Dow Jones futures tumbled Friday morning as investors digested the early release of the Labor Department’s Producer Price Index, another closely watched inflation gauge. Tech stocks were under early selling pressure, as chip stocks and China-based names weighed on Nasdaq 100 futures.
PPI figures showed wholesale prices in July rose 0.3%, with an annual increase of 0.8%. Both came in hotter than estimates. Core prices, excluding food and energy, moved up 0.3% from June, with a 2.4% year-over-year jump. Both were also higher than expected.
The findings came on the heels of Thursday’s Consumer Price Index report. CPI figures showed July consumer prices rose 0.2% vs. the prior month. Core CPI, prices paid by consumers excluding food and energy, climbed 0.2% from June. Both matched Wall Street forecasts.
Stock Market Today
Expro (XPRO), SLB (SLB), MercadoLibre (MELI) and Interactive Brokers (IBKR) — as well as Dow Jones stocks Boeing (BA) and Intel (INTC) — are among the best stocks to watch as the market’s uptrend comes under increasing pressure.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures fell 0.25% vs. fair value, while S&P 500 futures dropped 0.4%. The tech-heavy Nasdaq 100 futures moved down 0.7% in morning action.
The 10-year U.S. Treasury yield crept up to 4.14% on the PPI inflation data, after settling at 4.07% on Thursday.
West Texas Intermediate oil prices remain near their highest level of the year, as WTI futures climbed less than 1% to trade just around $83.50 a barrel.
Stock Market Action
On Thursday, the Dow Jones Industrial Average rose nearly 0.2%. The S&P 500 edged higher, while the Nasdaq composite moved up 0.1% Thursday. Small caps lagged, with the Russell 2000 down 0.4%.
Thursday’s Big Picture column commented, “Thursday’s fading action — the Nasdaq had been up as much as 1.6% — certainly was bearish even if it did not technically result in a distribution day. The Nasdaq and Nasdaq 100 are testing their 50-day moving averages, and how indexes behave at that level will be important to watch.”
Now is an important time to read IBD’s The Big Picture column as the stock market pulls back from this year’s highs.
Dow Jones Stocks: Boeing, Intel
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares briefly fell back into the 5% buy area that went up to 235.11 before Monday’s 3% rally sent them back out of the buy zone. BA stock inched lower Friday morning.
Chip giant Intel continues to etch a handle onto a cup base, offering a 37.19 buy point, according to IBD MarketSmith pattern recognition. Shares are about 5% away from their latest entry. INTC stock was down 0.3% Friday morning.
Stocks To Watch: Expro, SLB, MercadoLibre, Interactive Brokers
Offshore drilling services provider Expro is trying to break out past a cup with handle’s 23.72 buy point, according to IBD MarketSmith pattern recognition. Shares closed just above the entry Thursday. XPRO stock was unchanged early Friday.
IBD SwingTrader stock SLB, formerly known as Schlumberger, is breaking out past a 58.70 buy point in a cup with handle. Shares are in the buy area. SLB stock lost 0.1% Friday morning.
MercadoLibre surged this week breaking out past a cup base’s 1,365.64 buy point. Shares are in the 5% buy area that tops out at 1,433.92. MELI stock dropped 2% Friday.
Interactive Brokers broke out last week past a 90.19 buy point in a consolidation. The stock is above that buy trigger, with a 0.6% gain Thursday. Shares were flat Friday morning.
Best Stocks In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|SLB||(SLB)||58.70||Cup with handle|
Source: IBD Data As Of Aug. 10, 2023
IBD Leaderboard stock Tesla climbed 1.3% Thursday, snapping a four-day losing streak, but is still on pace to fall 3.4% this week. Shares remain squarely below their 50-day line. A rebound from here would be a positive for the stock’s near-term prospects, and would eventually lead to a new buy point. But the ongoing weakness means the stock requires more time to consolidate before a new entry.
TSLA stock threatened to give up a part of Thursday’s gains, falling 0.5% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple inched lower Thursday, holding near its recent lows. Shares are sharply below their 50-day line. While AAPL stock is still above its 157.38 buy point, recent weakness was a sell signal, which means investors should lock in gains. Shares climbed 0.2% early Friday.
Microsoft shares bounced from its recent lows, moving up 0.2% Thursday. With shares squarely below their 50-day line, the stock needs more time to consolidate before a new buy point emerges. And on Friday morning, Microsoft shares were down 0.3%.
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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