The Dow Jones Industrial Average moved lower Friday morning after the stock market sell-off deepened on Thursday. Netflix stock crashed 22% in morning trade on disappointing earnings results, while Intuitive Surgical (ISRG) also tumbled on earnings. Meanwhile, the price of Bitcoin took a dive in morning action.
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Among the Dow Jones leaders, Walt Disney (DIS) fell over 5% in early trade, apparently feeling downdraft from Netflix‘s (NFLX) big drop. Apple (AAPL) lost 0.1% Friday, while Microsoft (MSFT) was also down 0.1% in today’s stock market. Also among the Dow 30, Cisco Systems (CSCO) is below a recent buy point, as it battles for support at the 50-day line.
Electric-vehicle leader Tesla (TSLA) traded down 2% Friday. Lucid Group (LCID) turned lower. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were squarely lower.
Among Friday’s top stocks to watch, Ameriprise Financial (AMP), Baker Hughes (BKR)Â and Global Ship Lease (GSL) are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Ameriprise is featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields
After the stock market open Friday, the Dow Jones Industrial Average moved down 0.2%, while the S&P 500 lost 0.6%. Meanwhile, the tech-heavy Nasdaq sold off 0.9%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.9% in morning trade, and the SPDR S&P 500 ETF (SPY) moved down 0.5%.
The 10-year Treasury yield ticked down below 1.76% Friday morning. On Thursday, the 10-year Treasury yield inched above 1.83%. Oil prices steered lower for a second day, with West Texas Intermediate down 1.6% to $84.19 a barrel after touching a seven-year high on Wednesday.
Bitcoin
The price of Bitcoin dived about 10% over the last 24 hours, trading as low as $37,728. Bitcoin hovered around $37,800 in Friday morning trade, according to CoinDesk. The cryptocurrency hit a record high on Nov. 10 at $68,990.
The ProShares Bitcoin Strategy ETF (BITO) slid more than 7%. And cryptocurrency exchange Coindesk (COIN) tumbled more than 4% in premarket trade and is approaching all-time lows.
Stock Market Sell-Off Worsens
The stock market posted another disappointing performance Thursday. The Dow closed below its 200-day moving average for the first time since Dec. 1. The S&P 500 undercut its December low. The Nasdaq undercut its October low and tumbled further below its 200-day moving average.
Thursday’s The Big Picture commented: “For now, investors are still waiting for an elusive Day 1 of a new rally attempt — the first day off index lows. Then, be on the lookout for a follow-through day, which is when a major index posts strong gains in volume heavier than the prior day. Follow-throughs occur as early as Day 4 of the attempted rally.”
Amid this recent weakness, now is an important time to check out IBD’s The Big Picture. Instead of buying stocks, investors should be adding leading stocks showing clear relative strength to their watchlist. These could potentially become market leaders during the next decisive uptrend.
Five Best Dow Jones Stocks To Watch Now
Stock Market Earnings: Intuitive Surgical, Schlumberger
Late Thursday, Intuitive Surgical reported fourth-quarter results that were better than expected, but the stock still dropped about 4% in early trade. ISRG shares closed more than 20% off their 52-week high Thursday.
Early Friday, energy leader Schlumberger reported strong fourth-quarter results. In response, shares were slightly lower in morning trade. SLB stock is in buy range above a 36.97 buy point in a consolidation.
Netflix Earnings
Netflix reported fourth-quarter earnings that came in above estimates, while revenue met analyst targets. New subscribers also topped analyst expectations, but fell short of the company’s own target. Critically, management projected first-quarter subscriber growth at only a fraction of analyst estimates. NFLX shares crashed about 22% in morning trade.
The stock has been in a steep decline since mid-November. Netflix stock is at its lowest level since June 2020.
Three Top Growth Stocks To Watch In The Current Stock Market Weakness
Dow Jones Stocks To Watch: Cisco Systems
Cisco Systems, a Dow Jones stock, gave up its 58.73 double-bottom entry, according to IBD MarketSmith chart analysis, during Thursday’s 1.4% fall. Shares are now below their 50-day line. Shares edged lower Friday.
Positively, the stock’s relative strength line made a new high in recent weeks, confirming the Dow Jones stock as a market leader, but the ongoing stock market weakness is dragging the stock down.
Stocks To Watch: Ameriprise, Baker, Global Ship Lease
IBD Leaderboard stock Ameriprise Financial fell 0.8% Thursday, falling further below a 312.25 buy point in a flat base, according to IBD MarketSmith chart analysis. The 5% buy zone runs up to 327.86. Positively, the stock’s relative strength line made a new high on the Jan. 4 breakout. AMP shares were down 2% Friday.
Energy leader Baker Hughes reversed back below a 27.76 cup-base buy point, after reporting its fourth-quarter results on Thursday. BKR shares were up 1% Friday.
Global Ship Lease, Thursday’s IBD 50 Stocks To Watch pick, continues to move up the right side of a cup base with a 26.61 buy point. Shares pared gains to less than 1% Thursday and are about 7% away from the correct buy point. The stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. GSL shares were down 5% in morning trade.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors
Li Auto stock extended this week’s losses Thursday, falling 0.3%. The stock continues to build the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares dropped nearly 3% Friday.
Xpeng Motors, Tuesday’s IBD 50 Stocks To Watch pick, rose 1.85% Thursday, but remains below its 50-day line. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares moved down 3.6% Friday.
Among U.S.-based EV stocks, Lucid Motors shares lost nearly 1% Friday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock’s basing process ran into more trouble during this week’s losses and the stock is sharply below the key 50-day line.
Tesla Stock
Tesla stock traded down 2% Friday, threatening to hit its lowest level since Dec. 22. Shares attempted to regain their 50-day line Tuesday, but were turned away. For now, a new handle entry at 1,208.10 is available.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Thursday about 20% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock declined 1% Thursday, falling further below the key 50-day line. Shares remain about 7% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares dropped 0.1% Friday.
Software leader Microsoft descended 0.6% Thursday, as the top Dow Jones stock continues to etch a flat base with a 349.77 buy point. With the stock below its 50-day line, it clearly has more work to do before a potential breakout. Shares were down 0.1% 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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