Dow Jones futures dropped Friday morning after the Dow Jones Industrial Average staged its worst first-half performance since 1962.
Micron Technology (MU) beat Wall Street’s earnings target for its fiscal third quarter and matched views on sales. However, it badly missed estimates with its guidance for the current quarter. MU stock fell more than 4% early after closing about 44% off its 52-week high.
Chinese EV makers Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) reported strong June sales overnight. Li Auto shares rallied 1%. Nio stock rose 2%. And Xpeng shares gained more than 2% in early trade.
Tesla (TSLA) traded up a fraction early Thursday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both modestly lower ahead of today’s stock market open.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth (UNH), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay defensive.
UnitedHealth is an IBD Leaderboard stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was IBD Stock Of The Day on June 22. AutoZone featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
Before Friday’s open, Dow Jones futures lost 0.3% vs. fair value, and S&P 500 futures dropped 0.3%. Nasdaq 100 futures declined 0.35% vs. fair value. 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 0.35%. The SPDR S&P 500 ETF (SPY) lost 0.3% in early trade.
The 10-year Treasury yield ticked lower to 2.94% Friday following Thursday’s drop below 3%. The 10-year Treasury yield closed below 3% for the first time since June 7. In mid-June, it hit its highest level since April 2011, at 3.48%.
Meanwhile, U.S. oil prices rebounded nearly 3%, with West Texas Intermediate trading back above $108 a barrel. In early March, WTI briefly topped out above $130.
Stock Market Volatility
The stock market posted disappointing action Thursday, as the major stock indexes notched moderate losses.
Thursday’s The Big Picture column commented, “Through the first half of 2022, the Nasdaq is down about 29% year to date, its worst first half on record, according to Dow Jones Market Data. The Dow Jones Industrial Average is down 15.3% year to date, its worst first-half performance since 1962. And the S&P 500 closed down 20.6% year to date, its worst first half since 1970’s 21% drop.”
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.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is about 2% below a double bottom’s 181.84 buy point following Thursday’s modest gain, according to IBD MarketSmith chart analysis. JNJ shares were unchanged Friday morning.
JNJ stock shows a 94 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.
Drug giant Merck fell further below its flat base’s 95.02 buy point Thursday, and is about 4% below the entry after the session’s 1.45% fall. Early Friday, the stock was quiet.
Health care giant and IBD Leaderboard stock UnitedHealth is in buy range past a double bottom’s 507.36 buy point. Shares inched lower Friday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone shares moved further above their cup with handle’s 2,130.60 buy point Thursday amid a 0.4% rise. Shares were flat Friday.
Bristol Myers finished about 2% below a flat base’s 78.72 buy point after Thursday’s 1.6% loss. Shares are now testing their key 50-day line. Shares inched lower Friday.
SwingTrader stock Eli Lilly rose 1.7% Thursday, adding to Wednesday’s 1.7% advance. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were unchanged early Friday.
Quanta Services is tracing a messy cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares found strong support around their 50-day line, which is a key level to watch. Quanta stock was quiet Friday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock skidded 1.8% on Thursday, extending a losing streak to four sessions. Shares looked to rebound a bit from those losses Friday morning, moving up 0.5%. The stock is sharply below its 50- and 200-day moving averages.
Tesla is likely to announce second-quarter sales in early July. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in the first quarter.
Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 46% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped 1.8% Thursday and are far below their long-term 200-day line. The stock is about 25% off its 52-week high. Apple shares moved down 0.4% Friday morning.
Software leader Microsoft declined 1.3% Thursday, as it continues lower after finding stout resistance around its key 50-day line earlier this week. The stock closed about 27% off its 52-week high. Microsoft shares declined 0.3% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
The post Dow Jones Futures Fall After Worst First Half Since 1962; Chinese EV Makers Report Strong Sales appeared first on Investor’s Business Daily.