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Dow Jones Reverses While Debating Size of Fed's Future Rate Increases; Flashes 30%

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The Dow Jones Industrial Average rose on Friday as the Wall Street Journal reported that Federal Reserve officials were discussing the extent of future rate hikes. Social media company Snap tumbled as much as 30% due to poor revenue results. And Dow Jones shares fell on American Express and Verizon earnings results.


According to the WSJ report, some Fed officials are “signaling their desire both to slow the rate of growth soon and to stop raising rates early next year to see how their moves this year slow the economy.”

Stock Market Today: Instant Earnings

Third-quarter early earnings results from Dow Jones stocks American Express (AXP) and verizon (VZ), together Schlumberger (SLB) and blow up (BLAST).

American Express fell more than 2% despite better-than-expected earnings and sales results. Verizon lost nearly 4% in the early action, while Schlumberger shares were up 3% in morning trading.

Snap reported third-quarter results late Thursday that missed revenue forecasts but beat earnings. SNAP stock plunged more than 30% in response.

electric vehicle giant tesla (TSLA) was trading down 1% on Friday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) also fell after today’s stock market opening.

Auto Zone (AZO), DoubleVerify (DV), Molina Health (SB) and Vertex Pharmaceuticals (VRTX) — and also Dow Jones stocks strip (CVX) and Merck (MRK) — among the best stocks to watch. Keep in mind that the ongoing stock market rally initiative is the perfect time for investors to build and perfect their watchlist of the top-growing stocks.

DoubleVerify and Vertex are IBD Leaderboard stocks. Merck and Molina Healthcare were featured in this week’s Stocks Near a Buy Zone column, along with two other key stock ideas. AutoZone became IBD Stock last week. DoubleVerify was Tuesday’s IBD Stock.

Dow Jones Today: Treasury Yields, Oil Prices

After Friday’s opening bell, the Dow Jones Industrial Average rose 1.2% after reversing early losses, while the S&P 500 was up 1%. The tech-heavy Nasdaq composite was up 0.6% in morning action.

Among exchange-traded funds, the Nasdaq 100-follower Invesco QQQ Trust (QQQ) rose 0.1% and the SPDR S&P 500 ETF (SPY) rose 0.5%.

The 10-year Treasury yield rose Friday morning and rose to 4.3% Friday morning after jumping to 4.22% on Thursday. The 10-year Treasury yield hit its highest level since June 2008 on Thursday.

US oil prices continued to rise on Friday, looking to extend their winning streak to three sessions. West Texas Intermediate futures are close to $85 a barrel. Earlier this week, WTI futures fell as low as $81 per barrel.

Meanwhile, natural gas prices fell further, heading towards a sixth straight decline, as European Union leaders failed to agree on an upper limit for gas prices. Natural gas futures fell 4.8% to just over $5.10 per one million British thermal units. Gas prices remain 43% over the year and more than 100% above pre-pandemic price levels.

Stock Market Rally Initiative Continues

On Thursday, the Dow Jones Industrial Average, which climbed as high as 1.3% at midday, fell 0.3%, while the S&P 500 fell 0.8%. The tech-heavy Nasdaq composite lost 0.6% and the small-cap Russell 2000 struggled to drop 1.2%.

“Investors should continue to follow companies that easily outperform earnings results and have strong upside responses. If the market can track higher, they could be among the stock market leaders,” The Big Picture reported on Thursday.

Psychologically, it can be a challenging process to monitor the functioning of the market with repeated rally attempts. Investors want to keep watchlists handy to jump into the following day breaks. But not all follow-ups work, so buying too soon or with too much faith can lead to disappointment.

That’s why it’s important to increase exposure slowly and methodically as the uptrend proves itself.

Check out IBD Stock Lists like the IBD 50 and Stocks Near a Buying Zone for stock ideas.

Five Dow Jones Stocks to Watch Now

Dow Jones Stocks to Watch: Chevron, Merck

Energy giant Chevron continues to hold above support at its 50-day line and consolidates below the buy point of 182.50 ahead of the company’s October 28 earnings announcement. An early entry at 166.93 is also in play. Chevron shares rallied on Friday morning and rose amid rising oil prices.

CVX stock has a strong 98 out of an excellent 99 IBD Compound Rating according to IBD Stock Control. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

Merck, a Dow Jones member and IBD 50 stock, has given up on the double bottom 93.12 buy point, It’s between two straight daily losses, according to IBD MarketSmith pattern recognition. The stock’s relative strength streak hit a new high last week. Third-quarter earnings results will be announced on October 27, before the opening bell.

Merck shares rose on Friday morning.

The 4 Best Growing Stocks to Watch on Curren Stock Market Correction

Best Stocks to Watch: AutoZone, DoubleVerify, Molina, Vertex

AutoZone, the auto parts leader and recent IBD Stock of the Day, is about 4% off the 2,362.34 point of purchase of a cup bottom. Watch out for a potential handle to offer a lower entry. AutoZone shares were down 0.4% earlier on Friday.

IBD Leaderboard stock DoubleVerify is just shy of a flat bottom’s 30.02 buy point, according to IBD MarketSmith chart analysis. DoubleVerify provides digital media measurement and data analytics. The company designs verification technology to help reduce ad fraud. It also undertakes to ensure that advertisements are placed in safe and appropriate environments for brands. Shares were down almost 1% on Friday.

Molina Healthcare ended Thursday about 2% behind a flat bottom’s 361.35 buying point. The stock’s RS line hit a new high last week, confirming that the health stock is a leader to watch. Molina’s earnings are expected to be announced on October 26. SB stock fell 0.4% earlier on Friday.

Biotech leader Vertex Pharmaceuticals is retesting its 50-day line amid losses this week. Shares continue to form flat bottom with buy point 306.05 and early entry at 296.90. The RS series has set a new record in recent sessions, a sign of massive stock market performance. Winnings will be paid on October 27. Shares fell 0.5% on Friday morning.

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

Tesla Stock

Tesla stock fell 6.65% to a 52-week low on Thursday after the company’s weaker-than-expected sales results. Shares are about 50% off at 52-week highs. Tesla stock fell another 1% on Friday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones shares, Apple shares fell 0.3% on Thursday, down about 21% at 52-week highs and below the 50- and 200-day lines. AAPL stock fell 0.2% on Friday morning.

Microsoft fell 0.1% on Thursday and fell for a second straight session. Stocks are still trying to recover from last week’s 52-week low. The software giant is about 32% off its 52-week high. Shares tumbled 0.2% on Friday.

Apple’s earnings are expected on October 27, while Microsoft’s earnings are expected on October 25.

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


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