The Dow Jones Industrial Average reversed lower Friday as about half of the Dow 30 stocks posted declines. Walt Disney (DIS) was the worst-performing blue chip, despite strong subscription figures. Tilray (TLRY) and other marijuana stocks were volatile — trading high as a kite earlier in the week amid possible speculation from Reddit investors.
Nasdaq, S&P 500
The Nasdaq was the worst performing major index, slipping around 0.3%. Illumina (ILMN) was the index's best performer, rising around 13%. PayPal (PYPL) also rose, up more than 3%. It was boosted after Chief Executive Dan Schulman said the company could have 750 million active accounts by 2025, up from 377 million at the end of the fourth quarter. At least nine analysts increased price targets.
The S&P 500 was also lower, though it fell less than 0.1%. Mohawk Industries (MHK) turned in eye-catching performance, rallying almost 10%.
Volume was lower compared with the same time Thursday, though data was incomplete. It fell about 5% on the NYSE.
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The S&P sectors were mixed, with a roughly even split of winners and losers. Financials and materials sectors were the top performers.
Small caps were also managing to rally, with the Russell 2000 basically flat.
Growth stocks managed to rally out of the red, with the Innovator IBD 50 ETF (FFTY) gaining 0.5%. Generac (GNRC) was the biggest winner on the IBD 50, rising almost 4%. It is extended from a 234.65 buy point.
Disney Stock Climbs, Then Reverses
The Dow Jones Industrial Average initially opened higher, but is now down around 0.2%. It remains well clear of its 50-day moving average.
Disney earnings and sales beat while Disney+ subscribers now top 94.9 million. Disney stock rose early but reversed, and was down about 1%. It rose above a flat-base buy point of 183.50 earlier in the week. It had been rebounding bullishly from its 50-day line. The buy zone for Disney stock runs to 192.68.
Marijuana Stocks Mixed
Aurora Cannabis (ACB) fell around 6.4%. It comes after the firm reported earnings late Thursday. The Canadian pot producer topped revenue forecasts. Aurora stock tumbled 23.5% on Thursday but is still in positive territory for the week.
Marijuana stocks plunged Thursday after huge gains, but action was mixed Friday. Tilray stock was up almost 6%. It's still above its 10-day line.
Apple stock fell almost 1%. Shares have been consolidating just below a 138.89 cup-with-handle buy point. AAPL stock has now dipped below its 21-day exponential moving average but remains above its 50-day/10-week lines.
MSFT stock, a Dow Jones, S&P 500 and Nasdaq component like Apple, was down around 0.6%. It's still in a buy zone.
The two FANG trillion-dollar stocks, Amazon and Google, lost 0.4% and were roughly flat, respectively. AMZN stock is forming a handle as it drifts back to its 50-day line. GOOGL stock is trading tightly after gapping up to record highs last week on earnings.
These Growth Stocks Dive After Earnings
Datadog (DDOG) stock was down more than 5%. It comes after the firm beat earnings views but served up profit guidance below some estimates. It has now fallen out of buy range from a 111.59 cup-with-handle entry, according to MarketSmith. The DDOG stock buy zone ends at 121.37.
Cloudflare (NET) also sank, falling 7%. The firm had managed to narrowly beat on earnings and serve up in-line guidance. Shares cleared an 88.87 consolidation buy point on Monday, but are now back below it.
Affirm (AFRM) stock was down more than 9% despite the firm's earnings and revenue topping fiscal Q2 views. Q3 revenue guidance was in line. It tumbled from a buy zone into the loss taking zone. It had broken out of an IPO base with a 138.08 buy point.
Tesla Stock Falls, Nio Stock Reverses
IBD Leaderboard stock Tesla slipped more than 2%, and is getting closer to its 50-day line. Earlier this week it emerged that the electric-vehicle maker has been summoned by five Chinese regulatory agencies over its Shanghai-made Model 3 cars. They are concerned about problems including what regulators called "abnormal acceleration" and "battery fires."
Its Chinese rival Nio also shifted into reverse, falling about 1.3%. Nio stock has been trying to clear a trend line touching the highs since Jan. 11. A previous breakout from a cup base with a 57.30 buy point failed because it erased a double-digit gain from the buy point.
Meanwhile, auto giant General Motors (GM) managed to find the right gear after opening lower. It's now up around 1%. It broke out from a cup base Jan. 12 on positive EV news. The buy point was 46.81.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis .