Dow Jones futures chased tech stocks higher Thursday morning after weekly first-time jobless claims and fourth-quarter GDP data came out before the open. Chip stocks rallied as Nvidia (NVDA) surged 10% on strong fourth-quarter earnings results and an improved outlook. And electric vehicle maker Lucid Group (LCID) plunged 14% on weaker-than-expected sales results.
The Labor Department’s initial unemployment claims posted a surprise drop to 192,000 vs. 194,000 in the previous week. They were expected to rise to 200,000. Meanwhile, the Commerce Department’s second estimate of fourth-quarter GDP fell to 2.7% growth from 2.9%; it was expected to remain unchanged from the first estimate at 2.9%.
Among other companies reporting earnings, Alibaba (BABA), Domino’s Pizza (DPZ), Dutch Bros (BROS), Etsy (ETSY), Moderna (MRNA), and Planet Fitness (PLNT) were on the move.
BABA stock rallied 6% in premarket trade, while Domino’s shares traded down 8.8% and BROS stock tumbled 7%. Etsy shares jumped 3% despite missing earnings targets, as sales topped estimates.
Moderna traded down almost 1% after mixed results. Meanwhile, the Food and Drug Administration granted the company’s Merck (MRK)-partnered cancer vaccine a breakthrough designation.
Finally, Planet Fitness stock climbed more than 8% in early action.
Stock Market Today
Electric-vehicle leader Tesla rose 2% Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) rose sharply ahead of the stock market open.
IBD Leaderboard stock Airbnb (ABNB), Deere (DE), Inspire Medical Systems (INSP) and Wingstop (WING) — as well as Dow Jones stocks Cisco Systems (CSCO) and JPMorgan Chase (JPM) — are among the top stocks to watch, with the recent stock market weakness.
Airbnb is an IBD Leaderboard stock. Inspire and Deere were recent IBD Stock Of The Day picks. Cisco Systems and Wingstop were featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s market open, Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures moved up 0.7%. Tech-heavy Nasdaq 100 futures gained 1.3% in morning action, with Nvidia and Advanced Micro Devices (AMD) leading early gains.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.8% and the SPDR S&P 500 ETF (SPY) rose 0.3% early Thursday.
The 10-year U.S. Treasury yield ticked lower to 3.92% Wednesday after the release of the minutes from the Federal Reserve’s latest policy meeting. Then, the 10-year yield ticked higher to 3.94% Thursday morning — on track for a fifth-straight weekly advance.
Oil prices looked to muster a rebound after a six-day losing streak, with West Texas Intermediate futures up around 1% Thursday morning. WTI rose near $75 a barrel, trading just off its lows in early February. The Energy Information Administration’s weekly oil inventory report is due later in the session.
Stock Market Rally Struggles
On Wednesday, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.2%. The Nasdaq rose 0.1% to end a three-day losing streak.
Wednesday’s Big Picture column commented, “On Wednesday, market observers awaited the minutes from the Jan. 31-Feb. 1 meeting on interest rate policy. They were keen to tease out more details on exactly how many more Federal Reserve officials believe the bank should resume a pace of raising interest rates at a pace of 50 basis points (half a percentage point) instead of slowing to 25 basis points per meeting.”
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Cisco, JPMorgan
Banking giant JPMorgan gave up its 138.76 flat-base buy point during a 0.8% loss Wednesday, according to IBD MarketSmith chart analysis. JPM shares traded up 0.5% early Thursday. JPM stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Featured in this week’s Stocks Near A Buy Zone column, Cisco Systems is trying to break out past a flat base with a 50.81 buy point. But the breakout continued to sputter Wednesday, with shares down another 0.8%. Cisco stock inched lower early Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Airbnb, Inspire
New IBD Leaderboard stock Airbnb soared last week, surging past a 121.50 buy point out of a cup with handle. After three straight losses, the stock is falling back into the 5% buy range that goes up to 127.58. But investors should wait for support before considering a purchase of shares. Meanwhile, the breakaway gap placed an alternative entry at 135. ABNB stock rose 1.5% Thursday morning.
Backstory: The firm operates an online marketplace for lodging. Its primary offerings are homestays for vacation rentals. While tourism was badly hit by the coronavirus pandemic, it continues to roar back following strict lockdowns.
Recent IBD Stock Of The Day Inspire Medical Systems fell for a fourth day Wednesday, but continues to hold in a flat base above a 262.64 buy point, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 86 IBD Composite Rating. INSP stock was flat early Thursday.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
Deere, Wingstop Eye Latest Buy Points
Deere shares inched lower Wednesday, finding support around their 50-day line. Shares are just 5% away from a 448.50 buy point in a flat base. DE stock moved up a fraction Thursday morning.
Backstory: An industrial bellwether, Deere has shrugged off recession and inflation fears to deliver solid profits. In the last year, higher commodity prices let farmers buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% jump in per-share earnings on a 32.2% total revenue surge, both topping estimates. Earnings growth accelerated for a second straight quarter.
Wingstop soared 7.7% Wednesday after the company’s strong fourth-quarter earnings results. The stock finished just past the 5% chase zone past a 169.04 entry that topped out at 177.49. WING stock moved down 0.5% early Thursday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.
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Stocks To Buy And Watch In Stock Market Rally
These are six top stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|Inspire Medical Systems||(INSP)||262.64||Flat base|
|Cisco Systems||(CSCO)||50.81||Flat base|
|Wingstop||(WING)||169.04||Cup with handle|
Source: IBD Data As Of Feb. 23, 2023
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Tesla stock rose 1.8% Wednesday, retaking a portion of Tuesday’s 5.25% skid. Despite their strong rebound since Jan. 6, shares are still below the 200-day line and that key level looms as a potential resistance area. Shares closed Wednesday around 48% off their 52-week high.
Shares looked to add to Wednesday’s gains, rising 2% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.3% Wednesday, finding support at their 200-day line. Shares are around 17% off their 52-week high. Apple stock rose 0.6% Thursday.
Microsoft shares extended a losing streak to five sessions, falling 0.5% Wednesday. Shares fell further below their 200-day line and about 20% off their 52-week high after recent losses. MSFT stock was up 1% Thursday morning.
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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