The Dow Jones industrial average reversed lower on Thursday after the release of first-time jobless claims and more key inflation data. Meanwhile, delta airlines (DAL) reversed sharply lower after missing earnings estimates, while forecasting higher-than-expected earnings for the second quarter.
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First-time weekly jobless claims rose to 239,000, above Wall Street’s estimate for an increase to 233,000 from 228,000 in the previous week, which was the first week reflecting a baseline revision.
In addition, the Labor Department’s March Producer Price Index showed inflation among producers fell 0.5% in the month, up 2.7% year-on-year. Wall Street expected producer inflation to remain unchanged from the previous month. Basic producer prices, which exclude food and energy, fell 0.1% in the month with a year-on-year increase of 3.4%. Core prices were expected to rise 0.3% on the month.
First-quarter earnings season kicks off this week, with Delta Air Lines reporting Thursday morning. DAL shares fell 3% in early trading. The airline missed earnings estimates for the March quarter, but beat revenue targets and provided an upbeat outlook, citing record bookings for summer travel.
banking giants JPMorgan Chase (JPM), Citigroup (C), fargo wells (WFC) and PNC finances (PNC) are scheduled to report earnings on Friday, along with the health insurance giant UnitedHealth Group (UNH).
stock market today
Dow Jones drug giant Merck (MRK) rose 1.1% on Thursday after Citi upgraded the stock from neutral to buy with a price target as high as 130 from 105. first lot (FSLR) fell 1.6% after Deutsche Bank downgraded the solar leader to hold from buy.
electric vehicle giant tesla (TSLA) rose 1.3% in early trading. Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) were higher after the stock market opened today.
five down (FIVE), IBD Leaderboard Watch List Stocks floor and decoration (FND), service now (Now and Vertex Pharmaceuticals (VRTX), as well as Dow Jones stocks Boeing (LICENSED IN LETTERS), cisco systems (CSCO) and Visa (V) — are among the best stocks to buy and watch with the current uptrend of the market.
Floor & Decor and Visa were featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
After the opening bell on Thursday, the Dow Jones Industrial Average inched lower and the S&P 500 gained 0.3%. The Nasdaq technology composite rose 0.9% in morning action.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.7%, while the SPDR S&P 500 ETF (SPY) was up 0.3% early Thursday.
The 10-year US Treasury yield traded as high as 3.39% on Thursday. Last week, the 10-year yield hit its lowest level since mid-September, but it’s picking up this week.
US oil prices paused after Wednesday’s gains, dipping lower in Thursday morning trading. West Texas Intermediate futures held at $83 a barrel, up 10% since the Organization of the Petroleum Exporting Countries announced surprise output cuts in early April.
stock rally
On Wednesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 lost 0.4%. The high-tech Nasdaq Composite fell 0.85%.
Wednesday’s Big Picture column commented, “the stock market in general seemed to prefer a tactic of indecision and caution, rather than rocking the ship wildly in one direction or the other. That, of course, could change when some big banks start earnings season.” sharing first quarter results and business outlook on Friday.
Now is an important time to read IBD’s The Big Picture column with the stock market in an uptrend.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Boeing, Cisco Systems, Visa
Dow Jones leader Boeing is nearing a flat-based buy point of 221.43, according to pattern recognition from IBD MarketSmith. Shares were up 0.3% on Thursday, just 5% off last entry.
Cisco Systems fell further below the buy point of 51.84 from a flat base amid a 1% decline on Wednesday, but there is still no sign of selling. CSCO shares led the entry on March 31. Shares gained 0.2% on Thursday morning.
Visa shares tried to break above the 230.15 buy point of a mug with a handle, but closed down 0.3% on Wednesday. V’s shares rose 0.6% early Thursday.
Top 4 Growth Stocks to Watch for stock rally
Best stocks to buy and watch: Five Below, Floor & Decor, ServiceNow, Vertex
Five Below slid 1.9% on Wednesday, giving up a large chunk of Monday’s breakout gains beyond a buy point of 212.66 on a flat basis. Stocks are in the 5% buy area rising to 223.29. The stock rose 1% on Thursday morning.
background: On March 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed 2022 with superior profit and revenue. For the fourth quarter, Five Below earnings rose 23% to $3.07 per share, ending a three-quarter series of year-over-year declines.
IBD Leaderboard watch list stock Floor & Decor tried to break above the 99.47 buy point of a mug with a handle, but closed below the entry on Wednesday after the session reversal. Shares gained 0.7% early Thursday.
background: Floor & Decor operates 191 warehouse-style stores and six design studios in 36 states. Sells products for tile, wood, laminate, vinyl, and natural stone flooring. It also sells decorative accessories. Earnings are expected to fall 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD SwingTrader pick ServiceNow added a handle to the base of the cup, resulting in a buy point of 482.43. NOW shares gained 1.1% on Thursday morning.
Background: ServiceNow software tracks and manages the services provided by information technology departments. In addition, its self-service technology portal allows workers to access administrative and workflow tools.
Vertex Pharmaceuticals broke above the buy point of 325.29 of a base rate, up 0.5% on Wednesday. VRTX shares were slightly lower on Thursday morning.
Background: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease, and type 1 diabetes.
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Stocks to Buy and Watch on the Stock Market Rally
Here are the top four stocks to watch in today’s stock market, including two Dow Jones leaders.
| Company Name | Symbol | correct point of purchase | Point of Purchase Type |
|---|---|---|---|
| service now | (NOW) | 482.43 | mug with handle |
| Nike | (NKE) | 131.41 | flat base |
| Visa | (V) | 230.15 | mug with handle |
| cisco systems | (CSCO) | 51.84 | flat base |
Source: EII data as of April 11, 2023
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Tesla Stock
Tesla shares fell 3.35% on Wednesday, closing at their lowest level since March 17. Last week, stocks triggered the 7% to 8% loss rule from a buy point at 200.76 in a handled glass. They also fell sharply below their 50-day line, a support level. The stock closed Wednesday down 50% from its 52-week high.
TSLA shares rose 1.3% on Thursday morning, looking to rebound from losses on Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.4% on Wednesday, extending a losing streak to three sessions, but remain above a buy point of 157.48. AAPL shares were up 1.2% early Thursday.
Microsoft shares remain above the buy point of 276.86 on a flat basis, amid a 0.2% gain on Wednesday. The 5% buy area goes from the buy point to 290.70. MSFT shares were up 0.1% in Thursday morning action.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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