Stock Market Today: Dow Jones Falls Ahead Of Inflation Survey; Zscaler Plunges

Dow Jones futures threatened to kick off the month of March with losses Friday, as Wall Street prepared for another inflation reading amid a wave of economic data. Meanwhile, cybersecurity stock leader Zscaler (ZS) plunged after reporting earnings on the stock market today.

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Dow Jones futures lost 0.1% vs. fair value in morning action, though it pared earlier losses. S&P 500 futures, meanwhile, reversed course and inched higher. And tech-heavy Nasdaq 100 futures added 0.1% before the opening bell.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) exchange traded fund was up a fraction, as the SPDR S&P 500 ETF (SPY) added 0.1%.

The 10-year Treasury yield ticked higher to 4.27%. Further, oil prices looked to hit their highest level since November, as West Texas Intermediate futures rallied 1.8%, trading around $79.65 a barrel.

Stock Market Today: Inflation Survey, Earnings

Ahead of Friday’s open, there is a final wave of economic data due out this week.

The University of Michigan’s consumer sentiment is expected to inch up to 79.6 in February vs.79.0 in January. Included in the consumer survey, however, are one-year inflation expectations that are expected to hold steady at 3%. That survey is due at 10 a.m.

Also, S&P Global plans to release the manufacturing Purchasing Managers’ Index at 9:45 a.m. ET. It is expected to rise to 51.5 in February vs. 50.1 in January.

Finally, the Institute of Supply Management manufacturing index is seen rising to 49.5 in February, up from January’s 49.1 reading. That’s scheduled for 10 a.m.

Cybersecurity stock Zscaler tumbled nearly 7% Friday morning even though the company reported fiscal second-quarter earnings and revenue that topped Wall Street targets. Also, the cybersecurity firm’s outlook edged by expectations.

But two brokerages lowered their price targets on Zscaler, according to TheFly.com. Cantor Fitzgerald lowered its target by $20, citing an apparent weakness in third-quarter billings growth forecasts. Further, Barclays cut its target by $19 due to concerns Zscaler’s business is becoming more big-deal driven.

Key earnings movers Thursday included Autodesk (ADSK), Dell (DELL), Elastic (ESTC), Hewlett Packard Enterprise (HPE), NetApp (NTAP) and Veeva Systems (VEEV).

Autodesk shares rallied more than 8% in early morning trade, while Dell catapulted 26% higher. Elastic stock plunged nearly 13%, as Hewlett Packard lost 5.5%. NetApp shares soared 19%. And Veeva stock sold off 3% in premarket trading.

Dow Jones Rises

Indexes picked up steam in the final hour of trading on Thursday. The Dow Jones Industrial Average climbed 0.1%, while the S&P 500 moved up 0.5%. The tech-heavy Nasdaq composite advanced 0.9%. And the small-cap Russell 2000 added 0.7%.

Thursday’s Big Picture column commented, “The stock market finished higher Thursday, as Wall Street reacted positively to a key inflation report, boosting the Nasdaq and S&P 500 to record closes.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Learn How To Time The Stock Market With IBD’s ETF Market Strategy

Best Stocks To Buy And Watch In Stock Market Today

Advanced Micro Devices (AMD), SharkNinja (SN), Toll Brothers (TOL) and Weatherford (WFRD) — plus Dow Jones components Disney (DIS), Dow (DOW) and Procter & Gamble (PG) — are among the best stocks to buy and watch on the stock market today.

Disney and Weatherford were featured in this Stocks Near A Buy Zone column.

A great resource for daily breakouts is IBD MarketSmith’s “Breaking Out Today” list. It shows MarketSmith Growth 250 stocks that are breaking out past new buy points. There was only one breakout Thursday: Boot Barn (BOOT). Shares topped a 91.58 cup-with-handle entry in unimpressive volume.

Meanwhile, the MarketSmith “Near Pivot” list shows stocks nearing buy points in bases, like Marvell Technology (MRVL) that has a 73.53 flat-base entry.

Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard

Dow Jones Stocks: Disney Eyes Buy Point

Disney is forming a big cup-with-handle base with a 112.92 buy point, according to IBD MarketSmith chart analysis. Shares are trading about 2% below the new buy point. Disney stock dipped 0.3% on the stock market today.

Consumer products giant Procter & Gamble fell 0.7% Thursday, still in buy range above a 158.38 buy point in a cup base. P&G stock dipped 0.1% early Friday.

Chemicals giant Dow remains below a 55.90 buy point in a flat base following a 1.4% gain Thursday. Dow shares edged down Friday.

4 Top Growth Stocks To Watch In The Stock Market Rally

AMD Eyes Buy Point

Wednesday’s IBD Stock Of The Day, Advanced Micro Devices is breaking out past a flat base’s 184.92 buy point after a 9.1% rally Thursday. The 5% buy zone tops out at 194.17. Shares were up another 3.3% Friday.

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