Futures Extend Losses; This Solar Stock Crashes

Dow Jones futures extended losses Friday morning in the wake of Thursday’s stock market sell-off. Meanwhile, SolarEdge Technologies (SEDG) plunged after warning of weak European demand.


On the earnings front, American Express (AXP), Intuitive Surgical (ISRG) and SLB (SLB) were key earnings movers Friday morning.

AXP stock rose 0.5% in morning trade, while Intuitive Surgical shares tumbled 6.6%. And SLB shares declined 2% in premarket action.

SolarEdge stock plunged more than 28% Friday morning after the company slashed its third-quarter revenue guidance and warned that demand in Europe was weakening.

“During the second part of the third quarter of 2023, we experienced substantial unexpected cancellations and pushouts of existing backlog from our European distributors,” said SolarEdge CEO Zvi Lando in a statement.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Friday’s opening bell, Dow Jones futures fell 0.4% vs. fair value, while S&P 500 futures also lost 0.4%. Tech-heavy Nasdaq 100 futures dropped 0.5% vs. fair value in morning action. Intuitive Surgical and SolarEdge peer Enphase Energy (ENPH) traded at the bottom of the Nasdaq 100.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3%, while the SPDR S&P 500 ETF (SPY) moved down 0.2% early Friday.

The yield on the 10-year U.S. Treasury bond pared back to 4.97% Friday morning, after briefly topping the 5% mark. The 10-year Treasury yield set a fresh long-term high on Thursday, settling at 4.98%.

Oil prices were up more than 1% Friday morning, set to finish at the week’s highs. West Texas Intermediate futures traded around $90 a barrel, up more than 2% for the week.

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Struggling Stock Market Rally

On Thursday, the Dow Jones Industrial Average dropped nearly 0.8%, while the S&P 500 lost close to 0.9%. The tech-heavy Nasdaq composite declined 1%. The small-cap Russell 2000 fell 1.5%, making its lowest close in more than a year.

Thursday’s Big Picture column commented, “Amid the recent weakness, IBD investors should remain very cautious about taking on new positions, with a recommended stock market exposure at a 0%-20% level.”

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook showing signs of a pressured uptrend. Be sure to read how to handle the changing stock market outlook.

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Stock Market Today

Electric-vehicle giant Tesla (TSLA) declined 1% early Friday, while Nvidia (NVDA) dipped modestly. Meanwhile, Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) traded lower ahead of today’s stock market open.

IBD Leaderboard member Arista Networks (ANET), Lululemon Athletica (LULU), Meta Platforms (META) and Regeneron Pharmaceuticals (REGN) — as well as Dow Jones stocks JPMorgan Chase (JPM) and Salesforce (CRM) — are among the best stocks to buy and watch in the still-struggling stock market uptrend.

JPMorgan is featured in this Stocks Near A Buy Zone column. Regeneron was IBD’s Stock Of The Day on Friday.

Dow Jones Stocks: JPMorgan, Salesforce

Dow Jones banking giant JPMorgan moved down another 0.4% Thursday, taking the losing streak to four sessions. Shares are struggling to regain their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using Friday’s high as the buy trigger. JPM stock dropped 0.4% Friday.

Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock fell modestly Friday morning.

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

Stocks To Buy And Watch: ANET Eyes Buy Point

Arista dropped 1.4% Thursday, just shy of a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30. ANET stock inched lower early Friday.

Lululemon surged past a flat base’s 406.94 buy point Monday, with a 10.3% advance. But shares fell further below that entry during Thursday’s 2.3% drop. Look for another sustained move past that entry as a buy signal. LULU stock was off 0.4% Friday morning.

Social media giant Meta Platforms is trying to find support around a 312.87 buy point following Thursday’s 1.3% decline. Meanwhile, Meta stock is still below a cup base’s official buy point at 326.20. The company reports third-quarter results Oct. 25. Meta shares rose 0.3% Friday.

Biotech leader Regeneron slid below its 50-day line Thursday, with a 2.1% drop. Shares continue to build a flat base that has a 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2. REGN stock was down another 1.1% Friday.

Best Stocks In Today’s 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
Meta Platforms (META) 312.87 Handle entry
Salesforce (CRM) 228.79 Double bottom
Lululemon (LULU) 406.94 Flat base
Arista Networks (ANET) 198.70 Flat base
Source: IBD Data As Of Oct. 18, 2023

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Tesla Stock

Tesla stock dived more than 9% Thursday after the company’s earnings results. Shares are trying to find support around their 200-day line, more than 25% off their 52-week high.

Shares moved down 1% early Friday, threatening to add to Thursday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple extended a losing streak to five sessions Thursday, declining 0.2%. Shares are trying to bounce back from their recent lows. If AAPL stock can continue its rebound, then it’s likely to form a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares lost 0.3% early Friday.

Microsoft shares rose 0.4% Thursday, as shares continue to hold above their 50-day line. A new base is forming ahead of the company’s Q1 earnings report on Tuesday. The base shows an early entry at 340.86. Another early entry, at Monday’s high of 336.14, is also in play. And on Friday morning, MSFT stock was down 0.2%.

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


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