The Dow Jones Industrial Average fell on Friday after the early release of November personal consumer spending data, an inflation gauge closely watched by the Federal Reserve. Tesla shares fell to new lows after CEO Elon Musk said he would not sell any more Tesla stock for at least 18 to 24 months.
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Early on Friday, key inflation data came in the form of the November Personal Consumption Expenditure price index. The PCE price index came in cooler than expected, rising 0.1% in November. That compares with Econoday’s forecast of a 0.2% increase. October.
Year-over-year, the PCE price index rose 5.5%, in line with estimates. Personal income rose 0.4% in November, beating estimates.
Meanwhile, the core PCE price index came in warmer than expected, rising 4.7% year-over-year. 4.6% calculation.
A giant electric car Tesla (TSLA) slipped more than 3% on Friday after Musk’s comments. Dow Jones technology leaders apple (AAPL) and Microsoft (MSFT) then sold down stock market today open
Medpace (MEDP), IBD Leaderboard stock Neurocrine biosciences (NBIX), O’Reilly Auto Parts (ORLY) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), Caterpillar (CAT) and Home Depot (HD) are among the top stocks to consider for investor watch lists. Note that recent market weakness should keep investors on the defensive.
Neurocrine and Texas Roadhouse IBD Leaderboard stocks. Caterpillar and Medpace it was new IBD Stock of the Day companies.
Dow Jones today: Oil prices, Treasury yields
After Friday’s opening bell and heading into a three-day weekend, the Dow Jones Industrial Average was down 0.2% and the S&P 500 was down 0.3%. The tech-heavy Nasdaq composite lost 0.7% in morning action. The bond market will close at 2 a.m. ET on Friday.
between us exchange fundsNasdaq 100 tracker Invesco QQQ Trust (QQQ) 0.7% and the SPDR S&P 500 ETF (SPY) fell 0.4% on Friday.
The 10-year Treasury yield rose 3.72% on Friday morning, with the 10-year yield accelerating to add to its already strong weekly gains. Meanwhile, U.S. oil prices rose nearly 2% on Friday, with West Texas Intermediate crude futures rising above $79 a barrel in morning trade.
Stock Market Rally Under Pressure
The Dow Jones Industrial Average lost 1.05% and the S&P 500 lost 1.45% on Thursday. The Nasdaq lost 2.2% and the small-cap Russell 2000 lost 1.3%.
Thursday’s Big Picture column commented, “The shares of IBD market view remains “uptrend under pressure” after sharp losses in recent sessions. This means that investors should maintain a cautious and defensive position and have already reduced exposure to the market. IBD readers should avoid most breakouts unless they occur in stocks with high-level fundamentals and technicals.”
Now is an important time to read IBD’s Big Picture column amid continued stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Watch: Amgen, Caterpillar, Home Depot
Drugmaker Amgen is building a new flat base after a big advance in mid-November. But shares are below the 50-day line after sharp losses in recent weeks. For now, the correct buy point is 296.77, but the stock must first retrace its 50 days decisively. AMGN shares fell 0.4% on Friday.
Dow Jones member Caterpillar crossed the 239.95 buy point on a flat base this week. according to IBD MarketSmith pattern recognition, but below Thursday’s post-slide entry. As a bull, the stock’s relative strength line, a key technical indicator, is at new highs. CAT shares rose 0.5% on Friday.
CAT reserve showing a strong 98 from a perfect 99 IBD Composite Ratingfor IBD Stock Check. The Composite Rating is designed to help investors easily find the best growth stocks.
Retailer Home Depot is about 4% below a handle cup base’s 329.77 buy point after reversing last week’s bounce move. Shares of HD were down 0.6% in mid-morning trading on Friday.
4 Best Growth Stocks to Watch on Current Stock Market Rally
Top stocks to watch: Medpace, Neurocrine, O’Reilly, Texas Roadhouse
Medpace fell sharply from its 50-day line this week and rose for the third straight day on Thursday. For now, the correct buy point appears to be at 235.82, but an earlier entry at 220.09 is also in play. MEDP shares fell 0.3% on Friday.
IBD Leaderboard stock Neurocrine rose for a fifth straight session on Thursday, gaining 1.7% and continuing to bounce back from support at its 50-day level. A strong rebound is bullish for the stock’s near-term outlook, and the stock is likely forming the right side of a new base. NBIX shares rose 0.3% on Friday.
O’Reilly Auto Parts is also finding much-needed support at its 50-day line this week, staying just above the base entry of 750.98. A big break above the 50-day line could provide a further entry point, but the market upside is currently under pressure, making the stock more likely to buy. ORLY shares fell 0.1% on Friday.
Texas Roadhouse shows a new buy point at 101.85 on a flat base, but is now consolidating below its 50-day line. The IBD Leaderboard fund will look to recover from this benchmark in the coming days, and Thursday’s rally was a promising start. TXRH shares were slightly higher on Friday morning.
Stocks to Watch
These are the top five stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | The Right Buy Point | Base Type |
|---|---|---|---|
| Medpace | (MEDP) | 235.82 | Consolidation |
| Texas Roadhouse | (TXRH) | 101.85 | flat base |
| Caterpillar | (CAT) | 239.95 | flat base |
| Home Depot | (HD) | 329.77 | Mug with handle |
| Amgen | (AMGN) | 296.77 | flat base |
Source: IBD data as of December 22, 2022
Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live
Tesla shares just dropped on Elon Musk’s comments
Tesla shares It fell 8.9% on Thursday, extending its losing streak to five sessions and hitting another 52-week low. Shares gave back early gains, falling more than 3% on Friday, hitting a new low of 121.02. late Thursday Musk promised not selling Tesla stock for at least another 18-24 months.
“Of course I’m committed to, I don’t know, probably not selling stock until two years from now. Definitely not next year and probably the year after that,” Musk commented on the Twitter Spaces call. Musk also said that the company’s decision to buy back shares could be affected by the severity of any economic downturn.
“The board is very open to buybacks,” Musk said. He added: “It wouldn’t be smart to buy back and then find that the recession is worse than 2009.”
Meanwhile, Wedbush cut its price target for the electric car giant from 250 to 175 due to “demand cracks.” The broker maintained an outperform rating on the stock. The lower price target is almost 40% above Tesla’s closing price on Thursday.
Canaccord also lowered its price target to 275 from 304 and maintained a buy rating on the stock.
On Thursday, TSLA stock traded as high as 122.26, hitting a new 52-week low. Shares closed about 69% below their 52-week high.
Dow Jones Leaders: Apple, Microsoft
between Dow Jones stocks, Apple shares fell 2.4% on Thursday to a 52-week low set on June 16 at 129.04. The stock is about 28% below its 52-week high. Shares fell 1.5% on Friday.
Microsoft shares fell 2.55% on Thursday, ending a two-day winning streak, but remained above the 50-day line. The software giant remains about 30% below its 52-week high. Shares of MSFT were down 1.2% on Friday morning.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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