The Dow Jones Industrial Average dropped sharply Friday, as the stock market correction continues. Apple stock jumped on strong earnings. Other blue chips — Caterpillar, Chevron and Visa — were also key earnings movers Friday.
Among the Dow Jones leaders, Apple rallied 2.6% Friday after the company's strong results late Thursday. Meanwhile, Microsoft fell over 1% in today's stock market.
Tesla dropped more than 3% Friday, as it approaches its long-term 200-day moving average in the wake of Thursday's dive.
Among Friday's top stocks to watch, American International Group, Baker Hughes, CF Industries and Matson are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks.
Dow Jones Today: Key Inflation Data
After the stock market open Friday, the Dow Jones Industrial Average lost 0.9%, while the S&P 500 moved down 0.7%. The tech-heavy Nasdaq composite declined 0.7%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.8% Friday, and the SPDR S&P 500 ETF moved down 0.7%.
The 10-year Treasury yield ticked down to 1.8% Friday morning. On Thursday, the 10-year Treasury yield dropped, closing just above 1.8%. Oil prices climbed again, sending West Texas Intermediate nearly 1% higher, to just below $88 a barrel — just off a seven-year high.
Personal income rose 0.3% in December, less than the expected 0.5% rise. Personal consumption expenditures fell 0.6% in December, according to Econoday. The personal consumption expenditures index — the Federal Reserve's primary inflation measure — rose 0.4% vs. November and 5.8% year over year, in line with Econoday estimates.
Stock Market Sell-Off Continues
Despite Thursday's losses, the major stock indexes held above Monday's lows. That left the market's current rally attempt still intact. Investors should continue to wait for a follow-through day, to confirm a new uptrend. Follow-through days occur when a major index posts strong gains in volume heavier than the prior day. A follow-through day could occur any day, so make sure your watchlists are primed with top stocks, though strong merchandise is lacking.
Thursday's The Big Picture commented: "One of the easiest ways to find new leadership and top growth stocks is to use the RS Line Blue Dot screen in IBD MarketSmith. This exclusive MarketSmith screen focuses on ideas with market-beating performance. They could be some of the next big winners after a new confirmed uptrend in stocks.
Amid this recent weakness, now is an important time to check out IBD's The Big Picture.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.
Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Earnings: Caterpillar, Chevron, Visa
Caterpillar — the last of 14 Dow Jones stocks to report quarterly results this week — dropped 3.7% in morning trade Friday. The heavy machinery company beat earnings and sales targets, but manufacturing costs squeezed operating margins. CAT stock is forming a cup with handle with a 230.53 buy point.
Chevron reported mixed fourth-quarter results early Friday, as shares declined more than 3% in morning trade. CVX shares ended Thursday well above a 113.21 buy point in a cup base.
Visa rose 0.1% Thursday, closing around 18% from its 52-week high. Shares finished below their 50- and 200-day lines. After the close Thursday, Visa topped earnings and sales estimates, sparking a 5% advance Friday.
Three Top Growth Stocks To Watch In The Current Stock Market Weakness
Stocks To Watch: AIG, Baker, CF Industries, Matson
Insurer AIG dropped 2.1% Thursday, closing just below its 50-day moving average. AIG shares are forming a cup-with-handle base with a 62.35 buy point, according to IBD MarketSmith chart analysis. AIG was IBD's Stock Of The Day on Jan. 19. The stock was down 1% Friday.
Oilfield equipment leader Baker Hughes is further below a 27.76 cup-base buy point after Thursday's 0.8% drop. The company reported mixed earnings results last week. Shares of the Houston-based outfit were up 0.1% Friday.
Fertilizer producer CF Industries continues to trace an ascending base with a 74.87 buy point. Bullishly, the stock's RS line hit a new high this week, indicating strong stock market outperformance. CF stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock was up 0.9% Thursday, but only recovered a portion of Wednesday's 5.1% dive. The stock was up 2.4% Friday.
IBD Leaderboard stock Matson held above a cup-with-handle buy point of 93.27 during Thursday's 1.3% fall following Wednesday's breakout move. Its RS line hit a new high on the breakout, a bullish sign. Shares jumped almost 3% Friday morning after the company expanded its share buyback program and announced a quarterly dividend of 30 cents per share.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock dropped more than 3% Friday, threatening to add to Thursday's 11.55% earnings-fueled dive. The stock is at its lowest level since mid-October and is just above its 200-day moving average line.
The stock traded as high as 1,243.49 on Nov. 4, but ended Thursday about 33% off that 52-week high.
Dow Jones Leaders: Apple Earnings, Microsoft
Among Dow Jones stocks, Apple stock closed down 0.3% Thursday, extending its losing streak to eight sessions. IBD MarketSmith charts show the stock sharply below its 50-day moving average, and the gains from a 153.27 cup-with-handle entry have mostly disappeared. Shares rose about 3% Friday after Apple easily beat Wall Street's targets for the December quarter.
Software leader Microsoft gained 1.1% Thursday, closing further above its long-term 200-day moving average line. MSFT shares were down over 1% Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
