The Dow Jones Industrial Average and the other major indexes shook off Federal Reserve-fueled losses Thursday as investors digested a surprise jump in unemployment figures. That came as investors prepared for Magnificent Seven stocks Amazon and Apple to report earnings after the market close.
After the opening bell, the tech-heavy Nasdaq composite rebounded 0.9% in morning action. The Dow Jones Industrial Average was up 0.4%, while the S&P 500 rose 0.6%.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.8%, while the SPDR S&P 500 ETF gained 0.5%.
The 10-year Treasury yield continued to tumble, down to 3.88%. Further, oil prices looked to bounce back from Wednesday's losses, as West Texas Intermediate futures rose 1%. WTI futures traded near $76.50 a barrel.
Initial jobless claims from the Labor Department came in higher than expected Thursday morning, rising to 224,000 vs. 214,000 in the previous week. Claims were expected to hold steady at 214,000, per Econoday estimates.
Other economic reports are out Thursday, including S&P Global's final manufacturing Purchasing Managers' Index for January. The index rose to 50.7, higher than the mid-month reading at 50.3.
Also, the Institute for Supply Management's manufacturing index rose to 49.1 in January vs. December's 47.4 reading. It was expected to remain unchanged.
Earnings Reports: Amazon, Apple To Report
Key earnings movers Thursday include Align Technology, Merck, Nextracker, Qualcomm, Royal Caribbean and Tractor Supply.
Align shares slashes gains to 5%, while Nextracker catapulted 15% higher in early action. Dow Jones giant Merck rallied 2.1% in early trading, as Qualcomm shares declined 4%. Finally, Royal Caribbean jumped more 2%, while Tractor Supply shares rose almost 1%.
Looking ahead, Magnificent Seven stocks Amazon and Apple will report after the close. Amazon shares are just off their recent highs, while Apple stock gave up its key 50-day line in recent sessions.
Dow Jones Slides
On Wednesday, the Dow Jones Industrial Average moved down 0.8% and the S&P 500 declined 1.6%. The tech-heavy Nasdaq composite sold off 2.2%.
Wednesday's Big Picture column commented, "The sharpest moment of the day's sell-off? It came after Fed Chair Jerome Powell commented during a news conference that the U.S. central bank is unlikely to begin lowering the cost of money in March. Yet in reality, the bond market wasn't really convinced, either, that the fed funds rate would get lowered from its current range of 5.25%-5.5% at the Fed's next meeting two months from now."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch
DraftKings, KKR, Novo Nordisk and Snowflake — plus Dow Jones components Amgen, Merck and Walmart — are among the best stocks to buy and watch in the current market rally.
KKR and Walmart were featured in this Stocks Near A Buy Zone column. DraftKings is an IBD Leaderboard Watchlist stock, while KKR is on IBD SwingTrader.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Merck Rallies On Earnings
Biotech leader Amgen inched lower Wednesday, holding out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. Amgen shares gained 0.4% Thursday.
With its gains Thursday, drugmaker Merck is breaking out past a cup base's 119.65 buy point, according to IBD MarketSmith pattern recognition. Shares finished barely above their entry amid a 0.8% drop Wednesday.
Discount retail giant Walmart is in buy range past a 163.57 entry in a cup with handle, despite a slight fall Wednesday. The stock was up 0.3% early Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
DraftKings Holds Buy Point
IBD Leaderboard Watchlist stock DraftKings declined 3.1% Wednesday, closing just above a double-bottom base's official buy point at 38.97. DraftKings stock bounced 0.6% higher Thursday morning.
IBD SwingTrader stock KKR remains above an 85.66 flat-base entry despite a 1.3% drop Wednesday. Shares climbed 0.9% Thursday morning.
Novo Nordisk, the maker of weight-loss drugs, jumped 5.2% Wednesday and moved through its buy range past a 105.69 flat-base buy point. Novo shares gave up 0.9% early Thursday.
Software leader Snowflake gave up a 202.83 buy point in a flat base with a 5.1% dive Wednesday, according to IBD MarketSmith. Snowflake shares rebounded 0.6% Thursday.
Best Bets In Today's Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | 105.69 | Flat base | |
| Merck | 119.65 | Cup base | |
| DraftKings | 39.35 | Cup base | |
| Spotify | 202.88 | Flat base |
Source: IBD Data As Of Jan. 31, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia rose 1.5%, while Tesla fell 0.2% in morning action Thursday.
Nvidia added 0.5% Wednesday, more than 20% past a a 505.48 buy point in a flat base after a Jan. 8 breakout move. Shares set more record highs.
Tesla skidded 2.2% Wednesday, snapping a three-day win streak and moving back near its recent lows.
Dow Jones Leaders: Apple
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher after Thursday's stock market open.
Apple stock fell 1.9% Wednesday, extending a losing streak to six sessions and closing further below its 50-day line. Shares are about 6% away from their cup-with-handle's 196.38 buy point. Shares rose 0.9% early Thursday ahead of the company's earnings results.
Microsoft shares tumbled 2.7% Wednesday, falling back into buy range past a 384.30 buy point in a flat base. The software giant added 2.2% Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
