The Dow Jones Industrial Average reversed higher on Friday as the Wall Street Journal reported that Federal Reserve officials were debating the magnitude of future rate hikes. Social media company Snap plummeted as much as 30% on weak revenue results. And Dow Jones stocks American Express and Verizon fell on earnings numbers.
According to the WSJ report, some Fed officials are “signalling their desire to both slow the pace of rate hikes soon and halt hikes early next year to see how their moves this year slow the economy.”
Stock Market Today: Snap Earnings
At the beginning of the third quarter, the results of the Dow Jones shares were published American Express (AXP) and Verizon (VZ), together with Schlumberger (SLB) and snap (SNAP).
American Express fell more than 2% despite better-than-expected earnings and sales results. Verizon was trading down about 4% in early trade, while Schlumberger shares were up 3% in morning trade.
Snap reported third-quarter results late Thursday that missed sales estimates but beat earnings. In response, SNAP stock fell more than 30%.
Giant of electric vehicles Tesla (TSLA) traded 1% lower on Friday morning. Dow Jones tech titans Apple (AAPL) and Microsoft (MSFT) also declined after the market open today.
AutoZone (AZO), DoubleVerify (DV), Molina Healthcare (MOH) and Apex Pharma (VRTX) – as well as Dow Jones stocks rafters (CVX) and note (MRK) – are among the top stocks to watch. Remember, the continued attempt at a stock market rally is the perfect time for investors to build and perfect their watch lists of top growth stocks.
DoubleVerify and Vertex are IBD Leaderboard stocks. Merck and Molina Healthcare were featured in this week’s “Stocks near a buy zone” column, along with two other top stock ideas. AutoZone was the IBD stock of the day last week. DoubleVerify was Tuesday’s IBD stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices
After Friday’s opening bell, the Dow Jones Industrial Average rose 1.2% after recovering from early losses, while the S&P 500 gained 1%. The tech-heavy Nasdaq Composite rose 0.6% in morning action.
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) was up 0.1% and SPDR S&P 500 ETF (SPY) was up 0.5%.
The 10-year Treasury yield marched higher on Friday morning, rising to 4.3% on Friday morning after rising to 4.22% on Thursday. The 10-year Treasury yield settled at its highest level since June 2008 on Thursday.
US oil prices continued to rise on Friday, attempting to extend a winning streak to three sessions. West Texas Intermediate futures rose nearly $85 a barrel. Earlier this week, WTI futures traded as low as $81 a barrel.
Meanwhile, natural gas prices fluctuated lower, nearing a sixth straight fall, as European Union leaders failed to agree on a cap on gas prices. Natural gas futures fell 4.8% to hold just above $5.10 per million British thermal units. Gas prices have continued to rise 43% for the year and are more than 100% above pre-pandemic price levels.
Stock market rally attempt continues
On Thursday, the Dow Jones Industrial Average, which was up as much as 1.3% at midday, fell 0.3% while the S&P 500 fell 0.8%. The tech-heavy Nasdaq Composite lost 0.6% and the small-cap Russell 2000 struggled, down 1.2%.
Thursday’s Big Picture commented, “Investors should continue to follow companies that are slightly beating earnings results and showing strong bullish reactions.
Psychologically, watching the market make repeated rally attempts can be a challenging process. Investors want to have watch lists handy to jump to next-day breakouts. But not all follow-throughs work, so buying too soon or with too much conviction can lead to frustration.
For this reason, it is important to slowly and methodically increase exposure as the uptrend proves its worth.
Check out IBD stock lists, like the IBD 50 and stocks near a buy zone, for stock ideas.
Five Dow Jones stocks to watch right now
Keep an Eye on Dow Jones Stocks: Chevron, Merck
Energy giant Chevron holds its 50-day moving average above support and consolidates below a buy point of 182.50 ahead of earnings release on October 28th. An early entry at 166.93 is also in play. Chevron’s shares rose Friday morning, rising as oil prices rose.
CVX stock has a strong 98 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Dow Jones member and IBD-50 stock Merck gave up the buy point of its 93.12 double bottom, according to pattern recognition by IBD MarketSmith, in the midst of two consecutive losing days. The stock’s relative strength line hit a new high last week. Third quarter results are due on October 27 before the opening bell.
Merck shares are higher Friday morning.
4 Top Growth Stocks to Watchrightent stock market correction
Top stocks to watch: AutoZone, DoubleVerify, Molina, Vertex
Auto Parts Leader And Most Recent IBD Stock Of The Day AutoZone is about 4% off the buy point of a cup base of 2,362.34. Be on the lookout for a potential grip to provide a lower entry. AutoZone shares fell 0.4% early Friday.
IBD leaderboard stock DoubleVerify is just below the buy point of a flat base of 30.02, according to IBD MarketSmith chart analysis. DoubleVerify offers digital media measurement and data analysis. The company is developing verification technology to reduce advertising fraud. It also promises to ensure ad placement in safe and appropriate environments for brands. Shares fell almost 1% on Friday.
Molina Healthcare ended Thursday about 2% off the buy point of a flat base at 361.35. The stock’s RS line hit a new high last week, confirming that the healthcare stock should be eyeing a leading position. Molina earnings are expected on October 26th. MOH stock fell 0.4% early Friday.
Biotech leader Vertex Pharmaceuticals is retesting its 50-day moving average amid this week’s losses. Shares continue to build a flat base with a buy point at 306.05 and an early entry at 296.90. Its RS line made a new high in recent sessions, a sign of a major outperformance in the stock markets. Winnings are due October 27th. Shares fell 0.5% on Friday morning.
Join IBD experts as they analyze leading stocks in the latest stock market rally attempt on IBD Live
Tesla shares fell 6.65% on Thursday, hitting a fresh 52-week low after the company’s weaker-than-expected sales results. Shares are about 50% off their 52-week high. Tesla shares fell another 1% on Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.3% on Thursday and are about 21% below their 52-week high and below their 50- and 200-day moving averages. AAPL shares fell 0.2% on Friday morning.
Microsoft fell 0.1% on Thursday, falling for the second straight session. Stocks are still trying to recover from last week’s 52-week low. The software giant is down about 32% from its 52-week high. Shares fell 0.2% on Friday.
Apple’s earnings are expected on October 27th, while Microsoft’s are due on October 25th.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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