The Dow Jones Industrial Average briefly dropped 175 points after a strong January jobs report. Tech titans Alphabet and Amazon skidded, while Apple reversed higher on earnings.
Early Friday, the Labor Department's jobs report showed a 517,000 rise in payrolls, much higher than the expected 185,000 estimate and up from a 223,000 increase in December. Per Econoday, December was the eighth-straight month and 10th of the last 11 that payroll growth exceeded estimates. The unemployment rate fell to 3.4% vs. a 3.6% estimate.
Average hourly earnings rose 0.3% for the month, in line with estimates.
Apple missed Wall Street's sales and earnings targets for its fiscal first quarter, reported late Thursday. Apple stock turned up 0.7% in morning trade.
Also after Thursday's close, Amazon reported fourth-quarter results that beat on revenue but missed on earnings. AMZN stock sold off 4.3% in early trading.
Alphabet's shares dropped 2.6% after reporting December-quarter earnings and revenue that missed Wall Street targets on Thursday. Slowing growth in internet search advertising, YouTube ads and cloud computing services weighed on results.
Stock Market Today
Electric-vehicle leader Tesla rose 3% Friday morning, while Dow Jones tech giant Microsoft was sharply lower after today's stock market open.
IBD Leaderboard stock Impinj, Etsy, Nexstar and Wingstop — as well as Dow Jones stock JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Impinj is an IBD Leaderboard stock. Etsy was a recent IBD Stock Of The Day. Nexstar was a recent IBD 50 Stocks To watch pick. Impinj and Wingstop were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average lost 0.4%, and the S&P 500 moved down 0.8%. The tech-heavy Nasdaq composite lost 0.9%, dragged lower by Alphabet, Amazon and Apple.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 2% and the SPDR S&P 500 ETF fell 1.2% early Friday.
The 10-year U.S. Treasury yield Thursday hit its lowest level since mid-September before ending the session at 3.39%. The 10-year yield jumped to 3.48% Friday morning after the strong jobs report.
Oil prices bobbed quietly Friday morning after a second straight fall Thursday. West Texas Intermediate futures are back above $76 a barrel, tacking toward a loss of nearly 5% in a second straight weekly decline.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average fell 0.1%, and the S&P 500 gained 1.5%. The Nasdaq composite rallied nearly 3.3%, as the small-cap Russell 2000 gained 2.1%.
Thursday's The Big Picture column commented, "Given the market's ongoing strength, it makes sense to raise your exposure if your trades are doing well, with an invested percentage of 60%-80%, as recommended in last Friday's Big Picture. Winning trades should push you closer to the 80% threshold, especially after more strong gains among leading stocks. But don't hesitate to lock in some gains around the 20%-25% profit zones."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market rally.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan
Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 0.5% dip Thursday. The 5% buy zone tops out at 145.70. JPM shares traded up a fraction fraction early Friday.
JPM stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Impinj, Etsy, Nexstar, Wingstop
IBD Leaderboard stock Impinj remains out of buy range above a 129.12 buy point in a cup base despite a 2.8% drop Thursday. The 5% buy area went up to 135.58. PI stock lost 2.4% Friday.
Backstory: Impinj's expertise lies in radio frequency semiconductors to identify, locate and authenticate items. While losing money in 2020, the company earned 25 cents per share in 2021. And annual earnings are expected to surge 284% to 96 cents per share this year.
Etsy jumped out of buy range above a 137.01 buy point in a cup with handle after Thursday's 6.2% move. The 5% buy area topped out at 143.86. Etsy shares fell 2.5% Friday morning.
Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.
Media giant Nexstar is in buy range past a cup base's 204.72 buy point and was Tuesday's IBD 50 Stocks To Watch pick. Earnings are due out Feb. 9. Shares were down 1.1% early Friday.
Backstory: America's largest local broadcast TV group, Nexstar Media produces and distributes local and national news, sports and entertainment content. In addition to its leading position in television, Nexstar is one of the world's leading diversified media companies.
Wingstop is rapidly approaching a 170.97 buy point in a lopsided cup base, with a 1.6% gain Thursday. Keep an eye out for a potential handle to offer a lower entry. WING stock was off 1.6% early Friday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due Feb 22.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Monster | 104.75 | Flat base | |
| Impinj | 129.12 | Cup base | |
| Nexstar | 204.72 | Cup base | |
| Etsy | 137.01 | Cup with handle | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 170.97 | Cup base |
Source: IBD Data As Of Feb. 2, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 3.8% Thursday, closing at its highest level since Dec. 2. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Thursday about 51% off its 52-week high.
Shares looked to add to Thursday's gains, moved up 3% Friday morning. Tesla stock is on pace for a near-6% advance this week. Early Friday, data from the China Passenger Car Association showed Tesla sold 66,051 China-made electric vehicles in January, up 18% from December.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares moved up 3.7% Thursday ahead of the iPhone maker's earnings results after the close. Shares reclaimed their long-term 200-day line Thursday, but remain around 16% off its 52-week high. AAPL stock reversed higher, gaining 0.7% Friday.
Microsoft stock climbed 4.7% Thursday, bullishly retaking its 200-day line. Shares finished 16% off the 52-week high. MSFT traded down 1.6% Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
