The Dow Jones Industrial Average and other major stock indexes dropped Friday, as Wall Street digested the previous session's big rally. One of the early movers was Nvidia, which threatened to give up a part of Thursday's gains on the stock market today.
After the opening bell, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 lost 0.3%. The tech-focused Nasdaq composite fell 0.4% in morning action.
Early Friday, the 10-year Treasury yield fell to 3.94%. Oil prices continued to rise, with West Texas Intermediate futures trading around $76.35 a barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 0.4%, while the SPDR S&P 500 ETF dropped 0.3% after the open.
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: Nvidia Gets Price Target Hike
Artificial intelligence giant Nvidia reversed 1% lower Friday morning, still hoping to add to Thursday's 6% gain. Early Friday, Mizuho raised its price target to 132 from 127.50 on Nvidia stock. On Monday, shares hit their lowest level since mid-May before bouncing.
Cosmetics leader Elf Beauty plunged more than 14% after the company forecast annual sales and profit below estimates late Thursday. Elf did, however, top second-quarter earnings and sales estimates.
Other earnings movers Friday morning included Sweetgreen, Trade Desk and Unity Software.
Sweetgreen shares soared 25%. Trade Desk jumped 6%, as Unity stock rallied 10% in early trading.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Dow Jones Rebounds
On Thursday, the Dow Jones Industrial Average rallied 1.8%, while the S&P 500 surged 2.3% and the tech-heavy Nasdaq composite jumped 2.9%. For the S&P 500, it was the largest one-day gain since Nov. 30, 2022, per Dow Jones market data.
IBD's The Big Picture column commented Thursday, "While Thursday's gains were constructive, they weren't able to change the status of the market outlook. It was too soon for a follow-through day on the Nasdaq, which should occur on Day Four or later of a rally attempt. Tuesday was Day One, so Friday would be the earliest day for a follow-through rally confirmation."
During Thursday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Nvidia Cracks Deepen. Don't Ignore Earlier Wake-Up Calls.
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Ferrari, MercadoLibre, ServiceNow and Shake Shack.
Also on the list are Dow Jones components Amazon, Apple, IBM, Microsoft and UnitedHealth.
There was one new stock on IBD MarketSurge's Breaking Out Today list Thursday, namely SharkNinja. Shares topped an 80.81 buy point, and moved up another 4% Friday. SharkNinja also was Thursday's IBD Stock Of The Day.
Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buy range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. Shares lost 0.7% Friday morning.
Meanwhile, IBM bullishly regained a 189.47 cup-with-handle entry during Thursday's gain. IBM stock was down 0.2% Friday.
Outside the Dow Jones index, automaker Ferrari shares were trying to find support around their 50-day line, as they hold about 5% away from a 442.80 buy point in a flat base. Shares inched lower Friday morning.
MercadoLibre broke out this week, moving past a 1,792.05 buy point in a cup with handle. Shares edged higher early Friday.
ServiceNow continues to hold below a 806.52 handle entry, as it finds support at the 50-day line. ServiceNow moved up 0.5% early Friday.
Shake Shack is adding a handle to a cup base, placing the new entry at 105.68. Shares were up 1% Friday morning.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| MercadoLibre | 1,792.05 | Cup with handle | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Spotify | 331.08 | Flat base |
Source: IBD Data as of Aug. 5
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Tesla
Among Magnificent Seven stocks, Tesla declined 0.7% in morning trading.
Tesla stock bounced 3.7% Thursday, still below its 50- and 200-day lines.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded mixed after Friday's stock market open.
Amazon shares continue to hold below their long-term 200-day line after recent losses. The stock gained 0.6% Friday morning.
On Thursday, Apple stock added 1.7%, closing just shy of the 50-day line. This week, shares triggered the round-trip sell rule from a 199.62 buy point. Apple was down 0.4% Friday.
Microsoft shares are trying to get back above the 200-day line. And on Friday morning, the stock rose 0.3%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
