The Dow Jones Industrial Average and other major stock indexes were mixed Friday, as Wall Street reacted to surprise inflation data. Meanwhile, Nvidia supplier Applied Materials took a dive on the stock market today after reporting earnings results.
After the opening bell, the Dow Jones Industrial Average fell less than 0.1%, while the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite also gained 0.2%. (Click here for Friday's in-session stock action.)
The 10-year Treasury yield declined to 4.4% early Friday. And oil prices edged higher, as West Texas Intermediate futures traded around $62 per barrel.
Among exchange traded funds, the Invesco QQQ Trust moved up 0.2%, while the SPDR S&P 500 ETF rose 0.1% after the open.
Late Thursday, Applied Materials beat expectations for earnings in its fiscal second quarter but sales were a tad light. Its outlook was similarly mixed. Shares tumbled more than 6% in morning trading.
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Stock Market Today: Inflation Data
The University of Michigan's consumer sentiment reading showed the index unexpectedly falling to 50.8. It was expected to edge higher to 53.0 from 52.2 in the preliminary May report. One-year inflation expectations jumped to 7.3% from 6.5% in April and 3.3% in May 2024, above the estimate for a rise to 6.6%, according to Econoday.
Elsewhere, key earnings movers Friday include Cava, Doximity and Take-Two Interactive Software.
Cava stock slipped 2.7%. Doximity stock plummeted 15%, as shares of Take-Two reversed modestly lower in morning trading.
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Dow Jones Rises 271 Points
On Thursday, blue chips on the Dow Jones Industrial Average climbed 0.7%, or 271 points. The S&P 500 gained 0.4%, but the Nasdaq composite declined 0.2% to snap a six-day win streak. Finally, the small-cap Russell 2000 rallied 0.5%.
Due to ongoing stock market strength, now is an important time to read IBD's The Big Picture column for how to handle the current market conditions and to track the updated exposure level.
Among the best companies to watch in the current stock market are Birkenstock, Spotify, Robinhood and Axon Enterprise
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com and Microsoft.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find 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 Stocks: Microsoft Hits Buy Point
Shares of Dow Jones component Microsoft have shot up over the last couple weeks, bullishly retaking their 200-day line for the first time since Jan. 29 and clearing a 448.38 buy point in a cup base, according to MarketSurge chart analysis. Microsoft stock eased 0.6% Friday.
Outside the Dow, Birkenstock surged this week, moving up the right side of a cup base that has a 62.66 buy point. Birkenstock shares dipped 0.2% in morning action.
Recent IBD Stock Of The Day and IBD SwingTrader stock Spotify is squarely in buy range above a 621.20 double-bottom entry. Spotify shares climbed 1.6% early Friday.
IBD Leaderboard watch list stock Robinhood has cleared an aggressive alternate entry of 51.07 in recent sessions and is approaching a 66.91 buy point in an abnormally deep cup base, according to IBD MarketSurge chart analysis. Robinhood shares tacked on a fraction Friday.
Finally, Taser-maker Axon is breaking out past a 715.99 buy point following this week's gains. Axon stock was down 0.5% Friday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Friday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Microsoft | 448.38 | Cup base | |
| Robinhood | 66.91 | Cup base | |
| Birkenstock | 62.66 | Cup base | |
| Spotify | 621.20 | Double bottom |
Source: IBD Data as of May 16
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Dow Jones Leaders: Amazon, Apple, Nvidia
Magnificent Seven stocks continue to rebound from their recent lows as Wall Street reacts to more optimism after President Trump's tariffs sent them reeling. One of them, Dow Jones component Amazon, is building a cup base with a 242.52 buy point. Amazon stock rose 0.1% in morning action on Friday.
IPhone maker Apple is back above its 50-day moving average following big gains in recent sessions. Apple moved up a fraction early Friday.
During this week's bullish gains, Nvidia decisively regained its long-term 200-day moving average, which was a key resistance level. Nvidia stock added nearly 1% Friday.
Finally, Tesla rallied 1.5% in early action Friday, after snapping a six-day win streak Thursday. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 30% off its record high of 488.54, reached on Dec. 18.
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.
