Dow Jones futures continued to decline on Friday morning following the stock market sell-off on Thursday. SolarEdge Technologies (SEDG) also experienced a significant drop in stock price after warning of weak demand in Europe. American Express (AXP), Intuitive Surgical (ISRG), and SLB (SLB) were the key movers in terms of earnings on Friday morning. AXP stock rose 0.5%, while Intuitive Surgical shares fell 6.6% and SLB shares declined 2%. SolarEdge stock plummeted over 28% due to the company’s lowered revenue outlook and the weakening demand in Europe.
Before the market opened on Friday, Dow Jones futures fell 0.4%, while S&P 500 futures and Nasdaq 100 futures dropped 0.4% and 0.5% respectively. Intuitive Surgical, SolarEdge, and Enphase Energy (ENPH) traded at the bottom of the Nasdaq 100. In terms of ETFs, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3% and the SPDR S&P 500 ETF (SPY) decreased by 0.2% early on Friday. The yield on the 10-year US Treasury bond decreased to 4.97% on Friday morning after briefly crossing the 5% mark on Thursday. Oil prices increased over 1% and West Texas Intermediate futures traded around $90 a barrel, up more than 2% for the week.
In Thursday’s stock market action, the Dow Jones Industrial Average dropped nearly 0.8%, the S&P 500 lost close to 0.9%, and the Nasdaq composite declined 1%. The small-cap Russell 2000 fell 1.5%, reaching its lowest close in over a year. Due to the recent market weakness, IBD investors are advised to remain cautious about entering new positions, with a recommended stock market exposure level of 0%-20%. Investors are encouraged to read IBD’s The Big Picture column to stay updated on the changing stock market outlook.
In the current stock market, Tesla (TSLA) stock experienced a 9% plunge on Thursday after its earnings results. The stock is trying to find support around the 200-day line and is now more than 25% off its 52-week high. Dow Jones leaders Apple (AAPL) and Microsoft (MSFT) both saw declines, with AAPL extending its losing streak to five sessions and MSFT continuing to hold above its 50-day line. Apple is likely to form a double-bottom base with a 189.98 buy point if it can bounce back from its recent lows. Microsoft is forming a new base ahead of its first-quarter earnings report, with an early entry point at 340.86.
