Dow Jones Futures Sell as Bitcoin Falls; BBBY stock crashes 47% on Cohen sale

Dow Jones futures fell on Friday as the price of Bitcoin fell below $22,000. Bed Bath & Beyond (BBBY), or BBBY stock, crashed Friday morning.

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BBBY stock fell sharply on Thursday, after revived meme stock interest saw shares more than double on a steep six-day run. On Friday, shares fell as much as 47% in premarket trading before paring losses to 40%. GameStop (GME) Chairman Ryan Cohen’s RC Ventures revealed it had sold its entire stake in the struggling retailer. In addition, Bed Bath & Beyond announced that it had hired bankruptcy specialist Kirkland & Ellis to help manage its unmanageable debt load. The stock rose as much as 560% from a July 27 low of 4.54 to Wednesday’s high of 30.00.

Key earnings moves on Friday include Materials used (AMAT), Deere (THE), Foot Locker (FL) and Ross Stores (Praise). AMAT shares rose higher. Deere shares fell more than 5%. Foot Locker rose 21%. And Ross Stores went lower.

Head of electric vehicles Tesla (TSLA) traded down 1.5% on Friday morning. Elsewhere, Dow Jones tech leaders apple (AAPL) and Microsoft (MSFT) both withdrew before today’s market opening.

In today’s healthy stock market environment, Dow Jones stocks Coca Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Arista Networks (A WEB), Costco (COST) and Ollie’s Bargain Outlet (OLLI) — is among the best stocks to buy and watch.

Albemarle and Costco were featured in this week’s Stocks near a Buy Zone column. Costco stock was added to the IBD Leaderboard and SwingTrader in the wake of Tuesday’s breakout move. Albemarle was a recent IBD Stock Of The Day.

Dow Jones Today: Treasury Yields, Oil Prices, Bitcoin

By early Friday, Dow Jones futures were down 0.7% relative to fair value, while S&P 500 futures were down 0.85%. And Nasdaq 100 futures traded down 1% in morning trading. Remember that overnight action in Dow Jones futures and elsewhere does not necessarily translate into actual trading in the next regular session.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.1%, and the SPDR S&P 500 ETF (SPY) fell 1% in early trade.

The 10-year Treasury yield ticked up to 2.96% early Friday, after Thursday’s drop to 2.88%. The 10-year government yield is on the rise after reaching its lowest level since early April in recent weeks.

Meanwhile, US oil prices threatened to extend this week’s losses which have sunk to the lowest level since January. West Texas Intermediate futures traded down more nearly 2%, below $89 a barrel.

The price of Bitcoin fell more than 9% in the last 24 hours, according to CoinDesk. Bitcoin was trading around $21,300 in morning trading on Friday.

Stock market rally

On Thursday, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 rose 0.2%. The tech-heavy Nasdaq composite climbed 0.2% but remained below the 13,000 level and is still on a four-week winning streak. The small-cap Russell 2000 rose 0.7 percent.

The next few sessions are likely to be key for the stock market trend, as the Nasdaq and Dow Jones industrials test support levels. Meanwhile, the S&P 500 is poking its head up against its 200-day line, which is a resistance level on the watch.

Thursday’s The Big Picture column commented, “If the stock market trades sideways, most leading stocks will also consolidate. These periods of rest can result in handles on cup, saucer and double-bottom patterns, or even new bases, which provide new buy points.”

If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Coca-Cola, Merck

Dow Jones soft drink giant Coca-Cola is building a flat base that has a buy point of 67.30. A handle entry of 65.14 is also in play. The stock is retracing from its 50-day line and trying to top the handle. The share fell 0.5 percent early Friday.

Merck is also building a flat base, a pattern showing a buy point of 95.82. Shares are trying to hold above the 50-day line, according to IBD MarketSmith chart analysis. Merck shares fell on Friday.

The MRK share shows a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

4 top growth stocks to buy and watch nowra stock market rally

Top stocks to watch: Albemarle, Arista, Costco, Ollie’s

Lithium producer Albemarle remains in buy territory after Friday’s breakout past a 273.78 buy point in a large cup with handle. The 5% buy zone goes up to 287.47. Earlier last week, shares topped a minor cup handle with a buy point of 250.25. Shares rose 0.7% on Thursday, ending a two-day slide. The stock fell about 1 percent Friday morning.

Arista Networks, one of this week’s IBD 50 Stocks To Watch picks, continues to plow up the right side of a double bottom that offers a buy point at 143.67. With the stock about 8% off its current entry, look for a handle to offer a more risk-optimal buy point. Arista’s RS line has trended higher and is nearing a new high. The ANET share fell early Friday.

IBD Leaderboard stock Costco breaks out past a cup with handle with a buy point of 552.81. The stock rose 0.8% on Thursday, moving higher in the 5% buy range. The share fell 0.4 percent early Friday.

Ollie’s Bargain Outlet is back from its 10-week line – a critical support level – placing the top discount retailer in a new buying zone. Shares are also cutting a handle after a major cup base, setting the latest buy point at 72.37. Current price action is about 11% away from this entry. The stock fell 0.5 percent Friday morning.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla shares

Tesla shares lost 0.4% on Thursday, extending a losing streak to three sessions. Shares of the EV giant fell 1.5% on Friday morning.

This week, the stock closed at its highest level since May 4. Shares are again trying to rise decisively above resistance around the 200-day line, which is a key level to watch. Tesla is about 27% off its 52-week high. The 3-to-1 share split is set for 24 August.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.9% Thursday as the stock continues to build the right side of a cup base that has a buy point at 179.71. Another interpretation could be a major double bottom extending back to January. Regardless, the point of purchase is identical. Keep an eye out for a potential handle that could form and provide a lower entry.

Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market returns. The stock fell 1% Friday morning.

Microsoft fell 0.4% on Thursday, moving further away from its long-term 200-day line, which is a key resistance area to watch. The share lost 1.1 percent early Friday.

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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