The Dow Jones Industrial Average rose on Friday, ahead of Fed Chairman Jerome Powell's Washington speech. Occidental Petroleum's (OXY), meanwhile, rose after Warren Buffett’s Berkshire Hathaway increased its stake in this energy giant.
Powell, the Fed's chief is scheduled to speak at 11 a.m. ET. Thomas Lauback Research Conference, 11:00 a.m. ET According to the Federal Reserve website, this year's conference "will highlight key issues in the economy and monetary policies and facilitate discussion on the challenges faced." The webcast of the conference can be found at URL, and URL.
Occidental's shares rose 3% in recent days after Warren Buffett and Berkshire Hathaway bought shares worth $200 million in the energy firm. This was according to SEC filings. Buffett now owns nearly 25% of Occidental, which is $12.7 billion.
Friday morning, Applied Materials (AMAT), Deere(DE), Foot Locker(FL), and Ross Stores(ROST) were the top earners.
Applied Materials shares fell 3% during morning trading, while Deere's stock rose nearly 5% after a strong earnings beat.
Foot Locker's stock fell 26% due to weak earnings and sales in the first quarter. Ross Stores also dropped by 0.9% following the opening of the market.
Stock Market Today
Recent IBD Stock of the Day topics included Netflix and Lam Research.
Dow Jones Today: Oil prices, Treasury Yields
The Dow Jones Industrial Average gained 0.2% after Friday's opening, but Nike (NKE), the footwear stock, was at the bottom, as it fell following the Foot Locker Report.
In morning trading, the S&P 500 rose 0.3% while the Nasdaq composite, which is dominated by technology companies, climbed 0.15%.
The Nasdaq-100 tracker Invesco QQQ Trust fell by 0.1% while the SPDR S&P500 ETF (SPY), traded at a 0.2% gain on Friday morning.
The yield on the 10-year U.S. Treasury rose to 3.7% on Friday, extending a streak of five consecutive days in which it had risen to its highest point since mid-March.
The U.S. crude oil price continued to fluctuate between $70 and $75 a barrel. West Texas Intermediate futures rose more than 1% on Friday morning and held just below $73 per barrel.
Stock Market Action
The Dow Jones Industrial Average gained 0.3% on Thursday, adding to the climb of Wednesday, which saw the index retake the 50-day line. On Thursday, the S&P 500 rose 0.9% and also reached a new high for 2023. The Nasdaq Composite, which is heavily tech-oriented, advanced by 1.5%. The Russell 2000 small-cap index gained 0.6%.
IBD's recommendation to increase market exposure from 40%-60% was prompted by Wednesday's bullish Nasdaq action. Investors should increase their exposure in order to keep up with the market. With new highs on Thursday, no Nasdaq distribution days, and an increasing number of high profile breakouts, this makes sense.
After last week's positive change in the outlook for the markets, it's important to read IBD The Big Picture.
Dow Jones Stocks to Buy and Watch: Boeing Salesforce Visa
Boeing, Dow Jones' aerospace giant, moved higher on Thursday. According to IBD MarketSmith pattern identification, Boeing held above its 50 day line and was moving closer to the 221.43 purchase point for a flat-base, which is based on a flat basis. BA stock fell 0.2% on Friday morning.
According to Leaderboard's analysis, IBD Leaderboard stocks Salesforce and 200.10 have rallied in recent sessions. The RS line also reached a new record high this week. This is a bullish sign. CRM stock fell 1.5% Friday morning.
After a 0.4% increase on Thursday, Visa shares are still in the buy range. The range of buys goes up to 241.66. V stock lost 0.2% Friday.
AMD, ASML and Lam are the best stocks to buy.
According to IBD MarketSmith pattern identification, Advanced Micro Devices, the chip leader, is just outside of the buy range after a cup's base 102.53, despite a 4% gain on Thursday. The 5% buying area was raised to 107.66. AMD's stock rose above an early trendline, using the high of May 4, 91.64, as a buy point. AMD shares fell 2.6% Friday.
ASML, IBD Leaderboard's stock, broke through a 683.28 purchase point Thursday in a cup-with-handle. The top of the 5% buying zone is 717.44. ASML rose 0.2% on Friday.
Lam Research stock moved out of the buy range on Thursday after breaking out of its flat base Monday with a purchase point of $548.95. LRCX was down by 1.2% on Friday.
Netflix, the streaming giant, soared past its buy-point at 349.90 from a cup with handle base. The company's stock jumped 9.2% on Thursday after Netflix announced that it has more than 5 million active monthly users in over 50 countries. NFLX shares fell 1.1% on Friday morning.
Stock Market Rally: Best Stocks to Buy and Watch
There are four stocks that you should buy today and keep an eye on, including two Dow Jones leaders.
Advanced Micro Devices 102.53 Cup Base
Source: IBD data as of May 19, 2023
Tesla's stock rose 1.7% on Thursday, regaining its 50-day level. The stock is poised to move back above its 10-week moving median as it looks to establish a new base. Stocks closed Thursday at a 47% discount to their 52-week peak.
Dow Jones Leaders - Apple and Microsoft
Apple stocks rose 1.4% among Dow Jones stocks on Thursday and closed at their highest since April 5, 2022. Stock continues to rise above the 157.48 purchase point, and has left the range of buys that went up to 165.35. AAPL's stock rose 0.5% on Friday, approaching a new 52 week high.
Microsoft shares rose by 1.4% on Thursday, reaching a new 52 week high of 319.04. The MSFT stock is continuing to rise above the 276.86 buy-point. On Friday morning, MSFT stock fell 0.3%.