The Dow Jones Industrial Average erased early gains on Friday, as Federal Reserve Chairman Jerome Powell delivered his speech from Jackson Hole, Wyoming. Meanwhile, former President Donald Trump returned to X, formerly known as Twitter, for the first time since 2021.
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Powell began speaking at 10:05 a.m. ET at this year’s Jackson Hole Economic Symposium. The conference theme “Structural Transformations in the Global Economy” implies that something has changed – and not for the better when it comes to inflation.
And in his Friday speechPowell said that inflation is “very high” and that the Fed is “prepared to raise interest rates even further.”
Last month, the Fed raised the federal funds rate by a quarter of a percentage point to a range of 5.25%-5.5%, the highest level in 22 years. The next meeting is September 19-20.
trump Is Back To X, Post a mug shot of him Taken late Thursday at the Fulton County Jail in Georgia. The county has charged Trump with racketeering related to efforts to overturn the 2020 presidential election. Acquisition of the digital world (your medicine) stumbled by 5% in morning trading.
Digital World plans to put Trump Media and Technology Group into a reverse merger. Trump Media is the parent company of conservative social media platform Truth Social.
early Friday, intuit (You and), Marvell technology (Morley) And a work day (day) were the main drivers of earnings.
Intuit shares fell 0.3% after the company beat analyst estimates for the fourth fiscal quarter but provided a mixed forecast for the current period. Marvell shares sold off 4.6% after exceeding Wall Street’s targets for the fiscal second quarter and providing a consistent forecast for the current period.
Finally, Workday stock jumped 1.1% after missing Wall Street expectations for the second quarter.
stock market today
electric car giant Tesla (TSLA) and traded up 2.8% Thursday morning, while nvidia (NVDA) by 0.7%. Technology icons in the Dow Jones index apple (Camel) And Microsoft (MSFT) were higher after the stock market opened today.
Among other stock market leaders the alphabet (Google) And Meta platforms (meta). GOOGL shares rose 0.5% and Meta shares rose 0.4% in early trade.
Baker Hughes (BKR), Costco wholesale (it costs), inspiration (ORCL) And Tide water (TDP) – as well as Dow Jones shares merck (Mark) And visa (Fifth) — one of the best stocks to watch in the ongoing stock market correction.
Tesla and Costco are shares of the IBD Leaderboard. Boeing appeared in the column of stocks close to the overbought zone.
Dow jones today: oil prices and treasury yields
After the opening bell on Friday, the Dow Jones Industrial Average fell after giving up strong gains, while the S&P 500 rose 0.2%. The Nasdaq Composite Index, which was dominated by technology stocks, rose 0.4% in morning trading.
Among the US exchange-traded funds is the Nasdaq 100 Invesco QQQ Trust (QQQ(down 1.1%, while the SPDR S&P 500 ETF rose)spy) rose 0.8% early on Friday.
Also on Friday, the 10-year US Treasury yield rose to 4.25% ahead of Powell’s speech. On Thursday, the yield settled at 4.23%, on pace with modest losses this week.
WTI prices appeared to extend Thursday’s recovery, up more than 1.5% in morning trade on Friday. WTI futures traded above $80 a barrel.
The work of the stock market
On Thursday, the Dow Jones Industrial Average fell by 1.1%, while the S&P 500 fell by nearly 1.4%. The high-tech Nasdaq Composite Index sold off 1.9%. In a worrying move, all three found strong resistance at their 50-day moving averages, and closed at session lows on Thursday.
The Big Picture column commented on Thursday: “With downward movement on Thursday, the market outlook remains for IBD with a stock market correction, while the recommended exposure range has been lowered to 0%-20%. It was at 20%-40%.” Thursday’s aggressive bearish reversal is unlikely, but a follow-up day is still possible any day. As long as the NASDAQ remains above its August 18 lows, the attempt to rally remains valid.”
Now is an important time to read IBD’s “Big Picture” column, as the stock market attempts to stabilize after a sharp pullback from its highs this year.
Top five Dow stocks to buy and watch right now
Dow Jones shares: Merck, Visa
Pharmaceutical giant Merck is struggling to stay above its 50-day line amid a decline of 1.7% on Thursday. MRK stock is tracking a flat bottom with a buy point at 119.65 and an early entry point at 115.61. Shares rose early on Friday.
Visa, the Dow Jones payments leader, continues to hold a buy range of more than 235.57 flat buy points, according to IBD MarketSmith’s pattern recognition. Meanwhile, another entry is available, as the stock forms another flat base containing the entry level of 245.37. V stock rose 1.1% on Friday.
4 top growth stocks to buy and watch at stock market correction
Stocks to watch: Baker, Costco, Oracle, Tidewater
Drilling and energy company Baker Hughes has been trading tightly for the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock rose 0.8% in early morning trade.
Costco threatens to close decisively below its 50-day support level amid a slew of weak earnings reports from retailers, including Dick’s Sporting Goods (dex) And Messi (M). Meanwhile, entry indicator looms at 571.16. COST stock rose early on Friday.
Oracle continues to track a flat bottom with a buy point of 127.54. There is also an early entry at 118.06, where the program leader threatens to give up support around the 50-day line. ORCL stock rose modestly in early trade.
IBD Leaderboard’s Tidewater stock is rebounding from support around its 10-week line, putting the energy leader in a new buy territory. TDW stock rose 0.4% early Friday.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks in the stock market business
These are the four best stocks to buy and watch in the stock market today, including the leader of the Dow Jones Index.
| Company Name | Code | The right point of purchase | Point of purchase type |
|---|---|---|---|
| inspiration | (ORCL) | 127.54 | Flat base |
| visa | (Fifth) | 235.57 | Flat base |
| slb | (slb) | 58.70 | mug with handle |
| Costco | (it costs) | 571.16 | mug with handle |
Source: IBD data as of August 22, 2023
Tesla shares
Tesla stock fell 2.9% on Thursday, snapping a three-day winning streak. Stocks are still well below the 50-day line. Amid the recent sell-off, it is clear that the stock needs more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA shares.
Early Friday, Tesla stock appeared to be rebounding from Thursday’s losses, rising nearly 3%.
Dow Jones Index Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 2.6% Thursday, ending a four-day winning streak. The stock remains squarely below the 50-day line after sharp losses in recent weeks. AAPL stock rose 0.6% early Friday.
Microsoft shares are also trying to bounce back from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock is still below the 21 and 50 day lines, so no buy signal yet. On Friday morning, the stock was up 0.9%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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