Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Business
SCOTT LEHTONEN

Dow Jones Falls As Stock Market Rally Struggles; Cathie Wood Sells Nvidia Stock

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.

Key earnings movers Friday included DocuSign, RH, Guidewire Software and Kroger.

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 dropped 0.3% Friday morning. Cathie Wood's Ark Genomic Revolution ETF 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."

Electric-vehicle giant Tesla traded up 1% Friday. Dow Jones tech icons Apple and Microsoft traded squarely higher, after today's stock market open.

Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock inched higher and Meta shares rallied more than 1%.

Adobe, Baker Hughes, Cadence Design Systems, Netflix and Shopify — as well as Dow Jones stocks IBM and Visa — are among the best stocks to watch in the struggling stock market uptrend.

Adobe is an IBD Leaderboard stock and was featured in this Stocks Near A Buy Zone column. Netflix is an IBD SwingTrader stock.

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.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.4%, while the SPDR S&P 500 ETF traded up 0.2% early Friday.

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.

Five Best Dow Jones Stocks To Buy And Watch Now

Stock Market Struggles

On Thursday, the Dow Jones Industrial Average rose 0.2% after erasing earlier losses, with Intel and Amgen 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.

IBD's latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

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.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

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.

Oil field services and equipment leader Baker Hughes cleared a 36.48 buy point in a tight pattern, according to IBD MarketSmith. BKR stock moved up almost 1% in early morning trade.

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.

Learn How To Time The Market With IBD's ETF Market Strategy

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
Adobe 552.94 Consolidation
Visa 235.57 Flat base
SLB 58.70 Cup with handle
Synopsys 468.03 Flat base
Source: IBD Data As Of Sept. 6, 2023

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

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%.

Tesla Profit Margins Are Tumbling. TSLA Bulls Insist A Recovery Is Coming, And Soon.

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.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.