The Dow Jones Industrial Average rallied 150 points after Friday morning's opening bell, looking to end the week with a third-straight gain. U.S. oil prices rebounded, with West Texas Intermediate futures trading back above $85 a barrel.
Key overnight earnings included DocuSign, Kroger, RH and Zscaler.
DocuSign shares surged more than 12%, while Kroger gained almost 2%. RH rose around 1%, and Zscaler soared 13%.
Electric-vehicle leader Tesla rose around 1% Friday. Among the Dow Jones industrials, tech titans Apple and Microsoft were both higher after today's stock market open.
In the market's current volatility, Arista Networks, Costco, DoubleVerify and Restaurant Brands — as well as Dow Jones stock Chevron — are among the top issues to buy and watch. Keep in mind the market's increased volatility is a good reason for investors to be more defensive.
DoubleVerify is a new IBD Leaderboard stock, while Apple stock and Restaurant Brands were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields
After the opening bell Friday, the Dow Jones Industrial Average rose 0.5%, while the S&P 500 gained 0.8%. The Nasdaq composite traded up 1.3% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.9%, and the SPDR S&P 500 ETF gained 0.6% in early trade.
The 10-year Treasury yield ticked lower to 3.28% early Friday. Previously this week, the 10-year Treasury yield notched its highest closing level since June 15.
Stock Market Rally Under Pressure
On Thursday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 closed 0.7% higher. The Nasdaq Composite — which had been down as much as 1.1% — moved up 0.6%. The small-cap Russell 2000 gained 0.8%.
Thursday's The Big Picture column commented, "If the market is able to mount a serious rebound, then you should have a watchlist of leading stocks that are approaching buy points. Some follow-on opportunities also may appear."
The best way to find emerging stock market leadership is by using the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock lags the broad market, the line will point lower.
The RS line is plotted on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of top-rated stocks with relative strength lines at new highs. MarketSmith also has the "RS Blue Line Dot" list, which screens for RS lines at new highs. (Starting Monday, IBD MarketSmith is providing free access for a full week.)
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 and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron rose 0.5% Thursday, rebounding from support at the key 50-day line. The stock added a handle to a cup base, moving the correct buy point to 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The stock tacked on 1.4% early Friday.
CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, DoubleVerify, Restaurant Brands
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista's relative strength line is close to highs, as the stock has retaken its 200-day and 21-day lines. ANET shares were up 1.7% early Friday.
Costco is back above its 50-day line and about 4% below its 552.81 buy point from a cup with handle. The stock came close to triggering the 7%-8% loss-cutting sell rule earlier this week. Shares traded up 0.6% Friday.
New IBD Leaderboard stock DoubleVerify is breaking out past a 28.07 buy point in a bottoming base. Shares are in the 5% buy zone that goes up to 29.47, though it's getting extended from moving averages. DV shares gained 2% Friday morning. The company specializes in platforms to help advertisers get a better view on the effectiveness of their ad spending and campaigns.
Restaurant Brands rallied 1.4% Thursday, ending just 1% from a cup with handle that has a 61.19 buy point. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants globally. The stock was up 0.2% early Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 2% Thursday, extending a win streak to three sessions and continuing its rebound from the 50-day line. Shares of the electric-vehicle giant rose another 1% Friday morning.
Tesla stock found resistance at its 200-day line in recent months and is about 32% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 1% Thursday, moving further below their 50-day line. The stock is about 13% away from a buy point at 176.25 off a cup with handle. Shares rose 0.4% Friday.
Microsoft moved up 0.2% Thursday, rising for a second straight day. The software giant remains sharply below below its 50- and 200-day lines. Shares are about their 52-week high. The stock moved up 1.4% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
