Dow Jones futures rose Friday, looking to cap a solid weekly gain as both the Nasdaq composite and S&P 500 set sights on their fourth straight weekly advance. Tech titan Apple stock is closing in on its latest buy point, as it heads for a six-week win streak.
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Key earnings movers include Endeavor Group (EDR), Rivian Automotive (RIVN) and Sierra Wireless (SWIR).
Endeavor shares were slightly lower in early morning trade. Rivian shares rose 1%. And Sierra Wireless stock was slightly higher.
Chinese stocks were sharply lower Friday morning as several Chinese state-owned enterprises, including PetroChina (PTR), announced that they will voluntarily delist from the New York Stock Exchange. Alibaba (BABA) sank 3%, while Li Auto (LI) skidded more than 3% in morning trade.
Electric-vehicle leader Tesla (TSLA) traded nearly 1% higher. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both rose ahead of today’s stock market open.
In the current healthy stock market environment, Dow Jones stocks Coca-Cola (KO) and UnitedHealth (UNH) — as well as American Tower (AMT), Monolithic Power Systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) — are among the top stocks to buy and watch.
UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie’s and Vertex were featured in this week’s Stocks Near A Buy Zone column. Monolithic Power was the IBD Stock Of The Day a week ago. Vertex is also an IBD SwingTrader idea. American Tower was Wednesday’s IBD 50 Stocks To Watch pick.
Dow Jones Today: Treasury Yields, Oil Prices
Early Friday, Dow Jones futures rose 0.45% vs. fair value. S&P 500 futures moved up 0.5%. And Nasdaq 100 futures traded up 0.6% 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) rose 0.6%. And the SPDR S&P 500 ETF (SPY) gained 0.5%.
The 10-year Treasury yield eased to 2.86% Friday morning, pausing after Thursday’s jump to 2.88%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April last week.
Meanwhile, U.S. oil prices appear to be setting up a new trading range following a pullback from recent highs. West Texas Intermediate futures slipped more than 1% on Friday, trading just below $93 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February — down from highs above $117 during the first half of June.
Stock Market Rally
On Thursday, the Dow Jones Industrial Average trimmed a 1% gain to just 0.1%, while the S&P 500 reversed slightly lower. The tech-heavy Nasdaq composite ended down 0.6%, after an early 1.3% rally found stout resistance around the 13,000 level. The Nasdaq remains higher for the week, and on track for a four-week win streak.
The small-cap Russell 2000 rose 0.3%, also meeting resistance, but tracking toward a fourth straight weekly win.
Thursday’s The Big Picture column commented, “Amid a string of big gains in recent weeks, it would be natural for the major stock indexes to consolidate for a period of time to digest those gains. Thursday’s reversals were a sign that indexes could be taking a break.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
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: Coca Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Meanwhile, the stock is about 3% away from an early handle entry at 65.14. KO stock swung 0.3% higher early 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 0.9% loss, according to IBD MarketSmith chart analysis. The 5% chase zone goes up to 544.74. Shares climbed 0.3% Friday.
UNH stock shows a solid 93 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: American Tower, Monolithic, Ollie’s, Vertex
Wednesday’s IBD 50 Stocks To Watch pick, American Tower, is in buy range past a cup with handle’s 271.19 buy point, according to IBD MarketSmith chart analysis. Shares fell 1.4% Thursday, snapping a six-day win streak. AMT stock traded flat Friday morning.
Recent IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation with a 580.10 buy point. Meanwhile, shares remain above a 514.80 early entry despite Thursday’s 2.6% decline. Keep an eye out for a potential handle that is close to offering another alternate buy point. The stock edged up 0.2% Friday.
Ollie’s Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 10% away from that entry. Shares were inactive early Friday.
IBD SwingTrader stock Vertex Pharmaceuticals slipped another 1.2% Thursday, and is back in buy range past a cup with handle entry at 279.23. The 5% chase zone goes up to 293.19. The stock’s June 23 breakout is back on track following last week’s second-quarter earnings results. Vertex stock was flat Friday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 2.6% Thursday, giving back most of Wednesday’s 3.9% advance. Shares traded almost 1% higher Friday morning.
Last week, Tesla shares reached their highest level since early May, but are now finding staunch resistance around their 200-day line, which is a key level to watch. The stock is almost 30% off its 52-week high. A 3-for-1 stock split will occur on Aug. 24.
Dow Jones Leaders: Apple Stock Eyes New Buy Point
Among Dow Jones stocks, Apple shares reversed 0.4% lower Thursday, as the stock is continues to build the right side of a cup base that has a 179.71 buy point. Another interpretation could be a large double bottom that spans back to January. Either way, the buy point is identical. Keep an eye out for a potential handle to form and offer a lower entry.
Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market outperformance. Shares rose 0.4% Friday morning.
Microsoft fell 0.7% Thursday, ending a two-day win streak. Shares are moving closer to the long-term 200-day line, which is a key resistance area to watch. The stock moved up 0.4% 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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