The Dow Jones Industrial Average sold off as much as 411 points Thursday morning after hotter-than-expected wholesale inflation data, as well as a surprise drop in weekly jobless claims. Shopify plunged 16% after the company's 2023 revenue outlook fell short of expectations.
January's Producer Price Index from the Labor Department rose 0.7% on the month, hotter than the 0.4% estimate. That amounts to a year-over-year increase of 6%, down from 6.2% in December. The monthly core rate rose 0.5%, hotter than the 0.3% estimate, with an annual rate of 5.4%.
Meanwhile, weekly first-time unemployment claims fell to 194,000 vs. 195,000 in the previous week. They were expected to rise to 200,000. Lastly, the Philadelphia Federal Reserve's Manufacturing Business Outlook Survey for February fell to -24.3 vs. -8.9 in the previous month.
On the earnings front, Albemarle, Dow Jones member Cisco Systems, Roku and Twilio reported earnings late Wednesday.
Albemarle shares gained more than 1% after the lithium miner topped fourth-quarter earnings estimates, while reiterating the outlook introduced last month. Cisco shares jumped 3% after beating earnings expectations, nearing a 50.81 buy point. It also raised its quarterly dividend.
Streaming video platform Roku smashed estimates for new users and revenue in the fourth quarter, sparking a 8% surge in morning trade. Finally, Twilio soared 12% in early morning trade.
Early Thursday, Crocs, Datadog, Shake Shack and Toast reported quarterly results.
CROX stock leapt 6%, while Datadog shares crumbled 6.5%. Shake Shack lost nearly 2% despite a narrower-than-expected loss. Toast shares plunged 20% in early trade.
Stock Market Today
Electric-vehicle leader Tesla dropped 1.8% Thursday morning. Dow Jones tech giants Apple and Microsoft were sharply lower in today's stock market.
Dexcom, IBD Leaderboard stock Snowflake, Inspire Medical Systems and Wingstop — as well as Dow Jones stocks Caterpillar, JPMorgan Chase and Salesforce — are among the top stocks to buy and watch, amid the recent rally in the stock market.
Snowflake is an IBD Leaderboard stock. Inspire and Dexcom were recent IBD Stock Of The Day subjects. Salesforce was featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average dropped 1.1%, and the S&P 500 moved down 1.15%. The tech-heavy Nasdaq composite lost 1.15% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 1.5% and the SPDR S&P 500 ETF fell 1.1% early Thursday.
The 10-year U.S. treasury yield rose to 3.8% Wednesday, its highest close since Dec. 30. Then, the 10-year yield ticked higher to 3.84% Thursday morning after the PPI reading.
Oil prices looked to snap a two-day pullback Thursday, moving up a fraction in morning trade. West Texas Intermediate futures traded just below $79 a barrel.
Stock Market Rally
On Wednesday, the Nasdaq composite led the way, climbing 0.9%, while the Dow Jones Industrial Average rose 0.1%, and the S&P 500 gained 0.3%.
Wednesday's Big Picture column commented, "A hotter-than-expected report on January U.S. retail sales likely thumped premarket futures. A 3% jump in the headline number vs. December strengthened hope that the U.S. economy will avoid a hard landing. Yet it also affirms market participants' thinking that yes, the Federal Reserve will be even more adamant to use higher rates to bring inflation down to a comfortable level."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan, Salesforce
Top Dow Jones stock Caterpillar is still in buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares rebounded 1.8%, bouncing off the 50-day line. CAT stock dipped 0.8% Thursday morning.
Banking giant JPMorgan remains in the 5% buy range above a 138.76 flat-base buy point after a fourth-straight gain Wednesday. The 5% buy zone tops out at 145.70. JPM shares fell 0.5% early Thursday. JPM stock shows a solid 95 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.
Featured in this week's Stocks Near A Buy Zone column, Salesforce is building a cup with handle that has a 178.94 buy point. Shares rose 0.7% Wednesday, ending just 4% away from the entry. CRM stock was down 1.6% early Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Inspire, Snowflake
Recent IBD Stock Of The Day Inspire Medical Systems ended just out of the 5% buy area past a flat base's 262.64 buy point amid Wednesday's 2.9% rally, according to IBD MarketSmith pattern recognition. The buy zone topped out at 275.77. INSP stock shows a modest 84 IBD Composite Rating. INSP stock dropped 1.7% early Thursday.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
Recent IBD Leaderboard addition Snowflake is rapidly nearing an early entry at 178.80, as the software leader moves up the right side of a deep cup base that features a 205.76 buy point. SNOW stock declined 3.5% Thursday morning.
Backstory: The software firm offers a new way for enterprises and large organizations to access, arrange and analyze their data. To help customers maximize their investments in data analytics, Snowflake charges by time of usage. Earnings are due March 1.
Dexcom, Wingstop Eye Latest Buy Points
Dexcom shares advanced 1.4% Wednesday, extending a win streak to four sessions and moving further up the right side of a cup base with a 125.65 buy point. Shares could also form a handle over the next few weeks, so keep an eye out for a potential lower entry. The stock dipped 1.4% Thursday.
Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom's newest continuous glucose monitor, or CGM, gains steam in the U.S. and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration cleared Dexcom's new device, G7, last year.
Wingstop moved further past a 169.04 buy point in a cup with handle, rallying 2.2% Wednesday in the wake of Tuesday's breakout move. WING stock was down 0.7% Thursday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Inspire Medical Systems | 262.64 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Snowflake | 205.76 | Cup base | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 169.04 | Cup with handle |
Source: IBD Data As Of Feb. 15, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock moved up another 2.4% Wednesday, adding to Tuesday's lofty gains. Despite their strong rebound since Jan. 6, shares are still below the 200-day line, but that key level looms as a potential resistance area. Shares closed Wednesday around 44% off their 52-week high.
Shares threatened to give up a large part of Wednesday's gains, falling nearly 2% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.4% Wednesday, closing at their highest level since Oct. 28. Shares are around 14% off their 52-week high and are moving up the right side of a new base. Apple stock fell 1% Thursday.
Microsoft shares declined 1.05% Wednesday, ending a two-day advance. Shares are above their 200-day line and about 15% off their 52-week high after recent gains. MSFT stock was down 1.9% Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
