The Dow Jones Industrial Average and other major stock indexes fell on Friday as Wall Street digested the previous day’s big gains. One of the early movers was Nvidia (NVDA), which threatened to give up some of Thursday’s gains in the stock market today.
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Stocks surge as rally attempts intensify: Focus on LLY, SN, CYBR
After the open, the Dow Jones Industrial Average was down 0.4%, while the S&P 500 was down 0.3%. The tech-heavy Nasdaq Composite Index was down 0.4% in morning trading.
The yield on the 10-year Treasury note fell to 3.94% early Friday. Oil prices continued to rise, with West Texas Intermediate oil futures trading around $76.35 a barrel.
Among exchange-traded funds, the Invesco QQQ Trust (QQQ) fell 0.4%, and the SPDR S&P 500 ETF (SPY) was down 0.3% after the open.
Alarm bells are ringing for Nvidia, Google, Meta and others
Stock market today: NVIDIA price target rises
Artificial intelligence giant Nvidia (NVDA) fell 1% on Friday morning, but is hopeful it can continue to add to Thursday’s 6% gain. Early Friday morning, Mizuho raised its price target on Nvidia shares to 132 from 127.50. On Monday, the stock hit its lowest price since mid-May, but has since rebounded.
Cosmetics giant ELF Beauty (ELF) shares plunged more than 14% after the company reported lower-than-expected full-year sales and profits late Thursday. However, ELF posted better-than-expected second-quarter profits and sales.
Other earnings movers on Friday morning included Sweetgreen (SG), The Trade Desk (TTD) and Unity Software (U).
Sweetgreen shares surged 25%, The Trade Desk rose 6% and Unity shares rose 10% at the open.
The selling spree hit shares of Nvidia and others hard, but there are some rays of hope.
Dow Jones rebounds
On Thursday, the Dow Jones Industrial Average rose 1.8%, the S&P 500 rose 2.3% and the tech-heavy Nasdaq Composite Index added 2.9%, marking the S&P 500’s biggest one-day gain since Nov. 30, 2022, according to Dow Jones market data.
IBD’s The Big Picture column wrote on Thursday, “Thursday’s rally was constructive but failed to change the market outlook. It was too early for a follow-through date on the Nasdaq, which should come on the fourth or later day of a rally attempt. With Tuesday being day 1, Friday would be the earliest day for confirmation of a follow-through rally.”
On Thursday’s IBD Live show, the IBD Live team discussed the current trading situation and how investors should approach today’s stock market.
As market action continues, now is an important time to read “The Big Picture” column, and be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
The rift at Nvidia is widening. Don’t ignore previous warnings.
Stock Market Today: Best Stocks to Watch
Companies to watch in the stock market today include Ferrari (RACE), MercadoLibre (MELI), ServiceNow (NOW), and Shake Shack (SHAK).
The list also includes Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT), and UnitedHealth (UNH).
There was one new stock on Thursday’s IBD MarketSurge Breaking Out Today list: SharkNinja (SN). The stock surpassed a buy point at 80.81 and rose another 4% on Friday. SharkNinja was also Thursday’s IBD Stock Of The Day.
For other stocks approaching buy points on the basis, check out MarketSurge’s “Near Pivot” list. To find other stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get real-time buy and sell alerts for stock market leaders with IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow components, UnitedHealth is in a buy range above a 554.70 buy point in a cup base, according to MarketSurge Pattern Recognition. Shares were down 0.7% on Friday morning.
Meanwhile, IBM bullishly reclaimed its 189.47 cup-with-handle entry during Thursday’s rally. IBM shares were down 0.2% on Friday.
Outside the Dow Jones Industrial Average, shares of automaker Ferrari are looking for support near their 50-day line and are trading sideways, about 5% away from a buy point at 442.80. The stock was trading slightly lower on Friday morning.
MercadoLibre has surged this week, breaking out of a cup-with-handle buy point at 1,792.05. Shares were trading modestly higher early Friday.
ServiceNow found support at its 50-day line and continues to trade below the 806.52 handle entry. ServiceNow was up 0.5% early Friday morning.
Shake Shack added handle to the cup base and set a new entry at 105.68. Shares were up 1% on Friday morning.
Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen of the Day
Stock Market Today: Companies to Watch
These are four stocks that are in or near the buy zone on the stock market today.
Company Name Symbol Correct Buy Point Buy Point Type MercadoLibre (MELI) 1,792.05 Cup with handle Shake Shack (SHAK) 111.29 Cup base ServiceNow (NOW) 806.52 Handle entry Spotify (SPOT) 331.08 Flat base Source: IBD data as of August 5
Watch IBD Live as IBD experts break down the biggest stocks on the stock market today.
7 Great Stocks: Tesla
Among the Magnificent Seven stocks, Tesla (TSLA) was down 0.7% in morning trading.
Tesla shares rose 3.7% on Thursday but are still trading below their 50-day and 200-day lines.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among the Dow Jones “Magnificent Seven” stocks, Amazon, Apple and Microsoft were trading mixed after the stock market opened on Friday.
Amazon shares remain below their long-term 200-day moving average after the recent selloff. The stock was up 0.6% on Friday morning.
Apple shares rose 1.7% on Thursday, closing just below their 50-day moving average. The stock triggered a round-trip sell rule this week from a buy point of 199.62. Apple fell 0.4% on Friday.
Microsoft shares are on track to rise above their 200-day moving average, and shares were up 0.3% on Friday morning.
For more information on growth stocks, the Dow Jones Industrial Average and today’s stock market, follow Scott Lehtonen on X (formerly Twitter) @IBD_SLehtonen.
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