Dow Jones Futures Fall After Jobless Claims, Powell Speech Later; Tesla shares downgraded

Dow Jones futures fell on Thursday morning as investors digested the first jobless claims data ahead of Fed Chair Jerome Powell’s monetary policy report to the Senate Banking Committee. Meanwhile, Tesla shares fell after another analyst downgrade.


First-time registered unemployed rose to 264,000, above estimates. They were expected to ease to 261,000 from 262,000 last week, according to Econoday estimates. Furthermore, May existing home sales figures from the National Association of Realtors are expected to dip slightly to an annual rate of 4.25 million rate vs April’s rate of 4.28 million. These housing data are set for publication at 10 A.M.

The Senate calendar calls for Powell’s testimony to begin at 10 a.m. On Wednesday, Powell reiterated that more rate hikes are likely to bring down inflation, saying “almost all FOMC participants expect that it will be appropriate to raise interest rates somewhat further toward the end of the year.”

Investor expectations see a more than 76% chance of a quarter-point hike at the Fed’s July meeting, according to the CME FedWatch Tool. That’s up from 60% a week ago.

Meanwhile, the Bank of England raised its key interest rate by half a percentage point, raising its lending rate to 5%, the highest level since April 2008.

On the earnings front, Darden restaurants (DRI) and KB Home (KBH) were important earnings factors on Thursday morning. The Darden share sold 4.5% in pre-market trading, while the KBH share fell 2.4%.

The stock market today

EV giant Tesla ( TSLA ) pared losses to less than 2% Thursday after an early 3% slide. Morgan Stanley downgraded shares to equal weight, from overweight, and raised its price target to 250, from 200. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was mixed before today’s market opening.

Dexcom (DXCM), Chipotle Mexican Grill (CMG), McKesson (MCK) and Year (ROKU) — as well as Dow Jones stocks Boeing (BA), JPMorgan Chase (JPM) and Salesforce (CRM) – is among the best stocks to buy or watch in the stock market trend.

Tesla is an IBD Leaderboard stock. McKesson is an IBD SwingTrader stock, while Chipotle was featured in Wednesday’s Stock Of The Day as well as this week’s Stocks Near A Buy Zone column.

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Dow Jones today: Oil prices, Treasury yields

Ahead of Thursday’s opening bell, Dow Jones futures fell 0.2% against real value. S&P 500 futures lost 0.2%. And Nasdaq 100 futures fell 0.2% in morning action.

Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was trading down 0.2%, while the SPDR S&P 500 ETF ( SPY ) was down 0.25% early Thursday.

On Thursday, the 10-year US Treasury yield ticked up to 3.72%. The yield has recently fallen in a range between 3.57% and 3.85%, settling slightly lower on Wednesday at 3.72%.

Oil prices fell sharply on Thursday morning. West Texas Intermediate futures fell nearly 2%, holding around $71 a barrel ahead of Thursday’s weekly oil inventory report from the Energy Information Administration.

Stock market action

On Wednesday, the S&P 500 returned 0.5%, while small caps held up even better. The Russell 2000 was 0.2% lower. The Dow Jones Industrial Average fell 0.3 percent.

Wednesday’s Big Picture column commented: “After falling just shy of testing the 14,000 level on Friday, the Nasdaq composite continued its biggest decline in more than two months. A 1.2% drop on Wednesday marked a third straight decline. That hadn’t happened since a four-day drop from May 1-4.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market trend.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Boeing, JPMorgan, Salesforce

Dow Jones aerospace giant Boeing saw its breakout attempt falter further on Wednesday, falling 0.1%. Shares are now 4% below their latest buy trigger. BA shares fell a further 3.3% on Thursday pre-market, as a supplier Spirit AeroSystems (SPR) closed factory operations due to striking workers.

Dow Jones bank leader JPMorgan is just below a 143.37 flat-base buy point after Wednesday’s 0.15% drop. JPM shares fell 0.2% early Thursday.

Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 21-day exponential moving average. The megacap tech previously surpassed a pair of new alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.

In recent weeks, shares have reached the 20% profit zone from a 178.94 cup-with-handle entry, and are now trying to bounce off support at the 10-week line. CRM shares fell 0.8% on Thursday morning.

4 top growth stocks to buy and watch Stock market rally

Best stocks to buy and watch: Dexcom, Chipotle, McKesson, Roku

Dexcom remains in buy territory past a flat-base buy point of 126.44, despite a three-day losing streak on Wednesday, according to IBD MarketSmith pattern recognition. The 5% buy range goes up 132.76. DXCM stock fell 0.3% in premarket Thursday.

IBD Leaderboard Watchlist stock Chipotle is trading tight after a big advance, making a new entry at 2,139.88. Meanwhile, the stock is also pulling back to its 10-week line, where it appears to be finding support. A decisive return from that level will also create a buying opportunity. CMG shares fell on Thursday morning.

IBD SwingTrader stock McKesson is in buy territory past a 401.53 cup-handle entry amid a four-day winning streak. The buy zone tops out at 421.61. Shares were slightly lower early Thursday.

Streaming giant Roku is building a cup-and-handle base with a 75.45 buy point, even as the stock extended a losing streak to five sessions on Wednesday. Roku shares lost 0.4% early Thursday.

Learn how to time the market with IBD’s ETF Market Strategy

Best shares to buy and watch in stock market rally

These are the four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

company name Symbol Right point of purchase Type of point of purchase
ASML (ASML) 683.18 Cup with handle
Salesforce (CRM) 200.00 Consolidation
Cloudflare (NET) 66.20 Double bottom
Year (YEAR) 76.62 Cup base
Source: IBD data as of 20 June 2023

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

Tesla shares

IBD Leaderboard stock Tesla skidded 5.5% on Wednesday after a Barclays downgrade, reversing lower after hitting a new 2023 high. Shares are still strongly extended above a double-bottom base buy point of 207.79. They closed Wednesday at 18% off their 52-week high.

TSLA stock threatened to extend Wednesday’s losses, falling more than 3% Thursday morning after the Morgan Stanley downgrade and price rally.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell further from Wednesday’s record highs, falling 0.6% in the session. Last week the shares traded as high as 186.99. The stock continues to hold sharply above a buy point of 157.38. Early Thursday, AAPL shares fell 0.3 percent.

Microsoft shares fell another 1.3% on Wednesday, falling sharply for a third straight session. Last week the stock reached a record high of 351.47. Despite the recent losses, MSFT stock remains in the 20%-25% profit-taking zone from a 276.76 flat-base buy point, so investors are at least taking some profits. And on Thursday morning, Microsoft shares were 0.4% higher.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks to Buy and Watch

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