Dow Jones futures fell 50 points early Friday, as Treasury yields ticked higher after a weaker-than-expected December jobs report. Shares of Ford Motor climbed in premarket trade. And Tesla stock briefly rebounded, as it seeks to regain a key level.
Among the Dow Jones leaders, Apple (AAPL) fell 0.3% premarket Friday, while Microsoft (MSFT) moved up 0.35% in today’s stock market. Also among the Dow 30, Home Depot (HD) remains in a buy zone, while Nike (NKE) fell further below a key level on Thursday.
Electric-vehicle leader Tesla (TSLA) traded slightly higher premarket Friday. Its rival, Rivian (RIVN), inched higher. Lucid Group (LCID) dropped around 1%. And Chinese EV leaders Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) were higher Friday morning.
Ford Motor (F) swung 1.7% higher in early action, after ending Thursday with a 17.8% gain so far for the week.
Among Friday’s top stocks to buy and watch, Diamondback Energy (FANG), EOG Resources (EOG), Goldman Sachs (GS), Nucor (NUE) and Wells Fargo (WFC) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Tesla was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Jobs Report, Treasury Yields
Ahead of the stock market open Friday, Dow Jones futures moved down 0.2% vs. fair value, while S&P 500 futures lost 0.25%. Nasdaq 100 futures dropped 0.5%. Remember that premarket action in Dow Jones 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) lost 0.5% and the SPDR S&P 500 ETF (SPY) traded down 0.2%.
The 10-year Treasury yield ticked up above 1.76% Friday morning. On Thursday, the 10-year yield climbed above 1.73%, closing at its highest level since March 31 and just shy of 2021’s intraday high above 1.76%, posted in April.
The Labor Department released the December jobs report at 8:30 a.m. ET, saying the U.S. economy added 199,000 jobs in December, missing estimates for 400,000, according to Econoday. The unemployment rate fell to 3.9%, topping estimates for 4.1%.
A month ago, November data showed 210,000 new hires, less than half of the estimated 550,000 worker gain.
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Stock Market Rally Weakens
The stock market posted mild losses Thursday, as the S&P 500 ended just above its 50-day moving average line.
Thursday’s The Big Picture commented: “During uptrends under pressure, even though the market uptrend is still intact, it’s time to proceed with caution. Be disciplined and selective about new purchases — focus only on stocks with top-notch fundamental and technical metrics.”
Following this week’s stock market losses, it’s an important time to read IBD’s The Big Picture.
IBD’s 2022 Stock Market Forecast
Stocks On The Move: STMicroelectronics
STMicroelectronics (STM) jumped 4% premarket Friday after the company issued strong preliminary sales for the fourth quarter. The top chip stock is approaching a flat base’s 52.25 buy point. STMicro was the IBD Stock of the Day on Thursday.
Dow Jones Stocks To Buy And Watch: Home Depot, Nike
Home Depot stock dropped 0.4% Thursday, but remains in a buy zone on a rebound from support. HD shares were flat premarket Friday.
Dow Jones retail leader Nike continue to build a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares dropped further below their 50-day line Thursday, falling 0.75%. Nike shares edged higher premarket Friday.
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Stocks To Buy And Watch: Diamondback, EOG, Nucor, Goldman, Wells
Diamondback Energy is at the top of a buy range above a 117.81 buy point, following Thursday’s 4.7% advance. The 5% buy area tops out at 123.70. FANG shares rallied 0.3% premarket Friday.
Bullishly, the stock’s RS line hit a new high on the breakout day, confirming the energy stock as a market leader. FANG was featured in Thursday’s IBD Stock Analysis column and boasts a 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
EOG Resources rallied 2.05% Thursday, still in the 5% buy area past a 91.74 cup-with-handle entry, according to IBD MarketSmith chart analysis. The 5% buy area runs up to 96.33. EOG shares traded up 1% premarket Friday.
IBD Leaderboard stock Nucor gave up its 122.16 buy point during Thursday’s 5% decline, underscoring the difficulty of making progress in the current market. Nucor was IBD’s Stock of the Day on Wednesday. Nucor moved up 0.5% premarket Friday.
Dow Jones stock Goldman Sachs cut losses to just 0.4% Thursday, ending just above the 50-day line. Shares are tracing a cup base with a 426.26 buy point. An early entry at 412.76 is also in play. Shares edged higher early Friday.
Banking giant Wells Fargo recovered from Wednesday’s 0.9% fall, advancing 2.6% Thursday and reclaiming a 52.67 buy point in a flat base. The 5% buy area goes up to 55.30. WFC stock gained 0.3% premarket Friday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Nio, Xpeng, Lucid Motors, Rivian
Li Auto stock continues to work on a new base. It is again testing its long-term 200-day line amid three straight days of heavy losses. The stock gained about 1% early Friday.
Nio stock dropped nearly 2% Thursday, closing about 56% off its 52-week high. Shares remain sharply below their 50- and 200-day moving averages. Shares traded over 1% higher premarket Friday.
Xpeng Motors reversed from early losses to rally 1.2% Thursday, but remains below the key 50-day line. There is no valid buy point yet, as shares continue to form the right side of a new base. The stock rose nearly 1% premarket Friday.
Among U.S.-based EV stocks, Lucid Motors shares dropped 1% premarket Friday, on pace to give back a part of Thursday’s 4.2% advance. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares found resistance at their 50-day line this week, indicating the stock’s consolidation could require more time.
Recent initial public offering Rivian was slightly higher premarket Friday, looking to snap a four-day losing streak that brought the stock to new all-time lows. RIVN shares closed Thursday about 51% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight with the stock setting new lows.
Five Best Dow Jones Stocks To Watch Now
Tesla stock traded barely higher premarket Friday, on pace to snap a three-day losing streak. The EV leader skidded 2.15% Thursday, giving up its critical 50-day moving average line and triggering the 7%-8% loss-cutting sell rule from a 1,119.10 trendline buy point. On Wednesday, the stock hit the 7% loss rule from a double bottom’s 1,202.05 entry.
Tesla shares eyed their 50-day line ahead of Friday’s open. If they are able to decisively reclaim their 50-day line, then be on the lookout for a new buy point.
Shares traded as high as 1,243.49 on Nov. 4, and the stock ended Thursday about 14% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock ended Thursday down 1.7%, extending a losing streak to three sessions. Shares remain about 12% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Apple shares fell 0.3% premarket Friday.
Software leader Microsoft fell further below its 50-day line during Thursdays 0.8% decline. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout. Shares moved down 0.35% premarket 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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The post Dow Jones Futures Fall, Treasury Yields Rise After Weak Jobs Report; Tesla Stock Looks To Rebound appeared first on Investor’s Business Daily.