The Dow Jones Industrial Average rose 150 points, while tech stocks slipped Friday morning, as Snap stock crashed more than 33% on weak earnings and sales results.
Snap reported an adjusted loss of 2 cents a share on revenue of $1.11 billion. Analysts expected a per-share loss of 1 cent on revenue of $1.14 billion. The Snapchat parent also declined to give third-quarter guidance. Plus, it said it will “substantially slow our rate of hiring, as well as the rate of operating expense growth.”
American Express (AXP), Intuitive Surgical (ISRG), Schlumberger (SLB), Twitter (TWTR) and Verizon Communications (VZ) were other key earnings movers after Friday’s open.
American Express and Verizon divided the Dow Jones industrials in early trade, with AmEx up 6% and Verizon shedding nearly 4%. Intuitive Surgical tumbled 9%. Oilfield services heavyweight Schlumberger gained 8%. Twitter shares declined more than 1% early.
Micron Technology (MU) slid almost 3% after Morgan Stanley downgraded the stock to underweight. Tesla (TSLA) tacked on 2% early Friday. Elsewhere, Dow Jones tech leaders Apple (AAPL) traded up 0.3% and Microsoft (MSFT) moved down 0.3% after today’s stock market open.
In a volatile stock market uptrend, Dow Jones leader UnitedHealth (UNH) — as well as Lantheus (LNTH), Quanta Services (PWR) and Verra Mobility (VRRM) — are among the stocks to watch. Keep in mind that, while the market has flashed rising signs of strength, ongoing volatility is a reason to stay cautious.
Lantheus and UnitedHealth are IBD Leaderboard stocks. Verra was featured in this week’s Stocks Near A Buy Zone column and was IBD’s Stock Of The Day on Monday.
Dow Jones Today: Treasury Yields, Oil Prices
After Friday’s open, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 inched higher. The tech-heavy Nasdaq composite dropped 0.1% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 0.1%. And the SPDR S&P 500 ETF (SPY) rose 0.1%.
The 10-year Treasury yield ticked lower to 2.8% Friday morning, threatening to extend Thursday’s losses. Meanwhile, U.S. oil prices fell sharply for a second straight day. West Texas Intermediate futures dipped almost 2% to test technical support just above $94 per barrel.
Stock Market Rally
On Thursday, the stock market posted more upbeat action, as the tech-heavy Nasdaq led the way with a 1.4% advance. The S&P 500 followed up with a 1% rise, while the Dow Jones Industrial Average climbed 0.5%.
Thursday’s The Big Picture column commented, “Following Wednesday’s gains, the Nasdaq has zero distribution days. Now, the S&P 500 is losing three of its own and is down to one. The June 30, July 13 and July 14 distribution days were wiped out due to the 5% advance rule.”
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Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Dow Jones Earnings: American Express, Verizon
American Express rallied 6% Friday morning after the company reported better-than-expected Q2 earnings results. AXP shares ended Thursday 25% off its 52-week high.
Verizon stock is building a base with a 55.61 buy point, but the chart is marred by Thursday’s near-3% tumble after AT&T (T)’s disappointing earnings results. Verizon shares lost another near-4% early Friday.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Health insurance giant and IBD Leaderboard stock UnitedHealth is just above its double-bottom-with-handle base’s 518.80 buy point after Thursday’s 0.6% gain, according to IBD MarketSmith chart analysis. Shares were up 0.6% Friday.
UNH stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Lantheus, Quanta, Verra
IBD Leaderboard stock Lantheus is below a 73.88 buy point following Thursday’s 3.1% decline. Per Leaderboard commentary, Lantheus has proven itself one of the strongest stocks in the market currently after soaring out of a double-bottom base in February. Lantheus shares rose 0.8% early Friday.
Quanta Services is putting the finishing touches on a cup-with-handle base that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 133.68 is also in play. Shares traded up 1.4% in morning trade.
Verra Mobility is close to regaining a cup with handle’s 16.83 buy point in the wake of Thursday’s 0.8% rise. The stock’s RS line continues to show tremendous strength as it hit a another new high this week. Verra shares were up 1.5% Friday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock surged 9.8% Thursday after strong earnings results, extending a win streak to seven sessions. The stock hit its highest level since early May.
Shares rose 2% Friday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares added 1.5% Thursday and are closing in on their long-term 200-day lines. Shares reclaimed their 50-day line after bullish action in recent weeks. Apple earnings are due out July 28. The stock traded up 0.3% Friday morning.
Microsoft rose 1% Thursday, moving further above resistance around its 50-day line. The stock closed about 24% off its 52-week high. The software giant will report quarterly results on July 26. Microsoft shares lost 0.3% early Friday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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