Dow Jones returns on hot inflation data; JPMorgan, UnitedHealth Rally On Earnings

The Dow Jones Industrial Average fell lower Friday amid weaker-than-expected US retail sales. Dow Jones shares JPMorgan (JPM) and UnitedHealth (UNH) rose after better-than-expected earnings results.


September retail sales were flat, missing Econoday’s estimates for a 0.2% increase. Meanwhile, consumer confidence surpassed estimates with a reading of 59.8 in September, above estimates for a reading of 58.8. Finally, the University of Michigan’s one-year inflation expectations came in higher than expected, at 5.1% in October versus 4.7% in September. The UoM Inflation Expectations measures the percentage that consumers expect the price of goods and services to change in the next 12 months.

Stock Market Today: Earnings Season Warms

Friday started with a busy mix of earnings news. This is reported by the banks JPMorgan, Morgan Stanley (MS), Citigroup (C) and Wells Fargo (WFC). So did healthcare giant UnitedHealth.

Shares of Citigroup fell less than 1% shortly after the company’s report. JPM shares rose 2% after better-than-expected third-quarter results, while Morgan Stanley shares fell 3% on weak gains and sales. UNH shares were up 2% on strong results, along with a positive outlook. And Wells Fargo stock rose 3% despite missing earnings estimates.

Delta Air Lines (DAL) rose more than 2% after an analyst upgrade, following Wednesday’s third-quarter report. Grocery chains Kroger (KR) and Albertsons (ACI) traded sharply lower after the companies confirmed that Kroger would buy Albertsons to better compete with Walmart (WMT) and Amazon (AMZN).

Electric vehicle leader Tesla (TSLA) returned 1.6% lower on Friday. On the Dow Jones index, tech titans Apple (AAPL) and Microsoft (MSFT) were modestly higher after the stock market opened.

Cardinal Health (CAH), ConocoPhillips (COP), Denbury (DEN) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones stocks Chevron (CVX) and Merck (MRK) — are among the top stocks to watch. Keep in mind that the ongoing correction in the stock market is a time for investors to sit on the sidelines and build watchlists of top growth stocks.

Cardinal Health and Vertex are IBD Leaderboard stocks. Chevron and Conoco were featured in the Stock Near A Buy Zone column this week, along with two other top stock ideas. Vertex was IBD’s Stock Of The Day on Friday. Merck was the IBD 50 Stocks To Watch pick on Tuesday.

Dow Jones Today: Treasury Yields, Oil Prices

After Friday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 fell 0.3%. The tech-heavy Nasdaq composite lost 0.8% in morning action.

Among exchange-traded funds, the Nasdaq 100-tracker Invesco QQQ Trust (QQQ) fell 0.2% and the SPDR S&P 500 ETF (SPY) fell 0.1%.

The 10-year Treasury yield fell Friday, falling to 3.88% after Thursday’s short jump above 4%. That jump came after inflation data showed that prices rose 0.4% in September, stronger than the expected 0.2% increase.

Meanwhile, US oil prices lost about 2% on Friday, pushing West Texas Intermediate futures below $88 a barrel. Oil prices threaten to give back much of Thursday’s recovery.

Attempted rally on the stock market

On Thursday, the Dow Jones Industrial Average sold a whopping 1.6% before closing with a 2.8% advance. The tech-heavy Nasdaq composite reversed an early dip of over 3% to a climb of 2.2%. According to Dow Jones Market Data, the Nasdaq had its best comeback since Feb. 24.

Thursday’s Big Picture noted: “With the market in correction mode, investors should follow companies that handily beat earnings results and have strong positive reactions. They could be among the stock market leaders if the market is able to sustain its recovery.” to extend.”

Thursday was day 1 of the stock market’s last rally attempt, so investors are now waiting for a follow-up day, which could happen as early as Tuesday of next week. A follow-up day confirms the start of a new uptrend. Keep in mind that not all follow-throughs work, so it’s important to increase exposure slowly and methodically as the uptrend proves itself.

Check out IBD stock lists, such as the IBD 50 and stocks near a buy zone, for stock ideas.

Five Dow Jones Stocks to Watch Now

Dow Jones Stocks to Watch: Chevron, Merck

Energy giant Chevron found support at its 50-day line on Thursday, trailing nearly 5%. The shares are consolidating below a 182.50 buy point ahead of earnings release on Oct. 28. Chevron shares fell 1.2% early Friday and followed lower with oil prices.

CVX stocks have a strong 98 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.

Dow Jones member and IBD 50 stock Merck is approaching a double bottom buy point of 93.12, according to pattern recognition from IBD MarketSmith. The relative strength line hit a new high this week as the stock regained its key 50-day moving average. Third quarter results are expected before the opening bell on October 27.

Merck shares fell 0.1% Friday morning.

4 top growth stocks to watch in the current stock market correction

Top stocks to watch: Cardinal, Conoco, Denbury, Vertex

IBD Leaderboard stocks and medical leader Cardinal Health are in flat base with a buy point of 72.38, according to IBD MarketSmith chart analysis. Stocks of heavyweight drug distribution are once again gaining support around their key 10-week moving average, according to Leaderboard commentary. Earnings are expected on November 4. Shares are up 0.7% on Friday.

Energy giant ConocoPhillips regained a buy point of 118.49 in a handle cup amid Thursday’s 5.5% advance. The stock’s RS line hit a new high on Thursday, illustrating a strong stock market outperformance. Earnings are expected on November 3. Shares fell 1.1% on Friday.

Denbury tested his cup base buy point of 94.05 on Thursday, briefly giving that level up before closing above it. Shares broke earlier this week on reports that Exxon Mobil (XOM) is considering a takeover. Shares are in the 5% chase zone running to 98.75, although the market remains in a correction. The company will report earnings on November 3. Shares fell 0.75% on Friday.

Biotech leader Vertex Pharmaceuticals continues to build a flat base with buy point at 306.05 and early entry at 296.90. The RS line hit a new high this week, confirming that the biotech leader is an important stock to watch. VRTX shares found support on the 50-day line on Thursday. Earnings are expected on October 27. Shares were up 0.8% on Friday.

Join IBD experts as they analyze leading stocks in the current stock market rally attempt on IBD Live

Tesla stock

Tesla shares rose 2.1% on Thursday, rebounding from large morning losses. Shares are still at their lowest level since early July and about 47% off their 52-week high. Shares of Tesla fell 1.6% on Friday morning.

The EV giant’s third quarter results are October 19. Tesla is expected to earn an adjusted $1.03 per share on $22.4 billion in revenue.

Dow Jones Leaders: Apple, Microsoft

Of the Dow Jones stock, Apple shares rose 3.4% on Thursday, recovering from new recent lows. Still, the stocks are about 22% off their 52-week high and below their 50 and 200 day mark. Shares of Apple rose 0.3% on Friday.

Microsoft rose 3.8% on Thursday, recovering from this week’s 52-week low price. The software giant is about 33% away from its 52-week high. Microsoft shares gained 1% early Friday.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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