Dow Jones futures slid as much as 250 points Friday morning, as the Dow Jones Industrial Average threatened to fall for a third straight day. Tech titans Alphabet, Amazon and Apple are in new buy zones. And Tesla stock looked to extend a win streak, while Rivian attempted to bounce after two straight days of sharp losses.
Among the Dow Jones leaders, Apple (AAPL) fell 0.3% premarket Friday, while Microsoft (MSFT) moved up 0.5% in today’s stock market. Nike (NKE) continues to trade under a new buy point after a recent breakout attempt.
Electric-vehicle leader Tesla (TSLA) gained 1% premarket Friday. EV peer Rivian (RIVN) rose about 4%, while Lucid Motors (LCID) was slightly higher. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) are near buy points.
Alphabet, Microsoft and Tesla are IBD Leaderboard stocks. Xpeng Motors was featured in this week’s Stocks Near A Buy Zone story. Apple is an IBD SwingTrader stock and was Wednesday’s IBD Stock Of The Day.
Dow Jones Today
Ahead of the stock market open Friday, Dow Jones futures lost 0.55% vs. fair value, while S&P 500 futures moved down 0.15%. Nasdaq 100 futures climbed 0.5%, after the Nasdaq 100 clocked a new record high on Thursday. Remember that premarket action in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading performance in the next regular stock market session.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4% after notching a record high on Thursday. The SPDR S&P 500 ETF (SPY), which posted a record closing high on Thursday, gave up 0.2% premarket Friday.
Stock Market Rally
The stock market put in a mostly positive performance Thursday, as the Nasdaq Composite turned in a new closing high and the S&P 500 closed just off its Nov. 5 record.
On Thursday, The Big Picture commented, “With the stock market once again approaching new highs, investors have good cause to remain upbeat about the health of the uptrend. So, breakouts in top growth stocks remain fair game. However, there was evidence of rotation out of high-flying speculative names and into large-cap technology stocks, like Alphabet, Amazon and Apple.”
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
Dow Jones Stocks To Buy And Watch: Apple, Nike
IBD SwingTrader stock Apple is in buy range past a cup with handle’s 153.27 buy point, according to IBD MarketSmith chart analysis, following Wednesday’s breakout. Shares traded up nearly 3% Thursday following a Bloomberg report that the company is pushing to debut a fully-autonomous Apple car as early as 2025.
Shares lost 0.3% Friday morning, on pace to snap a five-day win streak.
Dow Jones retail leader Nike remains squarely below its cup base’s 174.48 buy point amid the stock’s recent weakness. Shares inched higher premarket Friday.
Stocks On The Move: Chevron, Datadog
Dow Jones energy giant Chevron (CVX) slid nearly 3% Friday morning, as crude oil prices dropped over 3%. The stock closed Thursday just above a 113.21 buy point in a cup base.
Stock Market Earnings: Applied Materials, Palo Alto
Chip giant Applied Materials (AMAT) tumbled 6% premarket after the company missed the Street’s targets for its fiscal fourth quarter, citing supply chain challenges. Shares ended Thursday almost 9% above a 146.10 buy point in a consolidation following a Nov. 4 breakout.
Cybersecurity leader Palo Alto Networks (PANW) jumped 4% Friday morning after the company reported fiscal first-quarter earnings that topped analyst estimates while revenue came in line with views. If the gain holds, shares are set to hit new highs after the opening bell.
Stocks To Buy And Watch: Adobe, Alphabet, Amazon, Shopify
IBD Leaderboard stock Adobe remains in the 5% buy area above a 659.29 buy point in a cup with handle following a Nov. 4 breakout move, as shares gained 0.6% premarket Friday. The 5% buy zone goes up to 692.25.
Alphabet remains just above a 2,925.18 buy point in a flat base, according to IBD MarketSmith chart analysis, following Thursday’s 1.2% gain. The 5% buy area runs up to 3,071.44. Shares were up 0.4% premarket Friday.
Amazon broke out past a 3,605.55 buy point in a cup with handle, rallying over 4% Thursday. Shares tacked on 0.5% in premarket trade Friday. The IBD Stock Checkup shows that AMZN stock has a mediocre 82 out of a perfect 99 IBD Composite Rating.
The stock’s relative strength line is coming sharply off recent lows after November’s gains, but it is well below its July high. That indicates underperformance vs. the S&P 500 over a longer time frame. Ideally, the RS line should hit a new high on the breakout day or shortly thereafter to confirm the stock as a market leader.
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto continues to build a cup with handle that shows a 34.93 buy point. Shares rose a fraction premarket Friday, looking to bounce after two straight days of heavy losses.
Xpeng Motors closed just below a 48.08 buy point in a choppy cup base following Thursday’s 2.1% loss. Shares jumped 1.5% premarket, after teh company introduced its new G9 SUV model at the Guangzhou International Automobile Exhibition on Friday.
Lucid Motors shares turned slightly higher premarket Friday, looking to snap a two-day losing streak. Despite recent heavy losses, LCID stock remains far extended past a 28.49 buy point in a cup-with-handle base.
Hot new issue Rivian bounced nearly 4% premarket Friday, following Thursday’s 15.5% dive. RIVN shares closed Thursday more than 30% off their high from Tuesday. Remember that investors should be disciplined about buying new issues by waiting for an IPO base to form before considering a purchase. The recent weakness could be the start of its first base formation, but this week’s price action is not constructive given the huge downside reversal and high volatility.
Tesla stock moved up almost 1% premarket Thursday, looking to add to Thursday’s 0.7% gain and extend a win streak to four sessions.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Thursday about 12% off its 52-week high. TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.
Dow Jones Leaders: Microsoft
Among the top Dow Jones stocks, software giant Microsoft moved up 0.8% premarket Friday. Shares are on pace to hit more new highs after the opening bell.
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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