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.
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.
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.
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.
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.
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.
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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