Dow Jones futures fell sharply but pared losses early Friday, along with S&P 500 futures and Nasdaq futures, amid major Israeli attacks vs. Iran's nuclear facilities. Crude oil surged. President Donald Trump urged Iran to make a nuclear deal.
Adobe reported Thursday night.
The stock market rally had a relatively quiet Thursday. Oracle gapped out of a base and buoyed software: Credo Technology and Palo Alto Networks are in buy areas. But Shopify fell back below a buy point.
Israel Attacks Iran Nuclear Sites
Israel launched a series of airstrikes vs. Iran overnight, targeting key nuclear facilities and military targets. Prime Minister Benjamin Netanyahu, in a televised address, said Operation Rising Lion "will continue for as many days as it takes to remove this threat."
Top Iranian military officials and nuclear scientists were likely killed in the initial attack, according to multiple reports.
Iran launched over 100 drones at Israeli, with Israel saying it shot most of those down. The limited response may reflect Iranian disorganization after Israel's massive attacks.
Expectations of an Israeli attack on Iran had grown in recent days. Earlier Thursday, President Trump publicly opposed an Israeli attack, saying a nuclear deal was still possible.
Early Friday, Trump on Truth Social urged Iran to make a deal "before there is nothing left." He did not criticize Israel.
Secretary of State Marco Rubio stressed that the U.S. was not involved.
Dow Jones Futures Today
Dow Jones futures fell 1% vs. fair value on Israel's attack and fears of a wider Mideast conflict. S&P 500 futures lost 0.9% and Nasdaq 100 futures declined 1.2%. Futures are well off overnight lows.
Crude oil futures jumped 8% to above $73 a barrel, significantly below overnight peaks.
The 10-year Treasury yield edged down to 4.35%.
Gold rallied but bitcoin fell.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
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Adobe Earnings
Adobe earnings and revenue slightly beat fiscal Q2 views. The digital media and marketing software maker guided up on some metrics. ADBE stock fell modestly early Friday. Adobe has been trading tightly for a few weeks after a strong bounce, but remains well below its 200-day.
Stock Market Rally
The stock market rally saw slim gains on the major indexes. Oracle and a tame PPI inflation report helped offset Trump's unilateral tariff plan and the Air India Boeing 787 Dreamliner crash.
The Dow Jones Industrial Average rose 0.2% in Thursday's stock market trading. The S&P 500 index climbed 0.4%. The Nasdaq composite advanced 0.2%. The small-cap Russell 2000 fell 0.4%.
The S&P 500 and Nasdaq are close to all-time highs.
Leading stocks have been acting fine. The Innovator IBD 50 ETF, up a fraction Thursday, has been closing tightly since June 2 amid some intraday swings. It's been a recipe for stocks trading above and below buy points, including Palo Alto and Shopify.
The 10-year Treasury yield fell six basis points to 4.36%, the lowest close in a month.
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Stocks Near Buy Points
Oracle stock gapped up 13.3% to 199.87, clearing a 198.31 buy point as the software giant beat views and gave bullish guidance. Investors might want to see if ORCL stock pauses, forging a high handle.
Credo Tech stock rose 3.8% to 74.34, breaking the downtrend of a handle. The traditional buy point is 80.99, forged after CRDO stock gapped up June 3 following earnings.
Palo Alto stock gained 1.7% to 197.67, once again back above a 195.42 cup-with-handle buy point. The cybersecurity giant has traded above or below the entry several times this month.
On the downside, Shopify stock fell 4.3% to 109.21, back below a 112.38 cup-with-handle buy point, according to MarketSurge. SHOP stock broke out on Wednesday, though it did close off highs. Shopify stock is on the IBD 50.
All of these stocks were down early Friday, along with the market.
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What To Do Now
The stock market rally has been making incremental moves with the S&P 500 and Nasdaq near record highs. Growth plays have been up and down in a tight range, fueling and undercutting breakouts.
While some stocks, such as Palo Alto and Quanta Services, have rebounded after breakouts faltered, there are some, like BrightSpring Health Services, that keep sliding.
The past few days haven't been a time to be super aggressive. If you are adding exposure, look for early entries and buy as close as possible to the specific trigger. You might consider smaller initial position sizes. Definitely have your exit strategies ready.
Dow futures suggests at least an initial sell-off as Israel attacks Iran, so it pays to be more cautious in the very short term.
But the broader trend is still bullish. Keep looking for new setups. Review your holdings, perhaps exiting some laggards.
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