The Dow Jones futures, along with the S&P 500 and Nasdaq 100 futures, reversed from overnight losses to trade modestly high on Friday, ahead of the February jobs report. Tesla’s shares appeared to be recovering from big losses, but they were expected to fall again in the pre-market.
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Among Dow Jones leaders, Apple (AAPL) rose 0.1% before the market on Friday, while Microsoft (MSFT) rose 0.3% in today’s stock market. Visa (V) is just below a new point of purchase after giving up entry on Thursday.
Tesla (TSLA) appeared to recover from Thursday’s nearly 5% dip, but stocks fell about 1% in pre-market trading.
After the stock market closed on Thursday, the chip leader Broadcom (AVGO) reported strong quarterly earnings results.
Among the main actions to be observed, Alphabet (Google OK (VALE) are negotiating near new points of purchase amid the current liquidation of the stock market.
Microsoft and Tesla are shares of the IBD Leaderboard. Vale was the IBD Day Stock on Thursday.
Dow Jones Futures Today: treasury income, jobs report
Before the stock market opened on Friday, Dow Jones futures were up 0.3%, while S&P 500 futures were up 0.4% against fair value. Nasdaq 100 futures rose 0.25% against fair value. Remember that trading in Dow Jones futures and elsewhere does not necessarily translate into real trading in the next regular stock market session.
At noon on Thursday, Fed chief Jerome Powell triggered the day’s liquidation, saying that last week’s rising bond yields “caught my eye”. But Powell also said that the Fed remains highly accommodative and did not suggest a new “turnaround” in policy. The 10-year Treasury yield skyrocketed, closing at 1.55%.
The Department of Labor will release its monthly employment report at 8:30 am Eastern Time. The US economy is expected to create 175,000 jobs in February, compared to just 49,000 in January, according to Econoday. The unemployment rate is expected to remain stable at 6.3%.
Among the exchange-traded funds, the Innovator IBD 50 (FFTY) was down 5.2% on Thursday. The Nasdaq 100 Invesco QQQ Trust (QQQ) fell 1.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) fell 1.2%.
Liquidation of the stock market
Looking back on the recent upward trend, November was an important month for the stock market. IBD’s The Big Picture signaled the new upward trend after the next day of the market’s rise on November 4th. Meanwhile, early March saw the Dow Jones Industrial Average, Nasdaq and S&P 500 falling through major support levels.
According to Thursday’s Big Picture, “Nasdaq plunged below last week’s lows, closing at its lowest level since January 4 and staying negative for the year. The high-tech compound fell 1.3% in 2021, after rising to 10% from January 1st to its record on February 16th. “
During periods of strong stock market weakness, investors should be lightly invested – or even 100% cash – until the next day. Follow-throughs signal a new trend of high potential in the market and give the green light to start buying shares again.
Use downtime as a chance to take a mental break; however, do not disconnect. Be on the lookout for the next leaders to emerge. One of the best ways to identify the next major stock cycle during stock market corrections is to use the relative strength line. The RS line measures the performance of a share’s price against the S&P 500. If the stock is outperforming the broader market, the RS line tilts upwards. If a stock performs worse than the broad market, the line will point down.
ETF strategy of the stock market and how to invest
Bitcoin Price
Bitcoin fell about 1% on Friday, dropping briefly below $ 47,000 before reducing losses. Bitcoin’s price was traded around $ 47,300 in morning trading, according to CoinDesk.
Bitcoin’s price reached an all-time high on February 21, reaching $ 58,332.
The Grayscale Bitcoin Trust (GBTC) ETF fell 10.3% on Thursday, but still remains above the 50-day support level.
Dow Jones Shares: Visa
Within the Dow Jones Industrial Average, Visa shares are trading just below a 211.69 buying point in a glass with a handle, according to analysis by the IBD MarketSmith chart. The 5% buying zone rises to 222.27.
The shares remained unchanged before the market on Friday, as they appear to end a three-day losing streak.
Actions to note: alphabet, Vale
Alphabet, the leader of FANG’s shares, rose 1.1% on Thursday, in the face of weakness in the stock market. The shares remain extended from a point of purchase of 1,843.93 on a flat basis, and are about 5% away from an entry of 2,145.24 in a three-week squeeze. The stock rose before the market on Friday.
Thursday’s IBD Stock Of The Day, Vale, is tracing a cup with handle with a buying point of 18.57, according to the analysis of the IBD MarketSmith chart.
The shares fell 2.1% on Thursday, closing just above the 50-day line. Vale’s shares rose 1% before opening Friday.
Remember that the current stock market weakness should keep investors at bay.
Profit from the stock market: Broadcom
Chipmaker Broadcom easily surpassed Street’s targets for the first fiscal quarter and moved upwards in the current period. The company earned an adjusted $ 6.61 per share on sales of $ 6.66 billion in the quarter ended January 31. Analysts had expected Broadcom’s earnings of $ 6.55 per share on sales of $ 6.61 billion.
AVGO’s shares fell about 1% ahead of the market on Friday. The shares gave up their 50-day support level amid a 4.2% drop on Thursday.
IBD Live: a new tool for daily stock market analysis
Tesla Stock
Tesla’s shares appeared to bounce back from the 4.9% drop on Thursday amid a series of three-day losses. But stocks fell about 1% ahead of the market on Friday. The stock may be forming a new base, but it is too early to identify a new entry.
Last week, the electric car leader broke its 10-week moving average mainline, a critical support level.
On January 25, Tesla’s shares reached a record high of 900.40, after rising 93% from a 466 point of purchase in a glass with handle. The shares are about 30% below the historical record.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones’ main stocks, Apple was slightly positive in the pre-market on Friday, after falling 1.6% on Thursday. Apple’s stock remains below its 10-week line, but a strong recovery above the level would be optimistic for the stock’s outlook. In the meantime, the stock could be set to test its 200-day long-term line.
On February 18, Apple’s stock triggered the 7% -8% loss-of-sale rule when it fell more than 7% below its 138.89 point of purchase in a glass with handle.
Meanwhile, Microsoft rose 0.3% ahead of the market on Friday. The stock is trading just below its 232.96 buying point.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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