Dow Jones up 375 points on hot inflation data; Ulta Beauty rises in Sales Miss

The Dow Jones Industrial Average rose 375 points on Friday after hot inflation data and the release of key consumer price data. In the meantime, Ultimate beauty (ULTA) plunged after missing Wall Street's sales estimates in the most recent quarter.


The Commerce Department's April personal consumption expenditure (PCE) price index rose 0.4% month-on-month, up 4.4% year-on-year, beating Wall Street estimates. The core PCE index rose 0.4% for the month, with an annual gain of 4.7%, also beating forecasts.

Ulta Beauty's shares plummeted nearly 12% on Friday morning after missing first-quarter sales estimates.

Other important revenue drivers are: Autodesk (ADSK), Costco (COSTS), Decker's Outdoor (DECK), gap (GEOGRAPHIC POSITIONING SYSTEM), Marvell technology (MRVL), Ultimate beauty (ULTA) and working day (WDAY).

Autodesk shares were up 1.2% in morning trade, while Costco was up 1.1%. DECK stock is up 2.6%, while Gap stock is up 10%. Marvell stock is up 25%, while Workday stock is up 9%.

stock market today

Giant for electric vehicles Tesla (TSLA) was trading nearly 3% higher on Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher after the market open today.

modern micro devices (AMD), IBD Leaderboard Stock ASML (ASML) and Taiwan Semiconductor (TSM) – as well as Dow Jones shares Boeing (BA) and Foreclosure (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

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

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Dow Jones today: oil prices, government bond yields

After Friday's opening bell, the Dow Jones Industrial Average was up 1.15%, while the S&P 500 was up 1.1%. The tech-heavy Nasdaq Composite was up 1.5% in morning trade.

Among U.S. exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is up 1.5%, while the SPDR S&P 500 ETF (SPY) is up 1.1% early Friday.

The US 10-year Treasury yield was as high as 3.83% on Friday. The 10-year yield is at its highest level since mid-March.

US oil prices are likely to rebound on Friday morning after Thursday's sharp losses. West Texas Intermediate futures were up 1% on Friday, taking WTI futures to nearly $73 a barrel.

stock market action

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

The S&P 500 rallied 0.9%, overcoming a two-day decline and finding support around its own 50-day moving average. The tech-heavy Nasdaq Composite rose 1.7%, nearly erasing losses over the past two days. Finally, the Russell 2000 small-cap index fell 0.7% to close at its lowest level since May 17.

In Thursday's Big Picture column, it warned: “There was little turnout in Thursday's climb. (The) Invesco S&P 500 Equal Weight ETF (RSP) was down slightly and (the) First Trust Nasdaq 100 Equal Weight (QQEW) was up just 0.5%. Despite the Nasdaq's rise, more than twice as many Nasdaq stocks fell as rose on Thursday.

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

The five best Dow Jones stocks to buy and watch right now

Dow Jones Stocks To Buy And Watch: Boeing, Salesforce

Dow Jones aerospace giant Boeing rose 0.8% on Thursday, still below its 50-day moving average. Stocks are still forming a flat base with a buy point of 221.43, according to pattern recognition by IBD MarketSmith. BA shares were up 0.5% early Friday.

According to leaderboard analysis, Salesforce has surpassed the alternative entries at 194.01 and 200.10 for the past few weeks. Meanwhile, its relative strength line made a new high this week, a bullish signal. Salesforce reports first quarter results after the market close on May 31st. CRM stock rose 1.4% on Friday morning after Citigroup raised its price target to 229 from 210.

The 4 top growth stocks to watch stock market rally

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

Chip leader Advanced Micro Devices moved further out of the buy range above the buy point of a cup base of 102.53, up 11.2% on Thursday, according to IBD MarketSmith pattern recognition. The 5% buy area rose to 107.66. AMD shares gained 1.3% on Friday.

IBD leaderboard stock ASML bullishly recaptured its buy point of 683.28 in a mug during Thursday's 6.25% gain. ASML was up 1.2% on Friday morning.

Chipmaker Taiwan Semiconductor rose 12% on Thursday, breaking a double bottom entry of 95.92. The 5% buy range extends to 100.72, so the stock is slightly extended. TSM shares rose another 1% on Friday morning.

Learn how to drive the market with IBD's ETF market strategy

The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and watch in today's stock market, including two top performers in the Dow Jones.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.28 Cup with handle
Foreclosure (CRM) 200.10 consolidation
Boeing (B.A.) 221.43 flat base
modern micro devices (AMD) 102.53 cup bottom
Source: IBD data as of May 25, 2023

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Tesla stock

Tesla shares rose 0.9% on Thursday, ending a two-day slide. So far, stocks are finding support around their 50-day moving average as they form a cup base with a buy point of 207.89 for now. Look for a grip that allows you to step in lower. Shares closed 41% below their 52-week high on Thursday.

TSLA stock appeared to add to Thursday's gains, rising 2.8% on Friday morning.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.7% on Thursday, rising for the second straight day. Shares remain just below their recent 52-week high of 176.39. The stock continues to hold well above a buy point of 157.48 and is outside of the buy range that extended to 165.35. AAPL shares rose 1.2% on Friday.

Microsoft shares rose 3.85% on Thursday to hit a fresh 52-week high at 326.90. Shares are well above a flat base buy point of 276.86. As of Friday morning, MSFT shares were up 0.8%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.


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