The Dow Jones Industrial Average rose Thursday after a surprise drop in the Labor Department’s initial jobless claims report, as the 10-year Treasury yield looked set to close above 4% for the first time since November. Dow Jones leader Salesforce (CRM) increased by 15% on strong earnings results. And Tesla ( TSLA ) shares briefly plunged more than 8% after the company’s disappointing investor day postponed the unveiling of a next-generation car to a “later date.”
Initial weekly jobless claims fell to 190,000 from 192,000 last week. They were expected to rise to 200,000, according to Econoday estimates.
On the earnings front, Best buy (BBY), Celsius (CELH), DoubleVerify (DV), Macy’s (M), Octa (OKTA), Snowflake (SNOW), Splunk (SPLK) and Veeva Systems (VEEV) was on the move.
Best Buy shares fell nearly 2%, while Celsius sold 3% in morning trading. DoubleVerify shares rose 5%. Macy’s shares rose 6% and Okta rose 11%.
Snowflake fell 9% after the earnings report included a revenue outlook well below expectations. Finally, Splunk retreated 7%, while Veeva Systems jumped 7.7%.
The stock market today
Cryptocurrency-focused Silvergate capital ( SI ) crashed 43% Thursday morning after revealing more losses and further delaying its annual report. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) traded lower after the stock market opened.
IBD Leaderboard watchlist stock Palo Alto Networks (PANW), Deere (THE), Toll Brothers (To land Wing stop (WING) — as well as Dow Jones stocks American Express (AXP), Cisco Systems (CSCO) and JPMorgan Chase (JPM) — is among the best stocks to watch amid recent stock market weakness.
Palo Alto is an IBD Leaderboard Watchlist. Deere was a recent IBD Stock Of The Day pick. And American Express was 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 traded up 0.3%, boosted almost exclusively by Salesforce.com’s 15% gain. The S&P 500 fell 0.2% and the tech-heavy Nasdaq composite lost 0.4%. The 10-year Treasury yield held above 4% in morning action after briefly topping that level on Wednesday.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 0.9% and the SPDR S&P 500 ETF ( SPY ) gave up 0.6% early Thursday.
On Wednesday, the 10-year US Treasury yield settled at 3.99%, closing at its highest level since November 9. Early Thursday, the 10-year yield jumped to 4.07%.
US oil prices rallied after rising in four of five recent sessions. West Texas Intermediate futures rose 0.5%, up nearly 2% on the week and trading back above $78 a barrel.
Stock market rally is struggling
On Wednesday, the Dow Jones Industrial Average rose, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite fell 0.7%, falling for a second day in a row.
Wednesday’s Big Picture column commented: “As you can see in the accompanying Market Pulse chart, more CAN SLIM quality stocks rose in heavy trading than fell significantly in above-average trading. Credit that strength in the smaller companies in terms of market capitalization. “
Now is an important time to read IBD’s The Big Picture column amid the now 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 cup-with-handle base showing a buy point at 182.25. Shares are just 3% below the buy point, having risen 1.1% on Wednesday. Bullishly, the stock’s relative strength line is at new highs, a particularly positive sign ahead of a potential breakout. The AXP share fell 1.4 percent on Thursday morning.
Banking giant JPMorgan is in buy territory above its flat-base 138.76 buy point despite a 0.6% loss on Wednesday, according to IBD MarketSmith chart analysis. Shares are pulling back from their key 50-day moving average last week. JPM shares fell 0.3% early Thursday.
JPM stock scores a solid 95 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.
Cisco Systems fell 0.2% on Wednesday, falling further below a flat-base 50.81 buy point. Shares are trying to stop sliding around their 50-day line and are about 4% below their entry. CSCO shares were down on Thursday.
4 top growth stocks to buy and watch Stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
IBD Leaderboard Watchlist stock Palo Alto Networks is building the right side of a base that has a 193.01 buy point on the heels of last week’s jump of more than 10%. The PANW share fell 0.2 percent on Thursday morning.
Background story: Last week, the cybersecurity giant announced strong results for the quarter ended in January, with earnings hitting $1.05 a share, up 81% from a year earlier, on a 26% jump in revenue to $1.7 billion.
Wingstop is still barely holding above a 169.04 cup-with-handle entry after recent losses. Investors should wait for signs of renewed strength before considering a stock purchase, especially amid deteriorating general market conditions. WING shares fell 1% 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.
Deere, Toll Eye Last purchase point
Deere shares rose 0.1% on Wednesday, still closing below the 50-day mark. Shares are 6% below a 448.50 buy point in a flat base. The DE share fell 0.2 percent 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.
Homebuilder Toll Brothers is building a cup-with-handle base that shows a buy point of 63.29. Bullishly, the stock boasts a relative strength line at new highs during this week’s market action. The TOL share shows a solid 95 IBD Composite Rating. Toll Brothers shares fell 1.1 percent early Thursday.
Background story: Last week, luxury homebuilder Toll Brothers topped revenue and earnings forecasts, while maintaining its full-year guidance. The homebuilder’s economic report comes as a 12-month decline in US existing home prices showed signs of easing in January.
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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|
|Toll Brothers||(TOLLS)||63.29||Cup with handle|
|Cisco Systems||(CSCO)||50,81||Flat base|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|Wing stop||(WING)||169.04||Cup with handle|
Source: IBD data as of March 1, 2023
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Tesla shares fell 1.4% on Wednesday ahead of the company’s investor day after the market closed. CEO Elon Musk announced his “Master Plan 3.” Musk’s ambitious plan calls for a total transition to electric cars and $10 trillion in spending to create a “sustainable energy future.”
Despite their strong rally since January 6, shares are still below the 200-day mark. That key level looms as a potential resistance area. Shares closed Wednesday about 46% off their 52-week high.
Tesla shares threatened to extend Wednesday’s losses, plunging more than 5% in early morning trading Thursday after its investor day failed to reveal a next-generation electric car.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 1.4% on Wednesday, closing just below the 200-day mark. Shares are around 19% lower than their 52-week high. The Apple share lost 0.5 percent on Thursday.
Microsoft shares remain below their 200-day mark after Wednesday’s 1.3% loss. The stock is more than 20% off its 52-week high after the latest decline. MSFT shares were down 0.1% early Thursday.
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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