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Dow Jones futures extended gains Thursday morning after initial unemployment claims data from the Labor Department. Tesla stock raced higher after Morgan Stanley reiterated an overweight rating with a reduced price target.
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Weekly unemployment claims came out at 8:30 a.m.ET. First-time claims rose to 225,000 vs. 216,000 in the previous week and higher than Econoday estimates for a rise to 222,000. Claims have been up and down in recent weeks, but generally trending lower since a mid-November high of 241,000.
On the earnings front, chicken egg distribution giant Cal-Maine Foods (CALM) reported Wednesday after the close. Shares declined more than 4% in early morning trade. CALM stock ended Wednesday below a 62.74 buy point after two days of losses.
Electric-vehicle leader Tesla (TSLA) raced 5% higher Thursday as Morgan Stanley affirmed its overweight rating on the stock, despite a price target cut. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded higher ahead of today’s stock market open.
Cardinal Health (CAH), Medpace (MEDP), IBD Leaderboard stock Neurocrine Biosciences (NBIX) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to consider for investor watchlists. Keep in mind the recent market weakness should keep investors on the sidelines.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health is featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures moved up 0.5% vs. fair value. S&P 500 futures gained 0.8%. Tech-heavy Nasdaq 100 futures moved up 1.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) moved up 0.4% early Thursday.
The 10-year Treasury yield ticked lower to 3.88% Thursday morning, with the yield moving further above its 50-day line after three days of gains. Meanwhile, U.S. oil prices traded more than 1% lower Thursday, as West Texas Intermediate futures back away from resistance just above $79 a barrel, following a two-week advance. The Energy Information Administration will provide weekly information on oil inventories at 11 a.m. ET.
Stock Market Correction
On Wednesday, the Dow Jones Industrial Average sold off 1.1%, while the S&P 500 dropped 1.2%. The tech-heavy Nasdaq composite was hardest hit, declining 1.35%.
Wednesday’s The Big Picture column commented, “Perhaps more importantly, amid generally quiet trading expected for the remainder of the year, price matters more lately. And the size of the price declines continued to stay weighty. Moreover, the loss of most gains by key equity indexes since an Oct. 21 follow-through day means that it’s still very hard to make money going long.”
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to trace a flat base amid a three-week losing streak. And shares are further below their 50-day line after more losses Wednesday. For now, the correct buy point is 296.77, but the stock needs to decisively retake its 50-day first. AMGN stock is up more than 16% for the year through Wednesday. Shares traded modestly higher Thursday.
Dow Jones member Caterpillar finished below the 239.95 buy point in a flat base Wednesday, according to IBD MarketSmith pattern recognition. If the stock retakes the entry, the buy area goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. CAT stock has a year-to-date gain of almost 16%. Shares moved up 0.2% Thursday.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron is testing its 50-day line amid Wednesday’s 1.5% drop, as the stock continues to trace the right side of a flat base that has a 189.78 buy point. CVX stock is the Dow’s year-to-date leader, up more than 50%. Shares were unchanged Thursday morning, despite the weakness in oil prices.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Cardinal Health, Medpace, Neurocrine, Texas Roadhouse
Cardinal Health, a recent IBD Stock Of The Day, is holding close to a 81.67 buy point in a flat base. Shares declined 0.7% Wednesday. CAH stock was flat Thursday.
Medpace bounced sharply from its 50-day line last week, with a gain of 3.3%. But the stock gave up a big part of those gains during Tuesday’s 2% fall and is once again trying to find support. For now, the correct buy point looms at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was unchanged Thursday.
IBD Leaderboard stock Neurocrine slipped 0.2% Wednesday, again testing support around its 50-day level. A recent bounce off that 50-day line was bullish for the stock’s prospects, but now the stock is back at that key area. NBIX stock was flat Thursday.
Texas Roadhouse shows a new buy point at 101.85 in a flat base, but is now consolidating below its 50-day line. The restaurant leader will look to recover that key benchmark over the coming sessions, but two straight days of sharp losses isn’t constructive. TXRH stock traded unchanged Wednesday morning.
Stocks To Watch
These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | Flat base |
| Medpace | (MEDP) | 235.82 | Consolidation |
| Texas Roadhouse | (TXRH) | 101.85 | Flat base |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Flat base |
| Amgen | (AMGN) | 296.77 | Flat base |
Source: IBD Data As Of Dec. 28, 2022
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Tesla Stock
Tesla stock snapped a seven-day losing streak Wednesday, reversing higher and rallying 3.3% after hitting a 52-week low at 108.76. Shares closed about 72% off their 52-week high.
Shares looked to continue their rebound Thursday morning, racing 5% higher.
Late Wednesday, Morgan Stanley analyst Adam Jonas lowered the firm’s price target from 330 to 250, while keeping an overweight rating on TSLA stock. He believes 2023 is “shaping up to be a ‘reset’ year for the EV market,” and Tesla is in position to extend its lead over the competition.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 3.1% Wednesday, dropping to 125.87, their lowest level since June 2021. The stock is around 32% off its 52-week high and down 29% since the start of the year. Shares rallied 1% Thursday morning, as the Wall Street Journal reported that iPhone production in China was ramping up after Covid-19 issues.
Microsoft stock dropped 1% Wednesday, falling further below the 50-day line. The software giant is about 32% off its 52-week high with a year-to-date loss of more than 30%. MSFT stock moved up 0.3% early Thursday.
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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