“Dow Jones continues to face headwinds as market sell-off persists, intensifying concerns, while all eyes are on Tesla’s stock as it plunges towards a critical threshold, raising questions about the electric vehicle giant’s future trajectory.”
The Dow Jones Industrial Average continued its losses on Friday morning following Thursday’s stock market sell-off. SolarEdge Technologies also experienced a significant plunge after warning of weak European demand. Additionally, Tesla stock continued to slide, putting pressure on a key level.
In terms of earnings, American Express, Intuitive Surgical, and SLB were key movers on Friday morning. American Express stock slipped 3.5%, while Intuitive Surgical shares tumbled nearly 4% and SLB shares declined 1%.
SolarEdge stock plummeted over 30% on Friday morning after the company cut its third-quarter revenue outlook and expressed concerns about weakening demand in Europe. SolarEdge CEO Zvi Lando stated that they experienced unexpected cancellations and pushouts of existing backlog from European distributors.
As for the overall market, the Dow Jones Industrial Average fell 0.2%, the S&P 500 lost 0.2%, and the Nasdaq composite dropped 0.25% in morning action. Enphase Energy, a peer of SolarEdge, traded at the bottom of the Nasdaq 100. The Nasdaq 100 tracker Invesco QQQ Trust fell 0.3%, while the SPDR S&P 500 ETF moved down 0.2% early Friday. The 10-year U.S. Treasury bond yield decreased to 4.94% after briefly surpassing the 5% mark on Thursday. Oil prices were up over 1% on Friday morning, set to finish the week at their highest point.
Thursday’s stock market performance saw the Dow Jones Industrial Average drop nearly 0.8%, the S&P 500 lose close to 0.9%, and the Nasdaq composite decline 1%. The small-cap Russell 2000 also fell 1.5%, marking its lowest close in over a year. Investors are advised to remain cautious about taking on new positions given the recent market weakness.
In terms of individual stocks, Tesla declined 2.4%, while Nvidia rose 0.3%. Apple and Microsoft, two Dow Jones tech icons, traded lower after Friday’s market open. JPMorgan Chase and Salesforce are among the best stocks to buy and watch in the struggling stock market uptrend.
JPMorgan is building a flat base with a 159.38 buy point, while Salesforce is battling resistance around its key 50-day line. Arista Networks, Lululemon Athletica, Meta Platforms, and Regeneron Pharmaceuticals are also worth watching.
Tesla stock experienced a significant drop on Thursday after the company’s earnings report. The stock is currently trying to find support around its 200-day line and is more than 25% off its 52-week high.
Among Dow Jones stocks, Apple extended its losing streak to five sessions, while Microsoft shares continued to hold above their 50-day line. Both companies have upcoming earnings reports.
Overall, the stock market remains uncertain, and investors are advised to exercise caution when considering new positions. It’s important to stay informed and monitor market trends closely.