The Dow Jones Industrial Average and the other stock indexes reversed lower Thursday after hotter-than-expected inflation data, with the early release of the producer price index. Meanwhile, Magnificent Seven stocks Nvidia and Tesla extended their declines on the stock market today.
The Dow Jones Industrial Average fell 0.4%, as the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite reversed down 0.6% after the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF was down 0.6%, while the SPDR S&P 500 ETF fell 0.5%.
The 10-year Treasury yield ticked higher to 4.26%. Further, oil prices climbed further in early trades, as West Texas Intermediate futures rose more than 1%, trading around $80.70 a barrel.
Nvidia and Tesla threatened to add to Wednesday's declines, falling 3.5% and 2.3%, respectively, in Thursday's morning trading.
Nvidia lost 1.1% Wednesday, giving up a part of Tuesday's 7.2% advance. The artificial intelligence giant is an IBD Leaderboard stock.
Shares of Tesla stock sold off 4.5% Wednesday on a Wells Fargo downgrade. Tesla is sharply below its 50- and 200-day moving averages and more than 40% off its 52-week high. Shares are at new recent lows.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Stock Market Today: Inflation Data
Ahead of Thursday's stock market open, the Labor Department reported its producer price index, a key gauge of wholesale inflation.
The overall PPI rose 0.6% in February, with a 1.6% annual rise. Both were hotter than expected. Economists expected the overall PPI to rise 0.3% in February, with a 1.2% year-over-year increase, according to Econoday.
Core producer prices, excluding food and energy, rose 0.3% on the month, above the 0.2% estimate. And the core annual PPI climbed 2% year over year.
Further, the Labor Department's initial unemployment claims fell to 209,000 vs. 217,000 from the previous week. They were expected to dip to 215,000.
Lastly, U.S. retail sales from the Commerce Department rose 0.6% in February, below the 0.7% estimate, vs. January's decline of 0.8%.
Meanwhile, key earnings movers included Dick's Sporting Goods, Dollar General, Lennar, SentinelOne and UiPath.
Dick's Sporting Goods shares rallied more than 14% in morning action, while Dollar General climbed 1.4%. Lennar shares declined 3%, as SentinelOne plunged more than 13%. Finally, UiPath shares declined more than 5% in early morning trading.
Dow Jones Rises
On Wednesday, the Dow Jones Industrial Average moved up 0.1% and the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite declined 0.5%.
Wednesday's Big Picture column commented, "As discussed in The Big Picture lately, the number of breakouts among quality stocks has been drying up. And some of the most recent haven't been so fruitful. In the MarketSurge Growth 250, there were fewer breakouts in the week ended March 8 vs. the previous week."
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 On Stock Market Today
Duolingo, Fifth Third Bancorp, Dexcom and Block — plus Dow Jones components Disney, IBM and Procter & Gamble — are among the best stocks to buy and watch on the stock market today.
Block was featured in this Stocks Near A Buy Zone column. And Fifth Third is a recent addition to the IBD Leaderboard portfolio.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There were two new breakouts Wednesday. One of which was FleetCor Technologies. The stock broke out past a 298.48 flat-base entry.
Meanwhile, the MarketSurge "Near Pivot" list shows stocks nearing buy points in bases, like Royal Caribbean, which is approaching a 133.77 flat-base entry. Shares were down 1.6% Thursday.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney Attempts Breakout
Disney is trying to break out past a big cup-with-handle base's 112.92 buy point, according to IBD MarketSurge chart analysis. Disney stock fell 2.6% on the stock market today.
IBM stock continues to chop around a flat base's 196.90 buy point, falling 0.6% Wednesday. IBM shares moved down 0.8% Thursday.
Consumer products giant Procter & Gamble rose 0.2% Wednesday, further above a 158.38 buy point in a cup base. P&G stock inched down 0.1% Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Square Stock Breaks Out
IPO Leader Duolingo is a approaching a cup-with-handle's 241.86 entry. Duolingo shares were down 1.2% Thursday.
Fifth Third Bancorp dropped 1.3% Wednesday, holding above a a 35.73 buy point. Shares dipped 1.3% Thursday.
Dexcom shares sold off 2.7% Wednesday, closing just below a 132.03 entry in a flat base. The stock lost 0.8% Thursday.
Square-parent Block rallied 4.9% Wednesday, breaking out past a 83.29 handle entry. Square stock dropped 3% Thursday.
Best Bets On Stock Market Today
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 Feb. 28, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded higher after Thursday's stock market open.
Apple stock moved down 1.2% Wednesday, snapping a three-day win streak. Shares remain sharply below their long-term 200-day line. The stock was up 1% Thursday morning.
Microsoft shares found support at the 50-day line this week, with solid gains. That places the software giant in a new buy area. Microsoft shares rose 1.6% on the stock market today.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
