Dow Jones futures dropped Friday morning after a weaker-than-expected Labor Department’s monthly jobs report. Chinese e-commerce giant Alibaba (BABA) jumped as the company faces a $1.1 billion fine on its fintech affiliate, Ant Group.
Friday’s employment report for June showed that nonfarm payrolls rose 209,000, below estimates for growth of 213,000 and down from May’s 339,000 growth. The unemployment rate ticked lower to 3.6%, in line with estimates.
Attention on the report intensified Thursday after the surprise surge in June hiring reported in ADP’s National Employment Report. That data sent bond and stock markets spiraling lower on Thursday.
On the earnings front, Levi Strauss (LEVI) tumbled more than 7% after slashing its full-year guidance.
Stock Market Today
Alibaba shares rallied more than 2% Friday after Reuters reported that China’s central bank is expected to fine Ant Group $1.2 billion, ending the probe into Alibaba. That will allow Ant Group to revive its business growth and eventually restart plans for an initial public offering.
Alphabet, Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB) and Nvidia (NVDA) — as well as Dow Jones stocks JPMorgan Chase (JPM), Visa (V) and Salesforce (CRM) — are among the best stocks to watch in the current stock market pullback.
Dow Jones Today: Oil Prices, Treasury Yields
Heading into Friday’s opening bell, Dow Jones futures dropped 0.15% vs. fair value. S&P 500 futures fell 0.1%, while Nasdaq 100 futures moved down a fraction in morning action.
The 10-year U.S. Treasury yield inched higher after the jobs report as it continues to break out above recent highs. The yield settled Thursday at 4.04%, its highest level since early March.
Oil prices continued higher Friday morning, after slight gains on Thursday. West Texas Intermediate futures traded up around 0.3%, to near $72 a barrel.
Stock Market Action
On Thursday, the Dow Jones Industrial Average declined 1.1%. In the Dow 30, American Express (AXP) skidded nearly 2.7%, just as it was getting close to the 177.04 buy point in a cup with handle.
The S&P 500 and Nasdaq composite both lost 0.8%, well off the session lows. The small-cap Russell 2000 sold off 1.6%.
Thursday’s Big Picture column commented, “Despite Thursday’s sharp losses, the stock market uptrend remains intact. So, IBD’s recommended market exposure still sits at 80%-100%. Still, investors should be prepared for the market to pull back some more.”
Now is an important time to read IBD’s The Big Picture column as the stock market holds near this year’s highs.
Dow Jones Stocks To Watch: JPMorgan, Salesforce, Visa
Dow Jones banking leader JPMorgan ended Thursday just below a 143.37 flat-base buy point following the session’s 1% decline. The 5% buy zone goes up to 150.54. JPM stock rose 0.8% Friday morning, following an upgrade to outperform from peer perform. Wolfe has its 12-month price target set at 170, about 19% above where shares closed on Thursday.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line and a decisive rebound would create a new buying opportunity. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock inched higher Friday morning.
Payments leader Visa closed further above a flat base’s 235.57 buy point Thursday, with a gain of 0.6%. The buy range tops out at 247.35. V stock dipped 0.2% early Friday.
Best Stocks To Buy And Watch: Alphabet, Chipotle, Dynatrace, MongoDB, Nvidia
Wednesday’s IBD Stock Of The Day, Alphabet, is trying to find support around its 50-day line. This week, investors could have used the June 30 high of 121.08 as a buy point. But shares are below that buy trigger after Thursday’s nearly 1.4% loss. Plus, Alphabet shares could have a proper base in another week. GOOGL stock moved down 0.2% Friday morning.
IBD Leaderboard watchlist stock Chipotle is trying to break out past flat base’s 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock fell a fraction Friday morning.
Software maker Dynatrace has formed a three-weeks-tight chart pattern, representing a brief consolidation in which institutional investors pause their buying. Shares are about 3% away from their latest entry at 52.99. DT stock was unchanged Friday morning.
MongoDB traded tightly after its recent earnings-fueled jump, which offered a new entry. Shares are just above the three-weeks-tight formation that showed a buy point at 398.89 after two straight days of losses. Meanwhile, aggressive investors could have used a trendline entry around 386. MDB stock moved down 0.1% Friday morning.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. It’s formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Shares dropped 0.4% Friday.
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|ASML||(ASML)||683.18||Cup with handle|
|Roku||(ROKU)||75.45||Cup with handle|
Source: IBD Data As Of July 5, 2023
TSLA stock looked to rebound from Thursday’s losses, climbing 0.7% Friday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock continued to hold just off last week’s record high at 194.48, rising 0.25% Thursday. Shares continue to hold sharply above a 157.38 buy point. Early Friday, shares rose 0.2% in morning action.
Microsoft shares rose another 0.9% Thursday, holding about 4% away from their June 16 all-time high at 351.47. Shares are on pace to end with a modest weekly gain.
In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Friday morning, Microsoft shares were slightly higher.
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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