The Dow Jones Industrial Average and other major indexes dropped Friday as Wall Street reacted to a failed attempt to avert a government shutdown with a funding bill backed by President-elect Donald Trump. Key inflation data came out cooler than expected, while Nvidia and Tesla were early losers on the stock market today, threatening to extend this week's losses.
After the opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 dropped 0.3%. The tech-heavy Nasdaq composite moved down 0.7% in morning trades.
Early Friday, the 10-year Treasury yield ticked lower to 4.51%. Oil prices dropped, as West Texas Intermediate futures traded around $68.75 per barrel.
Among exchange traded funds, the Invesco QQQ Trust declined 0.7%, as the SPDR S&P 500 ETF moved down 0.3% after the open.
A House GOP bill backed by Trump to avert a government shutdown failed Thursday night as dozens of Republican lawmakers voted no along with almost all Democrats. Without a funding measure, a partial government shutdown is due to start Friday night.
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Nvidia stock rebounded 1.4% Thursday, snapping a five-day losing streak. Shares remain sharply below their 50-day moving average, a sign of mounting weakness. And sellers re-emerged in Nvidia stock, with shares down 1% Friday.
Electric-vehicle giant Tesla fell another 0.9% Thursday, adding to Wednesday's plunge from new highs. At their peak Wednesday, shares rallied as much as 84% above a 264.86 buy point in a cup with handle. Tesla stock skidded another 2.8% Friday.
Elsewhere, Nike slashed losses to 2% in morning trading after the company beat earnings and sales estimates.
Early Friday, the Commerce Department's personal income and outlays report showed that the core PCE price index, which is the Federal Reserve's favored inflation reading, came out cooler than expected. The core PCE price index rose 0.1% in November, with an annual increase of 2.8%. It was expected to increase 0.2% on the month, with an annual rise of 2.9%, according to economists' estimates from Econoday.
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Dow Jones Snaps Losing Streak
On Thursday, the Dow Jones Industrial Average cut gains to less than 0.1%, narrowly breaking a 10-day losing streak. The S&P 500 reversed lower by 0.1%. The tech-heavy Nasdaq composite also gave up solid gains to fall 0.1%, as the small cap Russell 2000 index lost 0.5%.
Among the best companies to watch on the stock market today are BlackRock, Burlington Stores and Taiwan Semiconductor Manufacturing.
Dow Jones components making notable moves were Amazon.com, Apple, Walt Disney and Microsoft.
Taiwan Semi is featured in this Stocks Near A Buy Zone column.
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: Disney Nears Buy Point
Dow Jones component Disney is approaching a 118.63 buy point in a cup with handle, according to MarketSurge pattern recognition. Shares fell 0.3% Friday.
Outside the Dow Jones index, BlackRock is under a 1,068.34 buy point in a four-weeks-tight pattern as it pulls back to its 50-day moving average. BlackRock stock inched higher in morning trading Friday.
Burlington Stores is falling back to its 279.51 buy point in a cup with handle during recent losses. Shares rose 0.8% Friday morning.
Nvidia chipmaker Taiwan Semiconductor closed Thursday within striking distance of a 205.63 cup-with-handle buy point as it tests support at the 50-day line. Shares lost 1.1% early Friday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| BlackRock | 1,068.34 | Tight area | |
| IBM | 237.37 | Cup base | |
| Broadcom | 185.05 | Double bottom | |
| Manhattan Associates | 306.63 | Handle entry |
Source: IBD Data as of Dec. 16
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Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which rose 1.3% Thursday. Amid that gain, the e-commerce giant is still extended above a 201.20 buy point after hitting new highs earlier in the week. It sold off 1.6% Friday.
Shares of Apple are just out of buy range above a flat base's 237.49 entry. The stock was down 1.2% Friday morning.
Microsoft shares fell 1.4% Friday morning following Thursday's decline. Last week, the stock reached its highest level since mid-July.
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.
