The Dow Jones Industrial Average fell on Thursday after key economic data — initial jobless claims and the Philadelphia Fed Manufacturing Index — were released. bed bath beyond (BBBY) or BBBY stock dipped Thursday morning.
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BBBY stock appeared to halt its runaway gains on Thursday after renewed interest in the meme stock. Shares then plummeted 28% in morning trade GameStop (GME) Chairman Ryan Cohen’s RC Ventures announced a plan to sell shares. Bed Bath & Beyond, a struggling retailer with big losses, is up as much as 560% from a July 27 low of 4.54 to Wednesday’s high of 30.00.
Key earnings moves on Thursday include BJ’s Wholesale (BJ), Canadian Solar (CSIQ), Dow Jones Stock Cisco systems (CSCO), Keysight (KEY), cabbage (KSS), Sociedad Quimica Y Minra (QM) and Synopsys (SNPS).
BJ’s wholesale business rose 9%, while Canadian Solar’s shares gained 7.5%. Cisco shares gained 6%, while Keysight shares climbed 4.5% and Kohl’s fell 9%. Synopsys beat estimates for revenue and earnings, sparking a 1% surge. And SQM shares are down 5%.
Market leader in electric vehicles Tesla (TSLA) traded up 0.3% on Thursday morning. Elsewhere, the technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) both fell after the market open today.
In the current healthy stock market environment, Dow Jones stocks are Coke (KO) and note (MRK) — as well Albemarle (ALB), Costco (COSTS), Monolithic Energy Systems (MPWR) and Ollie’s Bargain Outlet (OLLI) – are among the top stocks to buy and watch.
Albemarle and Costco were featured in this week’s “Stocks Near a Buy Zone” column. Costco shares were added to IBD Leaderboard and SwingTrader after Tuesday’s breakout move. Albemarle was recently an IBD Stock of the Day.
Dow Jones Today: Treasury Yields, Oil Prices
Early Thursday, the Dow Jones Industrial Average fell 0.3% while the S&P 500 fell 0.15%. And the tech-heavy Nasdaq Composite traded down 0.25% in morning trade.
Among exchange-traded funds, the Nasdaq 100 Tracker Invesco QQQ Trust (QQQ) is down 0.25% and the SPDR S&P 500 ETF (SPY) is down 0.2% in early trade.
The 10-year Treasury yield fell to 2.86% early Thursday after rising to 2.89% on Wednesday. 10-year government bond yields are recovering after hitting their lowest level since early April in recent weeks.
Meanwhile, US oil prices appeared to be recovering from this week’s losses, which fell to their lowest level since January. West Texas Intermediate futures were up 1%, just above $89 a barrel.
Unemployment Claims, Philly Fed Index, Home Sales
Initial jobless claims fell to 250,000, less than an estimate of a rise to 265,000 from 262,000 the previous week.
The Philadelphia Fed Manufacturing Index rallied to 6.2, significantly higher than estimates that had called for a negative 5.0. At minus 12.3 in July, this index missed expectations for its second negative reading in a row.
Existing home sales are expected to fall to 4.85 million in July from 5.12 million in June. The National Association of Realtors’ July report is scheduled for release at 10 a.m. ET
stock market rally
On Wednesday, the Nasdaq led the stock market lower, losing 1.25%. The Dow Jones Industrials and the S&P 500 followed, down 0.5% and 0.7%, respectively.
Wednesday’s The Big Picture column commented: “Mid-August should be a sleepy time for stock traders. But Wednesday gave stock market participants a lot of news to digest.
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Dow Jones Earnings: Cisco Systems
Networking giant and Dow Jones stock Cisco Systems announced its second-quarter results after the close on Wednesday. Cisco stock rose 6% after fiscal 2023 revenue guidance beat expectations, while fourth-quarter fiscal 2022 results beat Wall Street estimates.
Cisco shares closed about 27% below their 52-week high on Wednesday.
Five Dow Jones stocks to watch right now
Eyes on Dow Jones stocks: Coca-Cola, Merck
Dow Jones soda giant Coca-Cola is building a flat base with a buy point of 67.30. A handle entry at 65.14 is also in play. Stocks are recovering from their 50-day moving average and are trying to top handle entry. The stock climbed higher early Thursday.
Merck is also building a flat base, a pattern that shows a buy point at 95.82. According to IBD MarketSmith chart analysis, stocks are trying to stay above their 50-day moving average. Merck shares rose nearly 1% on Thursday.
MRK stock is showing a solid 94 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 top growth stocks to buy and watchrightde Stock market rally
Top stocks to watch: Albemarle, Costco, Monolithic, Ollie’s
Lithium producer Albemarle remains in the buying range after breaking above a buy point of 273.78 in a large cup-and-handle basis on Friday. The 5% buy zone extends to 287.47. Early last week, shares surpassed a smaller cup with a handle with a buy point of 250.25. Shares fell 1.1% on Wednesday, falling for the second straight day. The stock was slightly higher Thursday morning.
IBD leaderboard stock Costco breaks past a mug with a buy point of 552.81. The stock was up 0.6% on Wednesday, trading higher in the 5% buy zone. Shares were up 1% early Thursday.
IBD youngest of the day Monolithic Power Systems added a grip to a cup base last week, moving the correct buy point to 541.49 from 580.10. Meanwhile, shares remain above an entry of 514.80. The stock rose 1.3% on Thursday.
Ollie’s Bargain Outlet recovers from its 10-week line – a critical support level – and places the top discounter in a new shopping zone. Stocks are also carving out a grasp for a major cup base, setting the final buy point at 72.37. The current price action is about 11% away from this entry. Shares were up 0.3% Thursday morning.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla shares fell 0.8% on Wednesday, extending Tuesday’s losses. Shares of the electric vehicle giant rose 0.3% on Thursday morning.
The stock closed this week at its highest level since May 4th. Stocks are attempting a decisive move back above the resistance around their 200-day moving average, which is an important level to watch. Tesla is about 27% below its 52-week high. The 3:1 stock split is scheduled for August 24th.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.9% on Wednesday as the stock continues to form the right side of a cup basis that has a buy point of 179.71. Another interpretation could be a large double bottom going back to January. In each case, the point of purchase is identical. Be on the lookout for a potential hold that is forming and offer a lower entry.
On an optimistic note, the stock’s relative strength line is already at fresh highs, suggesting a major outperformance from the stock market. Shares fell 0.55% Thursday morning.
Microsoft fell 0.5% on Tuesday, ending just below the 200-day long-term moving average, which is a key resistance area to watch. The stock lost 0.5% 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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