The Dow Jones Industrial Average reversed higher Friday after the Labor Department’s stronger-than-expected November jobs report. Meanwhile, retail giant Lululemon Athletica (LULU) beat views on earnings, and LULU stock rallied after erasing sharp losses.
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Early Friday, the Labor Department’s employment report showed a gain of 199,000 jobs, higher than the 180,000 estimate. The unemployment rate dropped to 3.7%, but was expected to hold at 3.9%.
September’s change in payrolls was revised down by 35,000, from an increase of 297,000 to 262,000. October’s change in payrolls was unchanged, with a 150,000 increase.
Lululemon beat estimates for its third-quarter report. However, LULU stock rallied more than 1% in morning trade even as the company’s revenue outlook came up short.
Other key earnings movers Friday morning included Broadcom (AVGO), DocuSign (DOCU) and RH (RH).
AVGO stock rose more than 1% in early trade, while DocuSign shares declined almost 5%. RH stock dived more than 10% in morning action.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average turned up 0.3%, while the S&P 500 moved up 0.4%. The tech-heavy Nasdaq composite climbed 0.5% in morning trading.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.5%, while the SPDR S&P 500 ETF (SPY) moved up 0.4% early Friday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.22% Friday morning. On Thursday, the benchmark settled at 4.12%, still at its lowest level since early September.
Oil prices rebounded Friday, looking to cut into this week’s sharp losses. West Texas Intermediate futures rose around 2%, still below $71 a barrel. This week, WTI futures hit their lowest level since late June.
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Stock Market Rally
On Thursday, the major indexes finished higher, as the Dow Jones Industrial Average rose 0.2%. The S&P 500 held more solid gains, rising 0.8%, and the tech-heavy Nasdaq composite led the way with a 1.4% advance. That places all three major stock indexes near the highs of their recent trading ranges.
Thursday’s Big Picture column commented, “The tech-heavy Nasdaq composite led the stock market higher Thursday, as Wall Street prepared to shift its attention to Friday’s pivotal November jobs report.”
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 invest during the ongoing stock market uptrend.
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Stock Market Today: Best Stocks To Watch
Advanced Micro Devices (AMD) and IBD Leaderboard issue Amazon (AMZN), along with IBD SwingTrader player Booking (BKNG) and Eli Lilly (LLY) — as well as Dow Jones components Boeing (BA), UnitedHealth (UNH) and Visa (V) — are among the best stocks to watch in the current market rally.
Boeing and Cloudflare are featured in this Stocks Near A Buy Zone column.
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Dow Jones Stocks To Watch
Aerospace stock Boeing is rapidly approaching a cup base’s 243.10 buy point. Shares inched higher Thursday, just 3% away from their latest buy point. BA stock was up 0.3% Friday.
Health care giant UnitedHealth remains above a handle entry at 546.78 after Thursday’s slight loss. UNH stock gained 0.3% Friday.
Payments leader Visa is in buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock dropped 0.6% Friday.
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IBD Leaderboard stock Amazon continues to bob above and below a cup base’s 145.86 entry, with shares regaining that entry Thursday amid a 1.6% rise. AMZN stock lost 0.5% Friday morning.
Chip leader AMD surged past a 122.11 buy point in a cup with handle, according to IBD MarketSmith pattern recognition, during Thursday’s near-10% advance. AMD stock dipped 0.4% early Friday.
IBD SwingTrader stock Booking broke out past a 3,207.32 handle entry, with a 2.8% rally Thursday. But volume was just above average, so that’s a sign of less-than-ideal institutional demand. BKNG stock fell 0.1% Friday.
Drug giant Eli Lilly continues to trace a flat base with an official buy point at 629.97. An early entry would be in play if the stock is able to bounce strongly from its 50-day line. LLY stock moved up 0.3% Friday morning.
Best Stocks In Today’s Stock Market 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 |
|---|---|---|---|
| Amazon | (AMZN) | 145.86 | Cup base |
| UnitedHealth | (UNH) | 546.78 | Handle entry |
| Booking | (BKNG) | 3,207.32 | Handle entry |
| Advanced Micro Devices | (AMD) | 122.11 | Cup with handle |
Source: IBD Data As Of Dec. 7, 2023
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Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) moved up 0.6% early Friday, while Nvidia (NVDA) climbed 2%.
Graphics-chip giant Nvidia rallied 2.4% Thursday, as the stock closed right at its 50-day line, about 3% below a 476.09 double-bottom entry.
Tesla stock rose 1.4% Thursday, still holding above its 50-day line, which is a key support level to watch. The stock’s big double-bottom pattern has a 278.98 buy point, while an early entry is in play at 252.75.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT), traded higher after today’s stock market open.
Apple rallied 1% Thursday, retaking a cup-with-handle entry at 192.93. Apple shares rose 0.2% Friday.
Microsoft stock rose 0.6% Thursday, further above a cup base’s 366.78 buy point. And MSFT stock was up 0.4% 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.
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Source: investors.com
