Dow Jones Futures Reverse on Hot Inflation Data; Tesla Stock Falls Ahead of AI Day

Dow Jones futures reversed lower on Friday morning on hot inflation data, which came from the personal consumption expenditures price index, ahead of the final trading session of the quarter. Tesla stock fell before the enterprise AI daywhile Micron Technology and Nike were the main earnings drivers.


Inflation data

The Federal Reserve’s favorite measure of inflation came out on Friday, with the personal consumption expenditure price index rising 0.3% for August, marking a 6.2% year-over-year increase. the other. Both numbers were hotter than expected. Personal income rose 0.3% in August, in line with Econoday estimates.

The PCE price index is a measure of inflation in the United States, which tracks changes in the prices of goods and services purchased by consumers throughout the economy.

Stock Market Today: Micron, Nike Earnings

Micron Technology (IN) and Nike (OF) were the main overnight earnings reporters.

Micron Shares advanced 1% after the memory chip giant missed Wall Street’s already reduced sales expectations in its fiscal fourth quarter and headed much lower for the current quarter. It also reduces capital expenditure plans.

Nike stock plunged 13% after Dow Jones stock just beat Wall Street expectations for its first quarter earnings report. But gross margins fell as inventories surged, and the sportswear giant said it would move aggressively to liquidate excess merchandise.

Leader in electric vehicles You’re here (TSLA) was trading down 0.3% on Friday. Tech Titans Apple (AAPL) and Microsoft (MSFT) were mixed before today’s stock market open.

In the ongoing weakness of stock markets, DoubleVerify (DV), Hostess Brands (TWNK), Neurocrine Biosciences (NBIX), Round (tax included), Vertex Pharmaceuticals (VRTX) and World wrestling entertainment (WWE) — as well as the Dow Jones stock UnitedHealth (A H) – are among the best stocks to watch. Keep in mind that the deepening of the stock market correction is a time for investors to sit on the sidelines and make watchlists.

DoubleVerify and Vertex are IBD classification shares. Hostess and Toro were featured in this week’s Stock Near A Buy Zone column. Neurocrine Biosciences was Monday Stock of the day.

Dow Jones Today: Treasury Yields, Oil Prices

Before Friday’s opening bell, Dow Jones futures fell less than 0.1% from fair value, while S&P 500 futures rose 0.2% . Nasdaq 100 futures gained 0.15% in morning action.

Remember that overnight action in Dow Jones Futures and elsewhere does not necessarily translate into actual trading over the next stock Exchange session.

Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) was up 0.15%, and the SPDR S&P 500 ETF (TO SPY) increased by 0.2%.

The 10-year Treasury yield slipped to 3.71% on Friday morning. Earlier this week, the 10-year Treasury yield briefly rose above 4%, which had not been done in more than a decade. The 10-year Treasury yield is battling for its ninth consecutive weekly advance, marking its longest rally since 2004.

Meanwhile, US oil prices fell slightly. West Texas Intermediate futures were just below $81 a barrel, after falling to their lowest level of the year on Monday.

Stock market correction

On Thursday, the Dow Jones Industrial Average fell 1.5%, while the S&P 500 closed down 2.1%. The Nasdaq composite plunged 2.8%. Small cap Russell 2000 lost almost 2.4%. The S&P 500 and Nasdaq cut back from recent lows, ending the young rally attempt.

Chronicle The Big Picture of Thursday commented, “In a stock market that continues to fall precipitously, new IBD Ranking Stock Vertex Pharmaceuticals is a market leader to watch.”

As the Nasdaq broke through its Sept. 23 lows, the tech-heavy composite’s two-day rally attempt crumbled. Investors are now looking for another rally attempt. Amid continued selling, investors are likely to remain mostly, if not entirely, on the sidelines.

Nevertheless, it is important that investors take advantage of this downtime. Now is the perfect opportunity to study market dips and to build a strong watchlist best performing stocks. Many long-term leaders tend to break out on or near the day after the market bottom signal. Missing that first opportunity can be a costly mistake.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Dow Jones UnitedHealth stock continues to hold above its long-term 200-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith graphical analysis. The resilience of the title made it Tuesday’s IBD 50 stock picks to watch. Shares were unchanged Friday morning.

UNH stock shows a solid 95 over a perfect 99 IBD Composite Assessment, speak IBD inventory check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrent Stock market correction

Top stocks to watch: DoubleVerify, Hostess, Neurocrine, Toro, Vertex, WWE

IBD Ranking Stock DoubleVerify closed just below its buy point of 28.07 in a low basis after Thursday’s 0.3% drop. According to the leaderboard commentary, DoubleVerify has found support near its 50-day line and has a relative strength line at new highs. Shares traded flat on Friday.

Twinkie maker Hostess Brands is in the 5% hunting zone above a buy point of 23.23 on a mug with handle, according to IBD MarketSmith graphical analysis. On the upside, Hostess’ relative strength line continues to hit new highs. Keep in mind that the weak market trend should keep you away, but it is one of the main stocks to watch. The title was inactive on Friday.

Monday’s IBD stock of the day, Neurocrine Biosciences, is still building a flat base that has a buy point of 109.36. Stocks are right at their 50-day line after Thursday’s 0.1% loss. The RS line hit a new high on Thursday, so the stock has avoided much of the market’s steep decline in recent sessions. Shares were unchanged on Friday.

Toro stock is in a flat bottom and about 5% of a 92.05 point of purchase. Stocks are back below their 50-day line after Thursday’s 1.2% decline. The RS range reaches new heights. Toro shares traded flat on Friday.

Vertex Pharmaceuticals definitely regained her 50 day line after Wednesday’s 2.7% rally. It forms a flat base with a buy point of 306.05 and an early entry at 296.24. The resilience of the title makes it a great idea to watch. Shares rose slightly on Friday.

World Wrestling Entertainment continues to build a flat base that has an entry of 75.33. Stocks are still trying to recover their 50-day line. A decisive recovery from this key level would be bullish for the stock’s basis building outlook. WWE stocks were flat early Friday.

Join IBD experts as they analyze the top stocks of the current market correction on IBD Live

Tesla Stock

Tesla Stock slipped 6.8% on Thursday, ending a three-day winning streak and closing at its lowest level since July 26. The shares are significantly below their 50-day line. Tesla stock fell slightly ahead of the company’s AI day.

AI Day is an event where Tesla showcases its latest technologies. CEO Elon Musk said on June 2 Tweeter that the event, originally scheduled for August 19, would be pushed back in hopes that a prototype of its robot Optimus would work at a later date.

The AI ​​event is expected to begin at 5:00 PM PT, which means any news will arrive after the extended trading ends. Over the weekend, Tesla will likely release third quarter delivery data. Investors will therefore not be able to intervene before Monday morning.

Last week, the stock’s relative strength line hit its highest level since April, but has fallen sharply in recent sessions. The shares are down about 35% from their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones Stocks, Apple shares plunged 4.9% on Thursday following an analyst downgrade. Apple stock fell slightly on Friday morning, threatening to extend a three-session losing streak.

Microsoft fell 1.5% on Thursday, hitting a new 52-week low. The software giant is more than 32% off its 52-week high. Microsoft shares rose 0.4% early Friday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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