The Dow Jones Industrial Average dropped as much as 200 points Thursday after the Labor Department’s initial jobless claims. Meanwhile, Elon Musk-led Tesla (TSLA) briefly plunged more than 8% on weaker-than-expected earnings and revenue.
First-time jobless claims rose more than expected to 245,000 vs. 240,000 in the previous week. They were expected to rise to 242,000. Meanwhile, the Philadelphia Federal Reserve’s April Manufacturing index fell to -31.3, below expectations for a -23.2 reading in April.
Further, existing home sales from the National Association of Realtors dropped to 4.44 million in March, below estimates that called for an ease to 4.5 million vs. 4.58 million in February.
Other key earnings movers Thursday morning include Alcoa (AA), American Express (AXP), AT&T (T), D.R. Horton (DHI), IBM (IBM), Lam Research (LRCX), Las Vegas Sands (LVS) and Taiwan Semiconductor (TSM).
Alcoa shares dropped more than 3%, while AXP stock lost 4% in morning trade. AT&T shares tumbled 5.5%, as DHI stock jumped 6% early.
IBM shares climbed 3.5%, and LRCX stock moved up 6.3%. Finally, Las Vegas Sands jumped 4%, while TSM stock rose 2% in morning action.
Stock Market Today
Electric vehicle giant Tesla tumbled by 7.4% after reporting first-quarter earnings late Wednesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.
Crocs (CROX), Floor & Decor (FND), IBD Leaderboard watchlist stock Lululemon Athletica (LULU) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones stocks Cisco Systems (CSCO), JPMorgan Chase (JPM), Nike (NKE) and Visa (V) — are among the top stocks to buy and watch with the ongoing market rally.
JPMorgan and Lululemon were featured in this week’s Stocks Near A Buy Zone column. Floor & Decor was the IBD Stock Of The Day on Monday.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average declined 0.5%, while the S&P 500 lost 0.55%. The tech-heavy Nasdaq composite dropped 0.35% in morning trade, with Tesla and NXP Semiconductors (NXPI) weighing at the bottom of the list.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 0.2%, while the SPDR S&P 500 ETF (SPY) traded down 0.5% early Thursday.
The 10-year U.S. Treasury yield on Thursday traded down to 3.56%, pausing amid its recent rally. Last week, the 10-year yield rebounded from its lowest level since mid-September.
U.S. oil prices continued to retreat from their April 12 high above $83 a barrel. West Texas Intermediate futures dropped more than 1%, to just below $78 a barrel early Thursday.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average fell 0.2%, with Travelers (TRV) the biggest winner. TRV shares rallied 6.1% on strong earnings results. The S&P 500 inched lower, and the tech-heavy Nasdaq composite closed slightly higher.
Wednesday’s Big Picture column commented, “Sure, some stocks vaulted — a good thing. However, even as the Market Pulse displays, in this first major week of earnings reports, investors appear to still tread cautiously. It perhaps reflects lingering concerns over this year’s biggest issues facing the stock market. They include inflation, interest rate policy at the Federal Reserve and the chances of a hard economic landing.”
Now is an important time to read IBD’s The Big Picture column with the stock market in an uptrend.
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares dipped 0.1% Wednesday, holding steady near a flat base’s 144.44 buy point in the wake of last week’s earnings-fueled surge, according to IBD MarketSmith pattern recognition. JPM stock dipped 0.3% early Thursday.
Nike shares lost 0.4% Wednesday, still above their 50-day line. The stock is just above a 126.16 early entry and nearing a 131.41 flat-base buy point. NKE stock moved down 0.8% in early trade.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point. The buy range goes up to 241.66. V stock lost 0.3% in early morning trade. Visa reports fiscal second-quarter results on April 25.
Best Stocks To Buy And Watch: Crocs, DraftKings, Floor & Decor, Lululemon
Crocs shares climbed 0.4% Wednesday, higher in the buy range past a cup base’s 143.60 entry point, according to IBD MarketSmith. The 5% buy range goes up to 150.78. CROX stock moved down 1.3% early Thursday. The company plans to report first-quarter earnings on April 27.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
DraftKings is rapidly approaching a cup base’s 21.72 buy point after five straight days of gains. DKNG stock edged higher Thursday morning.
Backstory: Boston’s DraftKings is an online sports platform that allows users to play daily fantasy games and win cash prizes. Sports-betting prospects look strong, with around 20% of U.S. adults saying they bet money on sports in some way in the last 12 months, according to a 2022 Pew Research Center survey. DraftKings reports Q1 results on May 4.
Floor & Decor fell back below a cup-with-handle’s 99.47 buy point, with a 1.1% fall Wednesday. FND shares lost 0.6% early Thursday. Floor & Decor’s first-quarter earnings are due May 4.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD Leaderboard watchlist stock Lululemon also gave up its entry Wednesday, falling 0.6% to close just below a 371.36 buy point in a cup with handle. Shares fell 0.1% Thursday morning.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer’s final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
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 three Dow Jones leaders.
Tesla Stock Dives On Earnings
Tesla stock slipped 2% Wednesday, falling for a second-straight session. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key level.
Now, the stock is seeing some resistance at that area. A decisive retake would be bullish for the stock’s immediate prospects. The stock closed Wednesday 50% off its 52-week high.
Late Wednesday, Tesla reported a big first-quarter earnings decline while revenue missed views. The company’s profit margins fell below 20% as the company has committed to a 2023 price-slashing strategy.
Wall Street expected earnings of 85 cents per share, a nearly 20% drop compared to last year. Wall Street forecasts revenue growing 26% to $23.73 billion. Tesla reported revenue increasing 24% to $23.33 billion with earnings of 85 cents a share, a 20% decline compared with 2022.
TSLA stock dived 7.4% Thursday morning, set to hit its lowest level since March 13.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 0.7% Wednesday. They closed out of the 5% buy range beyond a 157.48 buy point. AAPL stock dropped 0.5% Thursday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares are at the top of the buy range past a flat base’s 276.86 buy point, with a slight gain Wednesday. The 5% buy area goes up from the buy point to 290.70. And on Thursday, MSFT stock lost 0.8%. The company plans to report its fiscal second-quarter results on April 25.
