The Dow Jones edged higher early Friday, while the S&P 500 and Nasdaq rose slightly. Growth stocks are looking to recoup some of Thursday's big losses after the stock market rally's deeply divided session. Meanwhile, American Express and oil services giant SLB reported early Friday.
While the Nasdaq suffered its worst daily loss in four months, it didn't touch its 10-day moving average on Thursday. Neither did the S&P 500 index. Meanwhile, the Dow Jones rose for a ninth straight session to hit a fresh 15-month high.
Also on Thursday, Tesla and Netflix suffered big declines. Taiwan Semiconductor fell sharply, with the chip giant triggering big losses across the chip sector. Early Friday, Tesla and NFLX stock fell modestly, along with TSM stock.
Elsewhere, a big Nasdaq 100 rebalance will take place before Monday's open to reduce the dominance of the "Magnificent Seven" — Apple, Amazon, Microsoft, Google parent Alphabet, Nvidia, Meta Platforms and Tesla stock.
President Joe Biden and leading AI companies, including Microsoft, OpenAI, Meta, Google and Amazon, will meet today at the White House to discuss artificial intelligence safety.
Tesla, Meta and Nvidia stock are on IBD Leaderboard. MSFT stock is on IBD Long-Term Leaders. TSLA stock is on the IBD 50.
Dow Jones Today
The Dow Jones rose 0.2%, with AXP stock weighing on blue chips slightly. The S&P 500 advanced 0.2% and the Nasdaq edged lower.
The 10-year Treasury yield edged down to 3.83%.
Crude oil prices climbed less than 1%, with West Texas Intermediate futures holding comfortably above $76 a barrel. That put oil up less than 2% for the week, sitting on a 9% gain so far in July. BakerHughes weekly rig count numbers, set for a 1 p.m. ET release, will be closely watched.
Earnings: SLB, American Express, Intuitive Surgical, CSX, Capital One
SLB stock fell solidly after the oil services giant reported second-quarter earnings that just edged past views, but revenue slightly missed. Formerly known as Schlumberger, SLB has a 59.45 buy point but is extended from the 200-day line.
Dow Jones giant American Express also topped on earnings but fell short on sales. AXP stock declined solidly, moving below a a 177.04 cup-with-handle entry, according to MarketSmith analysis.
Thursday night, Intuitive Surgical, CSX and Capital One Financial reported.
Intuitive Surgical reported strong earnings but the number of its installed da Vinci robotic-surgery systems fell short. ISRG fell modestly Friday.
CSX stock retreated solidly after earnings and revenue fell short. The rail operator dipped 0.3% to 33.71 on Thursday, continuing a bounce from the 10-week line this week. Investors could view 34.38 as a handle buy point on a base going back nearly 11 months.
COF stock rose slightly Friday, above a buy point after per-share earnings topped views while revenue fell short. Shares fell 2.5% to 114.99 on Thursday, just holding above a 114.91 cup-with-handle entry.
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Dow Jones Stock Market Rally
The Dow Jones Industrial Average climbed 0.5% in Thursday's stock market trading. The S&P 500 index retreated 0.7%. The Nasdaq composite tumbled 2.05%.
Crude oil futures rose 0.4% to $75.63 a barrel, off intraday highs.
The 10-year Treasury yield leapt 11 basis points to 3.85%.
Five Best Chinese Stocks To Watch Now
Nasdaq 100 Special Rebalance
| Company | Ticker | Current Weight | New Weight |
|---|---|---|---|
| Apple | AAPL | 12.1% | 11.50% |
| Microsoft | MSFT | 12.8% | 9.80% |
| Amazon | AMZN | 6.9% | 5.30% |
| Nvidia | NVDA | 7.3% | 4.30% |
| Meta Platforms | META | 4.4% | 3.70% |
| Tesla | TSLA | 4.5% | 3.40% |
| Alphabet | GOOGL | 3.8% | 2.85% |
| Alphabet | GOOG | 3.8% | 2.85% |
Monday's Nasdaq 100 special rebalance, the first since 2011, will modify the weights of the 100 big-cap Nasdaq components within the index. The goal is to make the Nasdaq 100 less dominated by a handful of stocks.
Microsoft stock, which has had the biggest importance in the Nasdaq 100, reportedly will see its weight drop 3 percentage points to 9.8%. Apple stock, which has the highest market cap, will become No. 1, slipping 0.6 points to 11.5%. Nvidia stock also will see weighting drop by 3 full points, to 4.3%.
Google stock will see its combined GOOGL/GOOG weighting drop to 5.7% from 7.6%. Amazon stock will slide 1.6 points to 5.3%. Tesla stock will drop 1.1 points to 3.4%, while Meta stock dips 0.7 point to 3.7%.
The Nasdaq 100 special rebalance is not expected to have much impact on the stock prices. For one, investors had a general idea two weeks ago that this was coming and how the weights might be adjusted. Second, not nearly as much money follows the Nasdaq 100 via ETFs and mutual funds, as opposed to the S&P 500.
Biden, AI Giants To Meet
President Biden will meet today with top execs from OpenAI, Microsoft, Google, Meta, Amazon, Athropic and Inflection on safe artificial intelligence practices. Before the meeting, the seven companies pledged to create ways for users to identify AI-generated material test tools for security before release and more.
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