The Dow Jones Industrial Average dropped 150 points Thursday after the Labor Department released weekly unemployment claims data. Meanwhile, Tesla stock dived on Elon Musk's Cybertruck warning as the electric-vehicle giant missed on its quarterly earnings. And Netflix surged on strong results.
Weekly first-time claims for unemployment assistance surprisingly fell to 198,000. Claims were expected to have climbed modestly in the week ended Oct. 14, to 211,000 vs. 209,000 in the previous week. Further, the Philadelphia Fed's Manufacturing Index improved to -9.0 in October after some wild swings in August and September.
On the earnings front, Alcoa, AT&T, Lam Research, along with Netflix and Tesla, were key earnings movers Thursday morning.
AA stock dropped 4.2% in morning trade, while AT&T stock jumped more than 7%. And Lam shares sold off 5.5%.
Tesla stock plunged 8.5% after the EV leader reported worse-than-expected earnings and revenue late Wednesday, but also said that Cybertruck deliveries will begin next month.
However, Chief Executive Elon Musk warned, "We dug our own grave with Cybertruck," saying that "there will be enormous challenges in reaching volume production with the Cybertruck, and then in making a Cybertruck cash-flow positive."
Musk continued, "I want to temper expectations for Cybertruck. It's a great product, but financially it'll be 12 to 18 months to be a significant positive cash flow contributor."
Finally, Netflix soared 16% after the streaming giant late Wednesday smashed expectations for new subscribers in the third quarter. Netflix said it added 8.76 million new subscribers during the period, beating analyst views for 6.06 million. The company also exceeded earnings forecasts and met predictions for revenue.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 fell 0.3%. The tech-heavy Nasdaq composite moved up 0.1% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust edged higher, while the SPDR S&P 500 ETF moved down 0.2% early Thursday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.94% Thursday morning, extending this week's already hefty gains. The 10-year Treasury yield set a fresh long-term high on Wednesday, settling at 4.9%.
Oil prices were down around 1% Thursday morning, slipping into negative territory for the week. West Texas Intermediate futures traded near $86 a barrel, down not quite 4% since the start of October.
Struggling Stock Market Rally
On Wednesday, the Nasdaq composite sold off 1.6%, while the S&P 500 declined 1.3%. Finally, the Dow Jones Industrial Average tumbled 1%.
Wednesday's Big Picture column commented, "The stock market's uptrend from its late-September and early-October lows has been on shaky ground lately. That's why IBD is recommending a light exposure level of 0% to 20%."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing signs of a pressured uptrend. Be sure to read how to handle the changing stock market outlook.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Nvidia gained 1.8% in morning trading. Meanwhile, Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
IBD Leaderboard member Arista Networks, Lululemon Athletica, Meta Platforms and Regeneron Pharmaceuticals — as well as Dow Jones stocks JPMorgan Chase and Salesforce — are among the best stocks to buy and watch in the still-struggling stock market uptrend.
Meta is an IBD SwingTrader stock, while JPMorgan is featured in this Stocks Near A Buy Zone column. Regeneron was IBD's Stock Of The Day on Friday.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan slid 1.1% Wednesday, taking its losing streak to three straight sessions. Shares are struggling to regain their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using Friday's high as the buy trigger. JPM stock rose 0.1% in morning action Thursday.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock rose 1% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: LULU Gives Up Buy Point
Arista dropped 0.6% Wednesday, just shy of a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30. ANET stock climbed 0.3% early Thursday.
Lululemon surged past a flat base's 406.94 buy point Monday, with a 10.3% advance. But shares dipped back below that entry during Wednesday's 1.8% drop. LULU stock was down 1% Thursday morning.
Social media giant Meta Platforms is trying to find support around a 312.87 buy point following Wednesday's 2.2% decline. Meanwhile, Meta stock is still below a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. Meta shares rose 0.6% Thursday.
Biotech leader Regeneron is trying to break out past a flat base's 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2. REGN stock was down 1.9% Thursday.
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Lululemon | 406.94 | Flat base | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Prior to reporting earnings, Tesla stock had tumbled nearly 5% Wednesday. Shares fell below their key 50-day line, an important level to watch.
TSLA stock has an official cup-with-handle base with a buy point at 278.98. But that base is in peril amid today's big losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple extended a losing streak to four sessions Wednesday, declining 0.7%. Shares are trying to bounce back from their recent lows. If AAPL stock can continue its rebound, then it's likely to form a double-bottom base with a 189.98 buy point. Apple is due to deliver its fiscal fourth-quarter report on Nov. 2. Shares rose 0.5% early Thursday.
Microsoft shares fell 0.6% Wednesday, as shares continue to hold above their 50-day line. A new base is forming, with an early entry at 340.86. An early entry at Monday's high of 336.14 is also in play. Earnings results are out Oct. 24. And on Thursday morning, MSFT stock was up 1.1%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
