Dow Jones futures extended gains Thursday morning after initial data on the Labor Department’s jobless claims topped estimates. And Tesla stock rose as Morgan Stanley reiterated an overweight rating with a lower price target.
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Weekly unemployment figures showed first claims rose to 225,000 from 216,000 the previous week, higher than Econoday estimates for a rise to 222,000. Claims have risen and fallen in recent weeks , but have generally trended lower since a high of 241,000 in mid-November.
On the profit side, the chicken egg distribution giant Cal Maine Foods (CALM) reported Wednesday after the close. The shares were down more than 4% in early morning trading. CALM stock ended Wednesday below a buy point of 62.74 after two days of losses.
Leader in electric vehicles You’re here (TSLA) rose nearly 7% on Thursday as Morgan Stanley affirmed its overweight rating on the stock, despite a price target cut. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) was trading higher ahead of today’s stock market open.
Cardinal Health (ACH), Medpace (MEDP), IBD ranking stock Neurocrine Biosciences (NBIX) and Texas Truck Stop (TXRH) – as well as Dow Jones names Amgen (AMGN), caterpillar (CAT) and Chevron (CVX) – are among the top stocks to consider for investor watchlists. Keep in mind that recent market weakness should keep investors away.
Neurocrine is an IBD stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health is featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Price, Treasury Yields
Before Thursday’s opening bell, Dow Jones futures were up 0.5% from fair value. S&P 500 futures gained 0.8%. Futures on the tech-heavy Nasdaq 100 rose 1.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) rose 0.4% early Thursday.
The 10-year Treasury yield fell to 3.88% on Thursday morning, with the yield still moving above its 50-day line after three days of gains.
Meanwhile, U.S. oil prices fell more than 1% on Thursday as West Texas Intermediate futures retreated away from resistance just above $79 a barrel, following a two-week advance. The Energy Information Administration will provide weekly oil inventory information at 11 a.m. ET.
Stock market correction
On Wednesday, the Dow Jones Industrial Average fell 1.1%, while the S&P 500 fell 1.2%. The tech-heavy Nasdaq composite was the hardest hit, falling 1.35%.
Wednesday’s The Big Picture column commented: “Perhaps more importantly, in a generally calm trading environment expected for the rest of the year, prices matter more lately. And the magnitude of the price declines continued to remain heavy. In addition, the loss of most of the gains per key stock indices since a tracking day on October 21 means that it is still very difficult to make money in the long term.”
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to chart a flat base amid a three-week losing streak. And stocks are still below their 50-day line after further losses on Wednesday. For now, the correct buy point is 296.77, but the stock must first decisively resume its 50-day run. AMGN stock is up more than 16% for the year through Wednesday. The shares traded slightly higher on Thursday.
Dow Jones member Caterpillar ended below a buy point of 239.95 in a flat basis on Wednesday, according to IBD MarketSmith pattern recognition. If the stock resumes entry, the buy zone rises to 251.95. On the upside, the stock’s relative strength line, a key technical indicator, hits new highs. CAT stock has posted a year-to-date gain of nearly 16%. Shares rose 0.2% on Thursday.
The CAT stock is posting a solid 98 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.
Energy giant Chevron is testing its 50-day line amid Wednesday’s 1.5% decline as the stock continues to trace the right side of a flat base that has a buy point of 189.78. CVX stock has led the Dow year-to-date, up more than 50%. Stocks were flat Thursday morning, despite weak oil prices.
4 growth stocks to watch in the currentrStock market rally
Top stocks to watch: Cardinal Health, Medpace, Texas Roadhouse
Cardinal Health, a recent IBD day stock, is holding near a buy point of 81.67 in a flat basis. Shares fell 0.7% on Wednesday. CAH stock was flat on Thursday.
Medpace rebounded strongly from its 50-day line last week, gaining 3.3%. But the stock gave away much of those gains in Tuesday’s 2% plunge and is trying to find support again. For now, the correct buy point lies at 235.82, but an earlier entry at 220.09 is also in play. MEDP action was unchanged on Thursday.
Texas Roadhouse is showing a new buy point at 101.85 in a flat basis, but is now consolidating below its 50-day line. The catering chief will be looking to reclaim this key benchmark in future sessions, but two consecutive days of heavy losses are not constructive. TXRH stock was trading flat Wednesday morning.
IBD Leaderboard Neurocrine stock slipped 0.2% on Wednesday, retesting support around its 50-day level. A recent bounce off this 50-day line was bullish for the stock’s outlook, but stocks are now back in this key area. NBIX stock was flat on Thursday.
Stocks to Watch
These are the top six stocks to watch in today’s stock market, including three leaders from the Dow Jones.
| Company Name | Symbol | Correct point of purchase | Basic Type |
|---|---|---|---|
| Cardinal Health | (ACH) | 81.67 | Flat bottom |
| Medpace | (MEDP) | 235.82 | Consolidation |
| Texas Truck Stop | (TXRH) | 101.85 | Flat bottom |
| caterpillar | (CAT) | 239.95 | Flat bottom |
| Chevron | (CLC) | 189.78 | Flat bottom |
| Amgen | (AMGN) | 296.77 | Flat bottom |
Source: IBD data as of December 28, 2022
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla stock ended a seven-day losing streak on Wednesday, reversing higher and rallying 3.3% after hitting a 52-week low at 108.76. Shares closed about 72% off their 52-week high.
Stocks appeared to continue their rebound Thursday morning, rising almost 7%.
Late Wednesday, Morgan Stanley analyst Adam Jonas lowered the company’s price target from 330 to 250, while maintaining an overweight rating in TSLA shares. He thinks 2023 “is shaping up to be a ‘reset’ year for the EV market”, and Tesla is in a position to extend its lead over the competition.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold 3.1% on Wednesday, falling to 125.87, their lowest level since June 2021. The stock is about 32% off its 52-week high and falling 29% since the start of the year. Shares rose 1% on Thursday morning as The Wall Street Journal reported China’s iPhone production surged after Covid-19 troubles.
Microsoft stock fell 1% on Wednesday, falling further below the 50-day line. The software giant is around 32% off its 52-week high with a year-to-date loss of more than 30%. MSFT stock rose 0.3% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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