The Dow Jones Industrial Average fell more than 225 points on Thursday morning before paring its losses as Federal Reserve Chairman Jerome Powell spoke at the Cato Institute’s annual monetary conference.
Main overnight income included Casey General Stores (TIME), Share (CPRT) and Dave and Buster Entertainment (TO PLAY).
CASY shares fell more than 2% on mixed results. Shares of Copart fell 4%, while those of Dave & Buster slid more than 7%.
Advanced micro-systems (AMD) rose after Stifel Nicolaus launched the stock with a buy rating, while First Solar (FSLR) jumped 2% on an upgrade from Goldman Sachs to buy. Leader in electric vehicles You’re here (TSLA) fell more than 1% on Thursday.
Among the industrialists of the Dow Jones, the titans of tech Apple (AAPL) and Microsoft (MSFT) were both lower after today’s stock market open.
In the current market volatility, Arista Networks (A NET), Costco (COST), Restaurant brands (QSR) and Ultimate beauty (ULTA) – as well as Dow Jones stocks Chevron (CVX) – are among the top issues to buy and watch out for. Keep in mind that increased market volatility is a good reason for investors to be more defensive.
Costco is an IBD ranking stock following a recent breakout, while Apple stocks and restaurant brands were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 lost 0.3%. The heavy tech Nasdaq traded down 0.4% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.55% and the SPDR S&P 500 ETF (SPY) fell 0.45% in early trading.
The 10-year Treasury yield rose to 3.28% early Thursday, continuing to fall after Wednesday’s drop to 3.26%. Earlier this week, the 10-year Treasury yield hit its highest closing level since June 15.
The European Central Bank raised interest rates by 75 basis points on Thursday morning to combat record inflation. An energy crisis puts Europe on the brink of recession.
US oil prices edged higher on Thursday, rebounding a bit from Wednesday’s strong selloff. West Texas Intermediate futures were trading just above $82 a barrel.
Early Thursday, the Labor Department’s initial jobless claims fell to 222,000, well below an expected increase to 240,000. Unemployment claims were 232,000 the previous week.
Stock market rally under pressure
On Wednesday, the Nasdaq Composite and smaller issues led the rise. The former rebounded 2.1%, finally ending a poor seven-session selling streak.
Wednesday’s The Big Picture column commented: “If the current bounce really has legs, expect the major averages to move back above their own 50-day moving averages. The summer bounce above this intermediate technical level has been successful. But the benefit of hindsight shows that resistance at the longer-term 200-day averages has proven too strong so far this year.”
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Five Dow Jones stocks to watch now
Dow Jones Stocks to Watch: Chevron
Dow Jones stock Chevron fell 1.3% on Wednesday, halting its slide just above the key 50-day line. The stock added a handle to a cup base, moving the correct buy point to 166.93 – according to chart analysis by IBD MarketSmith – amid strong performance by energy stocks so far this year. The stock rose 0.5% early Thursday.
The CVX stock is posting a solid 97 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 most important growth stocks to buy and watch in the currentrStock market rally
Top stocks to watch: Arista, Costco, restaurant brands, Ulta
Arista Networks added a handle to a double bottom base, placing the correct entry at 132.97, according to IBD MarketSmith’s chart analysis. Arista’s relative strength line is beginning to give ground as the stock remains below its long-term 200-day line. ANET shares were down 0.6% early Thursday.
IBD Leaderboard Costco stock recovered to its 50-day line on Wednesday and is about 4% below its buy point of 552.81 from a mug with handle. The stock nearly triggered the sell rule reducing losses by 7% to 8% earlier this week. The shares traded down 0.8% on Thursday.
Restaurant brands rose 2% on Wednesday, ending just 2% from a mug with handle which has a buy point of 61.19. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants worldwide. The stock was down 0.7% early Thursday.
Cosmetics retailer Ulta Beauty broke squarely out of the buy range on Wednesday after a buy point of 417.08 in a double bottom basis. The RS line hit a new high as the stock showed abnormal strength in a weak market environment. ULTA shares were down 0.5% on Thursday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock rebounded 3.4% on Wednesday, bouncing off its 50-day line, which continues to be a potential support level to watch. Shares of the electric vehicle giant fell more than 1% on Thursday morning.
Tesla stock has found resistance at its 200-day line in recent months and is about 32% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gained 0.9% on Wednesday as tech giant Dow Jones unveiled the iPhone 14, but are still below their 50-day line. The stock is around 12% off a buy point at 176.25 on a mug with handle. Despite recent losses, the stock’s relative strength line remains near new highs, indicating continued stock market outperformance. Shares fell 0.8% on Thursday.
Microsoft rose 1.9%, ending a seven-game losing streak. The software giant remains well below its 50 and 200 day lines. Stocks are around their highest level in 52 weeks. The stock fell 0.7% early 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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