The Dow Jones Industrial Average rose Thursday morning after a surprise fall in the Labor Department's first-jobless claims and first-quarter GDP data. Facebook-parent Meta Platforms rallied 14% on earnings, as leading AI stock Mobileye plunged as much as 30% after cutting its full-year outlook. And Amazon reports after the close.
On the economic front, weekly initial jobless claims fell to 230,000. They were expected to rise to 249,000 vs. 245,000 in the previous week. Meanwhile, first-quarter GDP slowed to 1.1%, below expectations for a slow to a 2% annualized growth rate, vs. fourth-quarter growth of 2.6%.
Meta stock surged 14% Thursday morning after easily beating Wall Street's first-quarter projections and issuing bullish sales guidance.
Artificial intelligence stock Mobileye crashed as much as 30% after cutting its full-year outlook, citing issues with the China market.
Other key earnings movers include Align Technology, Caterpillar, Impinj, Merck, Roku and ServiceNow.
Align shares tumbled more than 8% despite a better-than-expected earnings and sales estimates during the first quarter, while CAT stock slid nearly 5% in morning trade.
Hot chip stock Impinj missed Wall Street's target for earnings but beat estimates for sales in the first quarter. The company also offered an outlook that was well below views for the current period. Impinj stock crumbled 30% in early trade.
Dow Jones drug giant Merck climbed 1% after a first-quarter earnings beat. Roku beat forecasts for its first quarter as it added more viewers than expected. ROKU stock slid nearly 4%.
ServiceNow shares lost more than 5% even after the company reported first-quarter earnings that handily topped views, while revenue edged past analyst estimates.
Stock Market Today
Electric-vehicle giant Tesla traded up more than 1% Thursday morning. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Crocs, InMode, IBD Leaderboard stock Las Vegas Sands and Lululemon Athletica — as well as Dow Jones stocks JPMorgan Chase, Nike and Visa — are among the top stocks to watch in the now-struggling stock market rally.
Nike was featured in this week's Stocks Near A Buy Zone column. InMode 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 0.6%, while the S&P 500 gained 0.9% as the uptrend seeks a foothold after coming under pressure early this week. The tech-heavy Nasdaq composite advanced 1.2% in morning action, with Meta stock leading the index.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.9%, while the SPDR S&P 500 ETF traded up 0.6% early Thursday.
The 10-year U.S. Treasury yield on Thursday traded up to 3.49%. The 10-year yield is still set for sharp losses this week, though it is still squarely off its early April lows.
U.S. oil prices moved modestly higher Thursday morning, following a big drop on Wednesday. West Texas Intermediate futures remain below $75 a barrel, pulled back from an April 12 high above $83 a barrel and trading near what has been their mean so far this year.
Stock Market Rally Struggles
On Wednesday, the Dow Jones Industrial Average declined 0.7%, with Home Depot among the big losers. HD stock tumbled 2.8%, closing 17% off its 52-week high.
The S&P 500 lost 0.4%, while the tech-heavy Nasdaq composite rose 0.5%, buoyed by Microsoft's 7.2% surge on earnings. The market status shifted on Tuesday from "confirmed uptrend" to "uptrend under pressure," suggesting investors take a more cautious stance.
Wednesday's Big Picture column cautioned, "First-quarter earnings have soothed Big Tech so far, but regional banks — led by First Republic Bank — look scary despite Wednesday's small upside. The SPDR Regional Bank ETF hit a low of more than two years early, warning that financial contagion fears are still growing."
Now is an important time to read IBD's The Big Picture column with the stock market now struggling to maintain its uptrend.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan, Nike, Visa
JPMorgan shares lost 1.8% Wednesday, closing right at their 50-day line. Shares are tracing a cup-with-handle buy point at 141.88, according to IBD MarketSmith pattern recognition. JPM stock rose 0.9% early Thursday.
Nike shares dropped 0.7% Wednesday, still above their 50-day line and about 4% away from a cup-with-handle's 127.59 buy point. NKE stock moved up 0.5% in early trade.
Visa shares closed Wednesday further below a 230.15 cup-with-handle buy point, falling 0.6%. And V stock edged lower in early morning trade Thursday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Crocs, InMode
Crocs shares rebounded 1.7% Wednesday, bouncing back from Tuesday's sharp decline. CROX stock continues to hold above a cup base's 143.60 buy point, according to IBD MarketSmith. The 5% buy range goes up to 150.78. The company reported first-quarter earnings early Thursday, sending CROX stock more than 10% lower in early morning trade.
Backstory: Broomfield, Colo.-based Crocs is best known for its rubbery, casual-wear shoes. The company in recent years expanded its Crocs brand portfolio from the classic slip-on clogs to include boots, sandals, wedges and sneakers. The Crocs brand makes up around 75% of sales.
InMode finished Wednesday just shy of a cup-with-handle's 38.48 buy point, with a 0.5% rise. INMD stock rose 0.5% Thursday morning.
Backstory: The company makes noninvasive platforms that tighten skin and obliterate fat cells. It's also moving into the women's health realm with gynecological offerings. UBS analyst Danielle Antalffy says InMode provides a lower-cost alternative to traditional plastic surgery.
Las Vegas Sands, Lululemon
IBD Leaderboard stock Las Vegas Sands remains in the 5% buy range above a 60.40 buy point in a cup with handle despite Wednesday's 1% loss. The buy zone tops out at 63.42. LVS stock was down 0.6% Thursday morning.
Backstory: Last week, Las Vegas Sands smashed earnings expectations for the first quarter and signaled a "robust recovery" in China's Macau gaming hub. The casino stock posted earnings of 28 cents per share, up from a net loss of 40 cents a year ago. Revenue vaulted nearly 125% to $2.12 billion.
Lululemon is clinging to a 371.36 entry in a cup with handle, with a slight rise Wednesday. Shares were up 0.7% Thursday morning.
Backstory: On March 28, Lululemon hiked 2023 guidance after topping earnings and revenue estimates for the holiday fourth quarter, sparking a 12.7% surge on March 29. The yogawear and athleisure apparel retailer's final fourth-quarter results also exceeded its own preliminary announcement, issued in early January.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Crocs | 143.60 | Cup base | |
| Nike | 127.59 | Cup with handle | |
| Visa | 230.15 | Cup with handle | |
| JPMorgan | 141.88 | Cup with handle |
Source: IBD Data As Of April 26, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 4.3% Wednesday, closing at its lowest level since Jan. 25. In recent weeks, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they are trading sharply below their 50-day line, a key level. The stock closed Wednesday 54% off its 52-week high.
TSLA stock looked to rebound from Wednesday's losses, trading up more than 1% in Thursday trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares edged lower Wednesday, falling for a second day. They remain above a 157.48 buy point and at the top of the buy range that runs up to 165.35. AAPL stock rose 1.1% Thursday. Apple reports its fiscal second-quarter results on May 4.
Microsoft shares surged out of buy range past a flat base's 276.86 buy point during Wednesday's earnings-fueled 7.2% surge. The 5% buy area went up to 290.70. On Thursday morning, MSFT stock gained 0.4%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
