Dow Jones futures reversed lower Thursday after a surprise drop in first-time unemployment claims and first-quarter GDP data. Meanwhile, two of Cathie Wood’s ARK Invest ETFs sold more than $7 million in Tesla stock.
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First-time jobless claims from the Labor Department unexpectedly dropped to 239,000 vs. 264,000 in the previous week. They were anticipated to rise to 270,000. Further, the Commerce Department’s third estimate of first-quarter GDP rose to 2.0%, higher than the expected 1.4% estimate.
Early Thursday, Micron Technology (MU), McCormick (MKC), Paychex (PAYX) and Simply Good Foods (SMPL) are key earnings movers. Meanwhile, Dow Jones giant Nike (NKE) will report after the close.
Micron stock advanced more than 3% in premarket trade, while McCormick inched higher. Paychex shares and SMPL stock both rallied almost 3% in early morning action.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) added 1.6% Thursday morning, despite the stock sales by Cathie Wood’s Ark Invest ETFs. This month, Wood has dumped more than 500,000 shares of the EV stock.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were modestly higher ahead of today’s stock market open.
Other stock market leaders in the stock market rally include Alphabet (GOOGL) and Meta Platforms (META). Alphabet shares inched higher, while META stock moved up 0.3% early.
Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Lam Research (LRCX) — as well as Dow Jones stocks JPMorgan Chase (JPM), Merck (MRK) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market pullback.
Tesla is an IBD Leaderboard stock, Floor & Decor remains an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures inched lower vs. fair value after giving up modest gains. S&P 500 futures lost less than 0.1%, while Nasdaq 100 futures moved down 0.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.1%, while the SPDR S&P 500 ETF (SPY) edged lower early Thursday.
The 10-year U.S. Treasury yield ticked higher to 3.74%. The yield recently has bobbed in a range between 3.57% and 3.85%. It settled higher Wednesday at 3.71%.
Oil prices edged higher Thursday morning, continuing to hold near recent lows. West Texas Intermediate futures traded just below $70 a barrel, effectively flat for the week and down not quite 4% from a June 21 high.
Stock Market Action
On Wednesday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 edged lower. The tech-heavy Nasdaq composite rose 0.3%.
Wednesday’s Big Picture column commented, “Of course, the relatively tight ranges for the equity indexes may have a lot to do with portfolio managers and equity trading desks awaiting another salvo of important inflation data on the U.S. economy. On Friday before the open, expect some fireworks to follow the latest report on the personal consumption expenditures index, one of the Federal Reserve’s most closely monitored price indicators.”
Now is an important time to read IBD’s The Big Picture column as the stock market remains in an uptrend but is pulling back.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce
Dow Jones banking leader JPMorgan jumped more than 1% early Thursday after positive results from the Federal Reserve’s bank stress test. JPM stock is about 3% below a 143.37 flat-base buy point after Wednesday’s slight drop. Shares are right at their 50-day line.
Drug giant Merck is forming a flat base with a 119.65 buy point, as the stock dropped 0.8% Wednesday, further under the 50-day line. MRK stock inched higher Thursday.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock rose 0.4% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, McKesson, MongoDB, Lam Research
IBD Leaderboard watchlist stock Chipotle rebounded from support at its 10-week line and is building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 is also in play due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock fell a fraction Thursday morning.
IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. Shares were up 0.7% Thursday.
MongoDB is trading tightly after its recent earnings-fueled jump, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline entry around 386. MDB stock rose 1.7% Thursday morning.
Lam Research moved above a 615.80 early buy point and a three-weeks-tight pattern with a 630.72 entry during this week’s gains. LRCX stock gained 1% premarket Thursday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
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 |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Cup with handle |
Source: IBD Data As Of June 28, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla rose sharply for a second straight day, with a 2.4% gain. Despite recent losses, Tesla shares remain sharply out of buy range beyond a double-bottom’s 207.79 buy point.
TSLA stock looked to add to Wednesday’s gains, rising 1.6% Thursday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock hit another record high Wednesday, trading as high as 189.90. Shares continue to hold sharply above a 157.38 buy point. Early Thursday, AAPL stock was up 0.3%.
Microsoft shares rose 0.4% Wednesday, moving higher for a second consecutive session. On June 16, MSFT stock hit an all-time high at 351.47. In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Thursday morning, Microsoft shares were up 0.1%.
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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