The Dow Jones Industrial Average dropped 100 points Friday, as President Biden spoke with Chinese President Xi Jinping. Affirm stock skyrocketed 20% on earnings. Apple looked to rebound from two days of losses, while Tesla stock raced higher in today’s stock market.
Among the Dow Jones leaders, Apple (AAPL) traded up 0.8%, while Microsoft (MSFT) moved up 0.2% Friday. American Express (AXP) is tracing a new base, but is below a key technical level.
Tesla (TSLA) looked to extend a win streak to five sessions, briefly racing 1% higher Friday morning. The EV leader is in buy range past a new entry. PayPal (PYPL) traded 0.1% lower Friday, as it continues to offer a new buy point.
Among the top stocks to buy and watch, Palantir Technologies (PLTR), Semrush (SEMR), Shopify (SHOP) and Under Armour (UAA) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Semrush is an IBD IPO Leader. Under Armour is an IBD SwingTrader stock.
Dow Jones Today: China Talks
The Dow Jones Industrial Average backed out of opening gains and dropped 0.3% in morning trade Friday. The S&P 500 lost 0.15%, while the tech-heavy Nasdaq slashes gains to less than 0.1% in morning trade.
President Joe Biden spoke with Chinese President Xi Jinping by phone call on Thursday night for the first time since February. A White House statement said the “two leaders discussed the responsibility of both nations to ensure competition does not veer into conflict.”
Among exchange traded funds, the Innovator IBD 50 (FFTY) gained 0.2% Friday. Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) moved up 0.35%. Meanwhile, the SPDR S&P 500 ETF (SPY) etched out narrow gains.
Stock Market Rally Continues
The Nasdaq rallied closer to this week’s new highs, while the S&P 500 looked to snap a four-day losing streak Friday. The Dow Jones Industrial Average is again testing its key 50-day moving average line.
Thursday’s The Big Picture column commented, “The Aug. 4 distribution day on the S&P 500 was removed from the overall count due to time. With a still-modest amount of institutional selling, investors should remain optimistic about the current uptrend. But don’t be complacent. Wednesday’s Big Picture discussed the importance of analyzing your current holdings for signs of weakness.”
Stock Market Earnings: Affirm
Consumer financing firm Affirm (AFRM) reported strong June-quarter revenue and gross merchandise volume that topped expectations as its expanding merchant base overcame slowing growth.
AFRM stock skyrocketed 20% in morning trade. Shares remain about 25% off their all-time high.
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Dow Jones Stocks To Buy And Watch: American Express
Dow Jones leader American Express is tracing a flat base with a 179.77 buy point, according to IBD MarketSmith chart analysis. But shares are below their key 50-day moving average line. Retaking support at that critical level would be bullish for the stock’s immediate prospects. Shares were up nearly 1% Friday.
Through the end of August, American Express was the No. 2 performer on the Dow Jones Industrial Average, advancing more than 37%. Goldman Sachs (GS) was the top advancer with a year-to-date gain of 56.9% through Aug. 31.
Stocks To Buy And Watch: Palantir, Semrush, Shopify, Under Armour
Palantir Technologies is in the 5% buy range above its cup-with-handle’s 26.04 buy point, according to IBD MarketSmith chart analysis, amid Friday morning’s 2% gain. The 5% buy area tops out at 27.34. The stock’s relative strength line remains far from its old highs. Ideally, the RS line should hit a new high on the breakout day.
IPO Leader Semrush is extended past the 26.41 buy point in a cup base following this week’s strong gains. The SEO leader rallied over 5% Friday, hitting a new high.
Semrush was featured in last week’s IPO Leaders column.
Shopify continues to trace a flat base that shows a 1,650.10 buy point. According to IBD Stock Checkup, SHOP stock boasts a 98 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
SHOP stock rallied 0.3% Friday and is trying to regain its 50-day line.
IBD SwingTrader stock Under Armour continues to build a cup-with-handle that shows a 26.12 buy point, according to IBD MarketSmith chart analysis. The stock also is rising from support at the 50-day moving average. Shares rallied 1.5% Friday morning.
On the downside, the stock’s relative strength line is far from its old highs despite a recent upswing. The RS line should hit a new high on the breakout day, confirming the stock as a market leader.
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PayPal stock lost 0.1% Friday, threatening to give back a part of Thursday’s 0.6% gain. The top stock is right at its 50-day moving average line.
PayPal is trading about 7% away from a flat base’s 310.26 buy point. Meanwhile, an aggressive entry looms at 296.80, or a dime above Wednesday’s high.
IBD Leaderboard stock Tesla stock briefly rallied 1% before paring gains to 0.5% Friday, looking to extend a win streak to five sessions.
Tesla stock is in buy range above another alternate entry at 730. In recent weeks, shares regained their 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 0.8% Friday, rallying loser to Tuesday’s record high at 157.26. Apple shares are nearly out of buy range above a 148 trendline buy point.
Software giant Microsoft gained 0.2% Friday. Shares are about 15% above a cup base’s 263.29 buy point and near new highs.
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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