Dow Jones falls as Netflix stock tumbles on earnings; Bitcoin Dives

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The Dow Jones Industrial Average fell Friday morning after the stock market deepened Thursday. Netflix stock tumbled 22% in morning trading on disappointing results, while Intuitive Surgical (ISRG) also fell on profit. Meanwhile, Bitcoin price plunged in the morning action.

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Among the Dow Jones leaders, Walt Disney (DIS) fell more than 5% in early trade, apparently feeling down against the sharp drop in Netflix (NFLX). Apple (AAPL) was down 0.1% on Friday, while Microsoft (MSFT) was also down 0.1% in today’s stock market. Also among the Dow 30, Cisco Systems (CSCO) is below a recent buy point as it battles for support at the 50-day line.

Electric vehicle leader Tesla (TSLA) fell 2% on Friday. Lucid Group (LCID) went down. And Chinese electric vehicle leaders Li Auto (LI) and Xpeng Motors (XPEV) were downright lower.

Among Friday’s top stocks to watch, Ameriprise Financial (AMP), Baker Hughes (BKR) and Global Ship Lease (GSL) are close to new buy zones. Keep in mind that the current stock market situation is keeping investors on the sidelines.

Microsoft and Tesla are IBD stocks. Ameriprise is featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields

After trading opened on Friday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 lost 0.6%. Meanwhile, the tech-heavy Nasdaq sold 0.9%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.9% in morning trading, and the SPDR S&P 500 ETF (SPY) fell 0.5%.

The 10-year Treasury yield fell below 1.76% on Friday morning. On Thursday, the 10-year Treasury yield edged above 1.83%. Oil prices fell for a second day, with West Texas Intermediate down 1.6% to $84.19 a barrel after hitting a seven-year high on Wednesday.

Bitcoin

The price of Bitcoin has fallen around 10% in the past 24 hours, trading at $37,728. Bitcoin hovered around $37,800 in Friday morning trading, according to CoinDesk. The cryptocurrency hit an all-time high on November 10 at $68,990.

The ProShares Bitcoin Strategy ETF (BITO) slid more than 7%. And cryptocurrency exchange Coindesk (COIN) has fallen more than 4% in premarket trading and is approaching all-time lows.

The stock market sell-off worsens

The stock market posted another disappointing performance on Thursday. The Dow Jones closed below its 200-day moving average for the first time since Dec. 1. The S&P 500 broke through its December low. The Nasdaq broke through its October low and fell even lower than its 200-day moving average.

Thursday’s The Big Picture commented: “For now, investors are still waiting for the elusive day 1 of another rally attempt – the first day without an index bottom. Then be on the lookout for a day follow-up, which is when a major event in the index shows large spikes in volume that are heavier than the day before. Follow-ups occur as early as day 4 of the rally attempt.

Amid this recent weakness, it’s now important to check out IBD’s The Big Picture. Instead of buying stocks, investors should add top stocks showing clear relative strength to their watchlist. These could potentially become market leaders in the next decisive uptrend.

Five best Dow Jones stocks to watch now

Stock market results: Intuitive Surgical, Schlumberger

Late Thursday, Intuitive Surgical reported better-than-expected fourth-quarter results, but the stock still fell about 4% in early trading. ISRG shares closed more than 20% off their 52-week high on Thursday.

On Friday morning, energy leader Schlumberger announced strong fourth-quarter results. In response, shares were slightly lower in morning trading. SLB stock is in a buy range above a buy point of 36.97 in a consolidation.

Netflix Earnings

Netflix reported fourth-quarter earnings above estimates, while revenue met analysts’ targets. New subscribers also exceeded analysts’ expectations, but fell short of the company’s target. Critically, management forecast first-quarter subscriber growth at just a fraction of analyst estimates. NFLX shares tumbled around 22% in morning trading.

The stock has been in steep decline since mid-November. Netflix stock is at its lowest level since June 2020.

Three Growth Stocks to Watch in Current Stock Market Weakness

Dow Jones Stocks to Watch: Cisco Systems

Cisco Systems, a Dow Jones stock, gave up its entry at 58.73 double bottom, according to IBD MarketSmith’s chart analysis, during Thursday’s 1.4% drop. Stocks are now below their 50-day line. Shares fell slightly on Friday.

Positively, the stock’s relative strength line has hit a new high in recent weeks, confirming Dow Jones stock as the market leader, but continued stock market weakness is dragging the stock lower.

Stocks to watch: Ameriprise, Baker, Global Ship Lease

IBD Leaderboard Ameriprise Financial stock fell 0.8% on Thursday, falling further below a buy point of 312.25 in a flat basis, according to IBD MarketSmith’s chart analysis. The 5% buy zone is up to 327.86. On the positive side, the stock’s relative strength line reached a new high on the January 4 breakout. AMP shares fell 2% on Friday.

Energy leader Baker Hughes fell back below a buy point of 27.76 cups after reporting fourth-quarter results on Thursday. BKR shares rose 1% on Friday.

Global Ship Lease, Thursday’s IBD 50 Stocks To Watch pick, continues to rise off the right side of a cut base with a buy point of 26.61. Stocks pared their gains to less than 1% on Thursday and are about 7% from the correct buy point. The stock boasts a perfect IBD composite rating of 99, according to the IBD Stocks Review. GSL shares were down 5% in morning trading.

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

Electric vehicle stocks: Li Auto, Xpeng, Lucid Motors

Li Auto stock extended this week’s losses on Thursday, down 0.3%. The stock continues to build the right side of a consolidation with an entry at 37.55 while an early entry at 33.86 is also in play. Shares fell almost 3% on Friday.

Xpeng Motors, Tuesday’s IBD 50 Stocks To Watch pick, rose 1.85% on Thursday but remains below its 50-day line. The stock continues to build a consolidation with an entry at 56.55. Aggressive investors could use 51.60 as a prior entry. Shares fell 3.6% on Friday.

Among U.S.-based electric vehicle stocks, shares of Lucid Motors fell nearly 1% on Friday. LCID stock remains extended beyond a buy point of 28.49 in a cup base with handle. Meanwhile, the stock’s core process has encountered more problems in this week’s losses and the stock is well below the key 50-day line.

Tesla Stock

Tesla stock traded down 2% on Friday, threatening to hit its lowest level since Dec. 22. Stocks tried to regain their 50-day line on Tuesday, but were denied. For now, a new handle entry at 1,208.10 is available.

The shares traded as high as 1,243.49 on Nov. 4, but the stock ended Thursday about 20% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock fell 1% on Thursday, falling further below the key 50-day line. Shares remain around 7% lower after a buy point of 153.27 on a cup-with-handle basis, according to chart analysis from IBD MarketSmith. Shares fell 0.1% on Friday.

Software leader Microsoft fell 0.6% on Thursday as the main Dow Jones stock continues to burn a flat base with a buy point of 349.77. With the stock below its 50-day line, it clearly has more work to do before a potential breakout. The shares were down 0.1% on Friday.

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

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