Dow Jones Rises On Key Inflation Data; Nike Stock Dives On Earnings

The Dow Jones Industrial Average rose Friday after the early release of the Federal Reserve’s favorite inflation indicator, the personal consumption expenditures price index. Meanwhile, Nike (NKE) plunged on its earnings report.


After Friday’s opening bell, the Dow Jones Industrial Average climbed 0.2%, while the S&P 500 rose 0.5%. The tech-heavy Nasdaq composite also gained 0.5% in morning action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 0.55%, while the SPDR S&P 500 ETF (SPY) rose 0.5% early Friday.

The yield on the 10-year U.S. Treasury bond dropped to 3.88% in morning trading. On Thursday, the benchmark ticked higher to 3.89%, just off its lowest level since late July.

Oil prices looked to continue their recent rebound, as West Texas Intermediate futures rose nearly 1% Friday morning. WTI moved above $74 a barrel. Last week, WTI briefly traded below $68 a barrel.

PCE Price Index, Nike Earnings

Early Friday, the Commerce Department released its monthly personal income and outlays report, saying that personal income rose 0.4% on the month for November, in line with estimates.

The PCE price index fell 0.1% on the month, meeting estimates, with an annual increase of 2.6%, cooler than the 2.9% estimate. Finally, the core PCE price index rose 0.1% in November, below the forecasted 0.2% rise, with an annual rise of 3.2%, also cooler than the 3.4% estimate.

The report also indicated that PCE inflation has run at an annualized rate of 2% over the past six months, and core inflation is down to 1.9%. The Federal Reserve is paying particular attention to the six-month number to make sure inflation truly is settling. The findings help boost the chances for a reduction in interest rates in 2024.

Dow Jones retail leader Nike plunged nearly 12% after reporting better-than-expected fiscal second-quarter earnings while revenue met expectations. But Nike warned of a “softer” sales outlook, and slashed its full-year revenue forecast.

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Dow Jones Rebounds From Stock Market Sell-Off

The stock market posted solid rebounds Thursday, as the Dow Jones Industrial Average climbed 0.9%. The S&P 500 rallied 1%, while the tech-heavy Nasdaq composite moved up 1.3%. All three recovered a hefty chunk of Wednesday’s losses.

Thursday’s Big Picture column commented, “During Thursday’s IBD Live session, the panel warned that now is an important time to pay close attention to your positions and potentially even start taking partial profits.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market gains. Be sure to read how to invest during the ongoing uptrend.

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Best Stocks To Buy And Watch

IBD Leaderboard stock Datadog (DDOG), (MNDY), IBD SwingTrader issue Netflix (NFLX) and Snowflake (SNOW) — along with Dow Jones components American Express (AXP), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.

Datadog and ELF Beauty are featured in this Stocks Near A Buy Zone column.

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Dow Jones: CAT Eyes Buy Point

Financial leader American Express jumped out of buy range, moving past a 175.31 buy point in a cup with handle, with a 2.3% advance Thursday. AXP stock rose 0.4% early Friday.

Heavy machinery giant Caterpillar is trying to break out past a 293.88 buy trigger, but closed below the entry despite a slight rise Thursday. CAT stock moved down 0.1% Friday morning.

Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock added 0.3% Friday.

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NFLX In Buy Range

IBD SwingTrader stock Netflix ranks among the best stocks to buy and watch, as it rose 0.5% Thursday. The streaming giant broke out past a 482.70 buy point in a cup with handle on Monday. NFLX stock added 0.3% Friday morning.

IBD Leaderboard stock Datadog is breaking out past an alternate handle buy trigger at 120.26 after big gains in recent weeks. DDOG stock rose 0.2% Friday. gave up its 185.81 buy point in a cup with handle in the wake of Thursday’s 0.8% drop, according to IBD MarketSmith. MNDY stock was down a fraction Friday.

Artificial intelligence leader Snowflake is in buy range past a cup-with-handle’s 192.66 buy point. SNOW stock fell 0.4% Friday, about 2% above the buy trigger.

Best Bets In Today’s 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
Applied Materials (AMAT) 145.86 Alternate entry
Caterpillar (CAT) 293.88 Cup base
Netflix (NFLX) 482.70 Cup with handle
Snowflake (SNOW) 192.66 Cup with handle
Source: IBD Data As Of Dec. 20, 2023

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Magnificent Seven: Nvidia, Tesla

Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) moved up 1.2% early Friday, while Nvidia (NVDA) gained 0.6%.

Graphics-chip giant Nvidia rebounded 1.8% Thursday, ending a two-day skid. NVDA stock is still in a buy zone above a 476.09 double-bottom entry.

Tesla stock raced 3% higher Thursday, closing back below an early entry at 252.75. The stock’s big double-bottom pattern has a 278.98 buy point.

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 stock moved down 0.1% Thursday, as its breakout move continued to falter. Shares are barely above a cup-with-handle entry of 192.93. Apple shares were up 0.2% Friday.

Microsoft stock gained 0.8% Thursday, erasing Wednesday’s losses. Shares remain above a 366.78 cup-base buy point. And the software giant was up a fraction 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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