Dow Jones Futures: Market Rallies Back As Fed Hawks Say This; Tesla

Dow Jones futures rose slightly Friday morning, along with S&P 500 futures and Nasdaq futures, with UnitedHealth providing a boost while hopes dimmed on Capitol Hill for solar stocks. The stock market rally fought back from big morning losses to close mixed on Thursday as two hawkish Fed officials eased rate hike fears somewhat.

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Dow Jones component UnitedHealth Group (UNH) reported better-than-expected second-quarter results before the open and raised full-year guidance, kicking off quarterly earnings for health insurers and medical services firms broadly. UNH stock rose 2% in premarket trade. On Thursday, shares reversed higher from the 50-day line to close up 0.2% to 502.43, not far from a 518.90 buy point.

Wells Fargo (WFC) missed earnings and sales early Friday, following weaker-than-expected earnings from JPMorgan Chase (JPM) and Morgan Stanley (MS) on Thursday. WFC stock fell 1% early Friday. Citigroup (C) also reports before the open. Citi stock fell to its worst level since late 2020 on Thursday.

Enphase Energy (ENPH), SolarEdge Technologies (SEDG) and other solar and green energy stocks fell on news that Sen. Joe Manchin, D-W.V., won’t support climate or tax provisions in a big Democratic spending package. Manchin, the crucial vote in a 50-50 Senate, had previously supported some of the climate provisions, but he’s more concerned about inflation pressures now. ENPH stock fell 5%.

Stocks To Watch

Meanwhile, Dollar Tree (DLTR), BJ’s Wholesale (BJ) and Lantheus Holdings (LNTH) flashed buy signals on Thursday, while McKesson (MCK) had a bullish shakeout.

China EV and battery giant BYD (BYDDF) surged on Thursday on bullish earnings guidance, but is still down sharply for the week following rumors that Warren Buffett’s Berkshire Hathaway may sell some of its big BYD stock stake. China EV startup Li Auto (LI) remains actionable, while Tesla (TSLA) takes between two key moving averages.

Lantheus stock is on IBD Leaderboard. DLTR stock and Li Auto are on SwingTrader. Dollar Tree, Lantheus, BJ’s Wholesale, McKesson, UnitedHealth and LI stock are all on the IBD 50. MCK stock and Dollar Tree also are on the IBD Big Cap 20.

The video embedded in the article discussed Thursday’s market action and analyzed Apple (AAPL), Costco Wholesale (COST) and BJ’s stock.

Fed Hawks Show A Little Dove

Fed Board of Governors member Christopher Waller and St. Louis Fed President James Bullard, two of the Fed policymakers most vocal about front-loading rate hikes, lowered expectations Thursday of a 100-basis-point rate hike later this month. The prospect of a full-point rate increase soared Wednesday following the hot June CPI report and Atlanta Fed President Raphael Bostic’s statement that “everything is in play.”

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Waller said Thursday that 75 basis points is still his “base case” for a rate hike at the July 26-27 meeting, say “markets may have got a little ahead of…