Dow Jones futures fell 375 points Thursday morning after early releases of initial jobless claims, housing data and the Philadelphia Fed manufacturing index. Nvidia earnings missed estimates as NVDA shares fell about 2%.
Initial jobless claims from the Labor Department fell to 222,000 versus 225,000 in the previous week, meeting estimates. Housing starts and provisional building permit numbers for October were above estimates, but still lower than in September. Meanwhile, the Philadelphia Fed’s manufacturing index fell sharply off estimates, reading -19.4, below expectations for a November reading of -7.0.
Income movers to watch for Thursday morning included alibaba (BABA), BJ’s wholesale (BJ), Cisco systems (CSCO), Helmerich & Payne (HP), from Kohl (KSS), Macy’s (M) and Nvidia.
Alibaba shares fell 2% in premarket trading, while BJ shares rose 4%. Cisco shares rose more than 4%. HP shares fell 4%. Kohl’s stock fell 4%, while Macy’s rose 6%.
Nvidia missed Wall Street’s profit target on higher-than-expected sales in its fiscal third quarter. And the stock lost more than 2% Thursday morning.
Giant of electric vehicles Tesla (TSLA) was down 1.8% on Thursday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were also markedly lower leading up to today’s stock market open.
IBD Leaderboard stock Arista Networks (A NET), General engines (GM), GlobalFoundries (GFS), Mobile (MBLY) and Philips 66 (PSX)—as well as the Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard Stock and was Monday’s IBD Stock of the Day. GlobalFoundries was near a buy zone in this week’s Equities section. General Motors was IBD’s Stock Of The Day on Nov. 10 and Mobileye was the IPO Leader last week.
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Dow Jones Today: Oil Prices, Treasury Yields
Prior to Thursday’s opening bell, Dow Jones futures fell 1.1% from fair value, while S&P 500 futures lost 1.3%. Tech-heavy Nasdaq 100 futures traded 1.5% lower during the morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1.5% early Thursday and the SPDR S&P 500 ETF (SPY) fell 1.3%.
The 10-year Treasury yield rose to 3.76%, recouping some of this week’s early losses. Meanwhile, US oil prices fell more than 2% as West Texas Intermediate futures moved to the lower end of their recent trading range. WTI futures traded below $84 a barrel.
Stock market rally
On Wednesday, the main stock indices closed with sharply mixed action. The Nasdaq composite sold 1.5%, while the S&P 500 lost 0.8%. The Dow Jones Industrials went a little lower.
Wednesday’s Big Picture noted: “A 1.5% drop from the composite index on Wednesday could sting those who went long before the market opened. Data storage heavyweight Micron technology (MU) set the bearish tone early in the session. The Boise, Idaho-based leader in DRAM and NAND-type memory products warned its key markets could shrink in 2023.”
This is an important time to read IBD’s The Big Picture column amid the continued volatility in the stock market.
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: Caterpillar
Dow Jones member Caterpillar attempts to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares fell 1.6% on Thursday.
CAT stocks have an impressive 97 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.
4 Top Growth Stocks to Watch in the Current Stock Market Rally
Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, PSX
IBD Leaderboard share of Arista Networks remains below the 132.97 buy point from a choppy base amid Wednesday’s 1.5% loss. ANET shares were up 0.3% on Thursday.
Automaker General Motors fell sharply below its handle cup’s 40.20 buy point during Wednesday’s 4.4% decline. The buying area comes out at 42.21. GM shares fell early Thursday.
Chip foundry GlobalFoundries is back below a buy point of 66.06 in a cup base. GFS shares lost a fraction Thursday morning.
IPO leader Mobileye faltered on Wednesday, falling 3.7% to finish squarely below the 29.96 buy point of an IPO base. according to IBD MarketSmith pattern recognition. The 5% chase zone ends at 31.46. MBLY shares were slightly lower early Thursday.
Monday’s IBD 50 Stocks To Watch pick, Phillips 66, is trying to break out past the 110.08 buy point of a cup-with-handle base, but the breakout ran into trouble on Wednesday with a 3.1% loss. PSX stock fell 0.5% in premarket trading.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares sold 3.9% on Wednesday, returning much of the recent gains. The stock is still above its 52-week low from last week at 177.12. Tesla shares are more than 50% off their 52-week high and sharply below their 50- and 200-day moving averages.
Shares of the EV giant traded 0.6% lower on Thursday morning.
Dow Jones leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares lost 0.8% on Wednesday and clung to support around their 50-day line. The stock was down 0.8% on Thursday.
Microsoft fell lower on Wednesday, still holding above the recently regained 50-day line. The software giant remains about 30% from its 52-week high. Microsoft shares fell 0.5% Thursday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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