The Dow Jones Industrial Average dropped Friday on hot inflation data that showed a significant rise in producer prices. Meanwhile, shares of Roku and Coinbase diverged after the two released earnings on the stock market today.
After the opening bell, the Dow Jones Industrial Average fell 0.25%, and the S&P 500 dropped 0.3%. The tech-heavy Nasdaq composite declined 0.7% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 0.9%, while the SPDR S&P 500 ETF fell 0.5%.
The 10-year Treasury yield was up to 4.3%. Further, oil prices gained ground, as West Texas Intermediate futures added 0.2%. WTI futures traded near $78.20 a barrel.
Stock Market Today: PPI, Earnings
Ahead of Friday's open, the Labor Department released its producer price index, which could have a big influence on the near-term path of the S&P 500 and interest rates. Some of the key inputs into the core personal consumption expenditures index come from the PPI, most notably health care, which was one of the hottest parts of the consumer price index.
January's PPI rose 0.3% on the month, hotter than the 0.1% estimate, with an annual increase of 0.9%, topping the 0.7% estimate. The core PPI rose 0.5% on the month, with an annual increase of 2%. Wall Street expected the core PPI to rise 0.1% on the month, with a 1.7% annual rise, per Econoday estimates.
Roku beat expectations for new users and sales in the fourth quarter. It also guided higher than views for the current quarter. But shares plunged more than 21% in early morning trade.
Conversely, Coinbase surged more than 11% early Friday after its fourth-quarter report easily cleared Wall Street expectations.
Other key earnings movers include Applied Materials, DraftKings and Trade Desk.
Applied Materials rallied more than 6% in morning action, while DraftKings stock sank 2%. Finally, Trade Desk vaulted 14% higher on fourth-quarter earnings that met estimates while revenue topped views.
Dow Jones Rises
On Thursday, the Dow Jones Industrial Average climbed 0.9%, while the S&P 500 moved up 0.6%. The tech-heavy Nasdaq composite tacked on 0.3%. And the small-cap Russell 2000 jumped nearly 2.5%.
Thursday's Big Picture column commented, "Still, there's nothing that should keep investors from looking for new breakouts or strong rebounds from key support levels. It's just that at this stage of the market uptrend, investors shouldn't be buying heavily."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Today
Lennar, MongoDB, Samsara and UiPath — plus Dow Jones members Procter & Gamble and Walmart — are among the best stocks to buy and watch in the current market rally.
Samsara and UiPath were featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: P&G At Buy Point
Consumer products giant Procter & Gamble gained 0.9% Thursday, snapping a five-day losing streak. Still, shares are below their 158.38 buy point in a cup base, according to IBD MarketSmith pattern recognition. Procter shares were down a fraction Friday.
Discount retail leader Walmart is in buy range past a 163.57 entry in a cup with handle, as the stock rose 0.4% Thursday. The stock gained 0.2% early Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
UiPath Rebounds
Homebuilder Lennar remains below its flat base's 156.01 buy point despite Thursday's 0.2% rise. Lennar shares slid 0.8% early Friday.
Software leader MongoDB remains out of buy range past a 442.84 buy point, even after a 2.5% drop Thursday, according to IBD MarketSmith. MongoDB shares fell 1.2% Friday.
Samsara bullishly gained its 50-day line during Wednesday's 5.9% rally. The stock continues to trace a base that has an official entry at 36.91. Samsara shares lost 2% Friday morning.
UiPath dropped 1.3% Thursday, holding just off a 26.53 cup-base entry. UiPath shares fell 1.9% early Friday.
Best Bets On Stock Market Today
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Feb. 12, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia rose 0.3% and Tesla gained 0.2% in morning action Friday.
Nvidia shares slipped 1.7% Thursday, just off record highs and closing more than 40% past a 505.48 buy point in a flat base after a Jan. 8 breakout move.
Tesla rallied more than 6% Thursday, closing at its highest level since Jan. 24.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded lower after Friday's stock market open.
Apple is forming a flat base with a buy point at 199.62. But Apple stock must first retake the key 50-day moving average, as it searches for support around its long-term 200-day line. Shares dipped 1% Friday.
Microsoft shares remain out of buy range past a 384.30 buy point in a flat base. The software giant was down 0.6% Friday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
