The Dow Jones Industrial Average rallied on Thursday after jobless claims and retail sales came in slightly below expectations. Goldman Sachs and Apple chipmaker Taiwan Semi both reported gains ahead of the open. And Twitter stock soared more than 5% before slicing gains after Tesla CEO Elon Musk offered to buy the company.
Dow Jones stock Goldman Sachs (GS) reported results Thursday morning. financial competitors Citigroup (c), MorganStanley (MS) and Wells Fargo (WFC) also reported early Thursday. Finally Apple chip maker Taiwan semiconductor manufacturing (TSM) topped estimates, sparking a 2.7% gain in early trade.
Among Dow Jones executives Apple (AAPL) remained unchanged while Microsoft (MSFT) was trading down 0.1% on today’s exchange.
Twitter (TWTR) pared gains to about 2% after Tesla CEO Elon Musk offered to buy Twitter for $54.20 per share in cash, calling the offer his “best and final offer.” Giant of electric vehicles Tesla (TSLA) slipped nearly 2% on Thursday, threatening to end a two-day winning streak.
As the stock market uptrend struggles, Dow Jones is the financial leader American Express (AXP) – along with IBD Leaderboard watchlist holdings Edward’s Biological Sciences (EW), Murphy Oil (MUR), Raytheon technologies (RTX) and sleeve (SHEL) – are among the top stocks to buy and watch on Thursday.
Microsoft and Tesla are IBD Leaderboard stocks. Edwards Lifesciences and Raytheon Technologies were featured in this week’s ‘Stocks Near a Buy Zone’ column.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday’s open, the Dow Jones Industrial Average was up 0.6% while the S&P 500 pared early gains. The Nasdaq lost 0.5% in morning trade. The stock exchange is closed on Good Friday.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded a fraction lower. And the SPDR S&P 500 ETF (SPY) was up 0.1% after Thursday’s open.
The US 10-year Treasury yield fell to 2.68% on Wednesday after briefly hitting its highest level since December 2018 on Tuesday. The 10-year government bond yield was essentially unchanged on Thursday morning. Meanwhile, U.S. oil prices fell about 1% on Thursday morning, with West Texas Intermediate crude trading just above $102 a barrel.
Initial jobless claims for the week of April 9 rose to 185k, slightly higher than the forecast of 175k. Meanwhile, retail sales missed Econoday estimates, rising 0.5% in March versus 0.6% estimate.
Stock market rally continues struggle
On Wednesday, the stock market posted solid performance, with major stock indices ending with strong gains. Still, the Nasdaq remains below its 50-day moving average. This moving average was a key support level but has now turned into a potential resistance area.
Wednesday’s The Big Picture column commented: “While the rally was encouraging as Wall Street prepares for the Good Friday recess, the fact is that volume has fallen on Nasdaq and early data showed it on the New York Stock Exchange as well lower. This is disappointing because big gains should come with good volume.”
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Dow Jones Earnings: Goldman Sachs
The Dow Jones investment bank Goldman Sachs published better than expected quarterly results on Thursday morning. GS shares are up around 3% in morning trade. The stock closed more than 20% below its 52-week high on Wednesday.
On Wednesday, JP Morgan (JPM) slipped more than 3% after missing earnings estimates. JPMorgan shares were slightly higher early Thursday.
Four Dow Jones stocks you should be watching right now
Dow Jones stocks to buy and look at: American Express
Dow Jones financials American Express is following a cup and handle basis and shows a buy point of 194.45. AXP shares rose 0.4% on Thursday morning.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is nearing its old highs, but still has some way to go before a potential breakout. The RS line measures a stock’s price action against the S&P 500. The RS line should make a new high on or shortly after the breakout day to confirm the strength of the stock’s breakout.
Four top growth stocks to buy and watchrightde Stock market rally
Stocks to buy and watch: Edwards, Murphy, Raytheon, Shell
IBD leaderboard watchlist Edwards Lifesciences continues to rise to the right of a cup base showing a buy point of 131.83. Shares rose 0.9% on Wednesday. Monday’s weakness was likely the start of a level that would lower the risk-optimal entry to 125.21. EW shares gained 0.2% on Thursday morning.
Murphy Oil is tracking an ascending basis with a buy point of 43.30. After gaining 1.85% on Wednesday, shares are about 3% off the last entry. MUR stock has a perfect IBD Composite Rating of 99 according to the IBD Stock Checkup. Shares were up 0.3% early Thursday.
Defense contractor Raytheon Technologies is within striking distance of the buy point of a flat base of 104.44. Shares rose 0.75% on Wednesday and closed just before the last entry. RTX shares were up 0.5% on Thursday morning.
Oil & gas producer Shell, IBD stock of the day April 1 is in the buy range above the 56.23 buy point on a flat basis after rising 1.9% on Wednesday. The 5% buy range goes until 04/59. SHEL shares are higher on Thursday morning.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla shares fell about 2% on Thursday after rising 3.6% on Wednesday. Shares of the EV giant closed about 11% below the cup handle buy point of 1,152.97 on Wednesday.
The stock traded as low as 1,243.49 on Nov. 4 and closed about 18% off that all-time high on Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.6% on Wednesday, still well below a buy point of 176.75 on a double bottom basis. The stock is close to triggering the 7% to 8% loss-limiting sell rule. Along with this double bottom entry, there is also a handle buy point in play at 179.71. On the plus side, AAPL stock reclaimed its 50-day support level on Wednesday, boosting the stock’s immediate outlook. The stock was flat Thursday morning.
Software leader Microsoft gained 2% on Wednesday and slipped for three days. Stocks remain below their 50- and 200-day moving averages. The stock is down almost 20% from its 52-week high. MSFT shares lost 0.1% 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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