Dow Jones futures reversed lower Friday morning after a stronger-than-expected July jobs report. Square-parent Block (SQ) dived 6% on its earnings report. And Tesla stock traded lower after shareholders approved plans for a 3-for-1 stock split.
Key earnings movers Friday include AMC Entertainment (AMC), Amgen (AMGN), Funko (FNKO), Lyft (LYFT) and Vertex Pharmaceuticals (VRTX).
AMC stock slid more than 8%. Amgen shares edged lower. Funko lost 6.8%. Lyft raced 7.9% higher. Vertex was up more than 1%.
Tesla (TSLA) traded down 2% early Friday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded lower before today’s stock market open.
In the strengthening stock market environment, Dow Jones stocks Chevron (CVX) and UnitedHealth (UNH) — as well as Equinor (EQNR), Heico (HEI) and Monolithic Power Systems (MPWR) — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
Heico, UnitedHealth and Vertex are IBD Leaderboard stocks. Chevron was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Report
Dow Jones futures dropped 0.7% vs. fair value, while S&P 500 futures moved down 1.1%. Nasdaq 100 futures traded down 1.4% in morning trade. Remember that overnight action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.4%. And the SPDR S&P 500 ETF (SPY) dropped 1.1%.
The 10-year Treasury yield jumped to 2.78% Friday morning, recovering the entirety of Thursday’s decline. The 10-year Treasury yield is trying to rebound after hitting its lowest level since early April.
Meanwhile, U.S. oil prices extended this week’s sharp losses, after West Texas Intermediate futures on Thursday dipped below $88 a barrel for the first time since mid-February.
The Labor Department’s July jobs report was released Friday morning. The U.S. economy added 528,000 jobs in July, much higher than the expected 250,000 increase from Econoday. The unemployment rate came in at 3.5%, better than the 3.6% estimate. A solid jobs report could be bad news for the Dow Jones Industrial Average and other indexes. Many investors are counting on the economy being weak enough for the Federal Reserve to shift from rate hiking to rate cutting in the first half of 2023.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average and S&P 500 lost 0.3% and 0.1%, respectively. The tech-heavy Nasdaq moved up 0.4%, closing at its highest level since May 4.
Thursday’s The Big Picture column commented, “The stock market took a breather following Wednesday’s strong gains, as the major stock indexes finished quietly mixed ahead of Friday’s pivotal July jobs report.”
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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, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a 182.50 buy point. But amid a four-day losing streak, shares are back below their key 50-day line. Chevron stock traded flat Friday.
Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base’s 518.80 buy point amid Thursday’s 1.3% loss, according to IBD MarketSmith chart analysis. Shares were unchanged Friday.
UNH stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Equinor, Heico, Monolithic
Norwegian oil giant Equinor is trading just shy of a double-bottom base’s 38.80 buy point following Thursday’s 3.6% decline. Shares crept 0.1% higher Friday morning.
IBD Leaderboard stock Heico is in buy range past a double bottom’s 151.37 entry after last week’s strong breakout move. The 5% buy area goes up to 158.94. The stock was unchanged Friday.
Chipmaker and Thursday’s IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation that has a 580.10 buy point. Keep an eye out for a potential handle to offer a lower entry. MPWR shares were unchanged early Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock rose another 0.4% Thursday, extending a win streak to seven sessions. Shares are at their highest level since early May but are still trying to decisively clear resistance around their 200-day line, which is a key level to watch.
Shares dropped 2% Friday morning after shareholders approved plans for a 3-for-1 stock split.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 0.2% Thursday, pausing after recent gains, as they move further up the right side of a new base. The stock fell 1.4% Friday morning.
Microsoft rose 0.4% Thursday, adding to Wednesday’s big gain. The software giant is still ranging below its long-term 200-day line. The stock closed about 19% off its 52-week high. Microsoft moved down more than 1% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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