Dow Jones futures fell in mixed premarket trade Thursday, after the Labor Department’s surprise drop in initial jobless claims. Meanwhile, tech futures jumped, as chip titan Nvidia surged on strong quarterly earnings results.
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First-time unemployment claims unexpectedly dropped to 230,000 vs. 239,000 in the previous week. They were expected to rise to 241,000.
Further, durable goods orders from the Commerce Department declined more than expected, down 5.2% in August. They were anticipated to fall 4% for the month.
Early Thursday, Autodesk (ADSK), Dollar Tree (DLTR), NetApp (NTAP) and Nvidia (NVDA) — along with Snowflake (SNOW) and Splunk (SPLK) — were key earnings movers.
Autodesk shares jumped 6.6% in morning action, as Dollar Tree dropped 4% and NetApp declined more than 1.5%. Snowflake advanced 4.2% early, and Splunk leapt 13%.
Finally, Nvidia smashed Wall Street’s lofty expectations for its fiscal second quarter and guided higher than views for the current period. NVDA stock soared more than 8% in premarket trade.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded up 1.9% Thursday morning. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock rose 1.5%, while Meta shares advanced more than 2% higher in early action.
Costco Wholesale (COST), Lululemon (LULU), Oracle (ORCL) and Tidewater (TDW) — as well as Dow Jones stocks Boeing (BA), Merck (MRK) and Visa (V) — are among the best stocks to watch in the ongoing stock market correction.
Tesla and Costco are IBD Leaderboard stocks. Boeing was featured in this Stocks Near A Buy Zone column. And Oracle is a new IBD SwingTrader stock.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures fell 0.2% vs. fair value. S&P 500 futures gained 0.4%, while tech-heavy Nasdaq 100 futures jumped 1% in morning action. Splunk and Nvidia led the premarket gains among Nasdaq 100 stocks.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.2%, while the SPDR S&P 500 ETF (SPY) rose 0.6% early Thursday.
Also on Thursday, the 10-year U.S. Treasury yield ticked higher to 4.21%, after settling at 4.19% Wednesday, just off the highest level since 2007.
West Texas Intermediate oil prices looked to end a three-day skid Thursday, modestly higher in morning trade. WTI futures traded right around $79 a barrel.
Stock Market Action
On Wednesday, the Dow Jones Industrial Average climbed 0.5%, while the S&P 500 rallied 1.1%. The tech-heavy Nasdaq composite advanced 1.6%.
Wednesday’s Big Picture column commented, “…for now, the stock market, despite getting a much needed relief rebound amid a recent jump in the cost of money, has not quite yet delivered a ‘green light’ to investors that it’s time to seriously deploy capital back into equities.”
Now is an important time to read IBD’s The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Merck, Visa
Aerospace giant Boeing broke out in recent weeks, topping a 223.91 flat-base entry. Shares are testing their buy point and 50-day line, as they dropped 0.65% Wednesday. BA stock fell 2% Thursday morning after supplier Spirit AeroSystems (SPR) acknowledged a quality issue affecting some 737 models. SPR stock dived 7.5%.
Drug giant Merck decisively regained its 50-day line during Wednesday’s 3.8% advance. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares added 0.2% early Thursday.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. V stock inched higher Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Lululemon, Costco, Oracle, Tidewater
Lululemon is once again testing its key 50-day line as shares dropped 0.5% Wednesday. LULU’s RS line is at its highest level since May, according to IBD MarketSmith. LULU shares dipped 0.2% in morning trade as retailers came under pressure. The company reports second-quarter results on Aug. 31.
Costco threatens to close decisively below its 50-day support level amid the slew of weak earnings reports from retailers, including Dick’s Sporting Goods (DKS) and Macy’s (M). Meanwhile, a handle entry looms at 571.16. COST stock edged 0.3% lower early Thursday.
IBD SwingTrader stock Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader tries to maintain support around the 50-day line. ORCL stock rose 1.6% in premarket trade.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was unchanged early Thursday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks In Stock Market Action
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Oracle | (ORCL) | 127.54 | Flat base |
| Visa | (V) | 235.57 | Flat base |
| SLB | (SLB) | 58.70 | Cup with handle |
| Costco | (COST) | 571.16 | Cup with handle |
Source: IBD Data As Of Aug. 22, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rose 1.6% Wednesday, rising for a third straight session. Still, shares are well below their 50-day line. Amid the recent spate of selling, it’s clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Thursday, Tesla stock looked to add to Wednesday’s gains, rising 1.9%.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 2.2% Wednesday, extending a win streak to four sessions. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock tacked on 0.4% early Thursday.
Microsoft shares are also rebounding from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. While recent gains are bullish, the stock remains below its 21- and 50-day lines, so there isn’t a buy signal yet. And on Thursday morning, the stock added 1.4%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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