Dow Jones futures rose Friday, as the stock market looked to close out of a week of solid gains. The stock market will close early Friday at 1 p.m. ET.
China-related stocks showed weakness Friday, as China’s new Covid-19 cases hit a record high. Nearly 30,000 infections were recorded Wednesday, surpassing the previous record in April. Alibaba (BABA) and JD.com (JD) both declined around 3% in morning trade.
Electric-vehicle giant Tesla (TSLA) traded up 2% Friday morning. Early Friday, China’s market regulator said Tesla planned to conduct over-the-air fixes of about 80,000 cars in China due to battery management system and seat-belt issues.
Activision Blizzard (ATVI) dropped more than 3%, to the bottom of the Nasdaq Composite and S&P 500, after news reports on Wednesday said the Federal Trade Commission was likely to file an antitrust lawsuit to block Microsoft‘s (MSFT) $69 billion takeover of the video game leader.
IBD Leaderboard stock Arista Networks (ANET), KLA (KLAC), Shoals Technologies (SHLS) and Ulta Beauty (ULTA) — as well as Dow Jones names Caterpillar (CAT)and Chevron (CVX) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Ulta Beauty was featured in this week’s Stocks Near A Buy Zone column. Shoals was a recent IBD 50 Stocks To Watch pick.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Friday’s opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures moved up 0.15%. Tech-heavy Nasdaq 100 futures traded down 0.15% in morning action.
The 10-year Treasury yield ticked higher to 3.71% Friday morning, still near its recent lows and threatening to extend a losing streak to three sessions. Meanwhile, U.S. oil prices rebounded Friday morning, but were still on pace for heavy weekly losses. West Texas Intermediate futures rose more than 2%, to above $79 a barrel.
Stock Market Rally
On Wednesday, the stock market posted modest gains. The Nasdaq composite rallied 1%, while the S&P 500 gained 0.6%. The Dow Jones Industrial Average climbed just 0.3%.
Wednesday’s The Big Picture commented, “Initially, major indexes enjoyed mild gains during the first 90 minutes of trading, then backtracked to break-even levels. But the release of minutes from the Nov. 1-2 Federal Reserve meeting added credence to the belief among traders that the U.S. central bank will, for now, take a break from raising interest rates in three-quarter-point salvos.”
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market volatility.
Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron
Energy giant Chevron is in the buy range above a consolidation’s 182.50 buy point despite Wednesday’s 0.9% decline. The 5% buy area goes up to 191.63. CVX shares climbed 0.8% Friday morning, rising in line with oil prices.
Top Stocks To Buy And Watch: Arista, KLA, Shoals, Ulta
KLA is closing in on a cup-with-handle’s 392.60 buy point amid Wednesday’s 0.9% climb. Bullishly, the stock’s relative strength line hit a new high last week, a sign of big outperformance vs. the S&P 500. KLAC stock was inactive Friday.
Shoals Technologies is still out of buy range past a 28.57 buy point and moved further above the entry following a 1.6% rally Wednesday. The 5% buy zone topped out at 30. Wait for an orderly pullback into the buy range before considering a purchase of shares. SHLS stock added o.8% early Friday.
Ulta Beauty moved back into buy range Wednesday, falling 0.6%. The 5% buy zone past a 426.99 buy point in a cup with handle runs up to 448.34. Ulta reports third-quarter results on Dec. 1. The stock traded up 0.6% Friday.
Tesla stock surged 7.8% Wednesday, on pace for a weekly gain of 1.7%, set to snap a three-week losing streak. On Tuesday, the stock hit its lowest level since Nov. 23, 2020, reaching a new 52-week low price at 166.19. Tesla shares are around 54% off their 52-week high and sharply below their 50- and 200-day moving average lines.
Shares of the EV giant traded up 2% Friday morning despite recalling around 80,000 cars in China.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose for a second straight day Wednesday, moving up 0.6%. The iPhone maker is holding above its recently recaptured 50-day line and is about 17% off its 52-week high. The stock traded down 1% Friday, as the company faces challenges with labor protests at iPhone contract manufacturer Foxconn‘s (HNHPF) in Zhengzhou China. News reports said 20,000 workers have walked away from their jobs.
Microsoft rose 1% Wednesday, extending a win streak to three sessions. Shares continue to hold above the 50-day line and are their highest level since Oct. 25. The software giant remains around 28% off its 52-week high. Microsoft shares edged lower Friday morning.
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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Read More: Dow Jones Futures Rise To Close Out The Week; Tesla To Recall About 80,000 Cars In China