The Dow Jones Industrial Average rose on Thursday after a surprise drop in early jobless claims from the Labor Department, as the 10-year Treasury yield appeared to close above 4% for the first time since November. Leader of the Dow Jones Selling power (CRM) jumped 15% on strong results. And You’re here (TSLA) briefly plunged more than 8% after the company’s disappointing investor day postponed the unveiling of a next-generation vehicle to a “later date.”
Initial weekly jobless claims fell to 190,000 from 192,000 the previous week. They were to reach 200,000, according to Econoday estimates.
On the earnings side, best buy (ABY), Celsius (CELH), DoubleVerify (DV), Macy’s (M), Okta (OKTA), Snowflake (SNOW), Splunk (SPLK) and Veeva Systems (VEEV) were on the move.
Shares of Best Buy fell nearly 2%, while Celsius sold 3% in morning trading. Shares of DoubleVerify jumped 5%. Macy’s shares rose 6% and Okta 11%.
Snowflake fell 9% after its earnings report included a revenue outlook well below expectations. Finally, Splunk fell 7%, while Veeva Systems jumped 7.7%.
stock market today
Focused on cryptocurrency Silvergate Capital (SI) crashed 43% on Thursday morning after disclosing more losses and further delaying its annual report. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded lower after the stock market opened.
IBD Ranking Watchlist Stock Palo Alto Networks (PANW), Deere (OF), Toll Brothers (To land wing stop (WING) – as well as Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase (JPM) – are among the top stocks to watch, amid recent stock market weakness.
Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent Stock Of The Day IBD pick. And American Express was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Price, Treasury Yields
After the market opened on Thursday, the Dow Jones Industrial Average traded up 0.3%, boosted almost solely by Salesforce.com’s 15% advance. The S&P 500 fell 0.2% and the tech-heavy Nasdaq composite lost 0.4%. The yield on 10-year Treasury bonds held above 4% in morning action after briefly rising above that level on Wednesday.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9% and the SPDR S&P 500 ETF (SPY) fell 0.6% early Thursday.
On Wednesday, the 10-year US Treasury yield stood at 3.99%, closing at its highest level since Nov. 9. Early Thursday, the 10-year yield jumped to 4.07%.
US oil prices edged higher after gaining four of the past five sessions. West Texas Intermediate futures rose 0.5%, up nearly 2% on the week and traded above $78 a barrel.
Stock market rally struggles
On Wednesday, the Dow Jones Industrial Average rose slightly, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite fell 0.7%, falling for the second day in a row.
Wednesday’s Big Picture column commented: “As you can see from the attached Market Pulse chart, more CAN SLIM quality stocks rose in high rotation than those that fell significantly in the above trading. the average. Credit it to the strength of small companies in terms of market capitalization.”
Now is an important time to read IBD’s The Big Picture column amid the struggling stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: American Express, Cisco, JPMorgan
Featured in this week’s Stocks Near A Buy Zone column, American Express is building a giant mug base with handle that shows a buy point of 182.25. Shares are only 3% below their buy point, as they rose 1.1% on Wednesday. On the upside, the stock’s relative strength line is reaching new highs, a particularly positive sign before a possible breakout. AXP shares were down 1.4% on Thursday morning.
Banking giant JPMorgan is in the buy range above its fixed base buy point of 138.76 despite losing 0.6% on Wednesday, according to IBD MarketSmith’s chart analysis. Stocks rebounded from their main 50-day moving average last week. JPM shares fell 0.3% early Thursday.
JPM stock is posting a solid 95 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.
Cisco Systems fell 0.2% on Wednesday, falling further below the buy point of 50.81 on a flat basis. Stocks are trying to stop their slide around their 50-day line and are around 4% below the entry. CSCO shares fell slightly on Thursday.
4 best growth stocks to buy and watch in the market Stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
Palo Alto Networks is building the right side of a base that has a buy point of 193.01 following last week’s more than 10% jump. PANW stock was trading down 0.2% on Thursday morning.
Pass: Last week, the cybersecurity giant announced strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, with an increase 26% of its revenue to $1.7 billion.
Wingstop is still barely holding above a 169.04 cup entry with handle after recent losses. Investors should wait for signs of renewed strength before considering buying stocks, especially as general market conditions deteriorate. WING stock fell 1% early Thursday.
Pass: The Dallas-based restaurant chain has more than 1,900 locations in the United States and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Purchase Points
Deere shares rose 0.1% on Wednesday, still closing below their 50-day line. The shares are 6% below a buy point of 448.50 in a flat basis. DE shares were down 0.2% on Thursday morning.
Pass: An industry gauge, Deere shrugged off recession and inflation fears to generate strong earnings. Last year, rising commodity prices allowed farmers to buy both new and improved machinery. In the first fiscal quarter ended Jan. 29, the tractor maker posted a 124% increase in earnings per share on a 32.2% increase in total revenue, both beating estimates. Earnings growth accelerated for a second straight quarter.
Homebuilder Toll Brothers builds a mug base with handle that boasts a buy point of 63.29. On the upside, the stock is showing a relative strength line to new highs in market action this week. The TOL stock is posting a strong composite rating of 95 IBD. Shares of Toll Brothers fell 1.1% early Thursday.
Pass: Last week, luxury homemaker Toll Brothers beat profit and revenue forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month decline in US existing home prices showed signs of slowing in January.
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Stocks to buy and watch in the stock market rally
These are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Point of purchase type|
|Toll Brothers||(TOL)||63.29||Mug with handle|
|Cisco Systems||(CSCO)||50.81||Flat bottom|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|JP Morgan||(JMP)||138.76||Flat bottom|
|wing stop||(WING)||169.04||Mug with handle|
Source: IBD data as of March 1, 2023
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Tesla stock fell 1.4% on Wednesday ahead of the company’s investor day after the market closed. Chief Executive Elon Musk has announced his “Master Plan 3”. Musk’s ambitious plan calls for a full shift to electric vehicles and $10 trillion in spending to create a “sustainable energy future.”
Despite their strong rebound since Jan. 6, stocks are still below the 200-day line. This key level appears as a potential resistance zone. Shares closed Wednesday about 46% off their 52-week high.
Tesla stock threatened to add to Wednesday’s losses, plunging more than 5% in early morning trading Thursday after the day’s investors failed to unveil a next-generation electric vehicle.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.4% on Wednesday, closing squarely below their 200-day line. The shares are around 19% off their 52-week high. Apple shares fell 0.5% on Thursday.
Microsoft shares remain below their 200-day line after Wednesday’s 1.3% loss. The stock is more than 20% off its 52-week high after recent declines. MSFT stock was down 0.1% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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