Dow Jones futures extended gains Thursday morning after initial jobless claims data from the Labor Department exceeded estimates. And Tesla shares soared as Morgan Stanley reiterated an overweight rating with a reduced price target.
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Weekly jobless numbers showed initial claims rose to 225,000 from 216,000 the previous week, above Econoday estimates of a rise to 222,000. Orders have been rising and falling in recent weeks, but have generally tended to decline since mid-November’s high of 241,000.
On the earnings front, the chicken egg distribution giant Cal-Maine Foods (CALM) reported Wednesday after the close. The stock was down more than 4% in early morning. CALM shares ended Wednesday below a buy point of 62.74 after two days of losses.
Leader of electric vehicles tesla (TSLA) surged nearly 7% on Thursday as Morgan Stanley affirmed its overweight rating on the stock despite a price target cut. Dow Jones Technology Leaders Litter (AAPL) and Microsoft (MSFT) traded higher ahead of today’s stock market open.
Cardinal Health (CAH), Medspace (MEDP), shares of the IBD scoreboard Neurocrine Biosciences (NBIX) and texas roadhouse (TXRH) – as well as Dow Jones names amgen (AMGN), Caterpillar (CAT) and chevron (CVX) — are among the top stocks to consider on investor watch lists. Bear in mind that recent market weakness should keep investors on the sidelines.
Neurocrine is an IBD Leaderboard share. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health is 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 opening bell, Dow Jones futures were up 0.5% from fair value. S&P 500 futures were up 0.8%. Nasdaq 100 technology futures were up 1.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.6% and the SPDR S&P 500 ETF (SPY) was up 0.4% in early Thursday.
The 10-year Treasury yield fell to 3.88% Thursday morning, with the yield moving further above its 50-day line after three days of gains.
Meanwhile, US oil prices traded more than 1% lower on Thursday, with West Texas Intermediate futures pulling back from resistance just above $79 a barrel after a two-week advance. The Energy Information Administration will provide weekly information on oil inventories at 11 am ET.
stock market correction
On Wednesday, the Dow Jones Industrial Average was down 1.1%, while the S&P 500 was down 1.2%. The Nasdaq technology composite was hardest hit, falling 1.35%.
The Big Picture column on Wednesday commented: “Perhaps more importantly, amid the generally calm trading expected for the remainder of the year, prices matter more recently. It’s very hard to make money shopping.”
Five Dow Jones Stocks to Watch Right Now
Dow Jones Stocks to Watch: Amgen, Caterpillar, Chevron
Pharmaceuticals Amgen continues to chart a steady base amid a three-week losing streak. And stocks are further below the 50-day line after further losses on Wednesday. For now, the correct buy point is 296.77, but the stock needs to decisively resume its first 50 days. Shares in AMGN are up more than 16% for the year through Wednesday. The stock traded modestly higher on Thursday.
Dow Jones member Caterpillar finished below a buy point of 239.95 on a flat basis on Wednesday, according to IBD MarketSmith standard recognition. If the stock resumes the entry, the buy zone rises to 251.95. On the upside, the stock’s relative strength line, a key technical indicator, is at new highs. CAT shares had a year-to-date gain of nearly 16%. Shares were up 0.2% on Thursday.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. The composite ranking is designed to help investors easily find top growth stocks.
Energy giant Chevron is testing its 50-day line amid Wednesday’s 1.5% drop as the stock continues to trace the right side of a flat bottom that has a buy point at 189.78. CVX shares are the Dow’s year-to-date leader, up more than 50%. Equities were unchanged Thursday morning despite weakness in oil prices.
4 key growth stocks to watch on Currstock market rally
Key Stocks to Watch: Cardinal Health, Medpace, Texas Roadhouse
Cardinal Health, a recent IBD day stock, is close to an 81.67 buy point on a flat basis. Shares fell 0.7% on Wednesday. CAH shares were flat on Thursday.
Medpace jumped sharply from its 50-day line last week, with a 3.3% gain. But the stock gave up most of those gains during Tuesday’s 2% drop and is once again trying to find support. For now the correct buy point is at 235.82 but a previous entry at 220.09 is also in play. MEDP shares were unchanged on Thursday.
Texas Roadhouse shows a new buy point at 101.85 on a flat basis but is now consolidating below its 50-day line. The restaurant leader will try to recover this key benchmark in the coming sessions, but two consecutive days of sharp losses are not constructive. TXRH shares traded unchanged on Wednesday morning.
Shares in IBD Leaderboard Neurocrine fell 0.2% on Wednesday, again testing support around its 50-day level. A recent rebound from that 50-day line was bullish for the stock’s outlook, but now stocks are back in that key area. NBIX shares were flat on Thursday.
Actions to watch
These are the top six stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | correct point of purchase | Base Type |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | flat base |
| Medspace | (MEDP) | 235.82 | Consolidation |
| texas roadhouse | (TXRH) | 101.85 | flat base |
| Caterpillar | (CAT) | 239.95 | flat base |
| chevron | (CVX) | 189.78 | flat base |
| amgen | (AMGN) | 296.77 | flat base |
Source: IBD data on December 28, 2022
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares broke a seven-day losing streak on Wednesday, reversing higher and rising 3.3% after hitting a 52-week low at 108.76. The stock closed about 72% below its 52-week high.
Stocks appeared to continue their rally Thursday morning, rising nearly 7%.
Later on Wednesday, Adam Jonas, an analyst at Morgan Stanley, lowered the company’s price target from 330 to 250, maintaining an overweight rating for TSLA shares. He believes 2023 is “becoming a ‘reset’ year for the electric vehicle market” and Tesla is in a position to extend its lead over the competition.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 3.1% on Wednesday, falling to 125.87, its lowest level since June 2021. The stock is about 32% off its 52-week high and are down 29% since the beginning of the year. Shares rose 1% on Thursday morning as the Wall Street Journal reported that iPhone production in China was picking up in the wake of Covid-19 woes.
Microsoft shares fell 1% on Wednesday, dropping further below the 50-day line. The software giant is about 32% off its 52-week high, with a year-to-date loss of more than 30%. MSFT shares were up 0.3% on Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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