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Dow Jones Rallies As Powell Supports Bond Taper; Tesla Rallies, Peloton Dives On Earnings

The Dow Jones Industrial Average rallied 200 points Friday, as Fed chief Powell’s highly anticipated speech began. Tesla stock looked to rebound from Thursday’s losses, while Peloton dived 10% on weak earnings results.




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Among the Dow Jones leaders, Apple (AAPL) fell 0.2% Friday, while Microsoft (MSFT) moved down 0.4% in today’s stock market. Home Depot (HD) remains below a new buy point after a recent breakout attempt.

Shares of electric vehicle giant Tesla (TSLA) were on pace to rebound from Thursday’s loss, rising 0.4% in Friday morning trade. The EV leader remains just above a recent buy point and in buy range after bullishly retaking an entry on Monday.

Among the top stocks to buy and watch, Airbnb (ABNB), Mercado Libre (MELI) and Nvidia (NVDA) are in or near new buy zones.

Airbnb, Microsoft and Tesla are IBD Leaderboard stocks. Nvidia is an IBD SwingTrader stock. Nvidia was featured in this week’s Stocks Near A Buy Zone column. Airbnb was Tuesday’s IBD Stock Of The Day.

Dow Jones Today: Powell Speech

The Dow Jones Industrial Average rose 0.65% early Friday, while the S&P 500 moved up 0.7%. The tech-heavy Nasdaq rallied 0.8% in morning trade.

On Friday, Fed Chairman Jerome Powell was scheduled to speak around 10 a.m. ET and expected to reveal details of how long the currently higher inflation rate is expected to last, and what the Fed should do about it. The speech will be available on YouTube.

In his prepared remarks, Powell supported the central bank’s emerging plan to begin reversing its easy-money policies later this year. At the Fed’s latest meeting, “I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace” of the Fed’s $120 billion in monthly asset purchases this year, Powell said Friday.

Among exchange traded funds, the Innovator IBD 50 (FFTY) was up 0.9% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.1% Friday. Meanwhile, the SPDR S&P 500 ETF (SPY) rose 0.3%.

Stock Market Rally Continues

The Nasdaq and S&P 500 looked to rebound after moderate losses Thursday. Both major indexes hit record highs Wednesday.

Thursday’s Big Picture commented, “Wednesday’s Big Picture noted that the stock market’s rebound that began last week may already be fading. Index gains had been moderating, and Thursday’s losses suggest the market could be dipping again. It’s part of a fairly predictable pattern in the S&P 500, especially, that’s occurring this year.”

For more stock market commentary, check out IBD’s The Big Picture.


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Dow Jones Stocks To Buy And Watch: Home Depot

Dow Jones leader Home Depot is trying to break out past a cup-with-handle’s 333.55 entry, but currently sits below the buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.

Shares were down 0.4% Friday.

Stock Market Earnings: Marvell, Peloton, Workday

After the close Thursday, Marvell Technology (MRVL), Peloton (PTON) and Workday (WDAY) reported their quarterly earnings results.

Chipmaker Marvell beat Wall Street’s estimates for its fiscal second quarter and guided modestly higher for the current period. Shares tumbled over 4% in morning trade, retreating from Thursday’s new highs.

Peloton reported a much deeper-than-expected fiscal fourth-quarter loss, offered up a weak outlook for its first quarter and said it would cut the price of one of its bikes. Peloton stock dived as much as 10% in morning trade and is more than 35% off its 52-week high.

Workday reported second-quarter earnings and revenue that topped estimates while subscription revenue guidance came in above expectations. The stock surged 8%, as it continues to climb up the right side of a new base.

Stocks To Buy And Watch: Airbnb, Mercado Libre, Nvidia

IBD Leaderboard stock Airbnb surged past a 152.86 buy point during Tuesday’s advance, but gave up a large part of those day’s gains following Thursday’s nearly 5% sell-off. Shares closed Thursday just below the buy point. The stock rallied about 0.2% Friday morning and is back in buy range.

Airbnb was Tuesday’s IBD Stock Of The Day.

Mercado Libre traded up 0.8% Friday, as it trades about 3% away from a cup with handle‘s 1,899.43 buy point. MELI stock is also above a 1,755.05 buy point created by the Aug. 5 gap-up on earnings.

IBD SwingTrader stock Nvidia is back out of buy range past a 208.85 buy point in a flat base, according to IBD MarketSmith chart analysis. Shares broke out Monday, advancing 5.5% in heavy volume. The stock is past the top of 5% buy area that runs up to 219.29.

Nvidia shares rose about 1.5% Friday. The IBD Stock Checkup shows NVDA stock holds a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.


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Tesla Stock

Tesla stock rose 0.4% Friday, on pace to rebound from Thursday’s 1.4% decline. On Monday, shares bullishly regained their 700.10 aggressive buy point deep inside a correction after last week’s weakness nd are back in buy range. Meanwhile, a deep, large base continues to take shape.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple shares were down 0.2% Friday, threatening to extend a three-day losing streak. Apple stock is just above a 148 trend line entry and in buy range. The stock hit an all-time high on Aug. 18 at 151.68 before reversing lower.

Software giant Microsoft lost 0.4% Friday, on pace to fall for a fourth straight session. Shares hit an all-time high at 305.84 last week. Microsoft is about 15% above a cup base’s 263.29 buy point.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.

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