The Dow Jones Industrial Average pared its gains Friday after the release of the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures Price Index. In the meantime, Dell Technologies (DELL) plunged in the stock market today after the company released a disappointing outlook.
X
After the opening bell, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 fell slightly. The tech-focused Nasdaq Composite Index lost 0.3% in morning action.
Early Friday, the 10-year Treasury yield fell to 4.51%. Oil prices climbed as West Texas Intermediate futures traded around $78.20 per barrel.
Among U.S. exchange-traded funds, the Invesco QQQ Trust (QQQ) fell 0.3% while the SPDR S&P 500 ETF (SPY) edged lower.
Stock Market Today: Inflation Data
The Commerce Department’s Personal Income and Spending report updated the PCE price index, the Fed’s preferred measure of inflation, for April. The index rose 0.3% for the month, with an annual rise of 2.7%, matching Econoday estimates. The core PCE price index also met Econoday’s forecast, rising 0.2% in April, with a year-over-year increase of 2.8%.
Dell Technologies plunged 19% Friday morning after the company’s own forecasts proved disappointing. Dell met Wall Street’s profit target for its fiscal first quarter on higher-than-expected sales.
Other big drivers of gains on Friday included Costco (COST), Gap (GPS), MongoDB (MDB), NetApp (NTAP), SentinelOne (Sand Ulta Beauty (ULTA).
Costco shares fell 1% in early trading, while Gap shares rose 20%. MongoDB shares fell nearly 23%, while NetApp rose 1.3%. Finally, SentinelOne plunged 25%, while Ulta Beauty jumped nearly 6% in morning action.
Be sure to read about how to adapt to changing market conditions, with IBD’s new exposure levels.
Dow Jones Slides
On Thursday, the Dow Jones industrials slipped nearly 0.9%, while the S&P 500 fell 0.6%. The Nasdaq composite index lost 1.1%.
The Big Picture section of Investor’s Business Daily commented: “In the Dow Jones index, Selling power (CRM) was the biggest loser on Thursday, as the software maker plunged nearly 20%. Salesforce contributed to a drop of more than 352 points in the Dow Jones, which closed down 307 points. It was the largest one-day point drop on the Dow in 20 years, according to Dow Jones market data. »
On Thursday’s IBD Live show, the IBD Live team discussed current business conditions and how investors should handle the stock market today.
This is the important time to read The Big Picture column amidst the ongoing stock market action. Also be sure to read about how to adapt to changing market conditions, with IBD’s new exposure levels.
Learn to Time the Stock Market with IBD’s ETF Market Strategy
Stock market today: the best stocks to watch
Birkenstock (BIRK), Netflix (NFLX), Robinhood Markets (HOOD) and TJX (TJX) – plus Dow Jones components Apple (AAPL), Merck (MRK) and Microsoft (MSFT) – are among the best companies to watch in the stock market today.
Microsoft was featured in IBD’s Stocks Near a Buy Zone column as it trades below a 430.82 buy point.
In IBD MarketSurge’s “Breaking Out Today” list, Apollo Global Management (APO) is attempting to break through a buy point of 117.15. Check out MarketSurge’s “Near Pivot” list for stocks near buy points in the bases. To find more stock ideas, check out IBD stock lists like IBD 50, Big Cap 20, and stocks near a buy zone.
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Dow Jones Merck Component
Pharmaceutical giant Merck is building a flat base with an entry at 133.10, but shares fell below their 50-day moving average this week. The title gained 0.3% on the stock market today.
Outside of the Dow, Birkenstock rose nearly 12%, surpassing the cup’s 55 buy point on Thursday. Shares of Birkenstock rose 2.7% on Friday.
Streaming giant Netflix lost 1.1% on Thursday, remaining above the 639 cup mark. Netflix stock was down 0.7% on Friday.
The Robinhood trading platform surpassed the entry of 21.21 on Thursday with a gain of 3.6%. Stocks fell slightly early Friday.
Finally, the TJX decisively regained a double-bottom entry of 102.04 on Thursday, up 1.9%. The off-price retail giant added 0.1% Friday morning.
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Stock market today: companies to watch
These are four stocks that are in or near buy zones in the current stock market.
| Company Name | Symbol | Correct purchase point | Point of purchase type |
|---|---|---|---|
| Microsoft | (MSFT) | 430.82 | Flat base |
| Netflix | (NFLX) | 639 | Cup base |
| Crocs | (CROX) | 146.79 | Cup base |
| Taiwan Semiconductor | (TSM) | 148.43 | Double bottom |
Source: MII data as of May 28, 2024
Join IBD experts as they analyze the top stocks in the stock market today on IBD Live
Seven Magnificent Stocks: Nvidia, Tesla
Among Magnificent Seven’s actions, Nvidia (NVDA) rose 0.9%, and You’re here (TSLA) rose 0.2% on the stock market today.
Nvidia slipped 3.8% on Thursday, reversing lower after briefly hitting new highs. The company is an IBD Ranking Stock. Last week, Nvidia stock surpassed a secondary buy point at 974, hitting new highs.
Tesla stock rose 1.5% on Thursday, rebounding from its 50-day line. Shares remain about 40% off their 52-week high.
Dow Jones leaders: Apple, Microsoft
Among the Magnificent Seven’s Dow Jones stocks, Apple and Microsoft traded mixed after Friday’s trading open.
Apple stock rose 0.5% on Thursday, still forming a cup base with a 199.62 buy point. Shares added 0.1% on Friday.
Microsoft shares fell 3.4% on Thursday, falling below their 50-day line and significantly below the 430.82 buy point on a flat basis. Early Friday, Microsoft stock was down 0.6%.
Be sure to 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 stock market today.
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