The Dow Jones Industrial Average rose 250 points on Thursday after the Labor Department’s initial jobless claims data beat estimates. And Tesla stock rose as Morgan Stanley reiterated its overweight position with a reduced price target.
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Weekly jobless claims showed initial claims rose to 225k from 216k the previous week, ahead of Econoday’s estimate for a rise to 222k. Applications have been up and down for the past few weeks but have been trending down across the board since a high of 241k in mid-November.
On the earnings front is the chicken egg distribution giant Cal Maine Foods (CALM) reported after the market close on Wednesday. Shares fell more than 4% in morning trade. CALM shares closed below a buy point of 62.74 on Wednesday after two days of losses.
Market leader in electric vehicles Tesla (TSLA) soared almost 7% on Thursday as Morgan Stanley reiterated its overweight position in the stock despite cutting its price target. Dow Jones technology leader Apple (AAPL) and Microsoft (MSFT) traded higher after the market open today.
cardinal health (CAH), Medpace (MEDP), IBD Leaderboard Stock Neurocrine Life Sciences (NBIX) and Texas Roadhouse (TXRH) – as well as Dow Jones names amgen (AMGN), Caterpillar (CAT) and rafters (CVX) – are among the top stocks to consider for investors’ watch lists. Keep in mind that recent market weakness should hold investors back.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were the most 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
After Thursday’s opening bell, the Dow Jones Industrial Average was up 0.75% and the S&P 500 was up 1.1%. The tech-heavy Nasdaq Composite rose 1.6% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 1.1% and the SPDR S&P 500 ETF (SPY) was up 0.8% early Thursday.
The 10-year Treasury yield fell to 3.86% Thursday morning, with the yield continuing to move above its 50-day moving average after three days of gains.
Meanwhile, US oil prices traded nearly 2% lower on Thursday as West Texas Intermediate futures retreated from resistance just above $79 a barrel after a two-week rise. The Energy Information Administration will be providing oil inventory information weekly at 11:00 am ET.
stock market correction
On Wednesday, the Dow Jones Industrial Average lost 1.1% while the S&P 500 fell 1.2%. The tech-heavy Nasdaq Composite was the hardest hit, losing 1.35%.
Wednesday’s The Big Picture column commented: “Perhaps more importantly, price has become more important of late given the generally quiet trading expected for the remainder of the year. And the magnitude of the price declines remained severe. Also, the most gains by key equity indices have been lost since a follow-through day on October 21st meaning it’s still very difficult to make money from long positions.”
Five Dow Jones stocks to watch right now
Eyes on Dow Jones stocks: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to track a flat base amid a three-week losing streak. And shares remain below their 50-day moving average after further losses on Wednesday. Right now, the right buy point is 296.77, but the stock needs to decisively retrace its 50-day mark first. AMGN stock is up more than 16% for the year to Wednesday. Shares traded 0.5% higher on Thursday.
Dow Jones constituent Caterpillar closed below a buy point of 239.95 on a flat basis Wednesday, according to pattern recognition by IBD MarketSmith. If the stock regains entry, the buy zone will rise to 251.95. On an optimistic note, the stock’s relative strength line, a key technical indicator, is at fresh highs. CAT stock is up nearly 16% year-to-date. Shares rose 0.5% on Thursday.
CAT stocks show strong 98 out of 99 perfect IBD Composite Ratings according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron tests its 50-day moving average amid Wednesday’s 1.5% decline as the stock continues to trace the right side of a flat base with a buy point of 189.78. CVX stock has led the Dow year-to-date and is up more than 50%. Shares were slightly lower Thursday morning amid weakness in oil prices.
4 Top Growth Stocks to Watchrightde Stock market rally
Top stocks to watch: Cardinal Health, Medpace, Texas Roadhouse
Cardinal Health, a recent IBD stock of the day, is holding near a buy point of 81.67 on a flat basis. Shares fell 0.7% on Wednesday. CAH shares rose 0.3% on Thursday.
Medpace rebounded sharply from its 50-day moving average last week, up 3.3%. But the stock gave up much of those gains during Tuesday’s 2% decline and is once again attempting to find support. Right now, the right buy point is 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 on a flat basis but is now consolidating below its 50-day moving average. The restaurant manager will try to regain this important benchmark in the coming sessions, but two consecutive days of heavy losses are not constructive. TXRH shares were up 0.1% Thursday morning.
IBD leaderboard stock Neurocrine slipped 0.2% on Wednesday, retesting support around its 50-day level. A recent bounce off this 50-day moving average was optimistic about the stock’s prospects, but now stocks are back in this key area. NBIX shares rose 0.3% on Thursday.
stocks to look at
These are six top stocks to watch in today’s stock market, including three top Dow Jones stocks.
| Name of the company | symbol | Correct purchase 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 |
| rafters | (CVX) | 189.78 | flat base |
| amgen | (AMGN) | 296.77 | flat base |
Source: IBD data as of December 28, 2022
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla shares went on a seven-day losing streak on Wednesday, turning higher and climbing 3.3% after hitting a 52-week low of 108.76. Shares closed about 72% below their 52-week high.
Shares appeared to continue their recovery Thursday morning, racing nearly 7% higher.
Late Wednesday, Morgan Stanley analyst Adam Jonas cut the company’s price target to 250 from 330, while maintaining an overweight stance on TSLA stock. He believes 2023 “is shaping up to be a ‘reset’ year for the EV market” and Tesla poised to extend its lead over the competition.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares sold 3.1% on Wednesday, falling to 125.87, its lowest since June 2021. The stock is around 32% off its 52-week high and has been since Year-to-date down 29%. Shares rose 1.7% on Thursday morning as The Wall Street Journal reported that iPhone production in China ramped up following the Covid-19 woes.
Microsoft shares fell 1% on Wednesday, further falling below the 50-day moving average. The software giant is about 32% below its 52-week high, with a more than 30% loss year-to-date. MSFT shares were up 0.8% 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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