The Dow Jones Industrial Average fell more than 225 points Thursday morning after the first jobless claims from the Labor Department. In the meantime, Netflix (NFLX) earnings are due after market close, ushering in fourth-quarter tech earnings.
Initial jobless claims fell to 190k from 205k the previous week. Econoday estimates claims should rise to 215,000.
Elsewhere on the economic front, housing starts and permits — along with the Philadelphia Fed Manufacturing Index — were released. December housing starts and building permits fell to 1.382 million and 1.330 million, respectively, from expectations for 1.362 million and 1.380 million.
The Philly Fed Index also came in at -8.9 in January, better than the expected reading of -10.3 and higher compared to a reading of -13.8 in December.
Alcoa (AA) and Discover financial services (DFS) reported late Wednesday while closure (Fast and Procter & Gamble (PG) results were released ahead of Thursday’s opening.
Alcoa shares are down more than 3%, while Discover shares have sold off more than 6%. Fastenal rose 1% after beating estimates for sales and earnings. And P&G stock fell nearly 2% after earnings matched estimates and beat sales targets.
stock market today
Karl Schwab (SCHW) fell nearly 5% after a rare double downgrade at Bank of America. Roblox (RBLX) slipped more than 7% after Morgan Stanley downgraded the stock from equal weight to underweight.
Market leader in electric vehicles Tesla (TSLA) fell nearly 1% on Thursday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both significantly lower after the market open today.
IBD Leaderboard Stock fluorine (FLR), current IBD stock of the day Medpace (MEDP), monster drink (MNST) and Apex Pharma (VRTX) – as well as Dow Jones names amgen (AMGN), rafters (CVX) and Walmart (WMT) – are among the top stocks to buy and watch as the market tests the strength of a new rally.
Fluor and Medpace are IBD Leaderboard stocks.
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Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.7% and the S&P 500 lost 0.75%. And the tech-heavy Nasdaq Composite fell 1% NVIDIA (NVDA) leads the declines.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1% and SPDR S&P 500 ETF (SPY) traded 0.7% lower early Thursday.
The 10-year Treasury yield rose to 3.39% on Thursday morning, recovering a small part of Wednesday’s plunge to 3.37%.
Oil prices rallied on Thursday, taking West Texas Intermediate futures back above $80 a barrel. On Wednesday, WTI futures ended an eight-day runup and turned back after hitting their highest levels since early December.
stock market rally
On Wednesday, the Dow Jones Industrial Average was down 1.8% and the S&P 500 was down 1.6%. The Nasdaq Composite fell 1.2% on a seven-day winning streak.
Wednesday’s The Big Picture column warned: “On a practical level, it’s time to throttle stocks. Engagement should remain at 20% to 40%, although a lot depends on the success of breakouts. While dozens of quality stocks have made it off bases, MarketSmith’s list of recent breakouts shows fewer than 10 that are still more than 5% above buy points.
Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.
Five Dow Jones stocks to buy and watch
Dow Jones Stocks to Buy and Watch: Amgen, Chevron, Walmart
Drug giant Amgen is forming a flat base that has a buy point of 296.77, according to pattern recognition by IBD MarketSmith. First, Amgen shares need to retake their 50-day moving average, which is a key resistance level to watch. AMGN shares fell 1% early Thursday.
Energy giant Chevron slipped back below its 50-day moving average during Wednesday’s 1.8% tumble as it remains below the buy point of a flat base at 189.78. Chevron’s fourth quarter results are due on January 27th. CVX shares fell 0.4% despite the rise in oil prices.
CVX stock is showing a solid 93 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Discounter Walmart fell further below its 50-day moving average after shedding 2.5% on Wednesday. The stocks are building a cup and handle base that has a buy point of 154.74. Walmart shares rose 0.2% Thursday morning.
4 top growth stocks to buy and watch stock market rally
Top stocks to buy and watch: Fluor, Medpace
IBD leaderboard stock Fluor is trying to clear the buy point of a flat base of 36.16, but shares gave up their buy point during Tuesday’s 3.4% decline. If stocks repeat this entry, the 5% buy area will top out at 37.97. FLR shares are down 0.65% early Thursday.
Backstory: Fluor manages major infrastructure projects in the oil & gas, chemical, mining and transportation industries. This is a score turnaround game. A poor EPS rating reflects net losses in 2019 and 2020 and an expected earnings drop to 86 cents per share in 2022. But analysts expect earnings to grow 95% to $1.68 per share over the next year.
Medpace inched higher on Wednesday nearing the buy point of a consolidation at 235.82. Last week shares moved through an early entry at 220.09. The company’s results are expected on February 13th. Medpace shares fell 0.6% early Thursday.
Backstory: Medpace is a Clinical Contract Resource Organization or CRO. It supports drug manufacturers in conducting clinical studies that are required for the approval of new drugs. In the third quarter, the company issued an upbeat outlook for 2023, calling for revenue growth of 18% at the midpoint of its guidance.
Monster, Vertex Trace Flat Bases
Monster Beverage is struggling for support around its 50-day moving average amid Wednesday’s 1.4% decline. Shares are tracing a flat base with a buy point of 104.75. MNST stock fell 0.3% on Thursday.
Backstory: Monster Beverage is leading an energy drink duopoly with private competitor Red Bull. The Company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.
Monster dominates energy drinks in the U.S., claiming a 39% market share last year, according to Jefferies data, resulting in record $5.5 billion in sales for the company. Red Bull accounted for 37% of America’s energy drink market in 2021. Rising challenger Celsius (CELH), which is in an impressive period of growth, claimed 4.9% of the market.
Wednesday’s IBD stock Vertex Pharmaceuticals is nearing a buy point of 324.85 on a flat basis after bullishly regaining its 50-day moving average this week. VRTX shares fell 0.8% on Thursday.
Backstory: The company is best known for its cystic fibrosis treatments — a market Vertex estimates at 88,000 patients. Of these, there are still 20,000 patients who could receive his old-school oral treatment. But analysts are keeping an eye out for news from Vertex, including an updated three-drug regimen that could boost Vertex’s position against rivals AbbVie (ABV).
Stocks to buy and watch in the stock market rally
These are seven top stocks to buy and watch in today’s stock market, including three top Dow Jones stocks.
|Company Name||symbol||Correct purchase point||type of base|
|Walmart||(WMT)||154.74||Cup with handle|
Source: IBD data as of January 19, 2023
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla shares slipped 2.1% on Wednesday, giving up part of Tuesday’s 7.4% gain. Despite their recent rebound, stocks remain well below their 50- and 200-day moving averages. In early January, the stock hit a 52-week low at 101.81. Tesla stock closed about 66% below its 52-week high on Wednesday. Tesla earnings are due on January 25th.
Shares of the EV giant appeared to be recovering from Wednesday’s losses but fell about 1% on Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.5% on Wednesday to close at their highest level since Dec. 15. The stock remains about 24% below its 52-week high. Apple will announce its quarterly earnings on February 2nd. AAPL shares traded 0.7% lower on Thursday.
Microsoft stock slipped 1.9% on Wednesday, breaking a seven-day winning streak. The software giant is down about 25% from its 52-week high. MSFT results are due January 24th. Shares were trading 1.3% lower early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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