Dow Jones Rises on Hot Inflation Data; Ulta Beauty dives into Miss sales

The Dow Jones Industrial Average rose on Friday after hot inflation data, with the release of critical consumer price data. In the meantime, Ultimate beauty (ULTA) plunged after missing Wall Street sales estimates in its latest quarter.


The Commerce Department’s April Personal Consumption Expenditures Price Index, or PCE, rose 0.4% on the month, with an annual increase of 4.4%, higher than Wall Street estimates . The core PCE index climbed 0.4% over the month, with an annual rise of 4.7%, also better than expected.

Ulta Beauty shares plunged nearly 11% on Friday morning after missing first-quarter sales estimates.

Other key profit drivers include Autodesk (ADSK), Costco (COST), Outdoor bridge workers (BRIDGE), Gap (GPS), Marvell Technology (MRVL), Ultimate beauty (ULTA) and Working day (WDAY).

Autodesk shares rose 1.8% in morning trading, while Costco fell 0.2%. DECK stock was down more than 5%, while Gap stock jumped 10%. Marvell stock jumped 22%, while Workday stock jumped 10%.

stock market today

Electric vehicle giant You’re here (TSLA) was trading up 0.4% on Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.

Advanced micro-systems (AMD), shares of the IBD ranking ASML (ASML) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Boeing (BA) and Selling power (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

ASML and Salesforce are IBD stocks, and Boeing was featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Price, Treasury Yields

After Friday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.15%. The tech-heavy Nasdaq composite climbed 0.3% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.2%, while the SPDR S&P 500 ETF (SPY) edged higher early Friday.

On Friday, the 10-year US Treasury yield traded as high as 3.83%. The 10-year rate is at its highest level since mid-March.

US oil prices appeared to rebound on Friday morning after Thursday’s steep losses. West Texas Intermediate futures rose 1% on Friday, sending WTI futures near $73 a barrel.

Market share

On Thursday, the Dow Jones Industrial Average fell 0.1%, extending a losing streak to five sessions and falling further below its 50-day line. It is currently testing the 200 day line.

The S&P 500 rebounded 0.9%, breaking a two-day slide and finding support around its own 50-day line. The tech-heavy Nasdaq composite jumped 1.7%, nearly erasing the losses of the past two days. Finally, the small-cap Russell 2000 fell 0.7%, closing at its lowest level since May 17.

Thursday’s Big Picture column warned: “There was low participation ahead of Thursday. (The) Invesco S&P 500 Equal Weight ETF (RSP) fell slightly and (the) First Trust Nasdaq 100 Equal Weight ( QQEW) rose just 0.5%. Nasdaq surge, more than twice as many Nasdaq stocks fell as they rose on Thursday.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Boeing, Salesforce

Aerospace giant Dow Jones, Boeing, climbed 0.8% on Thursday, still below its 50-day line. The stock is still forming a flat base with a buy point of 221.43, according to IBD MarketSmith pattern recognition. BA stock rose 0.5% early Friday.

Salesforce has topped alternate entries at 194.01 and 200.10 in recent weeks, according to ranking analysis. Meanwhile, its relative strength line hit a new high this week, a bullish signal. Salesforce reports first-quarter results after market close on May 31. CRM stock jumped 1.4% on Friday morning after Citigroup raised its price target from 210 to 229.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: AMD, ASML, TSMC

Chip leader Advanced Micro Devices moved out of the buy range above the buy point of 102.53 a cup basis, according to IBD MarketSmith pattern recognition, with an increase of 11 .2% Thursday. The 5% buy zone rose to 107.66. AMD shares rebounded 1.3% on Friday.

IBD Leaderboard ASML stock recouped higher to its buy point of 683.28 in a cup with a handle on Thursday’s 6.25% advance. ASML added 1.2% on Friday morning.

Chip foundry Taiwan Semiconductor climbed 12% on Thursday, topping a double-bottom entry at 95.92. The 5% buy zone extends up to 100.72, so the stock is slightly extended. TSM stock rose another 1% on Friday morning.

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Best stocks to buy and watch during the stock market rally

These are the four best 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
ASML (ASML) 683.28 Mug with handle
Selling power (RCMP) 200.10 Consolidation
Boeing (BA) 221.43 Flat bottom
Advanced micro-systems (AMD) 102.53 cup bottom
Source: IBD data as of May 25, 2023

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

Tesla Stock

Tesla stock rose 0.9% on Thursday, ending a two-day slide. So far, stocks are finding support around their 50-day line as they build a cut base with a buy point of 207.89 for now. Keep an eye out for a handle to provide lower entry. Shares closed Thursday 41% off their 52-week high.

TSLA stock appeared to add to Thursday’s gains, rising 0.4% on Friday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares climbed 0.7% on Thursday, up for a second straight day. Shares remain just off their recent 52-week high at 176.39. The stock continues to hold well above a buy point of 157.48 and is outside the buy range that hit 165.35. AAPL stock rose 0.4% on Friday.

Microsoft shares jumped 3.85% on Thursday, hitting a new 52-week high at 326.90. Stocks are well above a fixed base buy point of 276.86. On Friday morning, MSFT stock was down 0.2%.

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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