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Dow Jones Futures Rally Ahead Of Jobs Report Amid Rate Fears; Tesla Stock Set To Fall Again - Investor's Business Daily

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, reversed from overnight losses to trade modestly higher Friday ahead of the February jobs report. Tesla stock looked to rebound from heavy losses, but was set to fall again in premarket trade.

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Among the Dow Jones leaders, Apple (AAPL) was up 0.1% premarket Friday, while Microsoft (MSFT) rallied 0.3% in today's stock market. Visa (V) is just below a new buy point after giving up the entry on Thursday.

Tesla (TSLA) looked to rebound from Thursday's nearly 5% dive, but shares slipped about 1% in premarket trade.

After the stock market close Thursday, chip leader Broadcom (AVGO) reported strong quarterly earnings results.

Among the top stocks to watch, Alphabet (GOOGL) and Vale (VALE) are trading near new buy points amid the current stock market sell-off.

Microsoft and Tesla are IBD Leaderboard stocks. Vale was Thursday's IBD Stock Of The Day.

Dow Jones Futures Today: Treasury Yield, Jobs Report

Ahead of the stock market open Friday, Dow Jones futures rose 0.3%, while S&P 500 futures gained 0.4% vs. fair value. Nasdaq 100 futures rallied 0.25% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

Midday Thursday, Fed chief Jerome Powell sparked the day's sell-off, saying last week's surge in bond yields "caught my attention." But Powell also said that the Fed remains highly accommodative and didn't hint at a new "twist" in policy. The 10-year Treasury yield spiked, closing at 1.55%.

The Labor Department will release its monthly jobs report at 8:30 a.m. ET. The U.S. economy is expected to add 175,000 jobs in February, compared to just 49,000 in January, according to Econoday. The unemployment rate is expected to stay steady at 6.3%.

Among exchange traded funds, the Innovator IBD 50 (FFTY) traded down 5.2% Thursday. The Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) slipped 1.6%. Meanwhile, the SPDR S&P 500 ETF (SPY) moved down 1.2%.

Stock Market Sell-Off

Looking back at the recent uptrend, November was a key month for the stock market. IBD's The Big Picture flagged the new uptrend following the market's bullish follow-through day on Nov. 4. Meanwhile, the start of March has the Dow Jones Industrial Average, Nasdaq and S&P 500 falling through key support levels.

According to Thursday's Big Picture, "The Nasdaq dived below last week's lows, closing at its lowest level since Jan. 4 and turning negative for the year. The tech-heavy composite is down 1.3% in 2021 after rallying as much as 10% from Jan. 1 to its Feb. 16 record high."

During periods of severe stock market weakness, investors should be lightly invested — or even 100% cash — until a follow-through day. Follow-throughs signal a new potential market uptrend and give the green light to start buying stocks again.

Use the downtime as a chance to take a mental break; however, don't tune out. Be on watch for the next leaders to emerge. One of the best ways to identify the next cycle of leading stocks during stock market corrections is to use the relative strength line. The RS line measures a stock's price performance vs. the S&P 500. If the stock is outperforming the broader market, the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.


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Bitcoin Price

Bitcoin declined about 1% Friday, briefly falling below $47,000 before paring losses. The price of Bitcoin traded around $47,300 in morning trade, according to CoinDesk.

The price of Bitcoin hit an all-time high on Feb. 21, topping out at $58,332.

The Grayscale Bitcoin Trust (GBTC) ETF tumbled 10.3% Thursday, but is still holding above 50-day support level.

Dow Jones Stocks: Visa

Inside the Dow Jones Industrial Average, Visa stock is trading just below a 211.69 buy point in a cup with handle, according to IBD MarketSmith chart analysis. The 5% buy zone goes up to 222.27.

Shares were unchanged premarket Friday, as they look to end a three-day losing streak.

Stocks To Watch: Alphabet, Vale

FANG stock leader Alphabet rallied 1.1% Thursday in the face of the stock market's weakness. Shares remain extended from a 1,843.93 buy point in a flat base, and are about 5% away from a 2,145.24 entry in a three-weeks-tight. Shares inched higher premarket Friday.

Thursday's IBD Stock Of The Day, Vale, is tracing a cup with handle with an 18.57 buy point, according to IBD MarketSmith chart analysis.

Shares moved down 2.1% Thursday, closing just above their 50-day line. Vale stock moved up 1% ahead of Friday's open.

Keep in mind that the current stock market weakness should keep investors on the sidelines.

Stock Market Earnings: Broadcom

Chipmaker Broadcom easily beat the Street's targets for its fiscal first quarter and guided higher for the current period. The company earned an adjusted $6.61 a share on sales of $6.66 billion in the quarter ended Jan. 31. Analysts expected Broadcom earnings of $6.55 a share on sales of $6.61 billion.

AVGO stock fell about 1% premarket Friday. Shares gave up their 50-day support level amid Thursday's 4.2% decline.


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Tesla Stock

Tesla stock looked to rebound from Thursday's 4.9% fall amid a three-day losing streak. But shares fell about 1% premarket Friday. The stock could be forming a new base, but it's too early to identify a new entry.

Last week, the electric-auto leader broke down through its key 10-week moving average line, a critical support level.

On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle. Shares are about 30% off that all-time high.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple was slightly positive premarket Friday following Thursday's 1.6% fall. Apple stock remains below its 10-week line, but a strong rebound back above the level would be bullish for the stock's prospects. Meanwhile, the stock could be set for a test of its long-term 200-day line.

On Feb. 18, Apple stock triggered the 7%-8% loss-cutting sell rule when it fell more than 7% below its 138.89 buy point in a cup with handle.

Meanwhile, Microsoft rose 0.3% premarket Friday. The stock is trading just below its its 232.96 buy point.

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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