Dow Jones futures extended gains on Friday morning after the key inflation data with the release of the PCE price index, the US Federal Reserve’s preferred measure of inflation. Software giant Dow Jones is among the top six stocks to buy and watch in the new uptrend in stock markets Microsoft (MSFT).
Ahead of the opening, the Commerce Department’s Personal Income and Expenditure Report showed that personal income rose 0.3% in February, while consumer spending rose 0.2%, both in line with Econoday estimates. The PCE (personal consumption expenditure) price index rose 0.3% for the month, below estimates calling for a 0.4% rise, and at a yearly rate of 5.0%, below estimates of 5.1 %. Core prices excluding food and energy rose 0.3% for the month, with annual core inflation at 4.6%; both readings were just cooler than estimates.
stock market today
Giant of electric vehicles Tesla (TSLA) rose 0.4% early Friday. Dow Jones tech giants Apple (AAPL) And Microsoft (MSFT) were lower ahead of today’s market open.
PagerDuty (PD), member of the IBD leaderboard Palo Alto Networks (PANW) And working day (WTAG) – as well as Dow Jones stocks Cisco systems (CSCO),M Microsoft and Nike (NKE) – are among the top stocks to buy and watch given the market’s renewed strength.
Cisco was featured in this week’s “Stocks Near a Buy Zone” column. Palo Alto, PagerDuty and Microsoft were all recent IBD Stock Of The Day themes.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures were up 0.4% versus fair value, while S&P 500 futures were also up 0.4%. The tech-heavy Nasdaq 100 futures rose 0.25% in the morning action.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.25%, while the SPDR S&P 500 ETF (SPY) rose 0.4% early Friday.
The US 10-year Treasury yield fell to 3.55% on Thursday, ending a three-day winning streak. Last week, the 10-year yield briefly hit its lowest level since mid-September. On Friday, the 10-year was trading at 3.53%.
US oil prices appeared to contribute to Thursday’s solid gains as West Texas Intermediate futures traded near $75 a barrel.
stock market rally
On Thursday, the Dow Jones Industrial Average gained 0.4% and the S&P 500 rose 0.6%. The tech-heavy Nasdaq Composite gained 0.7% to close above 12,000, its highest level since Feb. 15. Small-cap Russell 2000 was a laggard, falling 0.2%.
Thursday’s Big Picture column commented, “Wednesday’s bullish gains have shifted IBD’s equity market outlook into a ‘confirmed uptrend’ and investors should look for opportunities to increase their market exposure. A commitment between 20% and 40% makes sense immediately after the following day.”
Now is an important time to read IBD’s The Big Picture column after Wednesday’s trend-changing gains.
Five Dow Jones stocks to buy and watch
Eyes on Dow Jones stocks: Cisco Systems, Nike
Cisco Systems is within striking distance of a 51.84 flat base buy point after rising five of the last six sessions, according to pattern recognition by IBD MarketSmith. On an optimistic note, the stock’s relative strength line hit a new high last week, a sign of equity market outperformance. CSCO stock was up 0.1% on Friday morning.
Nike shares continue to follow a flat base with a buy point of 131.41. The stock failed to sustain above its 50-day moving average last week and ran into resistance, but may be bracing for another attempt to regain that key level. NKE shares rose 0.3% on Friday.
3 Top Growth Stocks to Watch stock market rally
Top stocks to buy and watch: PagerDuty, Palo Alto, Workday
PagerDuty, the youngest IBD stock of the day and the IBD leaderboard watch list, is building a large mug with a handle dating back to March 2022. The correct buy point is 33.87 and shares are about 3% off that entry after Thursday’s 1.4% gain. PD shares rose 1.6% on Friday morning.
Backstory: PagerDuty uses a form of artificial intelligence known as machine learning to automate its cloud platform. But it’s not part of a new wave of software companies using “generative AI” technology to create content.
During its recent fourth-quarter earnings call, the company noted that “the typical style of AI used by the PagerDuty platform is called analytical AI,” RBC Capital analyst Matthew Hedberg said in a note to clients .
IBD Leaderboard Palo Alto Networks stock regained its buy point of 192.94 from a mug with a handle as shares rose 0.7% on Thursday. The buy area extends to 202.59. PANW shares rose 0.1% premarket on Friday.
Backstory: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, cell phones, and other devices that access corporate networks.
Workday contributed to Wednesday’s breakout gains, rising 0.9% on Thursday. Shares are in the 5% buy zone above a flat entry of 193.74. The buy range goes to 203.43. WDAY stock is boasting 98 out of 99 perfect IBD Composite Ratings. Shares fell 0.2% on Friday morning.
Backstory: The company offers companies a unified platform for planning, analysis, application and extension to other applications. The software is used for various work-related operations, from managing finances to planning new business ventures. Basically, future of work means using innovation and technology for business needs.
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Stocks to buy and watch in the stock market rally
These are four top stocks to watch in today’s stock market, including two top Dow Jones stocks.
|Company Name||symbol||Correct purchase point||Type of purchase point|
|working day||(WTAG)||193.74||flat base|
|Palo Alto Networks||(PANW)||192.94||Cup with handle|
|Cisco systems||(CSCO)||51.84||flat base|
Source: IBD data as of March 30, 2023
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Tesla shares gained 0.7% on Thursday, adding to Wednesday’s gains. The shares continue to trade above their 50-day moving average and are again finding support around this level. The stock closed 50% below its 52-week high on Wednesday.
TSLA shares are up 0.4% on Friday morning and are looking to add to Thursday’s gain.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares gained 1% on Thursday to close at the highest level since Sept. 12. AAPL shares traded a fraction lower on Friday.
Microsoft shares continued to move above the buy point of a flat base of 276.86 during Thursday’s 1.3% gain. The stock is in the 5% buy range from the buy point to 290.70. And shares fell 0.2% early Friday.
Microsoft shares surged earlier this month after the company announced it was adding artificial intelligence tools to its popular Office productivity apps. That follows the company’s investments in AI startup OpenAI, the company behind the popular ChatGPT application.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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