Dow Jones futures rallied 175 points Friday after the Labor Department’s pivotal August jobs report. That came as Tesla stock got a boost from the company’s release of an updated Model 3 sedan in China and price cuts on its premium vehicles.
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The Labor Department’s August jobs report showed that nonfarm payrolls grew by 187,000 last month, topping the 170,000 estimate, and were unchanged from July’s 187,000 increase. The unemployment rate rose to 3.8%, but was expected to remain unchanged at 3.5%.
Meanwhile, the July payrolls were revised down to 157,000 from 187,000.
Friday morning, Broadcom (AVGO), Dell (DELL), Lululemon Athletica (LULU) and MongoDB (MDB) were key earnings movers.
Broadcom shares tumbled nearly 4% in premarket trade, while Dell stock surged 10%. LULU stock rallied more than 2% in morning action, as MongoDB shares jumped 5.2%.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded a fraction higher Friday, while Nvidia (NVDA) rose 0.3%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were modestly higher after today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock and Meta shares both gained 0.5% in early action.
Baker Hughes (BKR), Cadence Design Systems (CDNS), Shopify (SHOP), Synopsys (SNPS) and Tidewater (TDW) — as well as Dow Jones stocks IBM (IBM), Merck (MRK) and Visa (V) — are among the best stocks to watch in the ongoing stock market rebound.
Baker Hughes is an IBD Leaderboard watchlist stock. Merck is featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures rose 0.5%, while S&P 500 futures gained 0.6%. Tech-heavy Nasdaq 100 futures moved up 0.6% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.4%, while the SPDR S&P 500 ETF (SPY) traded up 0.5% early Friday.
Early action also showed the 10-year U.S. Treasury yield ticked higher to 4.09% after Friday’s jobs report.
West Texas Intermediate oil prices broke above early August highs to their strongest level in nine months. WTI futures traded up around 1% Friday morning, moving above $84.50 a barrel and sitting on a six-week advance.
Stock Market Trend
On Thursday, the Dow Jones Industrial Average dropped 0.5%, while the S&P 500 moved down nearly 0.2%. The tech-heavy Nasdaq composite rose just 0.1%. Volume also rose on the Nasdaq, which gave the composite a stalling day, a form of distribution.
Thursday’s Big Picture column commented, “With this week’s bullish action, IBD’s market outlook was upgraded to a confirmed uptrend. IBD’s recommended exposure range was upped to 20%-40%. Investors should be putting their watch lists to work. But raise exposure methodically, especially with the risk that economic data could rattle investors.”
Now is an important time to read IBD’s The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: IBM, Merck, Visa
Dow Jones leader IBM is trying to break out past a cup-with-handle’s 146.50 buy point. IBM stock rose 0.3% Friday, after a slight fall Thursday.
Drug giant Merck fought to stay above its 50-day line with a 1.1% fall on Thursday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares were unchanged early Friday.
And Dow Jones payments leader Visa is breaking out past its latest entry, a flat base’s 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock gained 0.5% Friday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Baker, Cadence, Shopify, Synopsys, Tidewater
Oil field services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock moved up 1.1% in early morning trade, as oil prices continue to rise.
Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 this week and are about 3% away from their next entry. CDNS was off 0.2% Friday.
Shopify will make use of Amazon’s vast distribution network, sparking a surge of nearly 11% in SHOP stock Thursday. Shares jumped above their 50-day line in big volume. A 71.43 buy point in a cup base is about 7% away. The stock has broken out past a downward trendline drawn from its July top. SHOP stock moved up 0.3% Friday morning.
Tuesday’s IBD 50 Stocks To Watch pick, Synopsys, is trading in a flat base with a 468.03 entry. Meanwhile, an extra entry at 456.82 is also in play. SNPS stock edged higher Friday.
IBD Leaderboard stock Tidewater continues to rebound from support around its 10-week line, placing the energy leader in a new buy area. TDW stock added 0.3% early Friday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Stock Market Action
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 |
|---|---|---|---|
| Oracle | (ORCL) | 127.54 | Flat base |
| Visa | (V) | 235.57 | Flat base |
| SLB | (SLB) | 58.70 | Cup with handle |
| Synopsys | (SNPS) | 468.03 | Flat base |
Source: IBD Data As Of Aug. 30, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock climbed 0.5% Thursday, on pace to finish with a weekly gain of more than 8%. Amid their recent rebound, shares are back above their 50-day line. Investors could use Thursday’s high of 261.18 as an early entry. And TSLA stock has a 299.29 official buy point.
Early Friday, Tesla stock traded up a fraction in morning trade after the company unveiled the new Model 3 sedan in China. The exterior got a modest, sportier look with the interior also having a relatively modest refresh. The new Model 3 is getting a 9% battery range boost and faster acceleration. In a surprise, though, the price will be 12% higher.
Meanwhile, the EV giant cut its prices on the Model S sedan and Model X sport utility vehicle in the U.S. and China, and lowered the price of the driver-assistance system marketed as Full Self-Driving by $3,000, to $12,000.
Tesla is now charging $74,990 for the base Model S and $79,990 for the Model X, according to its U.S. website. The two vehicles began the year with starting prices of $104,990 and $120,990, respectively.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.1% Thursday, extending a win streak to five sessions. Shares regained their key 50-day line this week in bullish fashion. AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 0.4% early Friday.
Microsoft shares also are rebounding from their recent lows, but the stock is seeing some resistance around its 50-day line. A decisive retake of that level would be a big positive for the stock’s immediate prospects. And on Friday morning, the stock moved up 0.3%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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