Dow Jones, Nasdaq Reverse Lower; Tesla Stock Breaks Out

The major stock indexes reversed lower in today’s stock market action after initially rallying on a tame jobs report and rebounding oil prices. The Dow Jones industrials and the S&P 500 index lost 0.5% and 0.6%, respectively. The tech-heavy Nasdaq composite sank 1%. The major stock indexes staged a bullish reversal day Thursday after they trimmed heavy losses.




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The U.S. economy added 155,000 jobs in November, below the 190,000 estimate. Top growth stock Tesla (TSLA) is breaking out above a potential buy point after an analyst upgrade. Meanwhile, crude oil prices surged over 4%. (For updates on this story and other market coverage, visit the Stock Market Today.)

Chevron, Exxon Lead Dow Jones Industrials On Higher Oil Prices

Dow Jones energy stocks Chevron (CVX) and Exxon Mobil (XOM) rose 1.8% and 0.7%, respectively, after OPEC and Russia struck a deal to cut oil production. OPEC and its partners, led by Russia, agreed Friday to cut oil output by a collective 1.2 million barrels a day, under a deal still under negotiation, according to the Wall Street Journal. Crude oil prices moved up over 4% to nearly $54 a barrel.

Exxon Mobil is shaping a flat base, with an 87.46 buy point, but is trading below its 50- and 200-day lines. Meanwhile, Chevron is about 10% away from a 131.18 buy point.

Stock Market Earnings: Ulta Beauty Triggers Sell

After the stock market close Thursday, Leaderboard stock Lululemon (LULU) reported strong Q3 results. Lululemon stock reversed from early gains to fall nearly 5%, moving toward its 50-day line. The retailer is still below its 50-day moving average line, as a new base takes shape.

UltaBeauty (ULTA) topped the Street’s Q3 estimates late Thursday, but disappointing guidance sent shares sharply lower at the market open. Stock in the specialty beauty retailer dropped nearly 9% and fell more than 7% below the 290.40 flat-base entry, triggering the 7%-8% loss-cutting sell signal.

Tesla Stock Breaks Out On Upgrade

Tesla stock advanced 3% to break out above a cup with handle’s 366.85 buy point. The stock’s relative strength line is at a new high, a bullish signal.

Early Friday, analyst firm Jefferies upgraded the electric-auto maker from hold to buy, while raising the price target from 360 to 450. The new price target is a 24% premium to Thursday’s 363.06 closing price. Jefferies cited the firm’s strengthening balance sheet and strong growth relative to the rest of the auto industry.

IBD 50 Stocks: Five Below

Among the leading growth stocks, Five Below (FIVE) added to Thursday’s heavy losses with a slim loss after initially moving higher. Shares are trying to stem their recent slide at the 200-day moving average line.

On the downside, Dow Jones stock Intel (INTC) declined almost 2%, as the stock battles for support at the 50-day line. The stock is trying to shape the right side of a new base amid a 26% deep correction.

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