The Dow Jones Industrial Average fell Friday morning after the early release of November personal consumption expenditures data, an inflation gauge closely watched by the Federal Reserve. Tesla stock fell to a new low after CEO Elon Musk said he would not sell any more Tesla shares for at least 18 to 24 months.
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Earlier on Friday, key inflation data came in the form of the November Personal Consumption Spending price index. PCE price index came in colder than expected, up 0.1% in November. Econoday forecasts 0.2 percent growth in October.
The PCE price index increased by 5.5% year-over-year, matching forecasts. Personal income rose 0.4% in November, better than forecast.
Meanwhile, the core PCE price index came in warmer-than-expected, up 4.7% year-on-year. 4.6% estimate.
electric vehicle giant tesla (TSLA) slipped more than 2% on Friday after Musk’s comments. Dow Jones technology leaders Apple (AAPL) and Microsoft (MSFT) traded lower after today’s stock market open.
Medpace (MEDP), IBD Leaderboard stock available Neurocrine Biological Sciences (NBIX), O’Reilly Auto Parts (EAGLES) and Texas Roadhouse (TXRH) – as well as Dow Jones names amgen (AMGN), caterpillar (CAT) and Main depot (HD) — among the most important stocks to consider on investor watch lists. Keep in mind 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 the opening bell on Friday, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 fell 0.4%. The tech-heavy Nasdaq composite lost 0.7% in the morning.
between us exchange traded fundsNasdaq 100 followers Invesco QQQ Trust (QQQ) fell 0.7% and the SPDR S&P 500 ETF (SPY) fell 0.4% in the early hours of Friday.
The 10-year Treasury yield rose 3.72% on Friday morning, and the 10-year Treasury yield added a boost to its already strong weekly gains. Meanwhile, US oil prices rose nearly 2% on Friday as West Texas Intermediate futures rose above $79 a barrel in morning trading.
Stock Rally Under Pressure
On Thursday, the Dow Jones Industrial Average fell 1.05% and the S&P 500 fell 1.45%. The Nasdaq fell 2.2%, while the small-cap Russell 2000 lost 1.3%.
Thursday’s Big Picture column commented, “IBD’s stock market outlook continues to stay in ‘uptrend under pressure’ after sharp losses in recent sessions. This means that investors should maintain their cautious and defensive stance while already having a low market risk. IBD readers should avoid most breakouts unless they occur in stocks with top-notch fundamentals and techniques.”
Now is an important time to read IBD’s Big Picture column amid ongoing stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Watch: Amgen, Caterpillar, Home Depot
Pharmaceutical maker Amgen is building a new flat foot after making major headway in mid-November. However, stocks are below the 50-day line after sharp losses in recent weeks. The correct buy point for now is 296.77, but the stock should resolutely retrace its 50-day first day. AMGN stock was down 0.4% on Friday.
Dow Jones affiliate Caterpillar passed a buyout point of 239.95 on a flat basis this week. according to this IBD MarketSmith pattern recognition, but below the entry again after Thursday’s drop. As a bull, the stock’s relative strength line, a key technical indicator, is at new highs. CAT stock rose 0.5% on Friday.
cat stock showing a strong 98 out of an excellent 99 IBD Compound Evaluationper IBD Stock Control. Compound Rating is designed to help investors easily find the fastest growing stocks.
Home improvement retailer Home Depot is about 4% below the 329.77 buy point of its stemware base after reversing last week’s breaking move. HD stock was down 0.6% on Friday morning.
4 Best Growing Stocksyearkt Stock Market Rally
Top Stocks to Watch: Medpace, Neurocrine, O’Reilly, Texas Roadhouse
Medpace has jumped sharply from its 50-day line this week, climbing for the third consecutive day on Thursday. For now, the correct buy point appears at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock fell 0.3% on Friday.
IBD Leaderboard The stock Neurocrine rose for the fifth consecutive session on Thursday, gaining 1.7% and continuing to recover from the 50-day support. A strong recovery means bullish for the stock’s close prospects and the stock is likely to form the right side of a new bottom. NBIX stock rose 0.3% on Friday.
O’Reilly Auto Parts is also finding much-needed support at the 50-day mark this week and remains just above the 750.98 flat-bottomed entry. A major rebound from the 50-day line could bring a continued entry point, but the market bullishness is currently under pressure, increasing the risk of buying the stock. ORLY shares fell 0.1% on Friday.
Texas Roadhouse shows a new buying point at 101.85 on a flat bottom, but is now consolidating below its 50-day line. IBD Leaderboard stock will seek to restore this key benchmark in the coming days, and Thursday’s reversal was a promising start. TXRH stock traded slightly higher on Friday morning.
Stocks to Watch
These are the five best stocks to watch in today’s stock market, including the three Dow Jones leaders.
| Company name | Symbol | The Right Purchasing Point | Base Type |
|---|---|---|---|
| Medpace | (MEDP) | 235.82 | consolidation |
| Texas Roadhouse | (TXRH) | 101.85 | flat sole |
| caterpillar | (CAT) | 239.95 | flat sole |
| Main depot | (HD) | 329.77 | mug with handle |
| amgen | (AMGN) | 296.77 | flat sole |
Source: IBD Data as of December 22, 2022
Tesla Stock Reaches New Lows Over Elon Musk Comments
Tesla stock It fell 8.9% on Thursday, extending its losing streak to five sessions and slumped to a 52-week low. Shares rebounded from early gains on Friday, dropping more than 2% to hit a new low at 121.78. late thursday, Musk promised not selling more Tesla shares for at least 18 to 24 months.
“I’m absolutely committed, I don’t know, I probably won’t sell stock until two years from now. Absolutely under no circumstances will it happen next year, and probably not next year,” Musk said in a Twitter Spaces search. Musk also said that the decision to repurchase the company’s shares could be affected by the severity of any economic downturn.
“The board is very open to buybacks,” Musk said. “It would be unwise to make a buyback and then discover that the recession was worse than in 2009,” he added.
Meanwhile, Wedbush has lowered its price target for the electric vehicle giant from 250 to 175 due to “demand cracks”. The brokerage house maintained its performance rating on the stock. The lowered price target is almost 40% above Tesla’s closing prices on Thursday.
Canaccord also kept its buy rating on the stock, cutting its price target from 304 to 275.
On Thursday, TSLA stock hit a 52-week low and traded at 122.26. Shares closed nearly 69% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
between Dow Jones stocksApple shares were up 2.4% on Thursday, closing slightly off the 52-week low of 129.04 on June 16. The stock is down nearly 28% from its 52-week high. Shares were trading down 1.5% on Friday.
Microsoft stock fell 2.55% on Thursday, ending its two-day winning streak but staying above the 50-day mark. The software giant is about 30% off its 52-week high. MSFT stock fell 1.2% in the early hours of Friday.
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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