Dow Jones sells off important inflation data; Disney is falling on revenue

The Dow Jones Industrial Average reduced losses early Thursday, after a new round of heavy sales on Wednesday sent the major stock indices to new correction bottoms. Several inflation data – the Ministry of Labor’s producer price index – came out before the market opened. And Dow Jones media giant Disney fell after reporting a revenue crash late Wednesday.


Dutch Bros (BROS) and Rivian (RIVN) also reported earnings late Wednesday. The BROS stock fell 37%. Rivian shares jumped 11%, after plunging 28% from the week to Wednesday.

Electric vehicle giant Tesla (TSLA) cut losses to about 3.5% Thursday morning. Dow Jones Technology Leaders apple (AAPL) and Microsoft (MSFT) traded down 3.4% and 1.8% in the current stock market, respectively.

As the stock market correction continues to worsen, Dow Jones leaders Chevron (CVX) and Merck (MRK) – together with Cheniere energy (LNG), Exxon Mobile (XOM) and Northrop Grumman (NOC) – is among IBD’s best stocks to watch on Thursday.

Cheniere Energy and Microsoft are IBD Leaderboard shares. Exxon and Merck were featured in this week’s Stocks near a buy zone column.

Dow Jones today: government interest rates, oil prices, inflation data

After Thursday’s opening, the Dow Jones Industrial Average fell 0.6%, and the S&P 500 lost 0.8%. The technology-heavy Nasdaq composite sold 1% in morning trading.

Among exchange-traded funds, the Nasdaq 100 tracking Invesco QQQ Trust (QQQ) fell 1%. SPDR S&P 500 ETF (SPY) lost 0.8%.

The 10-year government bond yield fell to 2.82% on Thursday morning, as bonds continued to rise against the stock market’s decline. On Wednesday, the 10-year government interest rate fell for the third day in a row, closing at 2.92%. Meanwhile, US oil prices traded more than 1% lower, with Texas Intermediate oil hovering around $ 104 a barrel after taking a 6% jump on Wednesday.

The CPI inflation rate is finally falling, but not enough

Producer prices rose 0.5% in April, down from a 1.4% increase in March, in line with Econoday estimates. Producer growth rose 11% in April from a year ago, warmer than the estimate of 10.7%. The producer price index is a measure of price stability based on sales prices received by domestic producers for their production.

On Wednesday, the April consumer price index rose at an annual rate of 8.3%, down from last month’s 8.5%, but higher than economists estimated.

Finally, first-time employees rose to 203,000. Initial unemployment claims were expected to fall to 190,000 compared with last week’s 200,000 applications.

Stock correction gets deeper

On Wednesday, the major stock indices sold strongly, reaching new correction bottoms. The Nasdaq composite plunged 3.2%, bringing the stock market down.

Wednesday’s The Big Picture column commented: “The indices started strong and managed to stay on the green most of the day. But the temporary respite was used as a tactical opportunity, which led to a painful reversal towards the end.”

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Dow Jones Revenue: Disney

Within the Dow Jones industry, Disney reported earnings and sales below analysts’ targets for the second quarter. But subscriber growth for the Disney + streaming service topped expectations by a wide margin.

Disney stock fell more than 4% early Thursday. The DIS shares ended on Wednesday with more than a 40% discount on the 52-week high.

Five Dow Jones shares to see now

Dow Jones shares to see: Chevron, Merck

Dow Jones leader and energy giant Chevron in a flat base that has a buying point of 174.86, according to IBD MarketSmith chart analysis. CVX shares rose 1.5% on Wednesday as they struggle to regain their 50-day line. Chevron shares fell 0.7 percent Thursday morning.

The CVX stock has a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s basic and technical calculations.

Drug leader Merck is just under a cup with the handle’s 89.58 buy points after Wednesday’s 1.6% increase. Shares rose early Thursday. On a positive note, the share’s relative strength line reached another high level, which indicates that the stock market is achieving great results during the current correction.

Three top growth stocks to see in timerent Stock market correction

Shares to look at: Cheniere, Exxon, Northrop

The IBD Leaderboard stock Cheniere Energy is one of the best stocks to see, although it continues to trade below the 50-day line. The stock rose 1% on Wednesday as it continued to etch a flat base showing a buying point of 149.52, according to the IBD MarketSmith chart analysis. LNG shares fell on Thursday.

Energy giant Exxon Mobil broke out past a cup with handle purchase points of 89.90 last week. But stocks gave up listing on Monday and remain about 3% below the point of purchase. It stops triggering the automatic sales rule. The shaky eruption illustrates the danger of owning shares in the current market environment. XOM shares fell 0.5% on Thursday.

Defense contractor Northrop Grumman continues to etch a cup with handles with a purchase point of 477.36. The shares are just below the 50-day line after Wednesday’s loss of 0.8%. Northrop shares rose 0.6 percent on Thursday.

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

Tesla shares

Tesla shares fell more than 3% on Thursday morning, threatening to increase Wednesday’s 8.25% avalanche. The stock remains sharply below the 50- and 200-day lines in the midst of their recent weakness and is at its lowest level since February.

The stock traded as high as 1243.49 on November 4 and is approximately 36% away from this mark.

Dow Jones executives: Apple, Microsoft

Among Dow Jones shares, Apple shares fell 5.2% on Wednesday, falling to the lowest level since October 2021. The stock is sharply below the 200-day line and approx. 20% lower than 52 weeks height. Apple stock fell 3.4 percent on Thursday.

Software leader Microsoft fell 3.3% on Wednesday, the lowest level since June 2021. The stock closed about 25% from its 52-week high. MSFT shares fell 1.8% on Thursday morning.

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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