The Dow Jones Industrial Average pared losses on Friday morning after a stronger-than-expected July jobs report. square-parent To block (SQ) dipped as much as 7.6% on its earnings report before cutting losses. And Tesla stock traded lower after shareholders approved plans for a 3-for-1 stock split.
Key drivers for earnings on Friday include AMC Entertainment (AMC), Amgen (AMGN), Funko (FNKO), Lyft (LYFT) and Vertex Pharmaceuticals (VRTX).
AMC stock slid more than 9% while Amgen stock fell slightly. Funko crashed 18% as Lyft ran 6% higher. And Vertex was down almost 1%.
You’re here (TSLA) was trading down 2% early Friday. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) was trading sharply lower after the stock market opened today.
Against the backdrop of strengthening stock markets, Dow Jones stocks Chevron (CLC) and UnitedHealth (UNH) — as well as Equine (EQNR), Hi (HELLO) duck Monolithic power systems (MPWR) – are among the stocks to watch. Keep in mind that continued equity market volatility is a reason to remain more cautious despite recent signs of strength.
Heico, UnitedHealth and Vertex are IBD ranking stocks. Chevron was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Report
Early Friday, the Dow Jones Industrial Average fell 0.3% and the S&P 500 was down 0.5%. The heavy tech Nasdaq traded down 1% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.4%. And the SPDR S&P 500 ETF (SPY) fell 1.1%.
The 10-year Treasury yield jumped to 2.82% on Friday morning, recouping all 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 steep losses, after West Texas Intermediate futures fell below $88 a barrel on Thursday for the first time since mid-February.
The Labor Department’s July jobs report was released Friday morning. The US economy added 528,000 jobs in July, well above Econoday’s expected increase of 250,000. The unemployment rate came in at 3.5%, better than the estimate of 3.6%.
A strong jobs report could be bad news for the Dow Jones Industrial Average and other indexes. Many investors expect the economy to be weak enough for the Federal Reserve to transition from raising rates to cutting rates in the first half of 2023.
Stock market rally
On Thursday, the Dow Jones Industrial Average and the S&P 500 lost 0.3% and 0.1% respectively. The tech-heavy Nasdaq rose 0.4%, closing at its highest level since May 4.
Thursday’s The Big Picture column commented: “The stock market took a break from Wednesday’s strong gains, as major equity indices finished quietly mixed ahead of Friday’s pivotal July jobs report.”
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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 buy point of 182.50. But amid a four-day losing streak, stocks are back below their key 50-day line. Chevron stock traded down 1% on Friday.
Health insurance giant and IBD Leaderboard UnitedHealth stock remains in the buy range above the 518.80 buy point of its double-bottom base with handle amid the 1.3 loss % of Thursday, according to IBD MarketSmith’s chart analysis. Shares were down 0.5% on Friday.
The UNH stock is posting a solid 94 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch in the currentrStock market rally
Top stocks to watch: Equinor, Heico, Monolithic
Norwegian oil giant Equinor is trading just below the 38.80 buy point of a double-bottom basis after Thursday’s 3.6% decline. The shares lost 1.3% on Friday morning.
IBD Leaderboard Heico stock is in the buy range beyond a double bottom at 151.37 after last week’s sharp break. The 5% buy zone rises to 158.94. The stock was down 0.9% on Friday.
Monolithic Power Systems’ Chipmaker and IBD Stock Of The Day continue to build the right side of a consolidation that has a buy point of 580.10. Keep an eye out for a potential grip to provide lower entry. MPWR shares fell 1% early Friday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock rose another 0.4% on Thursday, extending a winning streak to seven sessions. Stocks 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 fell 2% on Friday morning after shareholders approved plans for a 3-for-1 stock split.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, shares of Apple fell 0.2% on Thursday, pausing from recent gains, as they rise on the right side of a new base. The stock fell 1.1% on Friday morning.
Microsoft rose 0.4% on Thursday, adding to Wednesday’s big gain. The software giant is still trading below its long-term 200-day line. The stock closed around 19% off its 52-week high. Microsoft was down 1% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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