The Dow Jones Industrial Average climbed 250 points Thursday morning, reflecting positive global trade, as investors digested an early array of job data. The long-awaited US wage report comes Friday morning.
Biotechnology Seagen (SGEN) was an early leader on the Nasdaq, up more than 3% on reports that Merck (MRK) may be close to a takeover agreement. Freeport McMoRan (FCX) larva (CAT) and Cummins (CMI) led miners and related stocks to the top of the S&P 500, as copper prices picked up again after a $ 220 billion stimulus proposal in China.
Chip shares received an early boost after South Korea-based Samsung reported better-than-expected second-quarter earnings guidance. Advanced micro devices (AMD) and Nvidia (NVDA) rose 2.9% and 2.5%, respectively.
Tesla (TSLA) traded up around 1% early Thursday. Elsewhere, Dow Jones tech executives apple (AAPL) and Microsoft (MSFT) was mixed in today’s stock market.
In a volatile stock market environment, Dow Jones is leading Johnson & Johnson (JNJ), Merck and UnitedHealth (UNH) – and AutoZone (AZO), BYD (WANT), Evolent health (EVH) and Quanta services (PWR) – is among the stocks you should look at. Remember that ongoing volatility in the stock market is a reason to stay defensive.
Evolent Health and UnitedHealth are IBD Leaderboard shares. Evolent was IBD’s Stock Of The Day on Wednesday. And BYD featured in this week’s Stocks near a buy zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Data
After Thursday’s opening, the Dow Jones Industrial Average rose 0.8%, and the S&P 500 rose 1%. Nasdaq rose 1.4 percent in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.1%. The SPDR S&P 500 ETF (SPY) rose 0.9% in early trading.
The 10-year government interest rate ticked up to 2.93% on Thursday after Wednesday’s rise to 2.91%. In mid-June, it reached its highest level since April 2011, at 3.48%. Meanwhile, US oil prices looked set to recoup some of this week’s heavy losses, with West Texas Intermediate trading at around $ 102 a barrel. In early March, the WTI briefly topped $ 130.
The Ministry of Labor said that first-time employees for unemployment rose to 235,000, above estimates and ahead of last week’s 231,000.
Earlier Thursday, US employers announced 32,517 cuts in June, an increase of 58.8% from the 20,476 cuts announced in the same month last year. That’s 57% higher than the 20,712 cuts announced in May, according to Challenger.
These reports begin Friday’s U.S. payroll report. Econoday estimates that US employers have added 270,000 jobs in June, a sharp drop from the 390,000 jobs added in May.
Volatility in the stock market
On Wednesday, the stock market turned from early losses to ending with modest gains. The S&P 500 led, up 0.4%.
Wednesday’s The Big Picture column commented: “The Nasdaq composite showed remarkable price action with a pull above its 21-day exponential average. But a 1% late gain faded to 0.3% at the end. Still, the index closed above its 21-day line “which has been a resistance level since May. The longer the Nasdaq can stay above the 21-day line, the better chance it has of taking a run against its 50-day line.”
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Investors can also create watch lists, find companies approaching a point of purchase, or develop custom monitors at IBD MarketSmith.
Four Dow Jones shares to see now
Dow Jones shares to see: Johnson & Johnson, Merck, UnitedHealth
Dow Jones leader Johnson & Johnson is about 2% below a double-bottom base 181.84 buy points after Wednesday’s 0.1% rise, according to IBD MarketSmith chart analysis. JNJ stock rose Thursday morning.
The drug giant Merck rose 0.5% on Wednesday, and is about 2% below the flat base’s buying point of 95.02. Early Thursday, the stock was slightly higher after the Wall Street Journal reported that Merck is in talks to buy Seagen in a deal that could be worth about $ 40 billion or more. Medical stocks in general, and biotechnology in particular, have shown increasing strength in the recent stock market campaign.
The healthcare giant and IBD Leaderboard share UnitedHealth regained its double bottom 507.36 buy points during Wednesday’s progress of 2%. The shares are back in the buying area. The stock rose 0.1 percent on Thursday morning. UNH reports results for the second quarter on 15 July.
The UNH stock shows a strong 97 of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.
4 top growth stocks to see in timera stock market rally
Top stocks to look at: AutoZone, BYD, Evolent Health, Quanta
AutoZone shares are still trading in the buy area past cup-with-handle 2 130.60 buy points on Wednesday, amid a 1.3% increase. The stock rose 0.1 percent on Thursday.
The Chinese electric car giant BYD, which is supported by Warren Buffett’s Berkshire Hathaway (BRKA), closed on Wednesday over a cup-with-handle buy point of 39.81. Shares rose almost 3% early Thursday morning.
The IBD Leaderboard share Evolent Health is in the buying area past 32.55 buying points in a cup with a handle after Wednesday’s 4.5% breakout move. 5% hunting zone goes up to 34.18. Evolent shares rose 2% on Thursday.
Quanta Services tracks a cluttered cup with handles that have a buying point of 138.56, according to IBD MarketSmith chart analysis. Last week, stocks found strong support around the 50-day line, which is a key level to see. The Quanta share was up 1.5% on Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares fell 0.6% on Wednesday, taking a two-day winning streak. The shares seemed to pick up after these losses on Thursday morning, and rose around 1%.
The stock is strong below its 50- and 200-day moving averages. The Tesla stock traded as high as 1,243.49 on November 4th. The shares are approximately 44% lower than the record.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 1% on Wednesday, climbing for a third straight session. But the stock is still well below its long-term 200-day line. A test of the 50-day line may be imminent. The stock is about 22% lower than the 52-week high. Apple shares rose 0.4 percent Thursday morning.
Software leader Microsoft climbed 1.3% on Wednesday, closing over its 50-day line for the first time since April 7. The share closed approx. 24% of its 52-week high. Microsoft shares lost 0.3 percent early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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