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Dow Jones Futures Turn Lower on High Inflation Data; Ulta Beauty dives into sales Miss

Dow Jones futures briefly turned lower Friday morning following hot inflation data, with the release of the PCE price index. Ultimate beauty (ULTA) ducked after missing Wall Street sales estimates in the last quarter.


The Department of Commerce’s April Personal Consumption Expenditure Price Index, or PCE Price Index, rose 0.4% month over month, with a 4.4% annual increase, hotter than Wall Street estimates. The core PCE price index climbed 0.4% month-on-month, rising 4.7% year-on-year, also above forecasts.

Ulta Beauty shares fell nearly 9% Friday morning after missing first-quarter sales estimates.

Other major revenue movers include Auto desk (ADSK), Costco (COST), Deckers outside (DECK), Hole (GPS), Marvell technology (MRVL), Ultimate beauty (ULTA) and Business day (WDAG).

Autodesk shares rose 1.2% in premarket trading, while Costco fell 0.5%. DECK shares fell nearly 3%, while Gap shares rose 12%. Marvell shares were up 19%, while Workday shares were up 9%.

Fair today

Giant of electric vehicles Tesla (TSLA) was trading 0.8% higher Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.

Advanced micro devices (AMD), IBD Leaderboard Share ASML (ASML) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Boeing (BA) and Sales team (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

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ASML and Salesforce are IBD Leaderboard stocks and Boeing was in the stock column this week near a buy zone.

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Dow Jones Today: Oil Prices, Treasury Yields

Prior to Friday’s opening bell, Dow Jones futures were up 0.2% from fair value, while S&P 500 futures were up 0.15%. Tech-heavy Nasdaq 100 futures rose 0.3% in the morning action.

Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.2%, while the SPDR S&P 500 ETF (SPY) was higher early Friday.

The yield on 10-year US Treasuries rose to 3.83% on Friday. The 10-year yield is at its highest level since mid-March.

Oil prices in the US appeared to be recovering Friday morning after Thursday’s heavy losses. West Texas Intermediate futures were up 1% on Friday, taking WTI futures close to $73 a barrel.

Stock market action

On Thursday, the Dow Jones Industrial Average fell 0.1%, extending a streak of losses to five sessions and falling further below the 50-day mark. It is now testing the 200-day line.

The S&P 500 recovered 0.9%, breaking a two-day slide and finding support around its own 50-day line. The technology-heavy Nasdaq composite rose 1.7%, nearly reversing the losses of the past two days. Finally, the small-cap Russell 2000 fell 0.7% to close at its lowest level since May 17.

Thursday’s Big Picture column warned, “There was limited participation in Thursday’s rally. Invesco S&P 500 Equal Weight ETF (RSP) moved slightly lower and First Trust Nasdaq 100 Equal Weight (QQEW) was up just 0.5%. Despite the rise in the Nasdaq, more than twice as many Nasdaq stocks fell than rose on Thursday.”

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This is an important time to read IBD’s The Big Picture column following the recent bullish shift in the market’s outlook.

Five best Dow Jones stocks to buy and watch right now

Dow Jones Stocks to Buy and Watch: Boeing, Salesforce

Dow Jones aerospace giant Boeing climbed 0.8% on Thursday, still below the 50-day mark. Stocks are still flat with a buy point of 221.43, according to IBD MarketSmith pattern recognition. BA shares rose 0.5% early Friday.

According to Leaderboard analysis, Salesforce surged past alternate entries at 194.01 and 200.10 in recent weeks. Meanwhile, the relative strength line reached a new high this week, a bullish signal. Salesforce reports first quarter results after market close on May 31. CRM shares rose 1.5% Friday morning after Citigroup raised its price target from 210 to 229.

4 Top growth stocks to watch Stock market rally

Best stocks to buy and watch: AMD, ASML, TSMC

Chip leader Advanced Micro Devices moved further out of the buy range above the 102.53 buy point of a cup base, according to IBD MarketSmith pattern recognition, up 11.2% on Thursday. The 5% buy area moved up to 107.66. AMD shares rose 2.4% premarket on Friday.

IBD Leaderboard share ASML bullishly claimed its buy point of 683.28 in a handle cup during Thursday’s 6.25% rise. ASML added 1.2% on Friday morning.

Chip foundry Taiwan Semiconductor was up 12% on Thursday, breaking out past a 95.92 double bottom. The 5% buy area goes up to 100.72, so the stock is slightly expanded. TSM shares rose another 1% Friday morning.

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Learn how to time the market with IBD’s ETF market strategy

Best stocks to buy and watch in stock market rally

Here are the top four stocks to buy and watch in the current stock market, including two Dow Jones leaders.

Company Name Symbol Correct point of purchase Point of sale type
ASML (ASML) 683.28 Cup with handle
Sales team (CRM) 200.10 Consolidation
Boeing (BA) 221.43 Flat base
Advanced micro devices (AMD) 102.53 Cup base
Source: IBD data as of May 25, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares rose 0.9% on Thursday, ending a two-day slip. So far, stocks are finding support around their 50-day line as they build a cup base for now with a buy point of 207.89. Keep an eye out for a handle to provide a lower entry. Shares closed 41% from their 52-week high on Thursday.

TSLA shares appeared to be contributing to Thursday’s gains, rising nearly 1% on Friday morning.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 0.7% on Friday, marking a second consecutive day increase. Shares remain just off their recent 52-week high of 176.39. The stock remains sharply above a buy point of 157.48, falling outside the buy range that rose to 165.35. AAPL shares rose 0.2% in premarket trading on Friday.

Microsoft shares rose 3.85% on Thursday to hit a new 52-week high of 326.90. The shares are significantly above a buy point of 276.86 flat-base. On Friday morning, MSFT shares fell 0.4.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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