Dow Jones Futures Extend Losses After Jobs Report; Tesla Skids On Elon Musk Warning

Dow Jones futures extended their losses Friday morning despite a better-than-expected jobs report. But that came as Tesla stock skidded on a report that Chief Executive Elon Musk plans to cut the company’s workforce by 10%, due to a “super bad feeling” about the economy.

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On the earnings front, CrowdStrike (CRWD), Lululemon (LULU), Okta (OKTA) and RH (RH) reported quarterly results late Thursday. CrowdStrike slid 5% Friday morning. LULU shares were slightly higher. Okta stock jumped more than 15%. And RH shares declined 4% ahead of Friday’s open.

Electric-vehicle giant Tesla (TSLA) traded down 5%. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both sharply lower in today’s stock market.

Amid the fledgling stock market rally, Dow Jones leaders Chevron (CVX) and Merck (MRK) — along with Albemarle (ALB), Eli Lilly (LLY), Enphase (ENPH), Northrop Grumman (NOC) and ZIM Integrated Shipping (ZIM) — are among IBD’s top stocks to watch for Friday.

Albemarle is an IBD Leaderboard stock. And Albemarle was featured in this week’s Stocks Near A Buy Zone column. ZIM was last week’s featured IPO Leader.

Dow Jones Today: Treasury Yields, Oil Prices, Jobs Report

Before Friday’s open, Dow Jones futures fell 0.7% vs. fair value, while S&P 500 futures moved down 1%. Nasdaq 100 futures sold off 1.4%. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 1.5%, while the SPDR S&P 500 ETF (SPY) fell 1%.

The 10-year Treasury yield looked to bounce back from Thursday’s loss, rising to 2.92% Friday morning. Last week, the 10-year Treasury yield hit its lowest level since mid-April, but is now rebounding. Meanwhile, U.S. oil prices inched lower as West Texas Intermediate crude traded below $116 a barrel. Oil prices could see some impact from the weekly rig count census from Baker Hughes (BKR), due out at 1 p.m. ET.

Early Friday, the Labor Department released May’s payrolls report. The U.S. economy added 390,000 jobs in May, higher than the 325,000 estimate from economists. The unemployment rate came in at 3.6%.

Stock Market Rally

On Thursday, the major stock indexes showed improved action, as Nasdaq surged 2.7% — its third rally of more than 2% in the past five sessions. The S&P 500 added 1.8%, and that’s its fourth gain of more than 1.5% since the May 20 low.

Thursday’s The Big Picture column commented, “The stock market could have cowered after Microsoft cut its current-quarter revenue and earnings forecasts, citing unfavorable currency exchange. Yet, indexes bounced off opening losses and continued rising into the close.”

If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.

Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones Stocks To Watch Now

Dow Jones Stocks To Watch: Chevron, Merck

Dow Jones leader and energy giant Chevron is trading just above a flat base‘s 174.86 buy point, according to IBD MarketSmith chart analysis, following Thursday’s 0.2% drop. The 5% buy zone tops out at 183.60. CVX shares traded down 0.6% Friday.

CVX stock boasts a 98 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.

Merck, a Dow Jones and IBD Big Cap 20 stock, is still in buy range past a cup-with-handle’s 89.58 buy point, as shares fell 1.25% Thursday. The 5% buy area goes up to 94.06. MRK shares inched lower Friday morning.

The stock’s relative strength line hit a new high last week, but is now pulling back sharply.

Four Top Growth Stocks To Watch In The Current Stock Market Rally

Stocks To Buy And Watch: Albemarle, Eli Lilly, Enphase, Northrop, ZIM

IBD Leaderboard stock Albemarle is about 14% away from a cup base’s buy point at 291.58, according to IBD MarketSmith chart analysis. Keep an eye out for a potential handle to offer a lower entry, which could happen as soon as this week. Last week, Albemarle passed an early buy point near 248. ALB shares dropped 1.8% Friday morning.

Pharmaceutical giant Eli Lilly dropped 2.8% Thursday, falling further below a flat base’s 314.10 buy point after last week’s short-lived breakout. It also topped an early buy trigger at 309.54 last week. Eli Lilly shares were slightly lower Friday.

Tuesday’s IBD 50 Stocks To Watch pick, Enphase, broke out past a double-bottom base’s 193 buy point during Thursday’s 9% advance. The 5% buy area goes up to 202.65. A big weakness is the stock’s lagging RS line. Enphase shares dropped 1.2% Friday morning.

Northrop Grumman is just shy of a cup-with-handle’s 477.36 buy point, as it finds support around its key 50-day line. The defense contractor is also trying to move above a trend line within its handle. This early entry sits around 464. NOC shares were narrowly lower Friday morning.

IPO Leader ZIM Integrated is tracing a cup base that has a 79.05 buy point. Shares are about 12% away from the correct buy point after Thursday’s climb. A potential handle could be forming now. ZIM shares eased 0.4% early Friday.

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

Tesla Stock

Tesla stock jumped 4.7% Thursday, snapping a two-day losing streak. Shares threatened to give back those gains, skidding more than 5% Friday morning. Late Thursday, Reuters reported that Tesla CEO Musk said in an email that he has a “super bad feeling” about the economy and wants to cut about 10% of the company’s workforce.

Despite recent gains, the stock remains sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 38% off that record high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.7% Thursday. The stock remains far below its long-term 200-day line. AAPL stock traded down 1.8% Friday.

Software leader Microsoft reversed from sharp losses to end 0.8% higher Thursday, but remains sharply below its 50- and 200-day lines. The stock closed about 20% off its 52-week high. MSFT shares were down 1% 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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