The Dow Jones Industrial Average bounced Friday after Thursday's stock market sell-off. Cathie Wood's Ark Invest ETFs loaded up on Palantir stock, while biotech Seagen surged on positive trial results.
S&P Global released its preliminary composite Purchasing Managers' Index (PMI) for September, with the manufacturing index rising to 48.9, up slightly from August's 47.9 reading. And the services index fell to 50.2 this month compared to August's 50.5.
Seagen bolted almost 4% higher in early action, after announcing positive phase 3 trial results in a combination drug using Keytruda to treat advanced bladder cancer.
Palantir Technologies rose 1.6% Friday morning, as Cathie Wood's Ark Invest ETFs bought more than one million shares of the AI stock, valued at $14.92 million based on the closing price. Shares are consolidating below their 50-day line after a big move starting in May. Look for a retake of that level as a bullish sign for the stock's prospects.
Stock Market Today
Dow Jones aerospace giant Boeing rose modestly after CFRA downgraded the stock from buy to hold, with a lowered price target from 253 to 210. Shares are set to snap a five-day losing streak.
EV giant Tesla traded down 0.3% Friday morning, while Nvidia gained 1.1%. Dow Jones tech icons Apple and Microsoft traded higher, after today's stock market open.
Stock market leaders Alphabet and Meta Platforms both moved up modestly in early action.
Airbnb, Axon Enterprises, IBD Leaderboard watch list stock DraftKings and Uber Technologies — as well as Dow Jones stocks Caterpillar and Intel — are among the stocks to watch as the stock market correction worsens.
DraftKings is an IBD Leaderboard watch list stock, while Airbnb featured in this Stocks Near A Buy Zone column. Airbnb was a recent IBD Stock of the Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.35%. The tech-heavy Nasdaq composite rallied 0.5%, with China-based names leading the index after a strong session overnight in Hong Kong.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust added 0.4%, while the SPDR S&P 500 ETF rose 0.2% early Friday.
Early action Friday also showed the 10-year U.S. Treasury yield at 4.47%, set to finish with a big weekly gain.
Oil prices retook some ground after a mild four-day dip. West Texas Intermediate futures rose 1% in morning action, trading right at $90.50 a barrel and effectively even for the week.
Five Best Dow Jones Stocks To Buy And Watch Now
Stock Market Sell-Off
On Thursday, the Dow Jones Industrial Average sold off 1.1%, while the S&P 500 declined 1.6%. The tech-heavy Nasdaq composite dived 1.8%, and the small-cap Russell 2000 slipped 1.6%.
Thursday's Big Picture column commented, "During market corrections, investors should primarily be on the sidelines until the start of a new uptrend. Instead of tuning out, create a watchlist of leading stocks that could be market leaders in the next uptrend."
Now is an important time to read IBD's The Big Picture column as the stock market extends its losses and hits recent lows. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Caterpillar, Intel
Dow Jones leader Caterpillar is approaching a new flat base's 293.88 buy point after strong gains since early June. CAT stock dropped 2.4% Thursday, closing below the 50-day line. Shares rose 0.1% Friday morning.
Chip giant Intel triggered the 7% sell rule below a 37.19 flat-base entry during this week's sharp losses. INTC stock fell 0.1% early Friday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Airbnb, Axon, DraftKings, Uber
Recent IBD Stock Of The Day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock tumbled further below its 50-day line during Thursday's 3.8% drop. Airbnb shares rose 0.1% Friday morning.
Axon Enterprises declined 3.55% Thursday, trading about 4% away from a cup with handle's 217.61 buy point. AXON stock moved up 0.5% Friday.
IBD Leaderboard watch list stock DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch. DKNG stock was up 1.4% Friday morning.
Uber Technologies also fell below its key 50-day line, sliding 4.2% Thursday. UBER is forming a flat base with a 49.49 entry. Shares ticked up 1.4% early Friday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In Today's Stock Market Action
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 |
|---|---|---|---|
| Uber Technologies | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Sept. 21, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock skidded 2.6% Thursday, closing just above its 50-day line. Shares gave up their early entry at 261.18. And TSLA stock has a 299.29 official cup-base buy point, but an early entry 278.98 is also in play.
On Friday morning, TSLA stock dropped 0.3%, threatening to add to Thursday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock dropped another 0.9% Thursday, further below its 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares rose 0.4% Friday morning.
Microsoft shares are moving further below their 50-day line, with a 0.4% fall Thursday. And on Friday morning, the stock gained 0.1%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
