The Dow Jones Industrial Average rallied out of the red as stocks ended the week with gains. Tesla (TSLA) was forced lower on negative headlines. A trio of Warren Buffett stocks are near buy points, including RH (RH) and Aon (AON). Apple (AAPL) was a top blue chip.
Meanwhile, a trio of noteworthy growth names made bullish moves. MercadoLibre (MELI), Copa Airlines’ parent Copa Holdings (CPA) and Fluor (FLR) all offered entries.
Volume on the Nasdaq and the New York Stock Exchange was lower vs. the previous day, according to early data.
The yield on the benchmark 10-year Treasury note rose five basis points to 3.5%. West Texas Intermediate crude rose 2% to just under $80 per barrel.
Nasdaq Gains, IBD 50 Excels
The Nasdaq managed to fight out of negative territory to rise 0.7%. Pinduoduo (PDD) was a top performer here as it rose 3.8%.
The S&P 500 also clambered higher as it gained 0.2%. Illumina (ILM) was a standout as it gained 3.8%, but its chart is unremarkable.
The S&P 500 sectors were mostly positive. Consumer discretionary and financials fared best, while real estate and utilities lagged. Small-cap stocks shined, with the Russell 2000 closing up 0.6%.
Growth stocks impressed most, with the Innovator IBD 50 ETF (FFTY) rallying 1.2%.
Dow Jones Today: Caterpillar Up, Apple Stock Shines
The Dow Jones Industrial Average continued to impress after it managed to reverse higher after early pressure. It ended the day up 0.3%.
Outside of the banking names, it was Leaderboard stock Caterpillar that impressed most on the index. CAT stock, which is extended past a 239.95 buy point, rose nearly 1%.
Apple stock reversed higher, closing 1% higher. It remains rooted below its 50-day moving average, however.
UnitedHealth (UNH) was the stock that lagged most on the Dow Jones today. UNH stock fell 1.2% in a bearish reversal.
Market Breaks Past Resistance; Tesla’s Painful Transition
Warren Buffett Stocks Eye Buy Points
Many investors keep track on the portfolio of famous investors, and none is more popular than Berkshire Hathaway (BRKB) CEO Warren Buffett. A trio of stocks in his firm’s portfolio are either building bases or testing a buy point.
Aon stock is in a buy zone after clearing a cup-with-handle entry of 314.74, according to MarketSmith analysis. The relative strength line for the insurance stock is at new highs.
All-around strong performance has netted the stock an IBD Composite Rating of 90.
Floor & Decor (FND) is one to watch as it forms a cup base with a 102.25 buy point. The stock holds a powerful EPS Rating of 93. It is in the top 20% of stocks in terms of price performance over the past 12 months.
RH, formerly Restoration Hardware, is closing in on an entry at 338.71. It is a big favorite with institutions, with 71% of its stock held by funds. Forward earnings estimates are not ideal though, with EPS seen slipping 2% in the fiscal year ending this month.
A number of stocks within RH’s Retail-Home Furnishing industry group have been showing strength recently, including Arhaus (ARHS) and Ethan Allen Interiors (ETD), with the latter close to a buy point. This makes RH a stock worth keeping an eye on.
Tesla Stock Hit By These Negatives
Tesla stock was forced lower after a spate of negative developments Friday. It battled off lows but closed down 0.9%.
First, the EV giant cut U.S. Model 3 prices 6%-14%, depending on the trim. It also cut Model Y prices.
The firm, which is led by CEO Elon Musk, is aiming to make more models eligible for U.S. tax credits.
In addition, Guggenheim analyst Ronald Jewsikow downgraded Tesla to sell from neutral with an 89 price target. Wells Fargo analyst Colin Langan slashed Tesla’s price target to 130 from 230. However, Langan maintained an equal weight rating.
Tesla stock remains rooted below its major moving averages. Despite the day’s negative action, the EV stock has been rallying mightily of late. It is up around 19% on its Jan. 6 low of 101.81.
Banks Stocks Dig In After Earnings
Big banks were showing grit after posting mixed fourth-quarter results early Friday.
Consumer banking behemoth Wells Fargo (WFC) reversed higher despite a mixed Q4 report. It ended the day up 3.3% after falling near December lows.
JPMorgan Chase (JPM) also rallied to turn in a 2.5% gain. The stock dipped below the 138.76 buy point of its flat base, but is actionable once again. The company impressed investors by besting Q4 expectations.
Bank of America (BAC) and Citigroup (C), which both topped Wall Street views, also rose. BAC gained 2.2% while Citi rose 1.7%.
Outside Dow Jones: 3 Stocks Test Entries
MercadoLibre has moved clear of an alternate buy point at 1,039.49. It remains actionable from this entry.
The Latin America e-commerce play is also closing in on a longer consolidation pattern entry of 1,095.44. Strong all-around performance is reflected in its IBD Composite Rating of 95.
Copa Holdings is at the top of its buy zone past an 89.27 handle buy point. It surged in heavy volume after JPMorgan upgraded the IBD 50 airline stock to overweight from neutral. It also hiked its price target from 105 to 132.
The relative strength line hit fresh highs, a bullish sign. Copa is in the top 11% of stocks in terms of price performance over the past 12 months.
Fluor has cleared a trendline entry within a flat base. The bullish action saw the stock added to the prestigious IBD Leaderboard list of top stocks.
It is also closing in on a proper buy point of 36.16. Its new pattern is second stage, which still counts as a favorable early stage.
Wall Street sees profits soaring at the firm, which manages big infrastructure projects. Full-year earnings are seen vaulting 84% in 2023 to $1.66 per share.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more analysis of growth stocks.
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