The Dow Jones Industrial Average reversed lower Friday after key housing data, with the early release of the Commerce Department's housing starts and permits. Meanwhile, seven best stocks to buy and watch include software giant Microsoft and Amazon.
Early Friday, October housing starts rose to a 1.372 million annualized rate vs. September's 1.358 million. They were expected to dip to a 1.350 million annualized rate. Permits rose to a 1.487 million rate in October, compared to September's 1.473 million pace. They were expected to slow to a rate of 1.463 million rate.
Key earnings movers for the session include Applied Materials, Beazer Homes, BJ's Wholesale, Copart, Gap and Ross Stores.
AMAT stock dived more than 7%, while Beazer Homes shares declined 1.4% in morning action. BJ stock sold off around 4%, while Copart shares rallied more than 3%. Finally, Gap soared 18% and Ross Stores gained nearly 7% in early trade.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday's opening bell, the Dow Jones Industrial Average moved down a fraction, while the S&P 500 dipped 0.1%. The tech-heavy Nasdaq composite moved down 0.3% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.3%, while the SPDR S&P 500 ETF lost 0.1% early Friday.
The yield on the 10-year U.S. Treasury bond ticked lower to 4.43% Friday morning. On Thursday, the benchmark had settled at 4.44%.
Oil prices bounced back after three straight losses, as West Texas Intermediate futures rose more than 1%. WTI prices are trading around $74 a barrel, their lowest level since early July.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average dropped more than 0.1%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite rose 0.1%. But the small-cap Russell 2000 sold off 1.5%. The index met resistance at its 200-day moving average Wednesday.
Thursday's Big Picture column commented, "On Thursday, indexes closed mostly near session highs, finishing mixed with modest gains or losses. The limited price moves were a good sign, indicating institutional investors were in no big rush to take profits from the November rally."
Now is an important time to read IBD's The Big Picture column after the recent gains. Be sure to read how to invest during the ongoing stock market uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
IBD Leaderboard stock Amazon, along with MercadoLibre, IBD SwingTrader stock Shopify and Toll Brothers — as well as Dow Jones stocks Microsoft, Salesforce and UnitedHealth — are among the best stocks to watch in the current market rally.
MercadoLibre and Nvidia were featured in this Stocks Near A Buy Zone column. Amazon and MercadoLibre are members of IBD Leaderboard.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks To Watch
Software leader Salesforce is approaching a 228.79 buy point in a double-bottom base, according to IBD MarketSmith chart analysis. CRM stock is about 3% away from the latest buy point. Shares inched lower early Friday.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock fell 0.3% Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: Shopify Breaks Out
Amazon fell further below its cup base's 145.86 buy point during Thursday's slight drop. Shares remain above an early entry at 134.48. AMZN stock moved up 0.1% Friday.
IBD Leaderboard stock MercadoLibre moved further past a 1,398.59 buy point, according to IBD MarketSmith pattern recognition, during Thursday's 1.9% gain. MELI stock was slightly lower Friday morning.
IBD SwingTrader stock Shopify is trying to break out past a double bottom's 67.60 buy point. The buy zone tops out at 70.98. SHOP stock rose 0.2% Friday morning.
Homebuilder Toll Brothers will be a stock to watch, with housing data due out today. It is still in buy range past a cup-with-handle's 82.39 buy point in the wake of Tuesday's breakout move. The buy zone that goes up to 86.51. TOL stock rose 0.5% Friday morning.
Best Stocks In Today's Stock Market Action
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 |
|---|---|---|---|
| Amazon | 145.86 | Cup base | |
| UnitedHealth | 546.78 | Handle entry | |
| Toll Brothers | 82.39 | Cup with handle | |
| MercadoLibre | 1,398.59 | Cup with handle |
Source: IBD Data As Of Nov. 16, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla lost 1.4% early Friday, while Nvidia inched lower.
Graphics-chip giant Nvidia is in buy range past a double-bottom base's 476.09 entry amid Thursday's 1.2% rise.
Tesla stock skidded nearly 4% Thursday, snapping a three-day win streak. Shares are facing strong resistance around their 50-day line after retaking the 200-day line earlier this week. TSLA is around 20% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded lower after today's stock market open. Apple gained 0.9% Thursday, closing at its highest level since Aug. 5. Shares are above an early entry at 182.34, as they continue to trace a consolidation that has a 198.23 buy point. Apple shares lost 0.1% Friday.
Microsoft stock moved up 1.8% Thursday, hitting an all-time high at 376.35. The stock is above a cup base's 366.78 buy point and in buy range. In recent weeks, shares rose above an early buy trigger at 346.20. MSFT stock dropped 1.2% Friday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
