The Dow Jones Industrial Average rose 175 points on Thursday after the surprising rise in the number of initial jobless claims filed by the Labor Department. Bitcoin’s price fell 2% on Thursday, as a crypto bank Silvergate capital (SI) crashed 40% on news it will cease operations and liquidate its subsidiary Silvergate Bank.
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Initial jobless claims rose to 211,000, above Econoday expectations which called for a slight increase to 195,000 from 190,000 in the previous week. Low weekly jobless claims continue to demonstrate continued strength in the labor market, fueling fears in the market that the Federal Reserve could continue to raise interest rates.
Investors are bracing for a landmark Labor Department jobs report on Friday. Economists expect a 220,000 increase in February nonfarm payrolls, with the unemployment rate at 3.4%. In January, payrolls rose by 517,000, nearly double Econoday’s high estimate. The average hourly wage is expected to grow by 0.3%.
In terms of revenue, Asana (ASAN), JD. com (JD) and MongoDB (MDB) were on the move.
Asana rose 13% after reporting strong Q4 earnings results and issuing strong guidance. JD plummeted 5.6% even after beating expectations for the fourth quarter by far. And MDB shares plunged 10% after the company issued weak revenue guidance.
Fair today
American Express (AXP) climbed 2.4% after announcing a 120 million share buyback plan and increased its dividend by 15%. Etsy (ETSY) sold more than 6% after Jefferies double downgraded the stock from buy to underperform.
Shares of Silicon Valley banker SVB Financial Group (SIVB) fell more than 39% after the company launched a series of $2.25 billion offerings following a $1.8 billion loss in its Treasuries and mortgage-backed portfolio investments.
EV giant Tesla (TSLA) bounced back from early losses to gain around 1.5% Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher after the market opened.
IBD Leaderboard stock Alteryx (AYX), Palo Alto Networks (PANW), New relic (NEW) and Sales team (CRM) — as well as Dow Jones stock American Express and JPMorgan Chase (JPM) – are among the top stocks to buy and watch amid a stock market rally trying to shake off fears of rate hikes.
Alteryx is an IBD Leaderboard stock. New Relic was recently an IBD Stock Of The Day. And Salesforce was featured this week in the Stocks Near a Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
After market open Thursday, the Dow Jones Industrial Average rose 0.5% and the S&P 500 rose 0.55%. The tech-heavy Nasdaq composite was up 0.6% in the morning action, with China-based JD.com and Tesla weighing in on early action.
Among US 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 0.55% early Thursday.
The 10-year US Treasury yield edged up slightly following Powell’s aggressive remarks to 3.97%. On Thursday, the 10-year rate fell to 3.96% following the unemployment claims.
Oil prices leveled off after two consecutive days of losses. West Texas Intermediate futures traded just below $77 a barrel early Thursday.
Stock market rally
On Wednesday, the Dow Jones Industrial Average ended with a modest loss of 0.2%, while the S&P 500 and Nasdaq finished slightly higher, with gains of 0.1% and 0.4% respectively.
Wednesday’s Big Picture column noted, “A surprising uptick in the last half hour of Wednesday trading saved the stock market from a real upside bump. But the pullback, which began in early afternoon trading Monday, underlined how the The current road to a healthy stock recovery remains a bumpy one.”
This is an important time to read IBD’s The Big Picture column during the stock market rally.
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: American Express, JPMorgan
American Express remains near a buy point of 182.25 in a giant handle cup, despite Wednesday’s loss of 0.3%. Bullish, the stock’s relative strength line is holding near its highs, a particularly positive sign ahead of a potential breakout. Shares of AXP rose 2.4% Thursday morning, chasing a three-day losing streak following the announcement of the new buyback plan.
Banking giant JPMorgan fell further below its 138.76 flat-base buy point during the stock’s 0.6% fall Wednesday, according to IBD MarketSmith chart analysis. Stocks also moved further below support at their 50-day line, which is an important level to watch. The share of JPM was 0.6% lower at the beginning of Thursday.
JPM shares show a 92 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
4 Top Growth Stocks to Buy and Watch in the Stock market rally
Top stocks to buy and watch: Palo Alto, New Relic
Palo Alto Networks continues to trade calmly after its share’s 12.5% gain on Feb. 22 and is poised to add a handle. Stocks remain very close to the 193.01 buy point of a base. PANW shares were up 0.2% on Thursday morning.
backstory: On Feb. 21, the cybersecurity giant reported good results for the quarter ended January, when earnings were $1.05 per share, up 81% from a year earlier, on a 26% increase in revenue to $1. 7 billion.
The recent IBD stock of the day, New Relic, is working on a flat base with a buy point of 80.98 in the wake of the February 8 earnings-driven surge. Shares of NEWR fell 0.3% on Thursday.
Backstory: New Relic offers a cloud-based suite of software products that enable organizations to collect, store and analyze massive amounts of data in real time. Customers gain greater insight into their business software to help make data-driven decisions.
Alteryx, Salesforce near last points of sale
IBD Leaderboard stock Alteryx continues to struggle after giving up a trendline buy point 66.50 during this week’s losses in an early stage cup grab. A conventional entry at 70.73 is also in play. Alteryx fell 0.2% on Thursday.
backstory: The Irvine, California-based company created a self-service data analytics platform. Demand is clearly strong as sales have increased from the low of $100 million per quarter in 2021 to $216 million in the third quarter of 2022, up 75% from a year ago, and $301 million in the fourth quarter of 2022, an increase of 73%. This rapid revenue growth is one of the reasons Alteryx also posted earnings of 84 cents per share in the fourth quarter, probably the largest quarterly profit in the company’s history.
Last week, Dow Jones leader Salesforce made a bullish breakaway gap past a buy point of 178.94 on strong fourth quarter results. But gains fade a bit during the four-day losing streak as shares lost 0.2% on Wednesday. The stock is in the 5% buy zone rising to 187.89. CRM shares lost 0.3% on Thursday.
backstory: Salesforce sells software under a subscription model. The software helps companies organize and handle sales activities and customer relationships. The company has expanded into marketing, customer service and e-commerce. Salesforce said it has dissolved its “M&A committee,” implying it will no longer make major acquisitions, amid growing pressure from activist investors.
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Stocks to buy and watch in Stock Market Rally
Here are six top stocks to buy and watch in the current stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct point of purchase | Point of sale type |
|---|---|---|---|
| New relic | (NEW) | 80.98 | Flat base |
| Alteryx | (AYX) | 70.73 | Cup with handle |
| American Express | (AXP) | 182.25 | Cup with handle |
| Palo Alto Networks | (PANW) | 193.01 | Consolidation |
| JPMorgan | (JPM) | 138.76 | Flat base |
| Sales team | (CRM) | 178.94 | Cup with handle |
Source: IBD data as of March 8, 2023
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Tesla stock
Tesla stock fell another 3% on Wednesday, falling for the third day in a row after the stock was downgraded. The EV giant is also facing an investigation into possible steering problems.
Shares closed around 53% of their 52-week high on Wednesday. Aggressive investors can use the February 16 high of 217.65 as a potential entry point. However, to be on the safe side, Tesla stock should cross the 200-day mark, which is now below 220.
Tesla shares rose 1.6% Thursday morning, seeking recovery from recent losses.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.8% on Wednesday, following Tuesday’s losses. The stock rose 0.8% on Thursday.
Microsoft shares extended Tuesday’s losses, falling 0.2% on Wednesday. The stock is still about 20% off its 52-week high after recent declines. MSFT shares rose 1.4% Thursday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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