Stocks jumped on tepid inflation data

The Dow Jones Industrial Average briefly rose 900 points on Thursday after the closely watched consumer price index, or CPI, a gauge of inflation, came in cooler than expected. The 10-year Treasury yield fell to 3.87% on Thursday after the lower-than-expected CPI reading.

Meanwhile, electric vehicle stocks Nio (NIO) and Rivian Automotive (RIVN) rose following its quarterly earnings results.


The Labor Department’s consumer price index showed prices rose 0.4 percent in October, missing forecasts that had expected a 0.7 percent rise from the previous month. Consumer inflation rose 7.7% year-on-year, less than the forecast increase of 8.0%.

Meanwhile, first-time jobless claims showed that initial claims rose to 225,000 from 217,000 in the previous week.

Key drivers of Thursday’s earnings were AstraZeneca (AZN), Dutch Bros (BROTHERS), Nio, Ralph Lauren (RL), Rivian Automotive and Unity software (U).

AstraZeneca shares jumped 6%, while BROS shares rose 10% in morning trade. NIO shares were racing 11% higher. Shares of Ralph Lauren rose 4%, as Rivian shares soared 17%. Unity shares rose more than 16%.

Electric vehicle giant Tesla (TSLA) was trading up about 5% on Thursday morning. Dow Jones Technology Leaders An apple (AAPL) and Microsoft (MSFT) were sharply higher after today’s stock market open.

Among the best stocks to buy and watch, Albemarle (ALB), IBD ranking watch list stock Arista Networks (NETWORK), CF Industries (CF) and GlobalFoundries (GFS) — as well as Dow Jones names Merck (MRK) and UnitedHealth Group (UNH) — are among the best stocks to buy and watch.

Arista Networks is IBD ranking watch list stock. Albemarle was presented in this week’s column Stocks Near a Buy Zone, along with three other top stock ideas. GlobalFoundries was a recent one IBD Stock of the Day.

IBD’s latest MarketDiem newsletter brings you actionable stock, options and crypto insights straight to your inbox.

Dow Jones today: Oil prices

After Thursday’s open, the Dow Jones Industrial Average rose 2.5%, while the S&P 500 rose 3.9%. The tech-heavy Nasdaq Composite jumped 5.4% in morning trade.

Between exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 5.3% early Thursday, and the SPDR S&P 500 ETF (A SPY) grew by 3.9%.

Meanwhile, U.S. oil prices traded up more than 1 percent, with West Texas Intermediate futures rising above $87 a barrel and looking to end a three-day losing streak. Last week, WTI futures hit their highest point since mid-October, but have since retreated.

Stock market rally struggles

On Wednesday, the Dow Jones Industrial Average fell 1.95%, while the S&P 500 lost 2.1%. The technology Nasdaq composite was down 2.5%.

Wednesday’s big picture comments“Volume on the Nasdaq is down. However, as the accompanying Market Pulse chart shows, many leading stocks suffered a bout of heavy institutional selling. This is not what you usually see in a healthy stock market. Higher turnover on the NYSE marked the S&P 500 by a third distribution day as Tracking day October 21.”

Now is an important time to read IBD’s The Big Picture column. After a recent selloff, investors should be more focused on playing defensively than buying breakouts.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Merck, UnitedHealth

Member of Dow Jones and IBD 50 Stocks Merck remains out of scope for purchase after a double bottom base 93.12 point of purchase, According to IBD MarketSmith pattern recognition. Shares of Merck rose 0.8% on Thursday.

Healthcare giant UnitedHealth is trying to reclaim a cup with a 553.23 handle point of purchase. Shares lost 2.2% on Wednesday, ending about 2% below their last entry. Shares of UNH added 1.4% Thursday morning.

4 Highest Growth Stocks to Watch in the Courserstock market rally

Top stocks to buy and watch: Albemarle, Arista, CF, GlobalFoundries

Lithium producer Albemarle is trying to break above a buy point of 308.34 on a cup basis. The stock was down 1.9% on Wednesday, giving up some of Tuesday’s jump and falling further below its latest buy point. ALB shares were up 3% early Thursday.

IBD ranking Arista Networks shares on the watch list are just below a volatile base of 132.97 point of purchase after three days of losses. ANET shares were trading 4.7% higher Thursday morning.

CF Industries held above its 50-day line despite Wednesday’s 3.7% decline. The stock is building a bowl base that has a 119.70 buy point, According to IBD MarketSmith pattern recognition. Shares of CF rose more than 1% on Thursday.

IBD Stocks of the Day Tuesday, GlobalFoundries is trading about 8% off a 66.06 buy point in a cup base after this week’s rally. The stock may also form a handle after the recent spike in price. Shares of GFS traded up 2% on Thursday.

Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares fell another 7.2% on Wednesday, extending its losing streak to four sessions. The stock hit a new 52-week low and hit its lowest level since November 2020. The stock is more than 55% off its 52-week high and sharply below its 50- and 200-day moving averages.

Shares of the EV giant rose about 5% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Between Dow Jones Stocks, Apple shares sold off 3.3% on Wednesday, snapping a two-day winning streak and returning to recent lows. Shares traded up 5.1% on Thursday.

Microsoft fell 1.9% on Wednesday, ending a three-day winning streak. The software giant remains about 35% off its 52-week high. Microsoft shares rose 4.9% 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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