Dow Jones Rises On Inflation Data; 7 Top Stocks To Buy And Watch

On May 27, 2022

The Dow Jones Industrial Average rose Friday morning, as a key inflation reading eased for the first time this year. For the week, the Dow Jones Industrial Average is set to snap an eight-week losing streak, as the stock market rally continues. And following Thursday’s bullish gains, six top stocks to buy and watch include Merck and Tesla supplier Livent.

Marvell Technology (MRVL), Ulta Beauty (ULTA), Workday (WDAY) and Zscaler (ZS) were key earnings movers Friday.

MRVL shares rallied 6% after beating Wall Street’s estimates. ULTA shares jumped 10% on strong first-quarter results. Workday sold off 7% after missing earnings estimates. Zscaler stock rose 12% on better-than-expected results.

Electric-vehicle giant Tesla (TSLA) traded up 3% Friday morning. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were up around 1% each in today’s stock market.

Amid a stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Livent (LTHM), Eli Lilly (LLY), Northrop Grumman (NOC), World Wrestling Entertainment (WWE) and ZIM Integrated Shipping (ZIM) — are among IBD’s top stocks to buy and watch for Friday.

WWE is an IBD Leaderboard stock. Northrop is on IBD SwingTrader. And Livent was featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields, Oil Prices, Inflation Data

After Friday’s open, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 moved up 0.8%. The tech-heavy Nasdaq rallied 1.3% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) climbed 1.1%. The SPDR S&P 500 ETF (SPY) moved up 0.7%.

The 10-year Treasury yield ticked down to 2.72% Friday morning after closing Thursday at 2.76%. On Tuesday, the 10-year Treasury yield hit its lowest level since mid-April. Meanwhile, U.S. oil prices dropped less than 1%, with West Texas Intermediate crude trading below $114 a barrel.

Early Friday, core personal consumption expenditures — the Federal Reserve’s preferred inflation indicator — rose 4.9% in April, slower than March’s 5.2% increase, which could signal that price increases are slowing.

Stock Market Rally

The major stock indexes posted more positive action Thursday, as the tech-heavy Nasdaq surged 2.7%.

Thursday’s The Big Picture column commented, “The stock market finished sharply higher Thursday in bullish action that left the S&P 500 and Nasdaq composite on track to finally end seven-week losing streaks.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron, Merck

Dow Jones leader and energy giant Chevron is trading just above a