Stocks Rally on Inflation Data, Costco Earnings Disappoint

The stock market saw a positive start to the trading week, with the Dow Jones Industrial Average and other major indexes rising on Friday. Investors reacted to key inflation data, while Costco Wholesale (COST) was an early earnings loser on the stock market today.

Navigating the Shifting Tides of the Stock Market

Dow Jones and S&P 500 Gain, Nasdaq Edges Higher

After the opening bell, the Dow Jones Industrial Average gained 0.5%, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite moved up 0.1% in early trading. The 10-year Treasury yield dipped slightly to 3.76%, and oil prices fell modestly, with West Texas Intermediate futures trading around $67.50 per barrel. Among exchange-traded funds, the Invesco QQQ Trust (QQQ) was up 0.1%, and the SPDR S&P 500 ETF (SPY) added 0.2% after the open.

Inflation Gauge and Costco's Mixed Results

The Commerce Department's monthly personal income and outlays report for August showed that personal income rose 0.2%, below the 0.4% estimate. The core personal consumption expenditures (PCE) price index, the Federal Reserve's favored inflation gauge, increased 0.1% for the month, with an annual rise of 2.7%. Costco was a key earnings mover, as the retail giant dropped 2.5% in morning trading after posting mixed results for its fiscal fourth-quarter report.

Stocks to Watch: Arista, Spotify, Texas Roadhouse, and Wingstop

Among the best companies to watch on the stock market today are Arista Networks (ANET), Spotify (SPOT), Texas Roadhouse (TXRH), and Wingstop (WING). Arista Networks is in a buy zone past a 376.50 buy point in a consolidation, while Spotify shares are just out of buy range above a consolidation's 359.38 entry. Texas Roadhouse is attempting to break out above a 177.72 flat-base entry, and Wingstop topped a 431.03 entry earlier in the week, but is currently below it.

Magnificent Seven Stocks: Alphabet, Meta, Nvidia, Tesla

Among the Magnificent Seven stocks, Alphabet (GOOGL) gained 0.5%, and Meta Platforms (META) added 0.3% on Friday. Nvidia (NVDA) dropped 1.4%, while Tesla (TSLA) climbed 0.6%, looking to bounce back from Thursday's losses. The electric-vehicle giant is approaching a cup base's 274 buy point.

Dow Jones Leaders: Apple, Microsoft Eye Buy Points

Among Dow Jones components in the Magnificent Seven, Amazon shares are nearing a 201.20 cup-base entry, while Apple is close to a V-shaped cup with handle that shows a 232.92 entry. Microsoft shares are also back above their 50-day line and nearing a 441.85 buy point in a cup with handle.