The Dow Jones Industrial Average dropped Thursday following Wednesday's stock market surge in the wake of the Federal Reserve's first rate increase since 2018. Treasury yields continue to hold near their highest levels since July 2019, while U.S. oil prices jumped back above $100 a barrel Thursday.
Dow Jones health care giant UnitedHealth, Costco and O'Reilly Automotive are among the top stocks to buy and watch in the current stock market rally. Meanwhile, Tesla stock is trying to retake its long-term 200-day line.
Among the Dow Jones leaders, Apple slipped 0.4% and Microsoft moved down 0.2% in today's stock market. UnitedHealth, a Dow Jones stock to watch, finished Wednesday below a new buy point after a brief breakout attempt.
Dollar General, Williams-Sonoma and Accenture were all early leaders following earnings reports. Electric-vehicle leader Tesla dropped nearly 1% early Thursday, threatening to give back a part of Wednesday's strong gains.
Amid the volatile, headline-driven market, Costco, O'Reilly Automotive, Regeneron Pharmaceuticals and Vertex Pharmaceuticals are among Wednesday's top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft, Tesla and Vertex are IBD Leaderboard stocks. O'Reilly was Tuesday's IBD 50 Stocks To Watch pick. And Costco and Regeneron were featured in this week's Stocks Near A Buy Zone column.
Market Rally Builds Momentum; Tesla Ready To Charge?
Dow Jones Today: Jobless Data
After Thursday's market open, the Dow Jones Industrial Average fell 0.35%, while the S&P 500 moved down 0.4%. The Nasdaq lost 0.6% in morning trade. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.6%, and the SPDR S&P 500 ETF moved down 0.4% after Thursday's open.
The 10-year U.S. Treasury yield ticked down to 2.13% Thursday morning after ending Wednesday at 2.18%, its highest point since July 2019. U.S. oil prices rebounded Thursday morning, with West Texas Intermediate crude trading just shy of $100 a barrel.
First-time jobless claims measured 214,000, beating estimates that called for initial unemployment claims to fall to 221,000 vs. 227,000 in the prior week, according to Econoday estimates.
Stock Market Rally
The stock market posted strong action Wednesday, as the major stock indexes again finished with big gains. Unlike Tuesday, Wednesday's volume — a key element of a follow-through day — came in higher than the previous session. Following Wednesday's powerful gains, now is an important time to read and follow IBD's The Big Picture column.
Wednesday's The Big Picture column commented, "Investors should take action to increase exposure now, though a gradual approach makes sense given the volatility of the past few months. Remember, there is still significant headline risk going forward. Inflation remains a key issue while the Russia-Ukraine conflict is a wild card that has proved its ability to shake the market."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth shows a 500.10 buy point with a handle entry on a double-bottom base. Shares ended Wednesday just below the entry after a slight gain. UNH shares were down 0.3% early Thursday. UNH was Monday's IBD Stock Of The Day.
Bullishly, the stock's relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Costco, O'Reilly, Regeneron, Vertex
Costco stock is trying to break out past a 545.39 buy point in a cup-with-handle base, according to IBD MarketSmith charts. Bullishly, the stock's relative strength line already hit new highs, a sign of extreme strength especially during periods of significant market weakness. Costco shares inched higher early Thursday.
Tuesday's IBD 50 Stocks To Watch pick, O'Reilly Automotive, broke out past a 687.33 buy point in a cup with handle and is in buy range. Shares tacked on 0.7% Wednesday and are in the 5% buy area, which tops out at 721.70. ORLY shares were down nearly 1% early Thursday.
Regeneron Pharmaceuticals decisively cleared an early entry at 645.10 during Monday's session. Meanwhile, the stock broke out past a 673.96 buy point in a flat base on Wednesday and is in buy range. REGN shares were slightly higher Thursday. Regeneron is this week's New America.
IBD Leaderboard stock Vertex Pharmaceuticals is tracing a flat base with a 255.03 buy point. Per Leaderboard analysis, Vertex Pharmaceuticals was boosted to a half position from a quarter on a solid bounce off the 50-day line in recent sessions. VRTX shares lost 0.1% early Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock traded down nearly 1% early Thursday, threatening to snap a two-day win streak. Shares remain below their long-term 200-day moving average despite two straight days of solid gains.
The stock traded as high as 1,243.49 on Nov. 4, but ended Thursday about 32% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares advanced 2.9% Wednesday, adding to Tuesday's gain. The stock moved further back above its long-term 200-day line. AAPL shares lost 0.4% early Thursday.
Software leader Microsoft jumped 2.5% Wednesday, but shares are still below the 200-day line. Microsoft fell 0.2% Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
