Dow Jones Sells Off; Citigroup, JPMorgan Tumble On Earnings

The Dow Jones Industrial Average fell sharply on Friday morning, extending losses from heavy selling in the stock market on Thursday. Earnings season heated up with quarterly results from financial giants City Group (c), JP Morgan Chase (JPM) and Wells Fargo (WFC).


Among the leaders of Dow Jones, An apple (AAPL) fell 0.4% Friday while Microsoft (MSFT) is down 0.1%. Also among the Dow 30, the financial leaders Goldman Sachs (p) and c. B. Morgan Chase (JPM) Close to new buying points in the stock market today.

electric car leader Tesla (TSLA) is down 1.5%. EV Truck Competitor Rivian (RIVN) stock is down about 1%. Lucid Group (LCID) decreased by 1%. Chinese electric car leaders Lee Otto (LI) and Exping Motors (XPEV) was higher.

Among the top Friday stocks to buy and watch, Applied materials (AMAT), mosaic (Moose), SVB Finance (SIVB) and Semiconductor manufacturing in Taiwan (TSM) in or near new buying areas. Keep in mind that the health of the current stock market is not exactly conducive to new purchases.

Microsoft and Tesla are IBD Leaderboard shares. Applied Materials is a shareholder of IBD SwingTrader. Commercial Metals and SVB Financial are in the stocks for this week near the buy zone bar.

Dow Jones today:

After the stock market opened on Friday, the Dow Jones Industrial Average was down 0.95%, while the S&P 500 was down 0.6%. The heavy Nasdaq Composite was down 0.4%. Among the exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.4% in morning trade, and the SPDR S&P 500 ETF (SPY) is down 0.6%.

The 10-year Treasury yield rose near 1.74% on Friday morning. On Thursday, the 10-year Treasury yield fell for the third day in a row to close at 1.71%.

Weakening the stock market rally

The stock market underperformed Thursday, with the Nasdaq and S&P 500 selling sharply. The Nasdaq erased more of all the gains of the previous two days, leaving it close to the 200-day moving average. Meanwhile, the S&P 500 gave up its 50-day support level.

The Big Picture commented on Thursday: “Don’t completely give up on the market rally just yet. The Nasdaq found support at the long-term 200-day line earlier this week. That could still provide a platform for a new sustainable rally, though That’s less likely at the moment. If the Nasdaq weakens further and pulls out the 200-day line, there is likely to be more to the downside. As usual, don’t anticipate the direction of the market; be flexible and let the market decide your best path.”

For more daily stock market commentary, check out IBD’s big picture.

Top 5 Dow Jones stocks to watch right now

Stocks on the go: Ford, NetApp

stock market leader stronghold (F) was down 2.5% Friday after RBC Capital Markets downgraded the stock from outperformer to sector performer. On Thursday, stocks closed more than 50% above 16.56 buying points at the base of the cup.

net app NTAP (NTAP) is up nearly 1% Friday morning after Cowen upgraded the stock from outperforming the market to outperforming. The stocks are in a buying range that exceeds 94.79 buy points on a flat base.

Stock Market Earnings: Citigroup, JPMorgan, Wells Fargo

Ahead of Friday’s opening, financial giants Citigroup, JPMorgan Chase and Wells Fargo announced their quarterly results.

Citigroup’s stock fell about 3% Friday, right after its fourth-quarter earnings results were announced. Stocks are back above the 50-day line, but still below the 200-day line – despite the six-day advance. On Thursday, shares closed about 15% from a 52-week high.

Dow Jones JPMorgan shares reported solid earnings and sales numbers, but shares sold more than 6% on Friday morning. The stock is building a flat base with entry of 173.06.

Wells Fargo reported strong earnings and sales results, which led to a 2% rise in the morning trade. The stock extended above 52.67 buy points on a flat base after the breakout on January 4th.

Dow Jones Buy & Watch: Goldman Sachs

Dow Jones Goldman Sachs shares rose 0.1% Thursday, ignoring market weakness, but remaining below the 50-day line. The stock continues to follow the base of a teacup with a handle of 412.76 buying points, according to IBD MarketSmith chart analysis. Shares fell 3.2% on Friday. The company announces its December quarter results on Tuesday.

Top 3 growth stocks to watch in the current stock market rally

Stocks to buy and watch: Applied Materials, Trade Metals, Diamondback, SVB Financial

IBD SwingTrader stock, Applied Materials, failed to follow the upward movement on Wednesday, falling below the flat-bottom buy point of 159.10, according to IBD MarketSmith chart analysis, during Thursday’s 1.5% loss. Positively, the stock’s relative strength line is shying from new highs. AMAT shares rose 0.5% on Friday.

Mosaic gave up part of its breakout move on Wednesday, and fell 0.7% on Thursday. Stocks closed in a buy range above cup with 41.25 entering the handle. MOS Stock features an excellent IBD 99 compound rating, per IBD stock check. The stock rose 3% on Friday after BMO Capital lifted the stock from an outperforming market.

SVB Financial tracks a cup rule with 763.32 buy points. Look for a potential handle to offer a more optimal buying point for the risk. Shares fell 3.5% Thursday, to close at the 50-day line. Shares fell more than 2% on Friday. California-based Santa Clara Bank is to report fourth-quarter results on Thursday.

Taiwan Semiconductor broke past 135.60 buying points in a cup with a handle, jumping more than 5% Thursday after the company beat analysts’ estimates for the fourth quarter. Buying zone 5% topping 142.38. TSM stock was down 1.5% on Friday.

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

Electric Vehicle Stock: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto’s stock rose for the third consecutive session on Thursday, up 0.1%. The stock is moving up on the right side of the consolidation with 37.55 entry while early entry at 33.86 is in play as well. Shares rose 0.15% Friday.

Xpeng Motors is down 1.8% on Thursday, but is still holding above the 50-day streak. The stock used to make a cup with a handle, but that formation is now gone. The stock continues to build consolidation with entry 56.55. Venture investors can use 51.60 as an early entry. Stocks rose on Friday.

Among US-based electric vehicle stocks, Lucid Motors shares fell about 1% on Friday. The LCID stock remained extended beyond 28.49 POs at the base of a cup with a handle. Meanwhile, the stock’s founding ran into some trouble after Thursday’s plunge of 8.85%.

Factory EV-truck and recent initial public offering Rivian fell about 1% on Friday, on track to add to Thursday’s 7.1% decline. RIVN shares closed Thursday about 55% from their post-IPO highs

Tesla Stock

Tesla stock traded 1.5% lower on Friday, threatening to extend Thursday’s decline nearly 7%. Stocks once again abandoned the 50-day moving average on Thursday. Last week, the EV leader ditched the 50-day moving average line and launched a 7%-8% sell base to cut losses from the 1119.10 trendline buy point before starting a three-day recovery.

The shares traded as high as 1243.49 on November 4, but the stock closed on Thursday about 17% from its 52-week high.

Dow Jones Leaders: Apple and Microsoft

Among Dow Jones stocks, Apple fell 1.9% on Thursday, cutting a four-day winning streak. Shares are nearly 12% above the 153.27 buy point of a teacup base with a handle, according to IBD MarketSmith chart analysis. Shares fell 0.4 percent on Friday.

Software leader Microsoft fell 4.2% on Thursday, hitting a new low recently. Dow Jones’ top stock continues to paint a flat base with 349.77 buying points, but the stock clearly has more work to do before a potential breakout. Shares were down 0.1% on Friday.

Make sure to follow Scott Lehtonen on Twitter at Tweet embed Learn more about developing stocks and the Dow Jones Industrial Average.

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