Dow Jones gathers 300 points on jobless claims; Tesla shares rise on repeat buy rating
The Dow Jones Industrial Average rose 300 points Thursday after initial jobless claims data from the Labor Department beat estimates. And Tesla shares rose as Morgan Stanley reiterated an overweight rating with a reduced price target.
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Weekly jobless numbers showed first-time jobless claims rose to 225,000 from 216,000 last week, beating Econoday’s forecast for a rise to 222,000. Claims have been up and down in recent weeks but have generally trended lower since mid-November at 241 000.
On the earnings front, chicken egg distribution giant Cal-Maine Foods (CALM) reported Wednesday after the close. Shares fell more than 4% in morning trading. CALM shares ended Wednesday below a buy point of 62.74 after two days of losses.
Head of electric vehicles Tesla ( TSLA ) ran nearly 7% higher Thursday as Morgan Stanley reaffirmed its overweight rating on the stock, despite a price target cut. Dow Jones Technology Leaders apple (AAPL) and Microsoft (MSFT) traded higher after today’s market opening.
Cardinal health (CAH), Medpace (MEDP), IBD Leaderboard stock Neurocrine Life Sciences (NBIX) and Texas Roadhouse (TXRH) – as well as Dow Jones names Amgen (AMGN), larva (CAT) and Chevron (CVX) – is among the top stocks to consider for investor watchlists. Remember, the recent weakness in the market should keep investors on the sidelines.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health is featured in this week’s Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
After Thursday’s opening bell, the Dow Jones Industrial Average was up 0.9%, and the S&P 500 was up 1.4%. The tech-heavy Nasdaq composite rose 1.8% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 1.1% and the SPDR S&P 500 ETF ( SPY ) rose 0.8% early Thursday.
The 10-year Treasury yield ticked down to 3.86% Thursday morning, and the yield moved further above its 50-day line after three days of gains.
Meanwhile, US oil prices traded nearly 2% lower on Thursday as West Texas Intermediate futures retreated from resistance just above $79 a barrel, following a two-week gain. The Energy Information Administration will provide weekly information on oil stocks at 11 a.m. ET.
Stock correction
On Wednesday, the Dow Jones Industrial Average sold off 1.1%, while the S&P 500 fell 1.2%. The tech-heavy Nasdaq composite was the hardest hit, with a 1.35% decline.
Wednesday’s The Big Picture column commented: “Perhaps more importantly, amid generally quiet trading expected for the rest of the year, price matters more recently. And the size of the price decline continued to weigh heavily. Also, most key stock indexes lost gains since a follow-up day on October 21 means it is still very difficult to make money in the long term.”
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to track a flat base amid a three-week losing streak. And shares are further below the 50-day line after several losses on Wednesday. For now, the correct buy point is 296.77, but the stock needs to recover the 50 days first. AMGN shares are up more than 16% for the year through Wednesday. The shares traded 0.5 percent higher on Thursday.
Dow Jones member Caterpillar ended below a buy point of 239.95 in a flat base on Wednesday, according to IBD MarketSmith pattern recognition. If the stock retraces its entry, the buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, an important technical indicator, is at new heights. The CAT share has gained almost 16% so far this year. The stock rose 0.5 percent on Thursday.
CAT stock scores a strong 98 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron is testing its 50-day line amid Wednesday’s 1.5% drop, as the stock continues to track to the right of a flat base that has a buy point at 189.78. The CVX share is the Dow’s year-to-date leader, up more than 50%. Shares were slightly lower on Thursday morning, amid the weakness in oil prices.
4 top growth stocks to watch right nowra stock market rally
Top stocks to watch: Cardinal Health, Medpace, Texas Roadhouse
Cardinal Health, a recent IBD Stock Of The Day, is holding near an 81.67 buy point in a flat base. The share fell 0.7 percent on Wednesday. CAH shares were up 0.3% on Thursday.
Medpace bounced sharply from its 50-day line last week, with a gain of 3.3%. But the stock gave up much of those gains during Tuesday’s 2% drop and is again trying to find support. For now, the correct buy point is 235.82, but an earlier entry of 220.09 is also in play. The MEDP share was up 1.5% on Thursday.
Texas Roadhouse shows a new buy point at 101.85 in a flat base, but is now consolidating below its 50-day line. The restaurant manager will try to restore the most important reference during the coming sessions, but two consecutive days of heavy losses are not constructive. TXRH stock traded up 0.1% Thursday morning.
IBD Leaderboard stock Neurocrine fell 0.2% on Wednesday, retesting support around its 50-day level. A recent rejection of the 50-day line was bullish for the stock’s outlook, but now shares are back in that key area. The NBIX share was up 0.3 percent on Thursday.
Stocks to watch
These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.
| company name | Symbol | Right point of purchase | Type of base |
|---|---|---|---|
| Cardinal health | (CAH) | 81.67 | Flat base |
| Medpace | (MEDP) | 235.82 | Consolidation |
| Texas Roadhouse | (TXRH) | 101.85 | Flat base |
| larva | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Flat base |
| Amgen | (AMGN) | 296.77 | Flat base |
Source: IBD data as of December 28, 2022
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Tesla shares
Tesla shares snapped a seven-day losing streak on Wednesday, turning higher and rising 3.3% after hitting a 52-week low of 108.76. Shares closed about 72% off their 52-week high.
Shares looked set to continue their rally on Thursday morning, rising nearly 7% higher.
Late Wednesday, Morgan Stanley analyst Adam Jonas lowered the company’s price target from 330 to 250, while maintaining an overweight rating on TSLA stock. He believes that 2023 is “shaping up to be a ‘reset year'” for the electric car market, and Tesla is in a position to extend its lead over its competitors.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares sold off 3.1% on Wednesday, falling to 125.87, their lowest level since June 2021. The stock is about 32% lower than its 52-week high and down 29% since the start of the year. Shares rose 1.7% on Thursday morning, as the Wall Street Journal reported that iPhone production in China increased following Covid-19 concerns.
Microsoft shares fell 1% on Wednesday, falling further below the 50-day mark. The software giant is about 32% off its 52-week high with a loss of more than 30% so far this year. MSFT shares rose 0.8% 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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