Dow Jones, Stock Market Lower; Tesla Stock A Buy

The major stock indexes recovered some early losses in today’s stock market after opening sharply lower amid concerns of slowing global economic growth. The Dow Jones industrial average fell about 200 points. Earnings announcements prompted steep falls in tech giant Adobe (ADBE), top retail stock Costco (COST) and Leaderboard stock idea Starbucks (SBUX). Meanwhile, Tesla (TSLA) received a bullish analyst rating and Tesla stock is still in buy range. (For updates on this story and other market coverage, visit the Stock Market Today page.)





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The Dow Jones industrials and the S&P 500 index fell about 0.8% apiece. The tech-heavy Nasdaq composite dropped 1%. With the continued selling pressure on the stock market, investors should be focusing on stocks that are holding up the best amid the volatile action. At its weekly peak, the Nasdaq was up 3.3% for the week, but selling on Thursday and Friday reduced the weekly gain to about 0.5%.

Stock Market Earnings: Costco, Starbucks Fall

After the stock market close Thursday, Costco missed quarterly earnings estimates, sparking an over-6% sell-off in shares. The warehouse retailer is still shaping a flat base with a 245.26 buy point — according to MarketSmith chart analysis — but shares are about 13% away from that level. The 200-day line is a key support level to watch for now.

Starbucks lost nearly 2% after the coffee shop giant reduced a long-term growth target after the stock market close Thursday. Shares of the coffee purveyor are approaching their 50-day line after giving up the entirety of this week’s gain.

Apple Stock, J&J Lag Among Dow Jones Industrials

Apple (AAPL) declined 2%, as the stock trades about 28% off its 52-week high. Shares are still holding above their Monday lows of 163.33.

Johnson & Johnson (JNJ) is testing a recent buy point along with its 50-day support level. Shares declined over 4% in morning trade Friday. The stock is trading just below a 143.23 cup-with-handle entry. A Reuters report said that the company knew for decades that its talcum baby powder contained asbestos.

Tesla Stock Receives Bullish Rating

Tesla stock bucked the market’s sharp fall after receiving a bullish analyst rating from Wedbush Securities. The firm initiated coverage with an overweight rating and a 440 price target. Meanwhile, Deutsche Bank started coverage with a hold rating.

Shares fell just 0.3% and are still in buy range from a cup with handle’s 366.85 buy point. The stock’s relative strength line — a key technical metric — continues to hit new highs.

IBD 50 Stocks To Watch: Adobe Earnings

Among the leading growth stocks, Adobe Systems beat the Street’s quarterly targets late Thursday, but a light earnings outlook sent shares 5% lower in morning trade. A potential buy point at 260.82 looms ahead, but the stock has more pressing issues as it fights for support near its 50-day moving average support level.

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