The recent stock market rally attempt stumbled early Friday, with the Dow Jones industrials falling more than 100 points following a report that the United States is holding off on allowing chipmakers and other U.S. companies to resume business with China’s Huawei. Dow Jones stocksCisco Systems (CSCO) and Intel (INTC) were two of the early losers in morning trade. Hot IPO stock Uber (UBER) crashed after massive losses in its disappointing earnings results.
Current Stock Market Correction
The tech-heavy Nasdaq composite moved down 0.9%. The S&P 500 lost 0.6%, while the Dow Jones Industrial Average dropped 0.5%. Year to date, the Nasdaq has advanced about 20%. The S&P 500 has gained about 17%, while the Dow Jones has moved up about 13%. (For more market updates today, visit the current stock market.)
The Nasdaq and S&P 500 are both fighting to regain their 50-day support level amid recent rallies. The Dow is rebounding from its long-term 200-day support level.
Among exchange traded funds, Innovator IBD 50 ETF (FFTY) dropped 0.9%. The ETF is looking to maintain its 50-day support level after reclaiming it amid Thursday’s bullish gains.
Dow Jones Stocks: Cisco, Intel Fall
Cisco Systems stock was one of the biggest losers on the Dow Jones industrials early Friday. Shares almost 1%. Cisco Systems shares are looking to find support around their 200-day moving average line after a breakout above a flat base’s 57.63 buy point failed.
Elsewhere, chipmaker Intel dropped 2%, as the China news hit chip stocks. Rival Advanced Micro Devices (AMD) also moved down 1.7%, after scoring a 16% gain on Thursday.
On the upside, Merck (MRK) is approaching a 87.17 buy point in a flat base, according to MarketSmith chart analysis. Bullishly, the stock’s relative strength line is nearing a new high amid the current stock market correction. Shares rose 0.7% Friday.
Uber stock sold off 8% in the wake of its disappointing Q2 results late Thursday. For the quarter, the company reported a massive $5.2 billion loss, including $3.9 billion of stock-based compensation. The stock gave up the entirety of Thursday’s more-than-8% advance after rival Lyft’s (LYFT) strong Q2 results. For high-ranked IPO stocks, like Zoom Video Communications(ZM) check out the IPO Leaders stock idea list. Zoom Video is forming a bullish cup with handle.
After the stock market close Thursday, Trade Desk (TTD) reported better-than-expected Q2 results, sending shares up more than 3% in Friday morning trade. Trade Desk stock is extended beyond the 5% buy range of a 258.10 entry in a flat base, as the stock makes new highs. Keep in mind: the current stock market condition should discourage you from making any new purchases.
Top Growth Stocks To Watch: Funko
Among the IBD 50 top growth stocks, toy maker Funko (FNKO) advanced about 2% after its Q2 results late Thursday. Shares are approaching a 25.58 buy point, as they trade above their 50-day line.
According to IBD Stock Checkup, Funko stock has a 97 out of a highest-possible 99 IBD Composite Rating. Investors can use the Composite Rating to easily measure a stock’s fundamental and technical metrics.