Futures Mixed Ahead Of Key Inflation Data

Dow Jones futures dropped Friday morning ahead of key inflation data, with the early release of the PCE price index. Meanwhile, Amazon (AMZN) surged on strong earnings results.

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Ahead of Friday’s market open, the Commerce Department plans to issue its personal income and outlays report. Personal income is expected to rise 0.4% in September. The personal consumption expenditures price index is expected to increase 0.5% on the month, with an annual gain of 3.4%. The core PCE price index is expected to rise 0.3% on the month, with a 3.7% year-over-year increase. The report is due at 8:30 a.m. ET.

Amazon stock jumped more than 6% Friday morning after the company reported third-quarter earnings and revenue growth that topped Wall Street’s estimates.

Elsewhere on the earnings front, Chipotle Mexican Grill (CMG), Deckers Outdoor (DECK), Dexcom (DXCM) and Intel (INTC) were key movers Friday.

Chipotle stock jumped nearly 4% in premarket trade, while Deckers shares soared 10%. DXCM stock leapt 18%, as Intel shares rallied more than 7% in early action.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Friday’s opening bell, Dow Jones futures dropped 0.25% vs. fair value, while S&P 500 futures moved up 0.2%. Tech-heavy Nasdaq 100 futures rallied 0.7% vs. fair value.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.7%, while the SPDR S&P 500 ETF (SPY) moved up 0.2% early Friday.

The yield on the 10-year U.S. Treasury bond ticked higher to 4.87% Friday morning. On Thursday, the benchmark settled at 4.84%.

Oil prices rebounded Friday morning, after falling on Thursday. West Texas Intermediate futures rose nearly 2%, trading around $84.50 a barrel.

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Stock Market Correction

Thursday’s market action delivered more bearish news, with the Dow Jones Industrial Average down another 0.8% by the session’s close. The S&P 500 ended the day down 1.2% while the tech-heavy Nasdaq composite sold off 1.8%.

Thursday’s Big Picture column commented, “During a market correction, the potential risk is high enough that sitting on the sidelines is preferable to buying. Keep in mind that leading stocks usually correct 1.5 to 2.5 times the general market. That can make a big negative impact in your portfolio. You can gain a lot of market outperformance by keeping exposure low in bad markets and avoiding huge drawdowns.”

Now is an important time to read IBD’s The Big Picture column, with the current outlook back in market correction status. Be sure to read how to handle changing market forces.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stock Market Today

Electric-vehicle giant Tesla (TSLA) rallied 1.5% early Friday, as Nvidia (NVDA) moved up 1.6%. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of today’s stock market open.

International Seaways (INSW), Lululemon Athletica (LULU), Light & Wonder (LNW) and Tradeweb Markets (TW) — as well as Dow Jones stocks Walmart (WMT) and UnitedHealth (UNH) — are among the best stocks to watch in the deepening stock market correction.

International Seaways and LNW stock are recent IBD Stocks Of The Day.

Dow Jones Stocks: Walmart, UnitedHealth

Dow Jones retail giant Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. This week, shares regained their key 50-day line and are about 2% away from their latest entry. WMT stock fell 0.4% Friday.

Healthcare giant UnitedHealth is adding a handle to a giant consolidation, showing a new buy point at 546.78. UNH stock inched lower Friday morning.

4 Top Growth Stocks To Watch In The Stock Market Correction

Stocks To Buy And Watch: Tradeweb Breaks Out

International Seaways is rapidly nearing a cup-with-handle’s 48.40 entry, closing within striking distance of the buy trigger. INSW stock moved up nearly 1% Friday morning.

Lululemon dropped 2% Thursday, still below a flat base’s 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was slightly higher Friday morning.

Casino games maker Light & Wonder slid another 1.2% Thursday, as shares continue to trace a flat base with a 79.97 buy point. LNW stock was unchanged early Friday.

Tradeweb broke out of a flat base’s 87.53 buy point Thursday after the company’s third-quarter earnings. Keep in mind the market correction should keep you from buying breakout stocks. But Tradeweb is showing unusual strength in a weak environment. TW stock gained 1.2% in premarket trades Friday.

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

International Seaways
(INSW)
48.40
Cup with handle

UnitedHealth
(UNH)
546.78
Handle entry

Lululemon
(LULU)
406.94
Flat base

Tradeweb Markets
(TW)
87.53
Flat base

Source: IBD Data As Of Oct. 26, 2023

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