The Dow Jones Industrial Average rose Thursday after a surprise drop in the Labor Department’s first jobless claims as 10-year Treasury yields appeared to close above 4% for the first time since November. Dow Jones leader Sales team (CRM) rose 15% on strong earnings results. And Tesla (TSLA) shares briefly fell more than 8% after the company’s disappointing investor day postponed the unveiling of a next-generation vehicle to a “later date.”
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Initial weekly jobless claims fell to 190,000 versus 192,000 in the previous week. Econoday estimates they would rise to 200,000.
In terms of revenue, Best Buy (BBY), Celsius (CELH), Double Verify (DV), Macy’s (M), Okay (OKTA), Snowflake (SNOW), Splunk (SPLK) and Veeva Systems (VEEV) were on the move.
Best Buy shares fell nearly 2%, while Celsius sold 3% in morning trading. DoubleVerify shares are up 5%. Macy’s stock was up 6% and Okta was up 11%.
Snowflake plummeted 9% after its earnings report included a revenue outlook well below expectations. Finally, Splunk was down 7%, while Veeva Systems was up 7.7%.
Fair today
Focused on cryptocurrency Silvergate capital (SI) crashed 43% Thursday morning after announcing more losses and further delaying its annual report. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) was trading lower after the stock market opened.
IBD Leaderboard watch list stock Palo Alto Networks (PANW), Deere (BY), Toll Brothers (To land Wing stop (WING) — as well as Dow Jones stocks American Express (AXP), Cisco systems (CSCO) and JPMorgan Chase (JPM) – are among the top stocks to watch amid the recent weakness in the stock market.
Palo Alto is an IBD Leaderboard watchlist stock. Deere was a recent IBD Stock Of The Day pick. And American Express was near a buy zone in this week’s Equities section.
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Dow Jones Today: Oil Prices, Treasury Yields
After the market opened on Thursday, the Dow Jones Industrial Average rose 0.3%, driven almost exclusively by Salesforce.com’s 15% gain. The S&P 500 fell 0.2% and tech-heavy Nasdaq composite lost 0.4%. The yield on 10-year Treasury bonds remained above 4% during the morning action, after briefly breaking above that level on Wednesday.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9% and the SPDR S&P 500 ETF (SPY) lost 0.6% early Thursday.
On Wednesday, the 10-year US Treasury yield stabilized at 3.99%, closing at its highest level since November 9. Early Thursday, the 10-year yield rose to 4.07%.
US oil prices rose sharply after gains in four of the five recent sessions. West Texas Intermediate futures added 0.5%, up nearly 2% on a weekly basis and trading back above $78 a barrel.
Stock market rally struggles
On Wednesday, the Dow Jones Industrial Average rose slightly, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite fell 0.7%, falling for the second straight day.
Wednesday’s Big Picture column noted, “As you can see from the accompanying Market Pulse chart, more CAN SLIM quality stocks rose in heavy sales than those that fell significantly in above-average trading. Thanks to the strength of the smaller companies in terms of market capitalization.”
This is an important time to read IBD’s The Big Picture column in the midst of the now tumultuous stock market rally.
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: American Express, Cisco, JPMorgan
Featured in this week’s Stocks Near a Buy Zone column, American Express is building a giant cup-with-handle base showing a buy point of 182.25. The shares are just 3% below their buy point, rising 1.1% on Wednesday. Bullish, the stock’s relative strength line is at new highs, a very positive sign ahead of a potential breakout. The share of AXP fell by 1.4% on Thursday morning.
Banking giant JPMorgan is in buy range above its 138.76 flat-base buy point despite a 0.6% loss Wednesday, according to IBD MarketSmith chart analysis. Stocks are recovering from their key 50-day moving average last week. JPM shares fell 0.3% early Thursday.
JPM shares show a solid 95 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.
Cisco Systems fell 0.2% on Wednesday, falling further below the 50.81 buy point from a flat base. Stocks are trying to halt their slide around their 50-day line and are about 4% below entry. CSCO shares moved slightly lower on Thursday.
4 Top Growth Stocks to Buy and Watch in the Stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
IBD Leaderboard watchlist stock Palo Alto Networks is building to the right of a base with a buy point of 193.01 after last week’s increase of more than 10%. PANW shares fell 0.2% Thursday morning.
backstory: Last week, the cybersecurity giant reported good results for the quarter ending January, when earnings were $1.05 per share, up 81% from a year earlier, on a 26% increase in revenue to $1.7 billion.
Wingstop is still barely holding above a 169.04 cup-with-handle entry after recent losses. Investors should wait for signs of renewed strength before considering a stock purchase, especially in light of deteriorating general market conditions. WING shares fell 1% 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. The international locations are Mexico, Colombia, Panama, Singapore and the United Kingdom. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total footprint to 1,959 restaurants worldwide.
Deere, Toll Eye Latest points of sale
Deere shares rose 0.1% on Wednesday, still closing below their 50-day line. Shares are 6% below a buy point of 448.50 in a flat basis. DE shares fell 0.2% Thursday morning.
backstory: Deere, an industry benchmark, has shaken off fears of recession and inflation to post solid earnings. In the past year, higher raw material prices enabled farmers to purchase both new and improved machines. In the fiscal first quarter ended Jan. 29, the tractor maker posted a 124% increase in earnings per share on total sales growth of 32.2%, both ahead of estimates. Earnings growth accelerated for the second quarter in a row.
Homebuilder Toll Brothers builds a cup-with-handle base that displays a buy point of 63.29. Bullish, the stock has a relative strength line at new highs during this week’s market action. TOL shares show a solid 95 IBD Composite Rating. Shares of Toll Brothers fell 1.1% early Thursday.
backstory: Last week, luxury homebuilder Toll Brothers beat earnings and revenue forecasts while maintaining its full-year expectations. The homebuilder’s financial report comes as a 12-month decline in US home prices showed signs of slowing in January.
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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 |
|---|---|---|---|
| Deere | (BY) | 448.50 | Flat base |
| Toll Brothers | (TOLL) | 63.29 | Cup with handle |
| Cisco systems | (CSCO) | 50.81 | Flat base |
| Palo Alto Networks | (PANW) | 193.01 | Consolidation |
| JPMorgan | (JPM) | 138.76 | Flat base |
| Wing stop | (WING) | 169.04 | Cup with handle |
Source: IBD data as of March 1, 2023
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Tesla stock
Tesla shares fell 1.4% ahead of the company’s investor day on Wednesday after the market closed. Chief Executive Elon Musk announced his “Master Plan 3”. Musk’s ambitious plan calls for a total switch to electric cars and $10 trillion in spending to create a “sustainable energy future.”
Despite their strong recovery since January 6, the shares are still below the 200-day mark. That key level looms as a potential area of resistance. Shares closed around 46% of their 52-week high on Wednesday.
Tesla shares threatened to add to Wednesday’s losses, diving more than 5% in early morning trading Thursday after Investor Day failed to reveal a next-generation electric car.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.4% on Wednesday, closing squarely below their 200-day line. Shares are down about 19% from their 52-week high. Apple shares lost 0.5% on Thursday.
Microsoft shares remain below their 200-day mark after Wednesday’s loss of 1.3%. The stock is more than 20% off its 52-week high following recent declines. MSFT shares fell 0.1% early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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