The Dow Jones Industrial Average rose Thursday morning, as tech giant Meta Platforms slid on weaker-than-expected earnings results. Meanwhile, Amazon.com and Apple earnings are due out after the close.
Facebook-parent Meta reported second-quarter results late Wednesday that missed estimates and also reported a slight quarterly decline. It was the first time Meta reported its first quarterly decline from the year-ago period, down from $29 billion. Its revenue outlook also missed expectations. Shares slid 5% in morning trade.
Other key earnings movers Thursday morning include Ford Motor, Lam Research, Murphy USA, Northrop Grumman, O'Reilly Automotive, Pfizer and Qualcomm.
Ford Motor shares raced 6% higher after the company reaffirmed its 2022 outlook and hiked the Ford stock dividend after crushing earnings estimates for the second quarter. Lam Research shares dropped 0.5%. Murphy USA gained 5%. Northrop slipped 1%. O'Reilly shares declined more than 2%. Pfizer shares lost 2%. And Qualcomm beat Wall Street's targets for its fiscal third quarter but came up short with its guidance for the current quarter, causing a 3% skid.
Tesla rallied about 2% early Thursday. Elsewhere, Dow Jones tech leader Apple and Microsoft were both squarely higher after today's stock market open.
In the volatile stock market environment, Dow Jones stock UnitedHealth — as well as ELF Beauty, Quanta Services, Ulta Beauty, Verra Mobility and Vertex Pharmaceuticals — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
UnitedHealth and Vertex are IBD Leaderboard stocks. ELF and Ulta were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, GDP
After Thursday's open, the Dow Jones Industrial Average rose 0.25% and the S&P 500 gained 0.35%. The tech-heavy Nasdaq composited moved up 0.3% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.3%. And the SPDR S&P 500 ETF gained 0.35%.
The 10-year Treasury yield ticked lower to 2.66% Thursday morning, extending Wednesday's drop to 2.73%. This week, the 10-year Treasury yield hit its lowest level since April. Meanwhile, U.S. oil prices rebounded, as West Texas Intermediate futures rose more than 2% to trade above $99 a a barrel.
Second-quarter GDP dropped 0.9%, missing estimates that called for a slight rise and falling for second straight quarter. GDP contracted 1.6% in the first quarter. A second straight quarterly decline meets a common definition of recession. Meanwhile, first-time jobless claims unexpectedly rose to 256,000 vs. 251,000 in the previous week.
Stock Market Rally
The Nasdaq led the market higher Wednesday, surging more than 4%. The Dow Jones industrials and S&P 500 rose 1.4% and 2.6%, respectively.
Wednesday's The Big Picture column commented, "The Nasdaq composite, gapping up at the open, finished with a 4.1% advance for one of its biggest single-day gains this year. Keep in mind, however, that history has shown that the biggest bear markets frequently feature rebounds of this magnitude. Just view the pair of 3%-plus up days on Jan. 28 and 31."
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
Health insurance giant and IBD Leaderboard stock UnitedHealth is further above its double-bottom-with-handle base's 518.80 buy point after Wednesday's 0.6% gain, according to IBD MarketSmith chart analysis. Shares were up 0.5% Thursday.
UNH stock shows a solid 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: ELF, Quanta, Ulta, Verra, Vertex
ELF Beauty is about 2% below a 33.54 buy point in a cup with handle following a recent skid. The RS line hit a new high last week, which is a sign of big stock market outperformance. ELF shares were up 0.3% Thursday.
Quanta Services is just 3% away from a cup-with-handle base's 138.56 buy point, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 133.68 is also in play. Shares traded up 3% Thursday.
IBD Big Cap 20 stock Ulta Beauty is building a flat base with 429.58 buy point, and is back above its 50-day line after Wednesday's 2.8% advance. The base comes in the wake of a failed breakout past a cup-with-handle's 426.93 entry in June. Ulta shares gained 1% Thursday.
Verra Mobility is trading about 4% below a cup-with-handle's 16.83 buy point in the wake of Wednesday's 1.6% climb. Verra shares were up 1.1% Thursday.
IBD Leaderboard stock Vertex Pharmaceuticals found support around a cup-with-handle's 279.23 buy point and is in the 5% buy area that goes up to 293.19 amid Wednesday's 0.4% loss. Vertex stock inched higher Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock jumped 6.2% Wednesday, snapping a two-day losing streak. Shares are at their highest level since early May, but are still about 34% off their 52-week high.
Shares rose 2% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares advanced 3.4% Wednesday, ending a three-day losing streak. Apple remains above its 50-day line after bullish action in recent weeks. Still, shares remain below their long-term 200-day line, which looms as a resistance level to watch. The stock is about 14% off its 52-week high. Apple shares moved up 0.3% Thursday ahead of the company's earnings results after the close.
Microsoft rebounded 6.7% Wednesday, bullishly regaining its 50-day line. The stock closed about 23% off its 52-week high. Microsoft traded up 0.8% in morning trade.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
