The Dow Jones Industrial Average briefly dropped 175 points after the Labor Department's strong January jobs report. Meanwhile, Magnificent Seven stocks Amazon, Apple and Meta Platforms were big earnings movers Friday, as Tesla stock skidded on news of a recall.
After the opening bell, the tech-heavy Nasdaq composite climbed 0.9% in morning action. The Dow Jones Industrial Average dropped 0.2%, as the S&P 500 rose 0.4%.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.9%, while the SPDR S&P 500 ETF rose 0.3%.
The 10-year Treasury yield snapped back Friday to 4.01% after big recent losses. Further, oil prices extended this week's heavy losses, as West Texas Intermediate futures lost 0.7%. WTI futures held above $73 a barrel.
Early Friday, the Labor Department said the U.S. economy added 353,000 jobs in January vs. 216,000 in December. It was expected to have added 170,000 jobs, per Econoday estimates. The unemployment rate held steady at 3.7%. It was expected to tick higher to 3.8% vs. December's 3.7% rate.
Earnings Reports: Amazon, Apple, Meta Report
Amazon reported quarterly results late Thursday, beating expectations for both earnings and revenue. Amazon stock jumped 6.7% in early trading.
Apple beat Wall Street's targets for its fiscal first quarter, thanks to iPhone 15 handset sales and services growth. But Apple stock sold off 1.8% in morning trading as sales declined in China.
Meta reported better-than-expected fourth-quarter earnings and announced plans for its first-ever dividend. Meta stock soared 20% in response.
Other key earnings movers Friday include Atlassian, Deckers Outdoor and Skechers, along with energy giants Chevron and Exxon Mobil.
Atlassian shares tumbled 15%, while Deckers stock leapt more than 11% in morning action. Skechers shares dived almost 9% in Friday trading. Finally, Chevron advanced nearly 2% while Exxon rose 0.9%.
Dow Jones Rebounds
On Thursday, the Dow Jones Industrial Average moved up 1% and the S&P 500 advanced 1.25%. And the tech-heavy Nasdaq composite rallied 1.3%.
Thursday's Big Picture column commented, "The indexes remain pretty far above their 50-day moving averages, which would be a logical support area if the market pulls back further. Meanwhile, the S&P 500 continues to carry a high number of distribution days, with seven."
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
DraftKings, KKR and Snowflake — plus Dow Jones components Merck and Walmart — are among the best stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column. DraftKings is an IBD Leaderboard Watchlist stock, while KKR is on IBD SwingTrader.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Merck Rallies On Earnings
With its gains Thursday, drugmaker Merck is moving out of buy range past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares gained 0.9% Friday morning.
Discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, amid a near-2% rally Thursday. The stock fell 0.1% early Friday.
4 Top Growth Stocks To Watch In The Stock Market Rally
DraftKings Holds Buy Point
IBD Leaderboard Watchlist stock DraftKings rallied 4.1% Thursday, closing further above a double-bottom base's official buy point at 38.97. DraftKings stock gained 0.1% Friday morning.
IBD SwingTrader stock KKR remains above an 85.66 flat-base entry amid a 1.8% rally Thursday. Shares were up 0.6% Friday morning.
Software leader Snowflake remains below a 202.83 buy point in a flat base despite a 2.2% increase Thursday, according to IBD MarketSmith. Snowflake shares rallied 5% Friday.
Best Bets In Friday's 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 |
|---|---|---|---|
| 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 Jan. 31, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia rallied 3.3%, while Tesla lost 2.7% in morning action Friday.
Nvidia rose 2.4% Thursday, more than 20% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares are hitting more record highs.
Tesla gained 0.8% Thursday, still near its recent lows after Wednesday's losses.
Early Friday, the National Highway Transportation Safety Administration said Tesla is recalling nearly 2.2 million vehicles due to a brake warning light issue. The agency says the recall will be done with an online software update.
Dow Jones Leaders: Microsoft
Among Dow Jones stocks in the Magnificent Seven, Microsoft traded higher after Friday's stock market open.
Microsoft shares rebounded 1.6% Thursday, still in buy range past a 384.30 buy point in a flat base. The software giant added 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.
