Dow Jones leaders Chevron (CVX) and Merck (MRK) — in addition to Livent (LTHM), Eli Lilly (LLY), Northrop Grumman (NOC), World Wrestling Entertainment (WWE), and ZIM Integrated Shipping (ZIM) — are IBD’s best stocks to buy and watch on Friday. The DJI gained 0.8% after opening on Friday, while the S&P 500 climbed 1.5%. The Nasdaq Composite Index rose 2% in early trading. 

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 2% in early trade. The SPDR S&P 500 ETF (SPY) increased 1.5%. The 10-year Treasury yield slipped to 2.72% Friday morning, down from 2.76% the previous day. On Tuesday, the 10-year Treasury yield hit its lowest level since April. U.S. oil prices decreased less than 1%, with West Texas Intermediate crude trading below $114 a barrel.

Core personal consumption expenditures — the Federal Reserve’s preferred inflation gauge — rose 4.9% on Friday, a slower rise than the 5.2% increase in March, suggesting that prices are decreasing. Slower inflation might be a sign that prices are decreasing. The Nasdaq Composite jumped 2.7% on Thursday, led by technology stocks. On Thursday, the S&P 500 and NASDAQ Composite had their most significant gains in seven weeks, ending their losing streaks. 

As IBD’s stock trading system and CAN SLIM basics are discussed in The Big Picture column every day, new users should familiarize themselves with them. 

Recognizing chart patterns is critical to the investment strategy. Investing with IBD is a fantastic way to find growth stocks, such as Leaderboard and SwingTrader. IBD MarketSmith has a broad range of stock lists such as Leaderboard and SwingTrader to choose from. Investors can also create watchlists, find stocks nearing a buy point, or create customized filters.

The 5% buy zone tops out at 183.60. CVX shares traded slightly lower on Friday. Investors can use the IBD Composite Rating to assess the quality of a company’s fundamental and technical metrics. The Dow Jones and IBD SwingTrader Merck stock has a perfect 99 Composite Rating, according to the IBD Stock Checkup.

We can purchase MRK shares down 1.5% on Thursday. The 89.58 buy point is a cup-with-handle on the Dow Jones and IBD SwingTrader. MRK shares fell 0.5% in early trading Friday morning.

This week’s rally in the stock market was indicated by the relative strength line’s new high, which was a strong indicator of stock market outperformance. This indicator of stock market outperformance is particularly significant during this rally.

Livent, a Tesla (NASDAQ:TSLA) supplier, breached an early purchase point at 29.68, increasing 6.8% on Thursday. Livent stock has been trending higher on the right side of a cup-base since early March. LTHM gained 3 percent on Friday morning, taking a look at a possible handle for a less risky entry. The relative strength line crossed above the buy point of 314.10 on Thursday, as well as an early purchase trigger at 309.54. On Friday, Eli Lilly shares declined 0.2%.

Northrop Grumman’s stock (IBD SwingTrader) sits near the handle’s 477.36 buy point. It is also rising above a trend line within the handle. NOC shares were down 1% in Friday morning trading. The trend line begins at 464. This stock was one of the top performers after it closed Thursday near a flat base’s 63.81 buy point. It is currently trading at 67.00. World Wrestling Entertainment shares gained 1% after market close on Thursday. A 5% buy area extends from 63.81 to 67.00. ZIM Integrated’s cup base has a 79.05 buy point. ZIM shares were up 1% on Friday. Keep an eye out for a handle that gives a more risk-efficient entry point.

Tesla stock climbed 7.4% on Thursday, following a 4.9% rise on Wednesday. It gained 4% Friday morning as well. Despite being significantly lower than its 50- and 200-day moving averages, Tesla’s stock continued to rise. On November 4, Tesla stock was trading at 1,243.49. Tesla’s stock has fallen 43% since its all-time high. Apple and Microsoft are two prominent Dow Jones stocks. Despite still being far away from the company’s long-term 200-day line, Apple shares rose 2.3% on Thursday. AAPL stock increased 1% on Friday. Microsoft rose 1.3% on Thursday but remains far away from its 50- and 200-day moving averages. MSFT stock gained 0.8% on Friday.

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