The Dow Jones Industrial Average rose 250 points on Thursday after the Labor Department’s initial data on jobless claims beat estimates. And Tesla shares rose as Morgan Stanley repeated an overweight rating with a lowered price target.
Weekly unemployment figures showed initial applications rose to 225,000 versus 216,000 in the previous week, higher than Econoday estimates for an increase to 222,000. Claims have been up and down in recent weeks, but generally down since a high of 241,000 in mid-November.
In terms of revenue, chicken egg distribution giant Cal-Maine Foods (CALM) reported Wednesday after the close. Shares fell more than 4% in morning trading. CALM stock closed below 62.74 on Wednesday buy point after two days of loss.
Leader of electric vehicles Tesla (TSLA) was up nearly 7% on Thursday as Morgan Stanley reaffirmed its overweight rating on the stock despite a price target cut. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) traded higher thereafter today’s stock market Open.
Cardinal Health (CAH), Medtempo (MEDP), IBD ranking 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 that recent market weakness should keep investors on the sidelines.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.75% and the S&P 500 rose 1.1%. The tech-heavy Nasdaq composite was up 1.6% in morning action.
The 10-year Treasury yield ticked lower to 3.86% on Thursday morning, with the yield moving further above the 50-day mark after three days of gains.
Meanwhile, US oil prices traded nearly 2% lower on Thursday as West Texas Intermediate futures pulled back from resistance just above $79 a barrel after a two-week rise. The Energy Information Administration will provide information on oil stocks weekly at 11 a.m. ET.
Stock market correction
On Wednesday, the Dow Jones Industrial Average sold 1.1%, while the S&P 500 fell 1.2%. The tech-heavy Nasdaq composite was the hardest hit, falling 1.35%.
Wednesday’s The Big Picture column commented: “Perhaps more importantly, amid generally calm trading expected for the rest of the year, price has been more important lately. And the magnitude of the price declines has continued to weigh heavily. October 21 walk through day means it’s still very difficult to go long with money.”
Dow Jones stocks to watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to track a flat base amid a three-week losing streak. And stocks are further below their 50-day line after more losses Wednesday. For now, the correct buy point is 296.77, but the stock must recapture its decisive 50 days. AMGN shares are up more than 16% through Wednesday this year. The stock was 0.5% higher on Thursday.
Dow Jones member Caterpillar ended Wednesday below a buy point of 239.95 in a flat base, according to IBD MarketSmith pattern recognition. If the stock takes the entry again, the buy zone moves up to 251.95. Bullish, the stock’s relative strength line, a key technical indicator, is at new highs. CAT shares are up nearly 16% year-to-date. Shares rose 0.5% on Thursday.
Energy giant Chevron is testing its 50-day line amid Wednesday’s 1.5% decline as the stock continues to track the right side of a flat base with a buy point of 189.78. CVX stock is the Dow’s year-to-date leader, up more than 50%. Equities were slightly lower Thursday morning amid weak oil prices.
Top stocks to watch: Cardinal Health, Medpace, Texas Roadhouse
cardinal health, a recent IBD Stock Of The Day, holding close to a buy point of 81.67 in a flat base. Shares fell 0.7% on Wednesday. CAH shares rose 0.3% on Thursday.
Medpace bounced sharply off its 50-day line last week, gaining 3.3%. But the stock gave up much of that gain during Tuesday’s 2% drop and is once again trying to find support. For now, the right buy point looms at 235.82, but an earlier entry at 220.09 is also in play. MEDP shares rose 1.5% on Thursday.
Texas Roadhouse shows a new buy point at 101.85 in a flat base, but is now consolidating below the 50-day line. The restaurant leader will try to recover that important benchmark in the coming sessions, but two consecutive days of heavy losses is not constructive. The share of TXRH was 0.1% higher on Thursday morning.
IBD ranking Shares of Neurocrine fell 0.2% on Wednesday, retesting support around the 50-day level. A recent bounce from that 50-day line was upbeat for the stock’s outlook, but now the stock is back in that key area. Shares of NBIX rose 0.3% on Thursday.
Stocks to watch
Here are six top stocks to watch in today’s stock market, including three Dow Jones leaders.
|Company Name||Symbol||Correct point of sale||Base type|
|Cardinal Health||(CAH)||81.67||Flat base|
|Texas Roadhouse||(TXRH)||101.85||Flat base|
Source: IBD data as of December 28, 2022
Tesla stock broke a seven-day losing streak on Wednesday, rising higher and rising 3.3% after reaching a 52-week low of 108.76. Stocks closed about 72% from their 52-week high.
Shares appeared to be continuing their uptick Thursday morning, racing nearly 7% higher.
Late Wednesday, Morgan Stanley analyst Adam Jonas cut the company’s price target from 330 to 250 while maintaining an overweight rating for TSLA stock. He believes 2023 will be “a ‘reset’ year for the EV market,” and Tesla is in a position to extend its competitive edge.
Dow Jones leaders: Apple, Microsoft
Amid Dow Jones StocksApple shares sold off 3.1% on Wednesday and fell to 125.87, their lowest level since June 2021. The stock is about 32% off its 52-week high and down 29% since the start of the year . Shares rose 1.7% Thursday morning This was reported by the Wall Street Journal that iPhone production in China started after problems with Covid-19.
Microsoft shares fell 1% on Wednesday, falling further below the 50-day line. The software giant is about 32% off its 52-week high with a loss of more than 30% year-to-date. MSFT shares rose 0.8% 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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