The Dow Jones Industrial Average rallied Thursday after a fresh round of key economic data. Another read on inflation, from the Labor Department's Producer Price Index, as well as weekly jobless claims both came out early. Dow Jones media giant Walt Disney soared almost 10% on strong earnings results.
Other earnings movers include Alpha & Omega Semiconductor, Cardinal Health and Dutch Bros.
AOSL shares rallied more than 11%. Cardinal Health declined around 3%. And Dutch Bros stock rallied more than 12% in early morning trade.
Home improvement giant Lowe's declined 1% Thursday morning after Citigroup downgraded the stock to neutral from buy. Electric-vehicle leader Tesla traded up 1%. Elsewhere, Dow Jones tech leaders Apple and Microsoft both rose after today's stock market open.
In the current healthy stock market environment, Dow Jones stocks Coca-Cola and UnitedHealth — as well as American Tower, Monolithic Power Systems, Ollie's Bargain Outlet and Vertex Pharmaceuticals — are among the top stocks to buy and watch.
UnitedHealth and Vertex are IBD Leaderboard stocks. Ollie's and Vertex were featured in this week's Stocks Near A Buy Zone column. Monolithic Power was the IBD Stock Of The Day a week ago. Vertex is also an IBD SwingTrader idea. American Tower was Wednesday's IBD 50 Stocks To Watch pick.
Dow Jones Today: Treasury Yields, Oil Prices, Inflation Data
The Dow Jones Industrial Average rose 0.8%, and the S&P 500 moved up 0.75%. The tech-heavy Nasdaq composite climbed 0.8% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.7%. And the SPDR S&P 500 ETF also gained 0.7%.
The 10-year Treasury yield eased to 2.74% Thursday morning, extending Wednesday's drop to 2.78%. The 10-year Treasury yield has struggled to rebound after hitting its lowest level since early April last week.
Meanwhile, U.S. oil prices also are also trying to rebound from a recent pullback. West Texas Intermediate futures rose 1% on Thursday, trading around $93 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.
The Producer Price index, which measures wholesale inflation, came out Thursday morning. Producer prices dropped 0.5% in July, far below the expected rise of 0.3% and down from June's 1.1% increase. Year over year, prices rose 9.8% vs. an expected jump of 10.3%. On Wednesday, the CPI inflation rate finally pulled back from a 40-year peak in July, as the consumer price index came in cooler than expected.
Meanwhile, first-time jobless claims rose to 262,000 from the prior week's 260,000. Econoday estimates called for 260,000 initial unemployment claims.
Stock Market Rally
On Wednesday, the Nasdaq composite — fueled by a quiet reading on July price inflation data — powered 2.9% higher, while the S&P 500 advanced 2.1%. The Dow Jones Industrial Average gained 1.6%.
Wednesday's The Big Picture column commented, "And so when it comes to the portfolio, you do not have to plunge into stocks headfirst. More economic news and actions and comments by Federal Reserve bankers could lead to mini-corrections within the big correction. Nonetheless, the air in the stock market is giving off a fresher scent. Notable improvements in the technical landscape should not get ignored."
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.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Coca Cola, UnitedHealth
Dow Jones soda giant Coca Cola is building the right side of a flat base that has a 67.30 buy point. Meanwhile, an early handle entry is also in play at 65.14. Shares are rebounding from their 50-day line following two straight days of gains. KO stock was down 0.1% Thursday.
Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base's 518.80 buy point amid Wednesday's 0.1% gain, according to IBD MarketSmith chart analysis. The 5% chase zone goes up to 544.74. Shares lost 0.1% Thursday.
UNH stock shows a solid 94 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: American Tower, Monolithic, Ollie's, Vertex
Wednesday's IBD 50 Stocks To Watch pick, American Tower, is in buy range past a cup with handle's 271.19 buy point, according to IBD MarketSmith chart analysis. Shares rose 0.6% Wednesday, extending a five-day win streak. AMT stock traded up 0.1% Thursday morning.
Thursday IBD Stock Of The Day Monolithic Power Systems continues to build the right side of a consolidation with a 580.10 buy point. Meanwhile, shares reclaimed a 514.80 early entry during Wednesday's 4.1% advance. Keep an eye out for a potential handle that is close to offering another alternate buy point. Shares were up 0.2% Thursday.
Ollie's Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 10% away from that entry. Shares were up almost 3% early Thursday.
IBD SwingTrader stock Vertex Pharmaceuticals slipped 1% Wednesday, but is still slightly out of buy range past a cup with handle's entry at 279.23. The 5% chase zone went up 293.19. The stock's June 23 breakout is back on track following last week's second-quarter earnings results. Vertex stock was down 0.2% Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 3.9% Wednesday, rebounding from Tuesday's 2.4% slide. Shares traded up more than 1% Thursday morning.
Last week, Tesla shares reached their highest level since early May, but are now finding staunch resistance around their 200-day line, which is a key level to watch. The stock is almost 30% off its 52-week high. A 3-for-1 stock split will occur on Aug. 24.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 2.6% Wednesday, closing at its highest level since April 13. The stock is building the right side of a cup base that has a 179.71 buy point. Shares rose 0.5% Thursday morning.
Microsoft rose 2.4% Wednesday, moving closer to the long-term 200-day line, which is a key resistance area to watch. The stock moved up 0.3% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
