The Dow Jones Industrial Average rallied 250 points early Friday after the major stock indexes dug into new correction lows Thursday before a mixed close. Twitter stock plunged after Elon Musk placed his $44 billion purchase of the social-media platform on hold, due to questions regarding the number of fake accounts.
Early Friday, Musk tweeted, “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users,” linking to a Reuters story. Later, he followed up with a tweet saying, “Still committed to acquisition.” Twitter stock plunged more than 10%. Meanwhile, electric-vehicle giant Tesla (TSLA) raced over 6% higher Friday morning.
Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded up 1.2% and 1.1%, respectively, in today’s stock market.
As the stock market correction attempts to find a bottom, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Cheniere Energy (LNG), Eli Lilly (LLY), Exxon Mobil (XOM) and Northrop Grumman (NOC)— are among IBD’s top stocks to watch for Friday.
Eli Lilly and Microsoft are IBD Leaderboard stocks. Exxon and Merck were featured in this week’s Stocks Near A Buy Zone column. Eli Lilly was Wednesday’s Stock of the Day.
Dow Jones Today: Treasury Yields, Oil Prices
After Friday’s open, the Dow Jones Industrial Average rallied 0.8%, and the S&P 500 rose 1.6%. The tech-heavy Nasdaq composite advanced 2.7% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rallied 2.7%. The SPDR S&P 500 ETF (SPY) gained 1.6%.
The 10-year Treasury yield jumped to 2.93% Friday morning. The 10-year Treasury yield declined for a fourth-straight session Thursday, closing at 2.81%, despite another elevated inflation number. On Monday, the 10-year Treasury yield traded as high as 3.16%, its highest level since November 2018.
Meanwhile, U.S. oil prices gained 0.4%, with Texas Intermediate crude trading just above $106 a barrel.
Stock Market Rally Attempt Starts
The Dow Jones Industrial Average slashed its early losses to 0.3% Thursday, but still extended a losing streak to six sessions. The Nasdaq composite reversed from sharp losses to close less than 0.1% higher. With an intraday decline of more than 31% from its November high, the Nasdaq composite neared its 32.5% loss record during the pandemic sell-off of March 2020.
Thursday’s The Big Picture column commented, “Both the Nasdaq and S&P 500 marked the first day of new rally attempts. The Nasdaq’s upside reversal is a standard Day 1. Meanwhile, the S&P 500 finished down for the day, but closed in the upper half of the session’s trading range, which also qualifies as a Day 1. If these indexes undercut Thursday’s lows, the rally attempt will end.”
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Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron is in a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. CVX shares traded up 0.95% Thursday, extending a win streak to three sessions. Shares are right at their 50-day line. Chevron shares rose 0.8% Friday morning.
Drug leader Merck is back above a cup-with-handle’s 89.58 buy point after shares rallied nearly 2% Thursday. The 5% buy area goes up to 94.06. Shares inched lower early Friday. One positive signal, the stock’s relative strength line hit another high, indicating big stock market outperformance during the current stock market correction.
MRK stock boasts a 98 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Three Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Cheniere, Eli Lilly, Exxon, Northrop
Cheniere Energy is one of the market’s top stocks to watch, even as it continues to trade below its 50-day line. Shares moved down 0.45% Thursday, as they continue to etch a flat base that shows a 149.52 buy point, according to IBD MarketSmith chart analysis. LNG shares rose 2% Friday.
IBD Leaderboard stock Eli Lilly is holding just above a prior cup base’s 284 buy point and are trying to maintain their 50-day line. The stock’s RS line is at new highs. Eli Lilly stock moved up 0.4% Friday morning.
Energy giant Exxon Mobil remains below a cup with handle’s 89.90 buy point after this week’s sharp losses. The stock is trying to halt its recent slide around its key 50-day line. XOM shares gained nearly 1% Friday.
Defense contractor Northrop Grumman continues to etch a cup with handle with a 477.36 buy point. Shares are just below their 50-day line after Thursday’s 1% rise. Northrop shares inched lower early Friday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock slashed losses to less than 1% Thursday after undercutting its February lows. Shares looked to rebound, rising more than 6% Friday morning. Tesla shares remain sharply below their 50- and 200-day lines amid their recent weakness.
The stock traded as high as 1,243.49 on Nov. 4 and is about 40% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares pared losses to 2.7% Thursday, falling to their lowest level since October 2021. Shares slid after manufacturing partner Foxconn warned of cooling smartphone demand. The stock is sharply below its 200-day line and more than 20% off its 52-week high. Apple stock rose 1.2% Friday.
Software leader Microsoft dropped another 2% Thursday, its lowest level since June 2021. The stock closed more than 25% off its 52-week high. MSFT shares moved up 1.1% Friday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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