The Dow Jones Industrial Average and other major stock indexes dropped Friday as investors reacted to hotter-than-expected inflation data. Early movers included Lululemon Athletica, Nvidia and Tesla, while the initial public offering of Nvidia-backed CoreWeave priced below expectations.
Early Friday, the Dow Jones Industrial Average traded down 0.7, or around 300 points. The S&P 500 dropped 0.5%. And the tech-heavy Nasdaq composite fell 0.6%.
The 10-year Treasury yield ticked lower to 4.32% early Friday. And oil prices edged lower, as West Texas Intermediate futures traded near $69.80 per barrel.
Among exchange traded funds, the Invesco QQQ Trust was down 0.7%, while the SPDR S&P 500 ETF lost 0.5% after the open.
In stocks, Nvidia edged higher in morning trading. Shares are squarely below their 50-day and 200-day moving averages. Those are key areas to watch in the coming sessions. Nvidia stock tumbled another 2.1% Thursday, closing at its lowest level since March 11.
Tesla stock fell 0.3% Friday. Shares of the Elon Musk-led company remain around 40% off their record high of 488.54, reached on Dec. 18. Tesla rose just 0.4% Thursday after slashing big gains, finding resistance at its 200-day line.
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Fed Favored Inflation Indicator
The Commerce Department released its February personal income and outlays report on Friday morning. Included in the report is the core Personal Consumption Expenditures price index, the preferred inflation gauge of the Federal Reserve and Fed Chairman Jerome Powell.
The core PCE price index rose 0.4% on the month, hotter than the 0.3% estimate, with an annual increase of 2.8%, above the 2.7% Econoday estimate.
Key earnings movers included Argan and Lululemon. Argan soared 20% in morning trading, while Lululemon plunged 12% after the company issued a disappointing full-year earnings and revenue outlook.
CoreWeave priced its IPO well below the official range Thursday night, after the cloud-computing startup had effectively slashed the offering's size and price range during the day. The CoreWeave IPO tests demand for stocks specializing in artificial intelligence infrastructure. Nvidia is one of CoreWeave's key customers.
The cloud-computing startup sold 37.5 million shares at $40 each, earning $1.5 billion. That was far below CoreWeave's official target of offering 49 million shares at $47-$55, raising up to $2.7 billion. However, the actual IPO was in line with earlier reports that said the AI infrastructure firm was going to be downsized in terms of size and price. The CoreWeave IPO is due to begin trading Friday.
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Dow Jones Falls
On Thursday, blue chips on the Dow Jones Industrial Average declined 0.5%, holding just above its long-term 200-day moving average. The S&P 500 lost 0.3%, while the Nasdaq composite fell 0.5%. And the small-cap Russell 2000 dropped 0.4%.
Following the sharp losses, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are Heico, Tradeweb Markets, Bowhead Specialty and LandBridge.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and Cisco Systems.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Cisco Eyes Buy Point
Dow Jones component and networking giant Cisco Systems is tracing a flat base that has a 66.50 buy point, according to MarketSurge chart analysis. And shares are trying to retake their 50-day line, as they edged lower Friday.
Outside the Dow, Tradeweb Markets is still in buy range above a cup-with-handle's 140.48 entry following last week's breakout move. Shares moved down a fraction Friday.
Monday's IBD Stock Of The Day Heico is just below a 270.37 entry in a cup with handle, as shares moved 0.1% lower Friday.
Insurance leader Bowhead Specialty is just out of buy range past a 37.81 buy point in a cup base, according to IBD MarketSurge pattern recognition. Bowhead shares were down 0.2% Friday morning.
Finally, IBD Leaderboard stock LandBridge is barely holding above a 76.22 entry from a double-bottom base following three days of losses. Its relative strength line hit a new high this week. And LandBridge stock was down 0.7% Friday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Friday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Bowhead Specialty | 37.81 | Cup base | |
| Cisco Systems | 66.50 | Flat base | |
| Heico | 270.37 | Cup with handle | |
| Tradeweb Markets | 140.48 | Cup with handle |
Source: IBD Data as of March 24
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are on the mend following heavy selling pressure in recent weeks. Dow Jones component Amazon regained its 200-day line following gains over the last few sessions. Amazon dropped 1.8% early Friday.
Apple, which continues to rebound from its recent lows, remains below its 200-day moving average. Apple stock fell 0.8% in morning trades Friday.
Finally, software giant Microsoft moved down 0.9% Friday. Shares hit a new 52-week low in mid March, but are rebounding.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
