The Dow Jones Industrial Average briefly dropped 225 points Thursday, as global markets backed off broadly after Wednesday's shift in tone from the Federal Reserve. The Labor Department's initial unemployment claims unexpectedly dropped. Meanwhile, tech titans Nvidia and Tesla sold off in the stock market today.
First-time claims for unemployment assistance surprisingly dropped to 201,000. They were expected to rise to 225,000 vs. 220,000 claims in the previous week.
Meanwhile, the Philadelphia Fed manufacturing index fell to -13.5 in September. It was expected to drop to 0.5, down from August's 12.0 reading. Later in the morning, existing home sales from the National Association of Realtors is expected to rise to 4.10 million in August, up from July's 4.07 million.
Key earnings movers Thursday include Darden Restaurants, KB Home and FedEx.
Darden shares rose 0.4%, while KBH stock slid 5.6% in early action. Finally, FedEx shares jumped almost 6% in morning trade.
Stock Market Today
Broadcom dived nearly 4% on reports that Google-parent Alphabet is looking to drop the company as a supplier of AI chips as early as 2027. Competing Alphabet supplier Marvell Technology rallied 0.4% in early trade. Alphabet shares slipped 2.1% early Thursday.
Meanwhile, Cisco Systems tumbled 4% after agreeing to acquire Splunk for 157 a share, a 31% premium to Wednesday's closing price.
EV giant Tesla traded down 1.9% Thursday morning, while Nvidia lost 1.6%. Dow Jones tech icons Apple and Microsoft traded mixed, after today's stock market open.
Another stock market leader, Meta Platforms, moved down 0.8% in early action.
Airbnb, Amazon, Axon Enterprises and IBD Leaderboard watch list stock DraftKings — as well as Dow Jones stocks Caterpillar and Intel — are among the best stocks to watch as the stock market outlook deteriorates.
DraftKings is an IBD Leaderboard watch list stock, while Airbnb featured in this Stocks Near A Buy Zone column. Airbnb 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 declined 0.3%, while the S&P 500 was down 0.9%. The tech-heavy Nasdaq composite sold off 1.2% in morning trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 1.2%, while the SPDR S&P 500 ETF fell 0.9% early Thursday.
Early action Thursday also showed the 10-year U.S. Treasury yield at 4.47%, hitting a new high in the wake of Wednesday's Fed decision. The Federal Reserve policy committee took a big hawkish shift on Wednesday, dimming hopes for a quick shift to rate cuts in 2024.
Oil prices rebounded from Wednesday's losses, as West Texas Intermediate futures rose 1% in morning action. WTI futures traded right at $90.50 a barrel Thursday.
Five Best Dow Jones Stocks To Buy And Watch Now
Stock Market Extends Losses
On Wednesday, the Dow Jones Industrial Average lost 0.2%, while the S&P 500 moved down 0.9%. The tech-heavy Nasdaq composite sold off 1.5%.
Wednesday's Big Picture column commented, "The sell-off appeared to be tied to a growing expectation that the U.S. central bank will keep the cost of money at a higher level longer than originally thought. Investors also apparently showed disappointment at the dimming possibility that the Fed will sharply cut rates next year — if the economy falls into recession."
Now is an important time to read IBD's The Big Picture column as the stock market extends its losses and hits recent lows. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Caterpillar, Intel
Dow Jones leader Caterpillar is approaching a new flat base's 293.88 buy point after strong gains since early June. CAT stock dropped 0.4% Tuesday, still just 5% away from the latest buy point. Shares dropped 1.7% Thursday morning.
Chip giant Intel tumbled below a 37.19 flat-base entry, after Tuesday's 4.3% sell-off. INTC stock rose 0.6% early Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Airbnb, Amazon, Axon, DraftKings
Recent IBD Stock Of The Day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock gave up its 50-day line during Wednesday's 2.7% drop. Airbnb shares dropped 2.6% Thursday morning.
E-commerce giant Amazon is squarely below a 143.63 buy point in a flat base following a short-lived breakout move last week. AMZN stock lost 2.8% early Thursday.
Axon Enterprises declined 0.2% Wednesday, trading about 4% away from a cup with handle's 217.61 buy point. AXON stock moved down nearly 2% Thursday.
IBD Leaderboard watch list stock DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares continue to hold right at their 50-day moving average, a key level to watch. DKNG stock was off 3% Thursday morning.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Sept. 20, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock reversed from solid gains to finish 1.5% lower Wednesday. Shares remain above an early entry at 261.18, though gains have faded. And TSLA stock has a 299.29 official cup-base buy point, but an early entry 278.98 is also in play.
On Thursday morning, TSLA stock declined 1.9%, set to add to Wednesday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 2% Wednesday, still below its 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares rose 0.1% Thursday morning.
Microsoft shares are moving further below their 50-day line, with a 2.4% sell-off Wednesday. And on Thursday morning, the stock dropped 0.9%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
