The Dow Jones Industrial Average briefly fell 300 points on Thursday morning after the early releases of initial jobless claims, housing data and the Philadelphia Fed manufacturing index. Nvidia’s earnings missed estimates as NVDA shares fell about 2%.
The Labor Department’s initial jobless claims fell to 222,000 from 225,000 in the previous week, meeting forecasts. Data on new housing starts and preliminary building permits for October came in above estimates, but still slowed compared to September. Meanwhile, the Philadelphia Federal Reserve’s manufacturing index sharply missed forecasts, coming in at -19.4, below expectations for -7.0 for November.
Alibaba shares fell 2.8% in morning trading, while BJ’s shares fell 8%. Cisco shares grew by more than 4%. HP shares fell 3%. Kohl’s shares fell 3%, while Macy’s jumped 7%.
Nvidia missed Wall Street’s gains target for higher-than-expected sales in the fiscal third quarter. And shares lost more than 2% Thursday morning.
Electric vehicle giant Tesla (TSLA) traded down 1.1% Thursday morning. Dow Jones Technology Leaders An apple (AAPL) and Microsoft (MSFT) were also significantly lower thereafter today’s stock market open.
IBD ranking availability Arista Networks (NETWORK), General Motors (GM), GlobalFoundries (GFS), Mobileye (MBLY) and Phillips 66 (PSX)—as well as the Dow Jones name Caterpillar (CAT) — are among the best stocks to buy and watch.
Arista Networks is IBD ranking stock and was IBD on Monday Stock of the day. GlobalFoundries was included in this week’s “Stocks Near Buy Zone” column. General Motors was on IBD Stock of the day on November 10, and Mobileye was unveiled last week IPO leader.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s open, the Dow Jones Industrial Average fell 0.7 percent, while the S&P 500 lost 1.1 percent. The tech Nasdaq composite sold off 1.25% in morning trade.
The yield on the 10-year Treasury note jumped to 3.78%, clawing back some of this week’s early losses. Meanwhile, U.S. oil prices fell nearly 2 percent as West Texas Intermediate futures moved toward the lower end of their recent trading range. WTI futures traded below $84 a barrel.
Stock market rallies
On Wednesday, the major stock indexes ended with sharply divergent action. The Nasdaq Composite index sold off 1.5%, while the S&P 500 lost 0.8%. The Dow Jones industrial average fell.
Wednesday’s big picture comments“A 1.5% drop in the composite on Wednesday could sting those who went long just before the market opened.” Heavy duty data storage Micron technology (MU) set a bearish tone at the start of the session. The Boise, Idaho-based leader in DRAM and NAND memory products warned that its key markets will shrink in 2023.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Dow Jones stocks to buy and watch: Caterpillar
Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, PSX
Automaker General Motors fell sharply below its 40.20 cup-with-handle buy point during Wednesday’s 4.4% decline. The buy zone tops out at 42.21. GM shares were down 1.5% early Thursday.
Chip foundry GlobalFoundries returned below a 66.06 buy point in the cup base. Shares of GFS lost 4% Thursday morning.
IPO leader Mobileye faltered on Wednesday, falling 3.7% to end just below the IPO base of 29.96 buy points, According to IBD MarketSmith pattern recognition. The 5% chase zone tops out at 31.46. Shares of MBLY were down 1.1% early Thursday.
IBD’s Picks 50 Stocks to Watch on MondayPhillips 66, trying to drill over the base of a cup with a 110.08 handle point of purchase, but the breakout struggled with a 3.1% loss on Wednesday. PSX shares fell 1.1% in morning trading.
Tesla shares sold off 3.9% on Wednesday, giving back much of recent gains. Shares are still holding above last week’s 52-week low of 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 were trading down more than 1% on Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones Stocks, Apple shares lost 0.8% on Wednesday, clinging to support around its 50-day line. Shares traded down 0.9% on Thursday.
Microsoft edged lower on Wednesday, still hovering above its recently recovered 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares fell 1.5% Thursday morning.
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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