The Dow Jones Industrial Average and other major stock indexes traded higher Friday as Wall Street reacted to a critical speech from Federal Reserve Chairman Jerome Powell. Two early winners on the stock market today were Nvidia and Tesla, which looked to rebound from Thursday's heavy losses.
After the opening bell, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 gained 1.1%. The tech-focused Nasdaq composite advanced 1.5% in morning trading.
Early Friday, the 10-year Treasury yield ticked lower to 3.8%. Oil prices continued to rebound, as West Texas Intermediate futures stood near $74.20 per barrel.
Among exchange traded funds, the Invesco QQQ Trust added 1.5%, while the SPDR S&P 500 ETF moved up 1.1% after the open.
Magnificent Seven stocks Nvidia and Tesla rebounded 4.1% and 4%, respectively, in Friday's morning action.
Nvidia stock had tumbled 3.7% Thursday, still building a cup base that has an official buy point at 140.76. An early entry looms at 136.15, the stock's July 11 high.
Tesla stock skidded 5.7% Thursday, as shares of the electric-vehicle giant closed below their 50-day moving average.
Step Aside, Tesla. This Stock Wants Your Mag 7 Card.
Stock Market Today: Powell Speech
At the Fed's symposium in Jackson Hole, Wyo., Powell is expected to say that inflation has eased to the point where the risks are now tilted toward waiting too long to cut rates. Although the effects of Hurricane Beryl contributed to a soft July jobs report, hiring momentum has clearly slowed.
The theme of the 2024 conference is titled "Reassessing the Effectiveness and Transmission of Monetary Policy," and could offer clues on the amount of policy easing with the next cycle that's expected to start in September.
"The time has come for policy to adjust," Powell commented in his speech, "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."
Key earnings movers Friday morning include Cava, Intuit, Ross Stores and Workday.
Intuit shares slipped 6%. Ross Stores jumped 3.5%, as Workday stock soared 11% in early action. And Mediterranean restaurant chain Cava surged nearly 16% in morning trading,
Cava jumped out of buy range above a 98.69 entry. It sits on the IBD SwingTrader list.
Tesla Toppled As Nvidia Nips At Apple And Microsoft
Dow Jones Falls
On Thursday, the Dow Jones Industrial Average moved down 0.4%, while the S&P 500 lost 0.9% and the tech-heavy Nasdaq composite sold off 1.7%.
During Thursday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Nvidia Ties Microsoft As Both Mag 7 Stocks Take Aim At Apple
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Birkenstock, Cava, Meta Platforms, Netflix and Shake Shack.
Also on the list are Dow Jones components Amazon, Apple, IBM, Microsoft and UnitedHealth.
Birkenstock and Netflix featured in this Stocks Near A Buy Zone column.
There were four new stocks on IBD MarketSurge's "Breaking Out Today" list Thursday. Notably, AppLovin briefly topped a 91.91 buy point. Shares gained 0.9% Friday.
Further, there are a handful of stock ideas on the site's "Near Pivot" list. These are top stocks nearing new buy points, like Freshpet. Freshpet stock is just below a 136.35 entry. Shares rose 0.2% Friday. The stock is this week's New America.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buy range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. Shares ticked up a fraction Friday morning.
Meanwhile, IBM is attempting to break out past its latest entry, a cup-with-handle buy point at 196.26. IBM stock rose 0.4% Friday.
Outside the Dow Jones index, Birkenstock is at a 61.83 flat-base buy point following last week's breakout move. Shares climbed 1.3% Friday.
Streaming giant Netflix is below late-stage cup base's 697.49 buy point. Netflix stock rose 0.5% Friday.
And Shake Shack's recent breakout move past a cup-with-handle entry at 105.68 is back on track following two days of gains. Shares added 0.6% early Friday.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Ferrari | 442.80 | Flat base | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Birkenstock | 61.83 | Flat base |
Source: IBD Data as of Aug. 15
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Meta
Among Magnificent Seven stocks, Meta Platforms traded up 1.1% in early trading.
Meta stock attempted a breakout above a 542.81 buy point Thursday, but was turned away to close just below the entry. In premarket action, Meta remained below that buy point.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Friday's stock market open.
Amazon shares decisively reclaimed their long-term 200-day line on Aug. 15. The stock rose 1% Friday morning.
Apple stock is building the right side of a new base after recapturing its 50-day line in recent weeks. Apple climbed 1.3% Friday.
Microsoft shares continue to hold below their 50-day line as a new base takes shape. And on Friday morning, the stock was up 0.7%.
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.
