Dow Jones Futures Fall Amid Economic Data; Adobe Sells Off On Earnings
The Dow Jones Industrial Average dropped Friday morning amid the release of key economic data. Software giant Adobe sold off on a mixed earnings report.
September’s Empire State index from the New York Fed rose to 1.9, much higher than the expected -10.0 reading after August’s -19.0.
Further, the University of Michigan’s consumer sentiment index fell to 67.7 vs. August’s 69.5. And 1-year inflation expectations fell to 3.1% in September vs. August’s 3.5%.
Friday is a witching session, which most market watchers still call a triple witching day, on which multiple options and futures contracts expire. These sessions tend to, but do not always, experience much higher-than-average trading volumes.
Adobe stock dived nearly 4% after the software giant beat Wall Street’s targets for its fiscal third quarter. But its outlook for the current period called for earnings modestly higher than views on in-line sales. Copart shares dipped in morning trade, while Lennar dropped 4.6% in early trading.
Stock Market Today
The non-unionized Tesla (TSLA) declined 0.7% Friday morning, as the UAW strike began. Ford (F) rose nearly 1%, while General Motors (GM) gained almost 2%. Stellantis (STLA) was up 1%. About 13,000 workers began targeted strikes at one facility each at Ford, GM and Stellantis Jeep.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 was down 0.6%. The tech-heavy Nasdaq composite lost 0.9% in morning trade. Chip equipment makers ASML Holding (ASML) and KLA (KLAC) were under pressure on the Nasdaq 100, after Taiwan Semiconductor (TSM) put a hold on orders for high-end chipmaking equipment.
Early action Friday also showed the 10-year U.S. Treasury yield at 4.31%, just off its 52-week high, set to finish with a modest weekly gain.
Also, oil prices pushed to new 2023 highs as West Texas Intermediate futures rose almost 1% in morning action. WTI futures traded near $91 a barrel Friday.
Stock Market Struggles
On Thursday, the Dow Jones Industrial Average rose 1%, while the S&P 500 and Nasdaq composite both moved up 0.8% each. All three major stock indexes regained their key 50-day moving averages, a critical benchmark to watch over the coming sessions.
Thursday’s Big Picture column commented, “This week’s index gains, especially after two inflation reports, indicates bulls may be gradually overwhelming the bears. Thursday’s gains placed the major stock indexes back above their 50-day lines, a sign that the troubled uptrend could finally be gaining traction.”
Now is an important time to read IBD’s The Big Picture column as the stock market looks to rebound from recent losses.
Dow Jones Stocks: Caterpillar, Intel
Dow Jones leader Caterpillar continues to build a new flat base that has a 293.88 buy point, according to IBD MarketSmith pattern recognition. Shares rebounded Thursday, moving up 2.4% and ending just 4% away from the new entry. CAT stock rose 0.4% Friday morning.
Chip giant Intel is at the top of its 5% buy range past a 37.19 flat-base entry, after last week’s breakout move. INTC stock moved down nearly 1% Friday.
Stocks To Watch: Airbnb, Adobe, Amazon, Shopify
IBD Leaderboard stock Adobe finished Thursday back below a 552.94 buy point in a short consolidation, according to IBD MarketSmith. ADBE stock declined nearly 4% Friday morning after the company’s earnings results. If the loss holds through the open, it would mark the first drop below the stock’s 21-day exponential moving average since May.
E-commerce giant Amazon is breaking out past a 143.63 buy point in a flat base. Shares are in a new buy area, as they top their latest entry. The IBD SwingTrader stock lost 1.1% early Friday.
Shopify shares are adding a handle to a cup base, taking the buy point to 67.60. They are trying to rebound from support around their key 50-day line. SHOP stock moved down a fraction in morning trade Friday.
Best Stocks In Stock Market Action
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|
Source: IBD Data As Of Sept. 13, 2023
Tesla stock rallied 1.75% Thursday, adding to Wednesday’s gains. Shares remain squarely above an early entry at 261.18. And TSLA stock has a 299.29 official cup-base buy point, but could now be adding a handle.
On Friday morning, TSLA stock fell 0.7%, still looking to add to Thursday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.9%, bouncing after two straight days of heavy losses. Shares remain near their recent lows. Despite the recent weakness, AAPL stock is building a flat base with a 198.23 buy point, but is falling further below the 50-day line. AAPL stock dropped 0.4% early Friday.
Microsoft shares continues to move further above the 50-day line Thursday, climbing 0.8%. MSFT stock is rallying up the right side of a cup base that has a 366.78 buy point. And on Friday morning, the stock moved down 1.4%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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