make any more big acquisitions, amid mounting pressure from activist investors.
Deere, Toll Eye Last Purchase Points
Deere shares rose 0.4% on Thursday, still closing below its 50-day line. Shares are 6% below a buy point of 448.50 on a flat basis. DE shares gained 0.5% on Friday morning.
Background: An industry benchmark, Deere has shrugged off recession and inflation fears to turn in solid profits. In the last year, higher prices for raw materials have allowed farmers to buy new and improved machines. In the fiscal first quarter ending January 29, the tractor maker posted a 124% increase in earnings per share with a 32.2% increase in total revenue, both beating estimates. Earnings growth accelerated for the second consecutive quarter.
Homebuilder Toll Brothers is building a handle mug base that shows a purchase point of 63.29. Bullishly, the stock is counting on a line of relative strength at new highs during this week’s market action. TOL shares show a strong 95 IBD composite rating. Toll Brothers shares rose 1.6% early Friday.
Background: Last week, luxury homebuilder Toll Brothers beat earnings and revenue projections while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month drop in US existing home prices showed signs of slowing in January.
How did your online broker fare in IBD’s 2023 Best Online Brokers survey?
Stocks to Buy and Watch on the Stock Market Rally
Here are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
| Company Name | Symbol | correct point of purchase | Point of Purchase Type |
|---|---|---|---|
| deere | (DELAWARE) | 448.50 | flat base |
| toll brothers | (TOL) | 63.29 | mug with handle |
| cisco systems | (CSCO) | 50.81 | flat base |
| Palo Alto Networks | (PANW) | 193.01 | Consolidation |
| JPMorgan | (JPM) | 138.76 | flat base |
| Sales force | (CRM) | 178.94 | mug with handle |
Source: EII data as of March 2, 2023
Join IBD experts as they discuss the top stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla shares fell 5.85% on Thursday after investor day failed to unveil a next-generation electric vehicle. Stocks are on a three-day losing streak and weekly losses of 3% are expected.
Tesla shares appeared to rebound from Thursday’s losses, rising 3.2% in Friday morning trading. Tesla sold 74,402 Chinese-made electric vehicles in February, up 31.6% from a year earlier and 12.6% more than in January, according to data from the China Passenger Car Association.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.4% on Thursday, still well below its 200-day line. Shares are around 19% below their 52-week high. Apple shares rose 1.3% on Friday.
Microsoft shares remain below their 200-day line despite Thursday’s 2% advance. The stock is more than 20% below its 52-week high after recent declines. MSFT shares were up 0.2% 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.
YOU MAY ALSO LIKE:
Top Growth Stocks to Buy and Watch
Learn to time the market with IBD’s ETF Market Strategy
Find the best long-term investments with IBD’s long-term leaders
MarketSmith: research, charts, data and advice, all in one place
How to Research Growth Stocks: Why This IBD Tool Simplifies Finding Top Stocks