The Dow Jones Industrial Average opened lower Friday, as the stock market headed for a losing week. Meanwhile, Cathie Wood’s Ark Invest ETFs sold more than 13,500 shares of Nvidia stock.
DOCU stock dropped nearly 1% in morning trade, while RH shares dived more than 6%. Guidewire stock surged nearly 8%. Finally, Kroger shares declined more than 1% in early action.
Stock Market Today
Nvidia (NVDA) dropped 0.3% Friday morning. Cathie Wood’s Ark Genomic Revolution ETF (ARKG) sold 13,522 shares of Nvidia stock, according to Thursday’s daily trade disclosures. The ARKG ETF continues to hold 124,000 Nvidia shares.
In a July interview with Barron’s, Wood expressed her concerns that Nvidia stock was overvalued because it is “is selling at a very high multiple of revenue right now.”
Adobe (ADBE), Baker Hughes (BKR), Cadence Design Systems (CDNS), Netflix (NFLX) and Shopify (SHOP) — as well as Dow Jones stocks IBM (IBM) and Visa (V) — are among the best stocks to watch in the struggling stock market uptrend.
Dow Jones Today: Oil Prices, Treasury Yields
After Friday’s opening bell, the Dow Jones Industrial Average edged lower, while the S&P 500 was up 0.2%. The tech-heavy Nasdaq composite climbed 0.3% in morning trade.
Early action Friday also showed the 10-year U.S. Treasury yield at 4.23%, still set to end with a solid weekly gain.
Also, oil prices bounced back from Thursday’s losses. West Texas Intermediate futures rose nearly 1% in morning action, trading around $87.50 a barrel.
Stock Market Struggles
On Thursday, the Dow Jones Industrial Average rose 0.2% after erasing earlier losses, with Intel (INTC) and Amgen (AMGN) doing the heavy lifting. The S&P 500 moved down 0.3%. The Nasdaq composite lost 0.9%, extending a losing streak to four sessions. Even though the Nasdaq ended sharply off its lows, it closed below its critical 50-day moving average.
Thursday’s Big Picture column commented, “This week’s volatile action underscores the importance of raising market exposure carefully and methodically after a follow-through day.”
Now is an important time to read IBD’s The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year’s highs.
Dow Jones Stocks: IBM, Intel, Visa
Dow Jones leader IBM is breaking out past a cup-with-handle’s 146.50 buy point. IBM stock edged lower Friday, after another slight fall Thursday.
Chip giant Intel is in buy range past a 37.19 flat-base entry, with a 3.25% advance Thursday. Shares dipped 0.3% Friday morning.
And Dow Jones payments leader Visa is still above its latest entry, a flat base’s 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock edged lower Friday.
Stocks To Watch: Adobe, Baker, Cadence, Netflix, Shopify
IBD Leaderboard stock Adobe is breaking out past a 552.94 buy point in a short consolidation amid recent gains. Shares are in the 5% buy area. ADBE stock rose nearly 2% early Friday. Adobe announces its fiscal third-quarter results on Sept. 14.
Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 last week and are about 1% away from their next entry. CDNS was up 0.3% Friday.
Streaming giant and IBD SwingTrader stock Netflix continues to build a cup base with a 485 buy point. An early entry at Tuesday’s high of 453.45 is also in play. NFLX stock edged higher Friday.
Last week, Shopify shares jumped above their 50-day line in big volume. A 71.43 buy point in a cup base is about 7% away. The stock has broken out past a downward trendline drawn from its July top. Meanwhile, another earlier entry looms at 67.60. SHOP stock moved down 0.4% Friday morning.
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|
|SLB||(SLB)||58.70||Cup with handle|
Source: IBD Data As Of Sept. 6, 2023
Tesla stock cut losses to just 0.2% Thursday, continuing to bounce between resistance around its 50-day line and support at its 21-day exponential moving average. For now, investors can use last week’s high of 261.18 as an early entry. And TSLA stock has a 299.29 official buy point.
On Friday morning, TSLA stock rebounded, rising more than 1% in early action, on pace to finish with a weekly gain of around 3%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock tumbled another 2.9% Thursday, falling further below its 50-day line after two straight days of sharp losses. Despite Thursday’s fall, AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 1.4% early Friday.
Microsoft shares also have tested their 50-day line in recent sessions, with a near-1% fall Thursday. And on Friday morning, the stock moved up 1.1%.
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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