Dow Jones futures dropped, as the 10-year Treasury yield jumped after a highly anticipated U.S. payrolls report came in stronger than expected.
Twitter (TWTR) tumbled 4% Friday morning on a report that the $44 billion dollar acquisition offer by Elon Musk was in doubt. “Musk’s deal to buy Twitter is in serious jeopardy,” according to the Washington Post. Musk’s camp reportedly concluded that Twitter’s figures on spam accounts are not verifiable.
Tesla (TSLA) traded down 1% early Friday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both traded squarely lower ahead of today’s stock market open.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck and UnitedHealth (UNH) — as well as BYD (BYDDF), Evolent Health (EVH), Funko (FNKO) and Quanta Services (PWR) — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay defensive.
Evolent Health and UnitedHealth are IBD Leaderboard stocks. Evolent was IBD’s Stock Of The Day on Wednesday. And BYD featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Report
Before Friday’s open, Dow Jones futures fell 0.3% vs. fair value, and S&P 500 futures lost 0.6%. Nasdaq 100 futures sold off 1.1% as China-based stocks dragged at the bottom of the list. Remember that overnight action in Dow 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) moved down 1%. The SPDR S&P 500 ETF (SPY) fell 0.5% in early trade.
The 10-year Treasury yield jumped to 3.08% Friday morning after the strong jobs report following Thursday’s climb above 3%. In mid-June, it hit its highest level since April 2011, at 3.48%. Meanwhile, U.S. oil prices notched a mild loss, with West Texas Intermediate trading just below $103 a barrel. WTI fell as low as $95 a barrel on Wednesday. Oil prices could see some impact from the weekly Baker Hughes rig count census, set for a 1 p.m. ET release.
The June U.S. payrolls report showed that the U.S. economy added 372,000 jobs in June, more than the Econoday consensus estimate that called for an increase of 270,000 jobs. The unemployment rate was 3.6%, matching economist estimates.
Stock Market Volatility
On Thursday, the Dow Jones Industrial Average advanced 1.1%, while the S&P 500 and Nasdaq extended win streaks to four sessions, rising 1.5% and 2.3%, respectively.
Thursday’s The Big Picture column commented, “After some struggles, the stock market uptrend received a boost Thursday, as the major indexes ended with strong gains. While the last few sessions should offer reason for some optimism, uncertainty over interest rates, inflation, economic growth and other factors should keep traders more on the conservative side.”
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Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Johnson & Johnson, Merck, UnitedHealth
Dow Jones leader Johnson & Johnson is about 2% below a double-bottom base’s 181.84 buy point following Thursday’s 0.1% rise, according to IBD MarketSmith chart analysis. JNJ shares were unchanged Friday morning. The company reports earnings on July 19.
Drug giant Merck edged lower Thursday, and is about 2% below its flat base’s 95.02 buy point. Medical stocks in general, and biotechs in particular, have shown rising strength in recent stock market action. Merck shares traded flat early Friday.
Health care giant and IBD Leaderboard stock UnitedHealth remains above its double bottom’s 507.36 buy point after Thursday’s 0.2% rise. Shares are in buy range. The stock inched higher Friday morning. UNH reports second-quarter results on July 15.
UNH stock shows a strong 96 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: BYD, Evolent Health, Funko, Quanta
Chinese electric-vehicle giant BYD, which is backed by Warren Buffett’s Berkshire Hathaway (BRKA), closed Thursday out of buy range above a cup-with-handle’s 39.81 buy point. Shares were inactive early Friday morning.
IBD Leaderboard stock Evolent Health is in buy range past a 32.55 buy point in a cup with handle following Wednesday’s breakout. The 5% chase zone runs up to 34.18. Evolent shares were flat Friday.
IBD 50 stock Funko closed in buy range past a cup with handle’s 25.18 buy point following Friday’s 2% climb. Funko stock boasts a best-possible 99 IBD Composite Rating, per the IBD Stock Checkup. Funko shares traded unchanged early Friday.
Quanta Services is tracing a cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are just 4% away from the latest entry after Thursday’s 4.7% advance. PWR shares were flat Friday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock raced 5.5% higher Thursday, rebounding from Wednesday’s losses. Shares threatened to give up a part of those gains Friday morning, moving down 1%.
The stock is approaching its 50-day line, which is a key test for the stock’s recent revival. Shares remains sharply below their 200-day line ahead of the company’s July 20 earnings date. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 41% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 2.4% Thursday, climbing for a fourth straight session. Apple reclaimed its 50-day line Thursday, but remains far below its long-term 200-day line. The stock is about 20% off its 52-week high. Apple shares moved down 0.5% Friday morning.
Software leader Microsoft gained 0.8% Thursday, moving further above its 50-day line. The stock closed about 24% off its 52-week high. Microsoft shares lost 0.4% early Friday.
Microsoft and Apple are due to report quarterly results on July 26 and 28, respectively.
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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