The Dow Jones Industrial Average fell 350 points Thursday amid jobless claims numbers and other key economic data from the Labor Department. The central job report of the Department of Labor will be published on deck on Friday morning.
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Initial jobless claims held steady at 217,000, below estimates that called for a rise to 222,000. Meanwhile, the US Services Purchasing Managers’ Index (PMI) came in at 47.8, ahead of estimates for a reading of 46.6. Finally, the ISM services index, which measures non-manufacturing service activity, fell to 54.4, below estimates of 55.4.
Friday’s Labor Department jobs report is expected to show that the US economy added 210,000 jobs in October, compared to September’s 263,000 jobs.
The key profit moves on Thursday were Albemarle (ALB), APA (APA), IBD Leaderboard Stock Chen energy (LNG), CF industries (CF) and ConocoPhillips (POLICE OFFICER). Others included in motion Etsy (ETSY), Fortinet (FTNT), Qualcomm (QCOM), Regeneron Pharma (REGN), roku (ROKU) and World Wrestling Entertainment (WWE).
Albemarle shares are down 5% in early morning trade, while APA shares are down around 2%. Cheniere fell 4%, while CF Industries fell 3%. Conoco rose 3%, while Etsy shares surged 6% and Fortinet plunged 19%. Qualcomm is down 7% in early trade and REGN stock is down 3%. ROKU stock plummeted nearly 16% while WWE stock fell slightly.
Giant of electric vehicles Tesla (TSLA) traded down 1% on Thursday morning while Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) were also significantly lower after the market open today.
Top stocks to buy and watch include Dycom (DY), IBD SwingTrader stock Dollar General (DG) and Pure storage (PSTG) – as well as Dow Jones shares rafters (CVX) and UnitedHealth (UNH). Keep in mind that the currently difficult stock market rally is a reason for investors to become more defensive.
Dollar General is an IBD SwingTrader stock. Pure Storage was featured in this week’s Stocks Near A Buy Zone column, along with three other top stock ideas. Pure Storage was also an IBD stock of the day on Friday.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday’s opening bell, the Dow Jones Industrial Average was down 1.1%, while S&P 500 futures were down 1.3%. The tech-heavy Nasdaq Composite was sold down 1.4% in morning action.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 1.2% and SPDR S&P 500 ETF (SPY) traded 1%.
The 10-year government bond yield rose to 4.19% on Thursday morning. Meanwhile, US oil prices fell more than 1% in what would result in a two-day winning streak. West Texas Intermediate futures are riding support at their 50-day moving average and are trading above $88 a barrel.
Fight for the stock market rally
On Thursday, the stock market tumbled after Fed Chair Jerome Powell’s hawkish comments. The Dow Jones Industrial Average lost 1.55% while the S&P 500 fell 2.5%. The tech-heavy Nasdaq Composite fell 3.4%.
Wednesday’s The Big Picture warned, “As the accompanying Market Pulse shows, the actual number of sales days or bouts of salient selling remains low. But at 10,524, the Nasdaq has effectively given back all of its easy gains since the day that took place on October 21st.”
Now is an important time to read IBD’s The Big Picture column. After the recent selling, investors should focus more on defending than buying breakouts.
Five Dow Jones stocks to buy and watch
Dow Jones Stocks to Buy and Watch: Merck, UnitedHealth
Dow Jones member and IBD-50 stock Merck is outside of the buy range above the buy point of a double bottom basis of 93.12, according to pattern recognition by IBD MarketSmith. Merck shares fell on Thursday.
Healthcare giant UnitedHealth is attempting to break above a cup with a buy point of 553.23, according to IBD MarketSmith. Shares fell 0.7% on Wednesday, falling further below their last entry. UNH shares were trading a fraction lower Thursday morning.
4 Top Growth Stocks to Watchrightde Stock market rally
Top stocks to watch: Dollar General, Dycom, Pure Storage
Dollar General fell further below a buy point of 259.75 on a cup basis as DG shares lost 1.75% on Wednesday, falling for the third straight day. If the stock revisits that critical level, the 5% pursuit zone will rise to 272.74. DG shares fell 0.8% early Thursday.
Dycom is attempting to clear the buy point from a 120.55 cup base. Shares fell 3.3% on Wednesday, falling below the buy point again. If the stock regains entry, the 5% buy zone will rise to 126.58. Dycom shares fell 1.2% on Thursday,
Friday’s IBD stock Pure Storage broke above a buy point of 31.62 on Tuesday but abandoned that entry during Wednesday’s 2.4% decline. The stock lost 1.5% on Thursday.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla stock slipped 5.6% on Wednesday, giving up most of its recent gains and returning to its recent lows. Shares are about 48% below their 52-week high and well below their 50- and 200-day moving averages.
Shares of the electric vehicle giant fell 1% on Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 3.7% on Wednesday, falling sharply for the third straight day. Now the shares are back below their 50-day moving average. Apple shares were down 1.7% on Thursday.
Microsoft fell 3.5% on Wednesday, closing just below its 52-week low. The software giant is down about 37% from its 52-week high. Microsoft shares lost 0.3% on Thursday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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