The Dow Jones Industrial Average recovered from heavy overnight losses Friday morning, as Wall Street weighed the consequences of Israel's retaliatory strike on Iran. Meanwhile, streaming giant Netflix plunged on the stock market today as it crushed Wall Street's targets for the first quarter but missed views with its sales outlook.
The Dow Jones Industrial Average rose 0.4% in morning action, while the S&P 500 was down 0.1%. The tech-focused Nasdaq composite lost 0.6% after the opening bell.
Early Friday, the 10-year Treasury yield ticked lower to 4.6%. Further, oil prices dropped, as West Texas Intermediate futures traded around $82 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.6%, and the SPDR S&P 500 ETF fell 0.2%.
Overnight, Israel retaliated against Iran's massive drone and missile attack on its territory, according to the Wall Street Journal. It appeared to be a limited strike aimed at avoiding an escalation that could push the countries closer to war.
As a result, stock action appeared to be restrained as overnight action on the indexes — which initially tumbled sharply — downplayed the effects of the conflict and flattened as the market opened.
Stock Market Today: Netflix Earnings
Late Thursday, Netflix said it earned $5.28 a share on sales of $9.37 billion during the first quarter. Analysts had predicted earnings of $4.52 a share on sales of $9.28 billion. On a year-over-year basis, Netflix earnings jumped 83% while sales climbed 15%. Netflix's report marked the company's third straight quarter of accelerating sales growth.
But the streaming giant forecast earnings of $4.68 a share on sales of $9.49 billion. Wall Street was looking for earnings of $4.54 a share on sales of $9.52 billion in the second quarter.
Netflix's outlook would translate to year-over-year growth of 42% in earnings and 16% in sales. That weak sales prediction for the current quarter sent shares tumbling nearly 8% in morning trading.
Other key earnings movers Friday included American Express, Intuitive Surgical and Procter & Gamble
American Express shares rose 2.1%, while Intuitive Surgical stock rallied 2% in early trade. And Procter & Gamble shares dropped 1.7%.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Edges Up
On Thursday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.2%. The tech-heavy Nasdaq composite lost 0.5%. The S&P 500 and Nasdaq extended their losing streaks to five sessions, falling further below their 50-day moving averages.
Thursday's Big Picture column commented, "To help reduce your exposure to stocks, sell your losers and take some profits in the winners. Be sure to follow sell rules, including selling any stock that drops 7% or more from your purchase price."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market action. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Watch On Stock Market Today
Broadcom, DraftKings, On Holding and ServiceNow — plus Dow Jones components American Express and Verizon Communications — are among the best companies to watch on the stock market today.
On Holding is featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Also, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express, Verizon
Amid Friday's morning gains, American Express is trying to find support around its 50-day moving average, according to MarketSurge charts. A rebound would give the payments leader a new buying opportunity. But investors need to wait for a decisive recovery.
Telecom giant Verizon's recent breakout attempt failed in recent sessions, as it fell more than 7% below a 43.21 buy point. Verizon shares were off 0.1% Friday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stock Market Today: Broadcom Eyes Buy Point
Artificial intelligence player Broadcom continues to build a short consolidation with a 1,438.17 buy point, according to MarketSurge charts. But the stock faltered another 1.8% Thursday, falling further below the 50-day line. Broadcom stock fell 0.4% Friday.
DraftKings triggered a key sell rule, falling more than 7% below its 46.52 buy point in a short consolidation during this week's losses. Shares also gave up their 50-day line. The sports-betting giant was down 0.5% Friday morning.
Retail leader On Holding continues to hold above its 50-day line, and a decisive rebound would place the stock in a new buy area. But risk is higher due to the market weakness. On Holding stock slipped 0.4% early Friday.
ServiceNow decisively gave up its 50-day line during this week's decline. Shares continue to build a flat base with a 815.32 entry, but they have a lot of work ahead of them before a potential breakout. The stock lost 2% early Friday.
Stocks To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Disney | 112.92 | Cup with handle | |
| Broadcom | 1,438.17 | Consolidation | |
| DraftKings | 45.62 | Consolidation | |
| ServiceNow | 815.32 | Flat base |
Source: IBD Data As Of April 15, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia fell 1.4% and Tesla dropped 0.9% in Friday's early trading.
Nvidia stock is trying to find support around its 50-day line, as it builds a flat base with a 974 buy point. The AI giant is an IBD Leaderboard stock.
Tesla stock slid 3.5% Thursday, hitting a new 52-week low. Shares are about 50% off their 52-week high.
Tesla is recalling 3,878 Cybertrucks over an issue with the accelerator pedal, the United States National Highway Traffic Safety Administration said Friday.
The agency said the accelerator pedal pad on some Cybertrucks "may dislodge and become trapped by the interior trim," causing the vehicle to accelerate unintentionally.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded lower after Friday's stock market open.
Apple stock moved down 0.6% Thursday, falling for a fourth-straight session. This week, shares found stout resistance at the 50-day line. The stock was off 0.6% Friday morning.
Microsoft shares lost 1.8% Thursday, breaking down further below their 50-day line. And the stock moved down 0.2% early Friday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
