Dow Jones loses 250 points on major economic data; Tesla stock plummets on downgrade to sell

The Dow Jones Industrial Average briefly fell more than 250 points on Friday after key economic data, with major stock indexes expecting a losing week as investors brace for future rate hikes by the Federal Reserve. Tesla stock downgraded to sell at DZ Bank.




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Turning to the economy, the preliminary S&P Global Purchasing Managers' Index (PMI) for June for the manufacturing and services indices was released on Friday morning. The manufacturing index fell to 46.3, below estimates of 48.5. The services index fell to 54.1, ahead of estimates of 53.5.

This week Fed Chair Jerome Powell laid the groundwork for higher interest rates in the coming months. On Wednesday, Powell reiterated that further rate hikes are likely to be needed to bring inflation down, saying, “Almost all FOMC participants believe it will be appropriate to raise rates a little more by year-end.”

Investors now see a more than 74% chance of a quarter-point rate hike at the July Fed meeting, according to the CME FedWatch Tool. That's an increase from 67% a week ago.

CarMax (KMX) gained 7% on Friday after the company reported better-than-expected first-quarter earnings and revenue results.

stock market today

EV giant Tesla (TSLA) fell more than 4% on Friday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower after the market open today.

Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and roku (ROKU) – as well as Dow Jones shares JPMorgan Chase (JPM) and Foreclosure (CRM) – are among the best stocks to buy or watch amid the ongoing stock market decline.

Tesla is an IBD leaderboard. McKesson is an IBD SwingTrader stock, while Chipotle was named Wednesday's Stock of the Day and featured in this week's “Stocks Near A Buy Zone” column.


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Dow Jones today: oil prices, government bond yields

After Friday's opening bell, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 lost 0.7%. And the tech-heavy Nasdaq Composite fell 1% in morning trade.

Among U.S. exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 1%, while the SPDR S&P 500 ETF (SPY) is down 0.8% early Friday.

On Friday, the US 10-year Treasury yield fell to 3.69%. The yield has recently fluctuated in a range between 3.57% and 3.85% and settled at 3.79% on Thursday.

Oil prices continued to fall on Friday morning. West Texas Intermediate futures fell nearly 3% to below $68 a barrel.

stock market action

On Thursday, the Dow Jones Industrial Average pared its early losses to close essentially unchanged. In the Dow 30 Boeing (BA) triggered the 7% loss rule from a buy point of 221.33. BA stock fell more than 3%, extending its losing streak to three sessions.

The market development varied depending on the index. The S&P 500 rose 0.4% and the Nasdaq Composite gained nearly 1%. However, the Russell 2000 small-cap index lost 0.8%.

Thursday's Big Picture column warned, “Despite the stock market decline, IBD's recommended market exposure is still 60-80%. So far the market decline is normal, but keep an eye out for further signs of institutional selling starting to pile up, then it would be prudent to systematically reduce exposure.”

With stock markets continuing to rally, now is an important time to read IBD's The Big Picture column.


The five best Dow Jones stocks to buy and watch right now


Dow Jones Stocks To Buy And Watch: JPMorgan, Salesforce

Dow Jones banking leader JPMorgan is just below a flat base buy point of 143.37 after falling 1.9% on Thursday. JPM shares fell 0.9% early Friday.

Salesforce was able to stabilize after the slump in earnings that followed. It is now testing support at the 21-day exponential moving average. According to IBD leaderboard analysis, the megacap technology company previously surmounted two new alternative entries at 194.01 and 200.10.

For the past few weeks, shares have reached 20% gains from an entry at 178.94 cups with handles and are now attempting to recover from support at the 10-week moving average. CRM stock fell 1.6% on Friday morning.


4 top growth stocks to buy and watch in the stock market rally


The best stocks to buy and watch: Chipotle, McKesson, MongoDB, Roku

IBD Leaderboard Watchlist stock Chipotle is recovering from its 10-week moving average and nearing a flat base level of 2139.88, according to pattern recognition by IBD MarketSmith. Chipotle was Wednesday's IBD stock of the day. CMG shares fell 0.6% on Friday morning.

IBD SwingTrader stock McKesson is in buy territory after a 401.53 cup with handle entry. The 5% buy zone goes to 421.61. Shares rose 0.3% on Friday.

MongoDB is trading tight after the recent earnings-driven gap to the upside and offers a fresh entry. The 3-week tight formation shows a buy point at 398.89 while aggressive investors could use a trendline entry around 386. MDB shares lost 1.7% on Friday morning.

According to pattern recognition by IBD MarketSmith, streaming giant Roku is building a mug with a handle with a buy point of 75.45, despite the stock extending its losing streak to six sessions on Thursday. Roku stock fell 0.8% early Friday.


Learn how to drive the market with IBD's ETF market strategy


The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and keep an eye on in today's stock market, including a Dow Jones leader.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
roku (ROKU) 75.45 Cup with handle
Source: IBD data as of June 22, 2023

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live


Tesla stock

IBD leaderboard stock Tesla rose 2% on Thursday despite a downgrade from Morgan Stanley, bouncing back from initial losses. The stock remains well above the 207.79 buy point higher on a double bottom basis. They closed 16% below their 52-week high on Thursday.

TSLA stock threatened to give up all of Thursday's gains, falling 4.1% on Friday. Early Friday, DZ Bank downgraded the stock twice from “buy” to “sell” and waived the hold rating.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares hit an all-time high on Thursday, rising 1.65% in the session. Shares traded as high as 187.04 on Thursday. The stock continues to hold well above a buy point of 157.38. Early Friday, AAPL shares are down 0.7%.

Microsoft shares rallied 1.8% on Thursday, ending a three-day losing streak. Last week the stock hit a record high of 351.47. Despite the recent losses, MSFT stock remains in the 20-25% profit-taking zone from a flat base buy point of 276.76, allowing investors to take at least some of the gains. And as of Friday morning, Microsoft shares were down 1.5%.

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

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