Dow Jones futures rose Friday morning ahead of a key consumer sentiment gauge, which includes an inflation survey for future expectations. Tesla (TSLA) stock rallied after Chief Executive Elon Musk tweeted that he found a new CEO to run Twitter.
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The University of Michigan’s consumer sentiment index is due out at 10 a.m. ET. Wall Street expects a 63.0 reading for May, down slightly from April’s 63.5.
Meanwhile, one-year and five-year inflation expectations are also included in the survey. April’s one-year inflation forecasts rose to 4.6% from March’s 3.6%, while five-year inflation expectations inched up to 3% vs. the previous month’s 2.9%.
Advanced Micro Devices (AMD), IBD Leaderboard stock Nvidia (NVDA), IBD SwingTrader idea Netflix (NFLX) and Uber Technologies (UBER) — as well as Dow Jones stocks Nike (NKE) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.
Visa was featured in this week’s Stocks Near A Buy Zone column. Netflix and Nvidia were recent IBD Stock Of The Day topics.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures rose 0.4% vs. fair value. S&P 500 futures gained 0.3%. And the tech-heavy Nasdaq 100 futures inched up 0.2% in morning action, with China names NetEase (NTES), Baidu (BIDU) and JD.com (JD) trading near the bottom of the list.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.2%, while the SPDR S&P 500 ETF (SPY) traded up 0.3% early Friday.
The 10-year U.S. Treasury yield on Friday traded up to 3.42%, but was still on pace for modest weekly losses in the wake of the CPI and PPI reports.
U.S. oil prices continued to bob between $70 and $72 a barrel. West Texas Intermediate futures are about even for the week, and down not quite 6% since the start of the month. Baker Hughes weekly rig count survey could have come effect on Friday’s trading, due for release at 1 p.m. ET.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average lost 0.7%, extending a losing streak to four sessions. The index bounced off its 50-day line, however. The S&P 500 declined 0.2%, and the tech-heavy Nasdaq composite rose 0.2%.
Thursday’s Big Picture column commented, “Wednesday’s march to new 2023 highs on the Nasdaq prompted a market-trend upgrade from “uptrend under pressure” to “confirmed uptrend.” Despite the acknowledgment of better action in recent sessions, IBD’s recommended exposure in stocks remains at 20% to 40% of your portfolio.”
Now is an important time to read IBD’s The Big Picture column after this week’s bullish stock market gains.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Nike, Visa
Nike shares declined 1% Thursday, further below a cup-with-handle’s 127.59 buy point after last week’s breakout attempt. A new handle entry has also appeared, at 128.78. Shares are looking for support around their 50-day line. NKE stock rose 0.4% early Friday.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point, even after dipping another 0.1% Thursday. The buy range goes up to 241.66. V stock was up 0.3% Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices continues to rally up the right side of a cup base that has a 102.53 buy point, according to IBD MarketSmith pattern recognition. Monday’s surge saw AMD stock climb above an early trendline entry, using May 4’s high of 91.64 mark as the buy point. AMD shares fell 0.3% Friday.
IBD Leaderboard stock Nvidia finished Thursday down 1.1%, still in buy range above a 280.10 buy point in a short consolidation. The 5% buy zone goes up to 294.11. NVDA stock was down 0.1% early Friday.
Recent IBD Stock Of The Day, Netflix, popped above its 50-day moving average line Monday. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are nearing a buy point of 349.90 out of a cup-with-handle base. NFLX stock inched higher Friday morning.
Uber Technologies remains in buy range past a 7.68 buy point in a cup base, despite a 0.95% fall Thursday. The 5% buy area goes up to 39.56. The stock was up 0.7% Friday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Nvidia | (NVDA) | 280.10 | Consolidation |
| Nike | (NKE) | 127.59 | Cup with handle |
| Visa | (V) | 230.15 | Cup with handle |
| Advanced Micro Devices | (AMD) | 102.53 | Cup base |
Source: IBD Data As Of May 12, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 2.1% Thursday, ending a two-day skid. Despite gains since late April, shares remain below their 50-day line, as they look to build a new base. The stock closed Thursday 46% off its 52-week high.
TSLA stock looked to add to Thursday’s gains, trading up 2.4% Friday morning after Musk announced he had found a new Twitter CEO.
Late Thursday, Musk tweeted, “Excited to announce that I’ve hired a new CEO for X/Twitter. She will be starting in ~6 weeks! My role will transition to being exec chair & CTO, overseeing product, software & sysops.”
While Musk did not name the new CEO, the Wall Street Journal reported that NBCUniversal’s head of advertising, Linda Yaccarino, is in talks to become the new CEO of Twitter.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares inched higher Thursday, closing just shy of their 52-week highs, which were set back in mid-August. The stock continues to add to gains above a 157.48 buy point and it is out of the buy range that ran up to 165.35. AAPL stock was down slightly premarket Friday.
Microsoft shares fell 0.7% Thursday, easing from Wednesday’s 52-week high price of 313. Shares are sharply above a 276.86 flat-base buy point. On Friday morning, MSFT stock fell 0.1%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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