The stock market extended Thursday's losses on newly reported coronavirus cases, and as economic data showed the U.S. unexpectedly slowed in February. The Dow Jones Industrial Average dove more than 290 points in today's stock market before paring losses. First Solar stock and Dropbox stock were key earnings movers. Uber stock is near a new buy point.
XChina reported more than 800 new coronavirus cases overnight, while South Korea added 52 new cases. The spreading coronavirus is intensifying concerns about a global economic slowdown.
Dow Jones stock Walmart (WMT) was among the day's top stocks on the Dow 30, as it displays a new buy point. Four key earnings movers include Dropbox (DBX), First Solar (FSLR), Universal Display (OLED) and Zscaler (ZS). Meanwhile, hot IPO stock Uber Technologies (UBER) is approaching a new buy point.
(Check out the IBD Investing Action Plan for ongoing important stock market events and key earnings results.)
Dow Jones Dives 290 Points In Today's Action
The Nasdaq composite fell 1.3% just after 10 a.m. ET. The S&P 500 dropped 0.9%, while the Dow Jones industrials declined about 0.85%. The Nasdaq composite and S&P 500 set fresh record highs Wednesday.
Among exchange traded funds, Innovator IBD 50 (FFTY) fell 1.7% Friday morning. The ETF of top growth stocks set a new 52-week high on Thursday before turning lower. The IBD 50 ETF is up more than 5% in 2020.
February PMI Shows U.S. Contraction
Overall U.S. economic performance nose-dived in February, according to researcher Markit, which reported its preliminary composite purchasing managers index reading for the month of 49.6. That was sharply below both January's 53.1 tally, and the 52.5 number projected by analysts. Numbers below 50 indicate economic contraction.
Manufacturing expanded narrowly, reading 50.8 for the month. Services fell to 49.4, down from 53.2 in January and disappointing forecasts for an uptick to 53.3.
Dow Jones Stocks: Walmart's New Buy Point
Among the Dow Jones stocks, Walmart stock rallied 0.3% in morning trade, resisting the overall market weakness. The top Dow Jones retailer is shaping a flat base with a 125.48 buy point.
Elsewhere in the Dow Jones industrials, Microsoft (MSFT) was one of the worst performers, falling more than 2%. Shares are above the 20%-25% profit-taking zone from a 142.47 entry in a flat base.
Key earnings movers Friday morning include Dropbox, First Solar, Universal Display and Zscaler. All four stocks reported earnings after the stock market close Thursday.
Dropbox Stock
Recent issue Dropbox soared 19% after the company's strong earnings results late Thursday.
The cloud storage stock has been in a sustained downtrend since June 2018. Dropbox stock is moving up the right side of new base, but a potential entry has yet to appear.
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First Solar Stock
First Solar stock crashed 14% after the company's Q4 earnings results Thursday. The solar stock is more than 25% off its 52-week high.
Fellow solar stock SolarEdge Technologies (SEDG) slid more than 4%, giving back a portion of the past two days' huge gains. On Wednesday, the company beat the Street's earnings targets, sending shares more than 11% higher on Thursday.
Universal Display Stock
Universal Display reported weaker-than-expected Q4 results late Thursday and warned that the coronavirus outbreak would hurt its sales.
OLED stock crumbled 8% and is now about 30% off its 52-week high. A breakout past a cup-with-handle's 208.11 buy point failed when it fell more than 7% below the entry, triggering the loss-cutting sell rule.
Zscaler Stock
Former top growth stock Zscaler plunged 14% after the company's earnings guidance missed analyst targets.
The cybersecurity leader was a big winner in 2019, advancing as much as 85% past a 48.34 buy point in a cup base. But those gains proved to be short-lived, as the stock dropped 55% from its 52-week high.
Uber Stock Nears New Buy Point
Uber stock skidded 1.2% in morning trade Friday. The hot IPO stock is approaching a new buy point in the current stock market rally.
The new buy point is 41.96 as it forms a cup with handle, according to MarketSmith chart analysis. On Feb. 7, Uber stock raced 9.5% higher after better-than-expected Q4 results.
According to IBD Stock Checkup, Uber stock has a mild 67 out of a best-possible 99 IBD Composite Rating. The IBD Composite Rating is designed to help investors easily measure the strength of a stock's technical and fundamental qualities.
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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