The Dow Jones Industrial Average rallied more than 200 points Thursday as energy stocks and China-exposed issues boosted early trade. The Labor Department's weekly jobless claims data proved higher than expected. And Tesla stock briefly dropped nearly 3% after Bloomberg reported the company has shortened Shanghai factory shifts and delayed new hires due to slowing demand in the China auto market.
First-time unemployment claims rose to 230,000 vs. 225,000 in the prior week, the Labor Department said. That was above economist estimates for 228,000. On Friday, wholesale inflation data is due out with the Producer Price Index, or PPI.
Chevron led the Dow Jones industrials, up 2% as oil prices rebounded. It also announced a 25% increase in its 2023 capital spending. Exxon Mobil plowed almost 3% higher on expanded earnings guidance, and after increasing its share repurchase program to $50 billion.
Meanwhile, Ciena and GameStop reported earnings ahead of Thursday's market open. Ciena soared more than 16%. GME stock was up 1.5% after reporting a quarterly decline in sales and a narrower loss vs. a year ago.
Stock Market Today
Electric-vehicle giant Tesla traded down 1.3% Thursday. Dow Jones tech leaders Apple and Microsoft were mixed after today's stock market open.
Celsius, IBD Leaderboard stock Dexcom, KLA and Trane Technologies — as well as Dow Jones names Caterpillar, Chevron and Home Depot— are among the top stocks to buy and watch.
Dexcom and Trane are IBD Leaderboard stocks. Caterpillar and Home Depot were featured in this week's Stocks Near A Buy Zone column. Celsius was a recent IBD 50 Stocks To Watch pick and a New America stock. Caterpillar was a recent IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average rose 0.7%, while the S&P 500 gained 0.65%. The tech-heavy Nasdaq composite moved up 0.9% in morning action as China-based stocks crowded the top of the list.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.6% and the SPDR S&P 500 ETF gained 0.7% early Thursday.
The 10-year Treasury yield ticked higher to 3.48% Thursday morning. On Wednesday, the 10-year Treasury yield tumbled to 3.4%, its lowest close since Sept. 12.
Meanwhile, U.S. oil prices rebounded after four straight heavy losses, which saw West Texas Intermediate futures hit a new 2022 low. WTI futures traded up 2% to just above $74 a barrel early Thursday.
Stock Market Rally
On Wednesday, the tech-heavy Nasdaq composite fell for a fourth straight session, while the S&P 500 extended a losing streak to five sessions. The Dow Jones industrials inched higher to snap a three-day losing streak.
Wednesday's The Big Picture column commented, "Bull markets need widening participation in order to survive. That hasn't happened in the latest rally attempt, at least so far, so a more defensive posture may be needed. The inverted yield curve seems to support this view, predicting weaker economic conditions in 2023."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market volatility.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Home Depot, Chevron
Dow Jones member Caterpillar continues to drift further away from a cup base's 238 buy point, according to IBD MarketSmith pattern recognition, in the wake of Wednesday's 0.3% gain. CAT stock rose 0.8% Thursday.
CAT stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Energy giant Chevron rose 0.3% Wednesday, still squarely below a 182.50 buy point in a consolidation base. Shares are trying to stem their current slide around their 50-day line. CVX shares climbed 2% Thursday morning, as oil prices rebounded amid this week's drop.
Home improvement retailer Home Depot ended Wednesday about 5% below a cup base's 333.08 buy point. Shares are close to adding a handle to the cup base, which would lower the correct buy point to 329.77. HD stock traded up 0.1% Thursday.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: Celsius, Dexcom, KLA, Trane
Energy-drink maker Celsius triggered the 7%-8% loss trigger from a cup base's 118.29 buy point during Wednesday's slide. While the stock could be adding a handle to the cup base, investors who bought during Friday's breakout move should be reducing their exposure. The stock was up 2.4% Thursday.
IBD Leaderboard stock Dexcom is approaching a flat-base entry at 123.46 and is about 4% away from that buy point after Wednesday's 0.9% rise. Dexcom stock was up 3.5% early Thursday.
Chip leader KLA finished Wednesday just below a 392.60 buy point, according to IBD MarketSmith chart analysis. A key technical strength is the stock's strong RS line, which hit another new high during Wednesday's action. KLA stock was up 0.6% Thursday.
Trane Technologies ended Wednesday about 3% below a 181.72 buy point in a cup with handle after the session's 1.2% climb. Shares were down slightly Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded another 3.2% Wednesday, falling sharply for a third straight session. Shares are already down more than 10% this week.
Despite the losses, the stock is holding above its 52-week low price, set in mid-November. Shares are about 57% off their 52-week high. Meanwhile, the stock appears to be seeing some resistance around the 200 price level, which is a key area to watch if the stock is able to mount another rally attempt. For now, it appears the stock is heading back to its 2022 low.
Shares moved down 3% Thursday morning to around 169 a share before trimming losses to 1.3%. Shares are just a few points above its 52-week low price at 166.19.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.4% Wednesday, hitting a recent low and falling further below the 50-day line. The stock is about 23% off its 52-week high. Apple stock traded up 0.7% Thursday.
Microsoft moved down 0.3% Wednesday, as shares continue to tread water above the 50-day line. The software giant remains around 30% off its 52-week high. Microsoft shares gave up 0.2% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
