The Dow Jones Industrial Average rallied on Thursday after Wednesday’s stock market rally fizzled out. tech giant meta platforms (FB) rose more than 18%. In the meantime, PayPal (PYPL), Qualcomm (QCOM) and Twitter (TWTR) were the key gain moves early Thursday. Apple earnings are due after the close of trading.
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Dow Jones Stocks Caterpillar (CAT) and MC Donalds (MCD) reported gains ahead of the market open on Thursday. Fellow Dow Stock amgen (AMGN) filed its earnings report late Wednesday.
Stock market today: Facebook is rising
Facebook parent Meta Platforms late Wednesday reported better-than-expected first-quarter results but fell short of revenue. FB shares are up more than 18% in morning trade.
PayPal met Wall Street’s earnings and revenue targets, sparking a 4.5% surge in early morning trading. Qualcomm has lowered Wall Street’s outlook for the fiscal second quarter and raised it for the current period. QCOM shares are up around 8%.
Twitter released its quarterly results, sending shares about 1% higher Thursday morning. And electric vehicle giant Tesla (TSLA) recovered about 1% on Thursday morning.
Among Dow Jones executives Apple (AAPL) was up more than 2% ahead of its earnings report and Microsoft is up 0.7% in today’s stock market.
Amid fresh stock market correction, Dow Jones leads American Express (AXP) — along with Expedia (EXPE), Palo Alto Networks (PANW) and IBD Leaderboard Watch List World Wrestling Entertainment (WWE) – are among the top stocks to watch on Thursday.
Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s “Stocks Near a Buy Zone” column.
Dow Jones Today: Treasury Yields, Oil Prices
After opening on Thursday, the Dow Jones Industrial Average was up 0.6%. Meanwhile, the S&P 500 was up 1.3% and the Nasdaq was up 1.9%. The S&P 500 and Nasdaq Composite are each on three straight weekly losses.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.9%. The SPDR S&P 500 ETF (SPY) was up 1.3%.
The 10-year Treasury yield rose to 2.85% on Thursday after closing at 2.81% on Wednesday. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, US oil prices fell, with Texas Intermediate crude trading below $102 a barrel.
US GDP and weekly jobless claims came out at 8:30am ET. Q1 GDP unexpectedly contracted 1.4% in the first quarter, versus 6.9% growth in the fourth quarter. Meanwhile, initial jobless claims fell to 180k from 184k the previous week.
stock market correction
On Wednesday, major equity indices gave up solid gains to end mixed, falling well short of intraday highs.
What happens next is unclear. As the market enters its final sessions in April, a rebound could start another fresh attempt at a rally. But with all three major indices eyeing losses that would deepen the stock market correction, investors should be on the defensive.
That means taking profits and raising cash. Also, keeping a watchlist of stocks that are performing well in a down market is a good way to prepare for the next uptrend in the stock markets.
Finding the leaders of the next uptrend while the market is still correcting is challenging. One helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance relative to the S&P 500. When the stock is outperforming the broader market, the RS line moves up. When a stock is underperforming the broad market, the line points down.
Wednesday’s The Big Picture column commented: “The S&P 500 ended up giving away most of its gains, although it closed down 0.2%. The S&P sectors ended mixed, with commodities and energy the biggest gainers. Communication services was by far the biggest laggard.”
If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch right now
Dow Jones earnings: Amgen, Caterpillar, McDonald’s
Dow Jones stocks Caterpillar and McDonald’s both reported gains ahead of Thursday’s open. Amgen reported late Wednesday.
Caterpillar beat first-quarter earnings and sales targets, but shares were still down nearly 4% in morning trade. CAT shares are attempting to find support around their 50-day moving average after a failed breakout above a buy point of 227.15.
McDonald’s stock rose about 1% after reporting better-than-expected first-quarter results. Stocks are building the right side of a new base but closed below their 200-day moving average on Wednesday.
Amgen reported strong first-quarter results, but weak guidance sent shares down more than 5%. Amgen shares trace a mug with a handle that has a buy point of 258.55.
Keep an Eye on Dow Jones Stocks: American Express
Dow Jones financials American Express closed further below its 50-day moving average and about 8% from a cup buy point at 194.45 on Wednesday after falling 0.6% on Wednesday. AXP shares rose 1.2% on Thursday morning.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is gradually approaching its old highs, which means it is once again outperforming the broad market.
Four top growth stocks to watchrightent stock market correction
Stocks watched: Expedia, Palo Alto, WWE
Thursday’s IBD stock of the day Expedia continues to build a cup with a handle with a buy point of 204.08, according to chart analysis by IBD MarketSmith. Shares remain below their 50-day moving average after rising 2.2% on Wednesday. EXPE stock shows 92 out of 99 perfect IBD Composite Ratings according to the IBD Stock Checkup. Shares were up 0.9% Thursday morning.
Leading cybersecurity stock Palo Alto Networks closed just above the 50-day moving average after two consecutive losing days. PANW stock rose nearly 1% early Thursday.
Shares on IBD leaderboard watch World Wrestling Entertainment also tested its 50-day moving average, falling 1.7% on Wednesday. Shares are just below a buy point of 60.94 in a mug. WWE stock was slightly lower Thursday morning.
Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live
Tesla stock
Tesla shares gained more than 1% Thursday morning after the stock broke its 50-day and 200-day moving averages during Tuesday’s 12.2% plunge.
Shares of the EV giant closed about 24% off the mug buy point of 1,152.97 on Wednesday. The stock traded at 1,243.49 on Nov. 4, about 30% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gave up support at its 200-day long-term moving average, falling 3.7% on Wednesday. Shares were up more than 2% Thursday morning. Apple profits are due after close of trading. The iPhone maker is expected to earn $1.42 per share on sales of $94 billion.
Software leader Microsoft was up nearly 5% on Wednesday but is still below its 50- and 200-day moving averages. The stock closed about 20% below its 52-week high. MSFT shares were up 0.7% early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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