Dow Jones falls on key economic data; BBBY shares plunge 28%

The Dow Jones Industrial Average fell on Thursday after key economic data — first-time jobless workers and the Philadelphia Fed Manufacturing Index — were released. Bed Bath & Beyond (BBBY), or BBBY stock, plunged Thursday morning.

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BBBY stock appeared to halt its streak of meteoric gains on Thursday, following rekindled interest in the meme stock. Shares plunged 28% in morning trading after GameStop (GME) Chairman Ryan Cohen’s RC Ventures revealed a plan to sell shares. Bed Bath & Beyond, a retailer struggling with heavy losses, surged as much as 560% from a July 27 low of 4.54 to Wednesday’s high of 30 p.m.

Key earnings moves on Thursday include BJ’s Wholesale (BJ), Canadian Solar Energy (CSIQ), the Dow Jones stock Cisco Systems (CSCO), Keysight (KEYS), Kohl’s (KSS), Chemical and mining company (SQM) and Synopsis (SNPS).

BJ’s Wholesale jumped 9% while Canadian Solar shares rose 7.5%. Cisco shares rose 6% as Keysight shares rose 4.5% and Kohl’s fell 9%. Synopsys beat estimates on the top and bottom lines, sparking a 1% increase. And SQM shares fell 5%.

Head of electric vehicles Tesla ( TSLA ) traded up 0.3% Thursday morning. Elsewhere, Dow Jones tech leaders apple (AAPL) and Microsoft (MSFT) both fell after today’s market opening.

In today’s healthy stock market environment, Dow Jones stocks Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic power systems (MPWR) and Ollie’s Bargain Outlet (OLLI) — is among the best stocks to buy and watch.

Albemarle and Costco were featured in this week’s Stocks near a Buy Zone column. Costco stock was added to the IBD Leaderboard and SwingTrader in the wake of Tuesday’s breakout move. Albemarle was a recent IBD Stock Of The Day.

Dow Jones today: Treasury yields, oil prices

Early Thursday, the Dow Jones Industrial Average was down 0.3%, while the S&P 500 was down 0.15%. And the tech-heavy Nasdaq Composite traded down 0.25% in morning trading.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.25%, and the SPDR S&P 500 ETF (SPY) fell 0.2% in early trade.

The 10-year Treasury yield ticked down to 2.86% early Thursday, after Wednesday’s jump to 2.89%. The 10-year government yield is on the rise after reaching its lowest level since early April in recent weeks.

Meanwhile, US oil prices appeared to be recovering from this week’s losses, falling to their lowest level since January. West Texas Intermediate futures traded up 1%, just above $89 a barrel.

Jobless claims, Philly Fed index, home sales

First-time jobless claims fell to 250,000, lower than estimates that called for a rise to 265,000 from 262,000 last week.

The Philadelphia Fed Manufacturing Index rebounded to 6.2, sharply higher than estimates that expected a negative 5.0. This index missed expectations in July at minus 12.3 for its second negative reading in a row.

Existing home sales are expected to fall to 4.85 million in July compared to 5.12 million in June. The National Association of Realtors’ July report is set for release at 10 a.m. ET

Stock market rally

On Wednesday, the Nasdaq led the stock market down, falling 1.25%. The Dow Jones industrials and the S&P 500 followed with losses of 0.5% and 0.7% respectively.

Wednesday’s The Big Picture column commented, “Mid-August is supposed to be a sleepy time for stock traders. But Wednesday gave stock market participants plenty of news to digest. Finally, Wall Street bulls needed a well-deserved rest.”

If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.

Dow Jones Earnings: Cisco Systems

Networking giant and Dow Jones stock Cisco Systems reported results for the second quarter after the close on Wednesday. Cisco shares rose 6% after its fiscal 2023 earnings outlook beat expectations, while its fourth-quarter 2022 financial results topped Wall Street estimates.

Cisco stock ended Wednesday about 27% off its 52-week high.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Coca-Cola, Merck

Dow Jones soft drink giant Coca-Cola is building a flat base that has a buy point of 67.30. A handle entry of 65.14 is also in play. The stock is retracing from its 50-day line and trying to top the handle. The stock rose early Thursday.

Merck is also building a flat base, a pattern showing a buy point of 95.82. Shares are trying to hold above the 50-day line, according to IBD MarketSmith chart analysis. Merck shares rose nearly 1% on Thursday.

The MRK share shows a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.

4 top growth stocks to buy and watch nowra stock market rally

Top stocks to watch: Albemarle, Costco, Monolithic, Ollie’s

Lithium producer Albemarle remains in buy territory after Friday’s breakout past a 273.78 buy point in a large cup with handle. The 5% buy zone goes up to 287.47. Earlier last week, shares topped a minor cup handle with a buy point of 250.25. Shares were down 1.1% on Wednesday, falling for the second day in a row. The stock was slightly higher on Thursday morning.

IBD Leaderboard stock Costco breaks out past a cup with handle with a buy point of 552.81. The stock rose 0.6% on Wednesday, moving higher in the 5% buy range. The stock rose 1% early Thursday.

Recently IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, shares remain above a 514.80 entry. The share was up 1.3 percent on Thursday.

Ollie’s Bargain Outlet is back from its 10-week line – a critical support level – placing the top discount retailer in a new buying zone. Shares are also cutting a handle after a major cup base, setting the latest buy point at 72.37. Current price action is about 11% away from this entry. The share rose 0.3 percent on Thursday morning.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla shares

Tesla shares lost 0.8% on Wednesday, extending Tuesday’s losses. Shares in the EV giant rose 0.3 percent on Thursday morning.

This week, the stock closed at its highest level since May 4. Shares are again trying to rise decisively above resistance around the 200-day line, which is a key level to watch. Tesla is about 27% off its 52-week high. The 3-to-1 share split is set for 24 August.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares rose 0.9% on Wednesday as the stock continues to build the right side of a cup base that has a buy point at 179.71. Another interpretation could be a major double bottom extending back to January. Regardless, the point of purchase is identical. Keep an eye out for a potential handle that could form and provide a lower entry.

Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market returns. The stock fell 0.55% on Thursday morning.

Microsoft fell 0.5% on Tuesday, finishing just short of the long-term 200-day line, which is a key resistance area to watch. The share lost 0.5 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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