Stock Market Rally Attempt: Dow Jones Futures Industrial Average Rallies as China Cuts Interest Rates

Amidst a young and struggling stock market rally, the Dow Jones futures Industrial Average rallied on Friday, as China's central bank unexpectedly cut a key interest rate overnight to support its struggling economy. Companies with strong China exposure, including Microsoft, Apple, Nike, were leaders in early trade. Meanwhile, retailers Ross Stores and Foot Locker reported disappointing earnings, with Ross Stores crashing 22% and Foot Locker jumping 7%.

Key Takeaways:

• The Dow Jones futures Industrial Average rallied 0.55% after China's central bank cut a key interest rate overnight to support its struggling economy.
• Companies with strong China exposure, including Microsoft, Apple, Nike, were leaders in early trade.
• Retailers Ross Stores and Foot Locker reported disappointing earnings, with Ross Stores crashing 22% and Foot Locker jumping 7%.
• Dow Jones leaders Chevron and Merck continue to build strong technicals, with Chevron trading up 1.1% Friday and Merck slightly higher.
• Stocks to watch for Friday include Northrop Grumman, Exxon, Eli Lilly, and WWE.
• IBD's top stocks to watch for Friday include Chevron, Merck, Northrop Grumman, Exxon, Eli Lilly, and WWE.

Statistics:

• The Dow Jones Industrial Average moved up 0.55% after the open, while the S&P 500 rose 0.9%.
• The tech-heavy Nasdaq composite advanced 1.2% in morning trade.
• The Invesco QQQ Trust rose 1.2%, while the SPDR S&P 500 ETF gained 0.9%.
• The 10-year Treasury yield ticked higher to 2.87% Friday morning after ending Thursday at 2.85%.
• U.S. oil prices inched higher, with West Texas Intermediate crude trading just above $112 a barrel.

Sources:

• IBD's top stocks to watch for Friday: Chevron, Merck, Northrop Grumman, Exxon, Eli Lilly, and WWE.
• Invesco QQQ Trust.
• SPDR S&P 500 ETF.
• 10-year Treasury yield.
• West Texas Intermediate crude oil prices.
• China's central bank.
• IBD's stock market analysis.