The Dow Jones Industrial Average chased the tech-heavy Nasdaq composite higher Thursday morning after weekly initial jobless claims and fourth-quarter GDP data came out before the open. Chip stocks rose as Nvidia (NVDA) rose 13% on strong fourth-quarter results and a better outlook. And electric car manufacturer Lucid group (LCID) plunged 17% on weaker-than-expected sales results.
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The Labor Department’s initial jobless claims posted a surprise drop to 192,000 from 194,000 last week. They were expected to rise to 200,000. Meanwhile, the Commerce Department’s second estimate for fourth-quarter GDP fell to 2.7% growth from 2.9%; it was expected to remain unchanged from the initial estimate of 2.9%.
Among other companies reporting earnings, Alibaba (BABA), Domino’s Pizza (DPZ), Dutch Bros (BROS), Etsy (ETSY), Modern (mRNA), and Planet Fitness (PLNT) was on the move.
BABA shares rose 6% in morning trading, while Domino shares fell 10% and BROS shares fell 7%. Etsy shares rose 1% despite missing earnings targets as sales topped estimates.
Moderna traded down nearly 1% after mixed results. Meanwhile, the Food and Drug Administration approved the company’s Merck (MRK)-partner cancer vaccine a ground-breaking designation.
Finally, Planet Fitness shares rose more than 4% in early action.
The stock market today
Electric vehicle leader Tesla turned lower, falling 1% Thursday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was mixed after the exchange opened.
IBD Leaderboard stock Airbnb (ABNB), Deere (THE), Inspire medical systems (INSP) and Wing stop (WING) — as well as Dow Jones stocks Cisco Systems (CSCO) and JPMorgan Chase (JPM) — is among the best stocks to watch given the recent weakness in the stock market.
Airbnb is an IBD Leaderboard stock. Inspire and Deere were recent IBD Stock Of The Day picks. Cisco Systems and Wingstop were featured in this week’s Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
After Thursday’s market open, the Dow Jones Industrial Average rose 0.4%, and the S&P 500 rose 0.6%. The tech-heavy Nasdaq Composite gained 0.5% in morning action, with Nvidia and Advanced Micro Devices (AMD) leads to early gains.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.5% and the SPDR S&P 500 ETF (SPY) rose 0.6% early Thursday.
The 10-year US Treasury yield ticked down to 3.92% on Wednesday following the release of the minutes from the Federal Reserve’s latest board meeting. Then the 10-year yield ticked up to 3.93% on Thursday morning – on track for a fifth straight weekly gain.
Oil prices appeared to be recovering from a six-day losing streak, with West Texas Intermediate futures up around 2% on Thursday morning. WTI rose close to $75 a barrel, trading close to its early February low. The Energy Information Administration’s weekly oil inventory report is due later in the session.
Stock market rally is struggling
On Wednesday, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.2%. The Nasdaq rose 0.1% to end a three-day losing streak.
Wednesday’s Big Picture column commented: “On Wednesday, market watchers awaited the minutes of the Jan. 31-Feb. 1 meeting on interest rate policy. They were keen to tease out more details about exactly how many more Federal Reserve officials think the bank should resume a pace to raise interest rates at a pace of 50 basis points (half a percentage point) rather than cutting to 25 basis points per meeting.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Cisco, JPMorgan
Banking giant JPMorgan gave up its 138.76 flat-base buy point during a 0.8% loss on Wednesday, according to IBD MarketSmith chart analysis. JPM shares were up 1% early Thursday. JPM stock scores a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Shown in this week’s Stocks Near a Buy Zone column, Cisco Systems is trying to break out past a flat base with a buy point at 50.81. But the breakout continued to fizzle on Wednesday, with shares down another 0.8%. Cisco shares rose 0.6 percent early Thursday.
4 top growth stocks to buy and watch Stock market rally
Top stocks to buy and watch: Airbnb, Inspire
New IBD Leaderboard stock Airbnb soared last week, past a 121.50 cup-with-handle buy point. After three straight losses, the stock falls back to the 5% buy area which goes up to 127.58. But investors should wait for support before considering a stock purchase. Meanwhile, the breakout gap placed an alternative entry at 135. ABNB stock was up 0.8% on Thursday morning.
Background story: The company operates an online marketplace for accommodation. Its primary offering is vacation rental homestays. While tourism was hit hard by the coronavirus pandemic, it continues to roar back after strict lockdowns.
Recent IBD Stock Of The Day Inspire Medical Systems fell for a fourth day Wednesday but continues to hold a flat base above a 262.64 buy point, according to IBD MarketSmith’s pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 86 IBD Composite Rating. INSP shares rose 1.3% early Thursday.
Background story: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves – a process called neurostimulation.
Deere, Wingstop Eye Last purchase point
Deere shares edged lower on Wednesday, finding support around the 50-day line. Shares are just 5% away from a buy point at 448.50 in a flat base. The DE share rose a fraction on Thursday morning.
Background story: Deere, an industry bellwether, has pulled away from recession and inflation fears to deliver solid profits. In the past year, higher raw material prices have given farmers the opportunity to buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% jump in earnings per share on a 32.2% total revenue increase, both topping estimates. Earnings growth accelerated for the second consecutive quarter.
Wingstop rose 7.7% on Wednesday following the company’s strong fourth-quarter results. The stock finished just past the 5% hunting zone past an entry of 169.04 which peaked at 177.49. WING shares were down 1.2% early Thursday.
Background story: The Dallas-based restaurant chain has more than 1,900 locations in the US 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.
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Shares to buy and watch in a stock market rally
These are six top stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| Inspire medical systems | (INSP) | 262.64 | Flat base |
| Visteon | (VC) | 152.20 | Cup base |
| Cisco Systems | (CSCO) | 50,81 | Flat base |
| Airbnb | (ABNB) | 135.00 | Breakaway Gap |
| JPMorgan | (JPM) | 138.76 | Flat base |
| Wing stop | (WING) | 169.04 | Cup with handle |
Source: IBD data as of February 23, 2023
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Tesla shares
Tesla shares rose 1.8% on Wednesday, recouping some of Tuesday’s 5.25% slide. Despite their sharp decline since January 6, shares remain below the 200-day mark, and that key level looms as a potential resistance area. Shares closed Wednesday about 48% off their 52-week high.
Shares appeared to extend Wednesday’s gains, but reversed to a 1% drop Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple rose 0.3% on Wednesday, finding support at its 200-day line. Shares are around 17% lower than their 52-week high. Apple shares fell 0.2 percent on Thursday.
Microsoft shares extended a losing streak to five sessions, falling 0.5% on Wednesday. Shares fell further below the 200-day mark and about 20% off their 52-week high after recent losses. MSFT shares were up 1.5% on Thursday morning.
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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