The Dow Jones Industrial Average sold off 400 points Thursday, threatening to extend Wednesday's heavy losses, as the stock market steered toward a test of correction lows. Synopsys and BJ's Wholesale Club were lonely advancers in early trade. Cisco Systems led the declines among Dow Jones stocks, plunging 14% on a disappointing earnings outlook.
Kohl's and Sociedad Química y Minera de Chile were also among the earnings movers Thursday morning. Kohl's shares slid 6%, while SNPS shares jumped and SQM stock rallied 6% in early trade.
Electric-vehicle giant Tesla traded down around 1% Thursday morning, as Wedbush cut its price target from 1,400 to 1,000. Elsewhere, Dow Jones tech leaders Apple fell 1% and Microsoft rose 0.1% in today's stock market.
Amid an already-struggling stock market rally, Dow Jones leaders Chevron and Merck — along with Northrop Grumman, Eli Lilly and Exxon Mobil — are among IBD's top stocks to watch for Thursday.
Merck and Microsoft are IBD Leaderboard stocks. Eli Lilly and Merck were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday's open, the Dow Jones industrials moved down 1.3%, while the S&P 500 fell 0.7%. The Nasdaq composite lost 0.1% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.3%. The SPDR S&P 500 ETF dropped 0.65%.
The 10-year Treasury yield dropped to 2.78% Thursday morning after ending Wednesday at 2.88%. The 10-year Treasury yield remains off last week's 52-week high of 3.16%. Meanwhile, U.S. oil prices fell more than 1%, with West Texas Intermediate crude trading just above $108 a barrel.
Weekly jobless claims data and the Philadelphia Federal Reserve's Manufacturing Business Outlook Survey for May came out at 8:30 a.m. ET. First-time unemployment claims rose to 218,000, higher than estimates that called for a slight fall to 197,000.
The Philadelphia Fed Manufacturing Index for May came in at 2.6, sharply below Econoday forecasts for a reading of 16.1.
Stock Market Rally Attempt
The major stock indexes posted weak action Wednesday, as the Dow Jones industrials, Nasdaq composite and S&P 500 finished with big losses.
Wednesday's The Big Picture column commented, "With prices spiraling (higher) across the board due to runaway inflation, the consumer is very much on the ropes. And Target posted an earnings miss early Wednesday that acted as a hammer blow that landed flush on the chin of the stock market. The stock fell 24.9% in mammoth volume, its worst performance since Black Monday in 1987."
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.
Dow Jones Earnings: Cisco Systems
Cisco Systems reported earnings late Wednesday. The company's fiscal third-quarter earnings edged by estimates while revenue missed Wall Street targets. The company's outlook came in well below expectations as China's Covid lockdown worsened supply chain issues.
Cisco shares dived more than 14% early Thursday. The stock ended Wednesday about 25% off its 52-week high.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, Merck
Dow Jones leader and energy giant Chevron continues to build a flat base that has a 174.86 buy point, according to IBD MarketSmith chart analysis. Shares are trying to hold above their 50-day line despite Wednesday's 3.4% decline. CVX shares traded down 1.7% Thursday.
CVX stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
Merck, a Dow Jones and drug industry leader, is still in buy range above a cup-with-handle's 89.58 buy point, even as shares slid 1% Wednesday. The 5% buy area goes up to 94.06. MRK shares lost 0.6% Thursday morning.
Positively, the stock's relative strength line is at new highs, indicating big stock market outperformance during the current stock market correction.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Watch: Northrop Grumman, Exxon, Eli Lilly
Wednesday's IBD Stock Of The Day, Northrop Grumman, is building a cup with handle with a 477.36 buy point, according to IBD MarketSmith chart analysis. The stock is back below its 50-day line after Wednesday's 1% fall. NOC stock fell 1.2% Thursday morning.
Energy giant Exxon Mobil is just above a cup-with-handle's 89.90 buy point, falling 1.6% Wednesday. Shares are in the 5% buy area that goes up to 94.40. XOM shares declined 1.4% Thursday.
Pharmaceutical giant Eli Lilly rose 0.7% Wednesday. Shares of the IBD Leaderboard stock are finding support around their 50-day moving average line and are approaching a flat base's 314.10 buy point. Eli Lilly shares was flat early Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded nearly 7% Wednesday, erasing Tuesday's solid gain. Shares threatened to extend those losses Thursday morning, trading down nearly 1%. Shares remain sharply below their 50- and 200-day moving averages.
The stock traded as high as 1,243.49 on Nov. 4 and is about 43% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 5.6% Wednesday. The stock is far below its long-term 200-day line. Apple shares moved down 1% Thursday.
Software leader Microsoft declined 4.8% Wednesday, snapping a three-day win streak. MSFT shares are sharply below their 50- and 200-day lines. The stock closed around 27% off its 52-week high. Microsoft stock rose 0.1% Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
