The stock market tried to recover from heavy losses Friday, but still ended the session sharply lower, as 2020 kicked off with two straight days of active trade. The major stock indexes lurched lower at the open after a U.S. airstrike in Iraq killed a top Iranian general. The Dow Jones Industrial Average dove as many as 368 points in today's stock market before ending the session with a 233-point loss.
XDow Jones stock Apple (AAPL) ended a seesaw session with a 1% loss, while Caterpillar (CAT)and Cisco Systems (CSCO) were two of the worst-performing stocks on the Dow Jones Industrial Average. Elsewhere, top growth stock Incyte (INCY) triggered a sell rule after a failed drug study, while IBD Leaderboard stock Tesla (TSLA) hit a profit-taking zone after reporting strong vehicle delivery results.
Dow Jones Drops In Current Stock Market Rally
The Nasdaq composite declined as much as 1.3% before paring losses to 0.8% by the close. The S&P 500 and Dow Jones industrials ended Friday down 0.7% and 0.8%, respectively. All three major indexes hit record levels Thursday, kicking off the new year with strong gains as the current uptrend continues.
Volume was mixed, higher on NYSE, but lower on the Nasdaq, according to preliminary data. Higher volume would add a distribution day to the S&P 500. A distribution day indicates institutional selling and occurs when the index falls at least 0.2% on volume that is higher than the previous day.
Among exchange traded funds, Innovator IBD 50 (FFTY) ETF declined 0.6% Friday. The ETF of top growth stocks is approaching a 35.52 buy point.
Dow Jones Stocks: Apple, Caterpillar, Cisco Fall
Among the Dow Jones stocks, Apple stock ended a volatile session with a solid loss. At the stock market open, Apple fell as much as 1.24% to 296.63 before reversing into positive territory. But those gains proved short-lived, as the stock settled at 287.43, down 1%. The iPhone maker's shares are about 35% above a 221.47 buy point in a flat base. Apple was the top-performing Dow Jones stock of 2019 with a more than 86% gain.
CAT stock declined 1.4% to close below a 148.57 buy point in a flat base.
Cisco Systems moved down 1.6%, as the networking giant remains about 18% off its 52-week high. Cisco stock is above its 50-day line, but still below its long-term 200-day line.
Join IBD experts as they analyze winning stocks on IBD Live every morning. Take a free trial!
Stock Market News: Incyte Plunges, Tesla Outperforms
Incyte plunged more than 9% after the company's drug study failed to show any statistically significant improvement vs. other treatments. Incyte stock hit the 7% sell signal from an 89.40 buy point. Earlier this week, the stock gave up its key 50-day support level.
Axon Enterprise (AAXN) triggered the 7%-8% loss-cutting sell rule from a 75.03 buy point after the stock fell as much as 10.3% to 68.68 before closing at 73.93, down 3.4%. Axon, formerly known as Taser, sued the Federal Trade Commission Friday.
Tesla stock rose as much as 5.5% to 454 at the stock market open after the company's better-than-expected production and delivery figures for the fourth quarter. Shares ended the session with a 3% gain, closing at 443.01. Tesla stock decisively broke out above a 361.30 buy point in a cup with handle base on Dec. 16. Less than one month later, Tesla shares are in the 20%-25% profit-taking level from the buy point. The 20%-25% zone starts at 433.56. Investors should take at least some profits at this level to lock in some gains on the upside.
Top Stocks To Watch: 2 Leaders Near Entries
Among the IBD 50 top growth stocks, No. 29-ranked Planet Fitness (PLNT) broke out above a 76.07 buy point in a cup with handle. Shares moved up as much as 2.1% to 76.64, eventually closing at 75.64, just below the buy point. A key flaw is a weak relative strength line.
According to IBD Stock Checkup, Planet Fitness stock has an 80 out of a best-possible 99 Composite Rating. Investors can use the IBD Composite Rating to easily measure a stock's fundamental and technical metrics.
Meanwhile, No.31-ranked L3Harris Technologies (LHX) surged for a second straight day, closing with a 3.5% gain. Shares are approaching a flat base's 217.41 buy point. The defense stock has a strong 95 IBD Composite Rating. L3Harris stock was featured as Friday's IBD Stock Of The Day.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the stock market.
YOU MAY ALSO LIKE:
7 Stocks With New Buy Points; Futures Fall On Iran News
Stock Market Kicks Off New Year With All-Time Highs; 2 Breakouts
Improve Your 2020 Stock Trading With A 2019 Post-Analysis
