The Dow Jones Industrial Average jumped 150 points on Friday in a nutshell. As key inflation gauges were narrowly above estimates, Apple received a rare downgrade, while AMC shares jumped as much as 38% in early trading.
Among the Dow leaders apple (AAPL) fell 0.1% Friday, while Microsoft (MSFT) is up nearly 1% in the current stock market. Goldman Sachs (GS) and JPMorgan (JPM) is in the buy zone.
Tesla (TSLA) fell nearly 1% Friday following a 1.9 percent gain on Thursday. Salesforce (CRM), and Viva Systems (VEEV) reported earnings late Thursday.
Among the top stocks to watch Applied material (MCOT) ArcelorMittal (MT) and TransDigm (TDG) is in or near the buy zone.
Microsoft and TransDigm are shares of the IBD leaderboard. ArcelorMittal is IBD SwingTrader stock.
Dow Jones Today: Key Inflation Gauges
The Dow Jones industrial average traded 0.4% higher on Friday, while the S&P 500 was up 0.3%. The tech-heavy Nasdaq composite was up 0.5% in midday trading.
US stock market overview today
|index||The symbol||price||Profit/Loss||% change|
|S&P 500||(0S & P5)||4207.02||+6.14||+0.15|
|Russell 2000||(etc)||225.20||-0.45||-0.20 a.m.|
|IBD 50||(FFTY)||44.99||-0.20 a.m.||-0.44|
Last Update: 10:30 AM ET 28/05/21
The Commerce Department’s main personal consumption expenditure price index for April rose 3.1% year-on-year. Beyond economists’ expectation of a 3.0% month-over-month gain, the core PCE index rose 0.7%, according to economists’ forecasts. The core PCE price index measures the price consumers pay for non-inclusive goods and services. food and energy prices
Among exchange-traded funds, Innovator IBD 50 (FFTY) was up 0.3% on Friday, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) traded up 0.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) was up 0.4%.
stock market rally
The Dow Jones Industrial Average and S&P 500 continued to rebound from the 50-day support level with a slight increase on Friday. Meanwhile, the high-tech Nasdaq appears to be building on Monday’s rebound in its 50-day line.
Thursday’s Big Picture column commented: “While the market trend has improved slightly. But the market has increased the spread over the past several weeks. This indicates a higher-than-usual market risk. The S&P 500 held six-day institutional sales, while the Nasdaq had four. Investors should maintain careful market exposure and focus only on great breakouts.”
For more explanation of the stock market, see IBD’s The Big Picture.
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Dow Jones: Goldman, JPMorgan
Dow Jones financial leader JPMorgan is trading in a buy range above 161.79 in a flat base. According to IBD MarketSmith chart analysis, the stock fell 0.2% Friday morning.
Goldman Sachs is in a 5% buy range through 356.95 buy, up 374.80 shares, up 0.4% on Friday.
Dow Jones Earnings: Salesforce
Late Thursday, Salesforce reported earnings and revenue that beat analyst estimates. Q2 guidance also surpassed expectations.
CRM shares jumped more than 6%, decided to decisively return to the long-term 200-day line. The stock is down about 15% from its 52-week high.
Stocks to buy and watch: Applied Materials, ArcelorMittal, TransDigm.
Applied Materials was up 1.1% on Friday and just above the 50-day line. The stock is building a consolidation with 146.10 buy. An early entry at 138.77 is also in play.
According to the IBD Stock Review, the AMAT stock has a strong composite score of 97 out of 99, a perfect IBD Composite Rating.
IBD SwingTrader ArcelorMittal Stocks It appeared to be up more than 4% on Thursday as the mining leader rebounded from the 50-day support level. A strong bounce puts the mining leader in the new buy area. Shares fell 0.25% Friday morning.
TransDigm IBD shares new leaderboard hit 633.14 buy on Thursday, 5% buy zone up to 664.80 as noted on the leaderboard. TransDigm’s line of relative strength has risen to its highest level since the base’s formation in early April. That’s a positive sign.
Shares fell 0.8% early Friday.
Stock Market Earnings: Veeva Systems
Long-term IBD leader Veeva Systems crushed revenue and sales on Thursday. Veeva earned 91 cents per share on sales of $433.6 million.
The stock soared 11 percent on Friday morning and moved above the 50-day line, still around 10% from its 52-week high.
AMC Entertainment (AMC) surged as much as 38% on Friday morning before slashing up to 8% in morning trading. plus a 35% increase on Thursday. Stocks have soared more than 170% this week.
AMC shares were above their January highs of 20.36 when Reddit frantically short-squeezed the short, sending the short stock steeper.
AMC’s surge this week caused $1.3 billion in losses for short sellers, according to data from S3 Partners.
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Tesla shares fell nearly 1% Friday morning. It was down from a gain of nearly 2% on Thursday. Stocks Are At Their Highest Since May 10
The stock rebounded its long-term 200-day moving average on Monday. A new base could be formed. But the stock is far from a new buy point.
On Jan. 25, Tesla shares hit a record high of 900.40 after climbing 93% from 466 buy points in the handheld cup.
Dow Leaders: Apple, Microsoft
Among the top Dow stocks, Apple fell 0.1% after a rare downgrade Friday morning. New Street Research downgraded Apple from neutral to sell with a price target of 90.
The stock is struggling to return to the 50-day line. A decisive reversal of the 50-day line will have a positive effect on the stock’s outlook. However, the stock’s lagging RS line indicates a significant stock market underperformance.
Earlier this month The stock has triggered a 7%-8% loss-cutting rule from 135.63 point of purchase.
Software giant Microsoft is up nearly 1% and remains in the buy range above its flat 246.23 buy point, according to IBD MarketSmith chart analysis.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen. For more information on growth stocks and the Dow Jones Industrial Average.
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