The Dow Jones falls after the worst first half since 1962

The Dow Jones Industrial Average reversed Friday morning after the index posted its worst first-half performance since 1962.


Micron Technology (MU) beat Wall Street’s profit target for its fiscal third quarter and matched sales views. However, it seriously missed estimates with its forecast for the current quarter. MU stock fell more than 3% early after closing about 44% off its 52-week high.

Chinese electric vehicle manufacturers Li-Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) saw strong sales in June overnight. Li Auto shares fell 1%. Nio shares rose 1.7%. And Xpeng shares gained more than 2% in early trading.

You’re here (TSLA) was trading down around 1.5% early Friday. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) were higher after today’s stock market open.

In a volatile stock market environment, the leaders of the Dow Jones Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth (UNH), as well as Auto area (AZO), Bristol Myers Squibb (BMY), Eli Lily (LLY) and Quantum Services (PWR), are among the stocks to watch. Keep in mind that continued stock market volatility is a reason to stay defensive.

UnitedHealth is an IBD ranking stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was IBD Stock Of The Day on June 22. AutoZone was listed in the Stocks Near A Buy Zone column this week.

Dow Jones Today: Treasury Yields, Oil Prices

After Friday’s open, the Dow Jones Industrial Average gained 0.5% and the S&P 500 rose 0.5%. The tech-heavy Nasdaq rose 0.3%.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%. The SPDR S&P 500 ETF (SPY) rose 0.5% in early trading.

The 10-year Treasury yield fell to 2.87% on Friday after Thursday’s fall below 3%. The 10-year Treasury yield closed below 3% for the first time since June 7. In mid-June, it reached its highest level since April 2011, at 3.48%.

Meanwhile, US oil prices rebounded nearly 3%, with the West Texas Intermediate trading again above $108 a barrel. In early March, WTI briefly rose above $130.

Stock market volatility

The stock market posted disappointing action on Thursday, as major equity indices posted moderate losses.

Thursday’s The Big Picture column commented: “In the first half of 2022, the Nasdaq is down about 29% year-to-date, its worst first half on record, according to Dow Jones Market Data. The Dow Jones Industrial Average is down 15.3% year-to-date, its worst first-half performance since 1962. And the S&P 500 closed down 20.6% year-to-date, its worst first half since the 21% drop of the 1970s.”

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Four Dow Jones stocks to watch now

Dow Jones stocks to watch: Johnson & Johnson, Merck

Dow Jones leader Johnson & Johnson is about 2% below the 181.84 double bottom buy point after Thursday’s modest gain, according to IBD MarketSmith’s chart analysis. JNJ shares were down 0.2% on Friday morning.

The JNJ stock is posting a 94 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

Pharmaceutical giant Merck fell even lower than its flat base’s 95.02 buy point on Thursday, and is around 4% below entry after the session’s 1.45% drop. Early Friday, the stock was down slightly.

Healthcare giant and IBD Leaderboard UnitedHealth stock are in the buy range past the 507.36 double-bottom buy point. The shares fell slightly on Friday morning.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: AutoZone, Bristol, Eli Lilly, Quanta

AutoZone shares moved even further above their cut with the handle’s buy point of 2,130.60 on Thursday amid a 0.4% rise. Shares rose slightly on Friday.

Bristol Myers ended about 2% below the 78.72 buy point on a flat basis after Thursday’s 1.6% loss. Stocks are now testing their key 50-day line. Shares fell 0.4% on Friday.

SwingTrader Eli Lilly stock rose 1.7% on Thursday, adding to Wednesday’s 1.7% advance. The shares are in the 5% buy zone which rises to 329.81. Shares of Eli Lilly were down 0.1% early Friday.

Quanta Services draws a messy cup with a handle that has a buy point of 138.56, according to chart analysis from IBD MarketSmith. Stocks have found strong support around their 50-day line, which is a key level to watch. Quanta stock rose slightly on Friday morning.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 1.8% on Thursday, extending a losing streak to four sessions. Stocks appeared to rebound a bit from those losses on Friday morning, rising 1.5%. The stock is well below its 50 and 200 day moving averages.

Tesla is expected to announce second-quarter sales in early July. Analysts polled by FactSet expect Tesla to have shipped 273,000 vehicles in the second quarter, with a range between 249,000 and 323,000. Tesla shipped 310,048 vehicles in the first quarter.

Tesla stock traded as high as 1,243.49 on November 4. The shares are about 46% off that record.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 1.8% on Thursday and are well below their long-term 200-day line. The stock is about 25% off its 52-week high. Apple shares rose 0.7% on Friday morning.

Software leader Microsoft fell 1.3% on Thursday as it continues to slide after finding strong resistance around its key 50-day line earlier this week. The stock closed around 27% off its 52-week high. Microsoft shares rose 0.2% early Friday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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