The Dow Jones Industrial Average briefly rallied 350 points on Friday after the Labor Department’s pivotal October jobs report showed stronger-than-expected growth.
Friday jobs report showed that the US economy added 261,000 jobs in October, higher than the 210,000 expected, according to Econoday estimates. But the jobless rate rose to 3.7%, above the 3.6% estimate.
Bulk shares jumped 13%. COIN stock jumped 9% while DoorDash rose 15%. EOG Resources was up 5%, while Microchip up 8%. Finally, PayPal fell 2% and Starbucks rose 9% in morning trading.
Electric vehicle giant You’re here (TSLA) was up almost 4% on Friday morning. Dow Jones Stock Amgen (AMGN) shares traded down 2% after reporting the results. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were also higher after today’s stock market open.
Some of the best stocks to buy and watch include Arista Networks (A NET), Energy Cheniere (LNG), General dollar (CEO) and Pure storage (PSTG) — as well as Dow Jones stocks Chevron (CLC) and UnitedHealth (A H). Keep in mind that the currently difficult stock market rally is a reason for investors to play more defense.
Cheniere is a IBD classification Stock. Pure storage was featured in this week’s Stocks Near A Buy Zone column, along with three other best stock ideas. Pure Storage was also recently a IBD stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Friday’s opening bell, the Dow Jones Industrial Average rose 1%, while the S&P 500 rose 0.95%. The tech-heavy Nasdaq composite climbed 0.8% in morning action.
The 10-year Treasury yield rose to 4.16% on Friday morning after the jobs report. Meanwhile, US oil prices have risen more than 4% and are at their highest level since mid-October. West Texas Intermediate futures break above support at their 50-day moving average, trading above $92 a barrel.
Stock market rally struggles
On Thursday, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 fell 1.1%. The tech-heavy Nasdaq composite lost 1.7% and the small-cap Russell 2000 was down 0.5%.
Thursday’s The Big Picture commented“As of the October 21 tracking day, IBD recommends limited exposure (no more than 40%) due to market volatility this year and a pattern of failed tracking days. And recent action has confirmed that more cautious to approach.”
This is an important time to read IBD’s The Big Picture column. Following recent selling, investors should focus more on defending than buying breakouts.
Dow Jones stocks to buy and watch: Merck, UnitedHealth
Member of the Dow Jones and IBD Stock 50 Merck is out of the buy range after a double bottom base 93.12 point of purchase, according IBD Pattern Recognition MarketSmith. Merck shares fell slightly on Friday.
Healthcare giant UnitedHealth tries to top a cup with a handful of 553.23 point of purchase, according IBD MarketSmith. The shares rose slightly on Thursday, holding below their last entry. UNH stock traded a fraction higher on Friday morning.
Top stocks to watch: Arista, Cheniere, Dollar General, Pure Storage
IBD Ranking Watchlist Stock Arista Networks is approaching a buy point at 132.97 but could add a handful to its asymmetric formation which would lower the entry to 130.23. Shares jumped 8% after Piper Sandler took the stock from neutral to overweight on Friday morning.
IBD classification Cheniere Energy stock continues to hold just below a buy point of 178.69 in a cup with handle. Look for a decisive rally in the entry before buying stocks. LNG shares rose 1% on Friday.
Dollar General fell further below a buy point of 259.75 in a cup basis, as DG shares lost 0.2% on Thursday, falling for a fourth straight day. Now, the stock will look for support around its 50-day line. Shares of DG rose 0.5% early Friday.
Recent IBD stock of the day, Pure Storage, topped a buy point of 31.62 on Tuesday, but fell further below that entry on Thursday’s 1.45% decline. The stock was up 2% on Friday.
Tesla Stock rose slightly on Thursday, taking a break from Thursday’s 5.6% slippage. Stocks are holding just above their recent lows, around 48% off their 52-week high and well below their 50- and 200-day moving averages.
Shares of the electric vehicle giant rose nearly 4% on Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares sold another 4.2% on Thursday, down sharply for a fourth straight day. The stock is poised to drop almost 11% this week. Apple stock traded 1.9% on Friday.
Microsoft fell 2.7% on Thursday, hitting a new 52-week low. The software giant is around 39% off its 52-week high. Microsoft shares rose 1.5% on Friday morning.
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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