The Dow Jones Industrial Average briefly rallied 190 points Friday after the Labor Department's July jobs report. Amazon surged on strong earnings results, while Apple stock sold off. And Carl Icahn's investment firm Icahn Enterprises crashed after cutting its dividend payout.
The July jobs report showed that the U.S. economy added 187,000 jobs last month, down from June's 209,000 increase. July's figures came in below estimates for a 200,000 increase. Markets are reading decreases as incremental positives in the inflation picture, easing the need for the Federal Reserve to conduct further rate hikes. The unemployment rate dipped to 3.5% from 3.6%. It was expected to hold steady at 3.6%.
Meanwhile, May and June payrolls were revised lower. May payrolls were revised down by 25,000, setting the increase at 281,000 instead of 306,000. And June was revised down by 24,000, to a gain of 185,000 vs. the previously reported 209,000.
On Wednesday, ADP's National Employment Report showed that July's private payrolls came in at 324,000 new hires, well above the 185,000 added workers expected by Econoday.
Early Friday, Airbnb, Amazon, Amgen, Apple and Atlassian — along with Block, Cloudflare, DraftKings, Floor & Decor, Fortinet and Monster Beverage — were key earnings movers in morning action.
ABNB stock moved up 1% in early action, while Amgen shares rallied more than 3%.
Amazon stock soared 9% after beating analyst expectations for the second quarter and offering a better-than-expected outlook. Meanwhile, Apple stock dropped more than 3% after the iPhone maker beat Wall Street's target for its fiscal third-quarter earnings while matching views for sales.
Atlassian shares soared 20%, Block slid 7% and Cloudflare shares jumped 10% after Friday's open. DKNG stock surged 14%, while Floor & Decor and Fortinet shares dived 7% and 22%, respectively.
Finally, Monster Beverage declined 3.2% in morning trade.
Stock Market Today
Carl Icahn stock Icahn Enterprises plunged more than 30% Friday morning after the investment firm cut its quarterly distribution to $1 a share, down from $2.
Electric-vehicle giant Tesla traded down 0.6% early Friday. Dow Jones tech giants Apple and Microsoft were sharply mixed after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock and Meta shares both rose 1.2% apiece in early action.
Broadcom, Skechers, Splunk and Interactive Brokers — as well as Dow Jones stocks Boeing, Intel and Salesforce — are among the best stocks to watch in the now-struggling stock market rally.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. And Skechers featured in this Stocks Near A Buy Zone column. Interactive Brokers is an IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average pared gains to 0.2%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite climbed 0.15% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.7%, while the SPDR S&P 500 ETF rose 0.4% early Friday.
The 10-year U.S. Treasury yield ticked lower to 4.13% after the jobs data Friday morning. The 10-year Treasury yield settled at 4.18% Thursday, its highest level since November 2022.
West Texas Intermediate oil prices angled toward a sixth-straight weekly gain, as WTI futures rose 0.5% Friday morning. WTI futures traded around $82 barrel — up 1.7% for the week and almost 16% above its June 30 settle.
Stock Market Action
On Thursday, the Dow Jones Industrial Average fell 0.2%. The S&P 500 dipped 0.25%, while the Nasdaq composite edged lower Thursday. The small-cap Russell 2000 lost 0.3%.
Thursday's Big Picture column commented, "On Wednesday, IBD changed its current outlook for the stock market to "Uptrend under pressure" from "Confirmed uptrend." That was the first change in the outlook since May 10. Amid the current weakness, IBD recommends a 60%-80% exposure range."
Now is an important time to read IBD's The Big Picture column as the stock market pulls back from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Boeing, Intel, Salesforce
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares are falling back into the 5% buy area that goes up to 235.11, with a slight fall Thursday. BA stock rose 0.3% Friday morning.
Chip giant Intel is holding close to a 37.11 cup-base buy point, according to IBD MarketSmith pattern recognition. Shares are about 6% away from their latest entry. INTC stock moved down 0.4% Friday morning.
Salesforce's recent breakout continues to struggle, with the stock falling further below the flat base's 225.00 entry, according to IBD Leaderboard analysis. CRM stock climbed 0.4% Friday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Broadcom, Skechers, Splunk, Interactive Brokers
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry. AVGO stock traded slightly higher Friday morning.
Skechers broke out last week, surging above a 54.77 buy point after the company's strong quarterly earnings results. But shares gave up their entry during this week's losses. SKX stock was up 0.1% early Friday.
Splunk is near a 111.72 buy point in a cup with handle as it tries to again find support at the 50-day line. SPLK moved up 0.4% Friday morning.
IBD SwingTrader stock Interactive Brokers broke out Thursday, rising 2.4% to close above a 90.19 buy point in a consolidation. Earlier this week, shares topped a handle entry at 87.09. Shares lost 0.3% 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 a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| UiPath | 19.03 | Cup with handle | |
| Salesforce | 225.00 | Flat base | |
| Broadcom | 921.78 | Consolidation | |
| Skechers | 54.77 | Flat base |
Source: IBD Data As Of Aug. 1, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla rallied 2.05% Thursday, ending a two-day skid. Amid the pullback, Tesla shares are trying to find support around their key 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area.
TSLA stock looked to add to Thursday's gains, but turned down 0.6% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock dropped 0.7% Thursday, extending a losing streak to three sessions. Still, AAPL stock is far above its 157.38 buy point. Shares declined more than 3% Friday morning after the company's fiscal third-quarter results late Thursday. They are setting up for a critical test of their 50-day line.
Microsoft shares closed Thursday squarely below their 50-day line, a sign the stock needs more time to consolidate before a new buy point emerges. And on Friday morning, Microsoft shares were up 2.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
