The Dow Jones Industrial Average and other major indexes cut into their early gains Friday, as Wall Street digested key inflation data included in the early release of a consumer sentiment report. Meanwhile, Nvidia (NVDA) was a beneficiary on the stock market today of strong monthly sales posted by chipmaker Taiwan Semiconductor Manufacturing (TSM), known as TSMC.
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In morning action, the Dow Jones Industrial Average rose 0.3%, as did the S&P 500. The tech-focused Nasdaq composite was also up 0.3% after the opening bell.
Early Friday, the 10-year Treasury yield climbed to 4.49%. Further, oil prices rose as West Texas Intermediate futures traded around $79.55 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) climbed 0.3%, as the SPDR S&P 500 ETF (SPY) also gained 0.3%.
Early Friday, TSMC reported April revenue that soared 59.6% vs. a year earlier in local currency, or 20.9% vs. March. Year-to-date revenue is up 26.2%. The chip foundry giant also announced a cash dividend. Shares climbed more than 4% in early trading.
That helped Nvidia stock rally 2.3% in morning trading. Shares of the artificial intelligence giant declined 1.8% Thursday, barely holding above their 50-day line. They continue to build a base that has a 974 buy point. Meanwhile, an early buy trigger is in play at 888.19, which was the high on April 30. The AI leader is an IBD Leaderboard stock.
Stock Market Today: Inflation Numbers
Right after Friday's stock market open, the University of Michigan's consumer sentiment index tumbled to 67.4 in May, down from April's 77.2 reading. It was expected to fall to 77, per Econoday estimates. Consumers' inflation expectations for the year ahead came in hotter than expected at a 3.5% rate. Year-ahead inflation expectations were estimated to hold steady at 3.2%. Finally, five year-ahead expectations came in at 3.1%, above the 3.0% estimate.
Key earnings movers include JFrog (FROG), Unity Software (U) and Yelp (YELP).
JFrog shares tumbled more than 15% in early morning action, while Unity stock fell 1.7%. Yelp was down 2.4% in morning trading.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Extends Win Streak
On Thursday, the Dow Jones Industrial Average advanced 0.9% to extend a win streak to seven sessions. The S&P 500 climbed 0.5%. The tech-heavy Nasdaq composite moved up 0.3%, and the small-cap Russell 2000 also rallied 0.9%.
Thursday's The Big Picture column commented, "While there has been nofollow-through day yet, IBD's recommended market exposure sits at 40% to 60% as the market extends its rebound and the main indexes sit about 1% away from new highs."
On Thursday's IBD Live show, the IBD Live team discussed the current trading conditions. The team commented that the Nasdaq closed near highs Wednesday, indicating that buyers are still going strong. With solid price action holding up, it still makes sense for investors to slowly increase exposure as new opportunities present themselves.
Now is an important time to read Investor's Business Daily's The Big Picture column amid the ongoing stock market action. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today:Best Stocks To Watch
NetApp (NTAP), NXP Semiconductor (NXPI), Pinterest (PINS) and Tradeweb Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch on the stock market today.
Chipotle and Merck featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, Manulife Financial (MFC) is breaking out past a 25.14 flat-base entry.
Also, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases.
To find more stock ideas, checkIBD Stock ListslikeIBD 50,Big Cap 20andStocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express Above Buy Point
American Express is bouncing back in heavy volume from support around its 50-day moving average. The bullish rebound has placed the payments leader in a new buy area, while shares are just above a 231.69 entry in a short consolidation. Shares gained 1.4% on the stock market today.
Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock was up 0.3% Friday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, NetApp moved down 1.2% Thursday, falling below a 108.82 buy point in a double bottom, according toIBD MarketSurge. NetApp shares gained 0.5% after the open on Friday.
NXP Semiconductors is in buy range past a double-bottom entry at 251.96. Shares were up 0.5% Friday.
Pinterest inched higher, taking a win streak to four sessions and closing in buy range above a 41.60 cup entry. Shares gained 0.3% early Friday.
Tradeweb is at the top of its buy range past a flat base's 108.04 buy point. That places the stock in a new buy area. The stock slipped 0.2% Friday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stockTesla (TSLA) fell 0.7% in Friday's morning action.
Tesla stock dropped 1.6% Thursday, closing below the 50-day line. Tesla shares are more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed after Friday's stock market open.
Apple stock rose 1% Thursday, above its 200-day line and forming the right side of a new base. The stock fell 0.5% Friday morning.
Microsoft shares gained 0.4% Thursday still below the 50-day line, which is a key hurdle to watch. The software giant is building a new flat base that has a 430.82 buy point. And Microsoft stock moved up 0.7% Friday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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