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Dow Jones futures and the other major stock indexes held on to most of their gains on Friday after the release of crucial inflation data that could tip interest rate decisions. Meanwhile, Magnificent Seven players Apple (AAPL), Nvidia (NVDA) And Tesla (TSLA) were the first winners in the stock market today.
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Small Caps Jump, Techies Try to Stop the Decline; Nvidia, ServiceNow, TechnipFMC in the picture
Before the opening bell, Dow Jones futures rose 0.6% from fair value, while S&P 500 futures rose 0.7%. Tech-focused Nasdaq 100 futures rebounded 1% in morning action.
Early Friday, the yield on ten-year government bonds fell to 4.24%. Oil prices fell, with West Texas Intermediate futures trading around $78 a barrel.
Among exchange-traded funds, Invesco QQQ Trust (QQQ) rose 1%, while the SPDR S&P 500 ETF (SPY) gained 0.7% before the open.
Magnificent Seven shares of Apple, Nvidia and Tesla rose 0.9%, 3% and 1.4% respectively in morning trading.
Apple shares rallied early Friday after Raymond James raised its price target from 200 to 250, with an outperform rating.
Shares of Nvidia, an IBD Leaderboard name, fell further below the 50-day mark on Thursday, while Tesla rebounded from Wednesday’s earnings-driven 12% decline. Early Friday, Tesla shrugged off a downgrade by analysts. Phillip Securities downgraded its rating to Sell from 145, with a target price cut to 135 from 145.
Stock Market Today: Inflation Data
The Commerce Department’s personal income and expenditure report showed that the Federal Reserve’s primary inflation gauge, the main PCE index that excludes food and energy, rose 0.2% this month, with an annual increase of 2.6 %. According to Econoday, interest rates are expected to rise 0.1% in June, with an annual increase of 2.5%.
Meanwhile, the overall PCE price index rose 0.1% month-on-month, with a year-on-year increase of 2.5%. Both matched Econoday’s estimates.
On Thursday, PCE’s core price index rose 2.9% year-over-year in the second quarter, compared with 3.7% in both the previous quarter and last year’s quarter. The core PCE was expected to be 2.7%.
The top revenue makers include 3M (MMM), Bristol Myers Squibb (BMI), AppFolio (APPF), Deckers Outside (DECK) And Skechers (SKX).
Shares of 3M rose more than 6%, as did shares of Bristol in morning trading. AppFolio rose 1% and Deckers rose more than 13%. Finally, Skechers achieved a 3.6% increase in premarket actions.
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Dow Jones is bouncing
On Thursday, the Dow Jones Industrial Average climbed 0.2%, recouping a small portion of Wednesday’s plunge. The S&P 500 lost 0.5%, while the tech-heavy Nasdaq composite fell 0.9% after rising as much as 1.2%. For the Nasdaq, this was the biggest drop in three days since February 21, 2023, according to Dow Jones Market Data.
The small-cap Russell 2000 index rebounded 1.3% even after trimming gains in afternoon trading. Within the eleven S&P 500 sectors, the energy sector performed best, while communications services fell sharply.
Investor’s Business Daily’s Big Picture column noted: “Wednesday marked another change in character for the stock market, as the Nasdaq closed below the 50-day mark for the first time since May 2. And as the tech sector saw greater damage, the IBD the recommended exposure level is 40%-60%.”
During Thursday’s IBD Live showthe IBD Live team discussed current trading conditions and how investors should interact with the stock market today.
This is an important time to read The Big Picture column amid the ongoing market action. Also learn how to adapt to changing market conditions, with IBD’s new exposure levels.
Learn how to time the stock market with IBD’s ETF market strategy
Stock market today: the best stocks to watch
Some of the best companies to watch in the stock market today include Badger meter (BMI), GE Aviation (GE), Palantir Technologies (PLTR) And Tene healthcare (THC).
Also on the list are Dow Jones components Amazon (AMZN), American Express (AXP), Apple, Goldman Sachs (GS), IBM (IBM) And Microsoft (MSFT).
IBD market waveOnly two stocks were on the Breaking Out Today list on Thursday, which makes sense given the weakness in the stock market. There are only a handful of names on the Near Pivot list, suggesting that many former tech leaders still have some work to do before new buying points emerge.
look at the MarketSurge List ‘Near Pivot Point’ for stocks that are basically approaching their buy points. For more stock ideas, check out IBD stock lists such as IBD50, Large hood 20 and stocks near a buy zone.
Get real-time buy and sell alerts on stock market leaders with the IBD Leaderboards
Dow Jones: American Express, Goldman Sachs, IBM
Among Dow components, payments giant American Express is further below 244.41 from a flat base, according to MarketSurge Pattern Recognition, after Thursday’s losses. And Goldman remains within buy range on the stock market today above a flat base entry of 471.48.
Meanwhile, IBM staged a breakout on Thursday after the company’s earnings report. Shares rose 4.3% to cross above the heads-and-handles entry of 189.47. IBM shares rose 0.1% early Friday.
Outside of the Dow Jones index, Badger Meter is trying to move past a score of 202.81 on a flat basis, but the index rose 0.2% on Thursday. Share prices remained unchanged on Friday morning.
GE stock’s recent breakout past a 170.80 buy point remains under pressure, with shares below their entry levels. Shares rose 1.2% early Friday.
ServiceNow rose 13% on Thursday, breaking past an 806.52 handle entry. ServiceNow picked up another 0.3% early on Friday.
And Tenet Healthcare added 3% on Thursday, barely above 142.35 from a flat base. Shares continued to rise 2.2% on Friday.
Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen of the Day
Stock market today: companies to watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct purchase point | Purchase point type |
|---|---|---|---|
| Tene healthcare | (THC) | 142.35 | Flat base |
| KB Home | (KBH) | 74.66 | Flat base |
| Service now | (NOW) | 806.52 | Handle entry |
| Newmont | (NEM) | 44.59 | Flat base |
Source: IBD data as of July 25
Join IBD experts as they analyze the top stocks in the stock market today on IBD Live
Dow Jones Leaders: Amazon, Microsoft
Among the Dow Jones components in the Magnificent Seven, Amazon and Microsoft traded higher after Friday’s stock market open.
Amazon triggered the 7% loss rule after falling well below the 191.70 buy point on a flat base during Thursday’s decline. Shares fell further below their 50-day line. Shares of Amazon rose 1.1% on Friday.
Microsoft shares fell 2.5% on Thursday, further below the 430.82 buy point and the 50-day line of the flat base. And early Friday the stock was 0.1% higher.
Make sure you follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen to learn more about growth stocks, the Dow Jones Industrial Average, and the current stock market.
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