The Dow Jones Industrial Average reversed lower Thursday after the release of first-time jobless claims and more key inflation data. Meanwhile, Delta Air Lines reversed sharply lower after missing earnings estimates, while forecasting higher-than-expected profit for the second quarter.
Weekly first-time unemployment claims rose to 239,000, higher than Wall Street's estimate for a rise to 233,000 vs. 228,000 in the prior week, which was the first week reflecting a benchmark revision.
Further, the Labor Department's March Producer Price Index showed inflation among producers down 0.5% on the month, with a year-over-year increase of 2.7%. Wall Street expected producer inflation to remain unchanged from the previous month. Core producer prices, which exclude food and energy, fell 0.1% on the month with a year-over-year increase of 3.4%. Core prices were expected to rise 0.3% on the month.
First-quarter earnings season kicks off this week, with Delta Air Lines reporting Thursday morning. DAL stock slid 3% in early trade. The carrier missed March-quarter earnings estimates, but topped revenue targets and provided an upbeat outlook, citing record bookings for summer travel.
Bank giants JPMorgan Chase, Citigroup, Wells Fargo and PNC Financial are scheduled to report earnings Friday, along with health insurance behemoth UnitedHealth Group.
Stock Market Today
Dow Jones drug giant Merck rallied 1.1% Thursday after Citi upgraded the stock from neutral to buy with a price target up to 130 from 105. First Solar slid 1.6% after Deutsche Bank downgraded the solar leader to hold from buy.
Electric-vehicle giant Tesla moved up 1.3% in early trade. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
Five Below, IBD Leaderboard watchlist stock Floor & Decor, ServiceNow and Vertex Pharmaceuticals — as well as Dow Jones stocks Boeing, Cisco Systems and Visa — are among the best stocks to buy and watch with the ongoing market uptrend.
Floor & Decor and Visa were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average inched lower, and the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite climbed 0.9% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.7%, while the SPDR S&P 500 ETF traded up 0.3% early Thursday.
The 10-year U.S. Treasury yield on Thursday traded down to 3.39%. Last week, the 10-year yield hit its lowest level since mid-September, but is bouncing this week.
U.S. oil prices paused after Wednesday's gains, drifting lower in early morning trade Thursday. West Texas Intermediate futures held right at $83 a barrel, up about 10% since the Organization of Petroleum Exporting Countries announced surprise production cuts in early April.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq composite declined 0.85%.
Wednesday's Big Picture column commented, "the stock market overall seemed to prefer a tack of indecision and caution, rather than rock the boat wildly in one direction or the other. That, of course, could change when a few large banks kick the earnings season off by sharing first-quarter results and business outlooks on Friday."
Now is an important time to read IBD's The Big Picture column with the stock market in an uptrend.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Cisco Systems, Visa
Dow Jones leader Boeing is nearing a flat base's 221.43 buy point, according to IBD MarketSmith pattern recognition. Shares rose 0.3% Thursday, just 5% away from the latest entry.
Cisco Systems fell further below a flat base's 51.84 buy point amid a 1% fall Wednesday, but there is no sell signal yet. CSCO stock topped the entry on March 31. Shares gained 0.2% Thursday morning.
Visa shares attempted a breakout past a cup-with-handle's 230.15 buy point, but closed 0.3% lower Wednesday. V stock tacked on 0.6% early Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Five Below, Floor & Decor, ServiceNow, Vertex
Five Below slid 1.9% Wednesday, giving up a large part of Monday's breakout gains past a 212.66 buy point in a flat base. Shares are in the 5% buy area that goes up to 223.29. The stock traded up 1% Thursday morning.
Backstory: On March, 15, Philadelphia-based Five Below, which operates 1,292 teen- and tween-focused discount stores in 42 states, closed out 2022 with an earnings and revenue beat. For the fourth quarter, Five Below earnings popped 23% to $3.07 per share, ending a three-quarter string of year-over-year declines.
IBD Leaderboard watchlist stock Floor & Decor tried to clear a cup-with-handle's 99.47 buy point, but closed below the entry Wednesday after the session's reversal. Shares gained 0.7% early Thursday.
Backstory: Floor & Decor operates 191 warehouse-format stores and six design studios across 36 states. It sells tile, wood, laminate, vinyl, and natural stone flooring products. It also sells decorative accessories. Earnings are seen slipping 2% this year before rising to 27% in 2024 and 24% in 2025.
IBD SwingTrader pick ServiceNow added a handle to the cup base, resulting in a 482.43 buy point. NOW stock gained 1.1% Thursday morning.
Backstory: ServiceNow software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables workers to access administrative and workflow tools.
Vertex Pharmaceuticals broke out past a cup base's 325.29 buy point, with a 0.5% rise Wednesday. VRTX stock was slightly lower Thursday morning.
Backstory: Vertex Pharmaceuticals researches and develops medical treatments for cystic fibrosis, sickle cell disease, muscular dystrophy, kidney disease and type 1 diabetes.
Learn How To Time The Market With IBD's ETF Market Strategy
Stocks To Buy And Watch In Stock Market Rally
These are four top stocks to watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ServiceNow | 482.43 | Cup with handle | |
| Nike | 131.41 | Flat base | |
| Visa | 230.15 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of April 11, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 3.35% Wednesday, closing at its lowest level since March 17. Last week, shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. They also fell sharply below their 50-day line, a support level. The stock closed Wednesday 50% off its 52-week high.
TSLA stock rose 1.3% Thursday morning, looking to bounce back from Wednesday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.4% Wednesday, extending a losing streak to three sessions, but they remain above a 157.48 buy point. AAPL stock traded up 1.2% early Thursday.
Microsoft shares remain above a flat base's 276.86 buy point, amid a 0.2% gain Wednesday. The 5% buy area goes from the buy point to 290.70. MSFT stock rose 0.1% in morning action Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
