The Dow Jones industrial average fell on Thursday after initial jobless claims came in higher than expected. Meanwhile, Cisco systems (CSCO) and Walmart (WMT) was battered by disappointing earnings reports.
The Labor Department said first-time jobless claims rose to 231,000 and 217,000 in the previous week. They were expected to rise to 222,000. Also, the Philadelphia Fed manufacturing index unexpectedly improved to -5.9 from a -9.0 reading in November and October. It was expected to drop to -11.0.
Earlier Thursday, Cisco Systems reported fiscal first-quarter earnings fell nearly 12% late Wednesday, topping estimates, although product orders fell again. The company’s outlook for CSCO stock in the current January-ended quarter fell short of expectations.
Meanwhile, Walmart fell more than 6% after the company warned that consumer spending could soften. However, Walmart beat third-quarter estimates as earnings were $1.53 a share on sales of $160.8 billion. Analysts were expecting earnings per share of $1.52 on revenue of $159.65 billion.
Walmart’s decline is in stark contrast to that of its fellow big-box retailer target (DGT) which rose nearly 18% on Wednesday on its earnings news. The target fell 2.1% on Thursday.
BABA stock fell 8.7% in morning trading, while Macy’s stock rose nearly 13%. NTES stock fell nearly 5% after Palo Alto Networks reported a nearly 7% drop in its earnings.
Dow Jones today: Oil prices, Treasury yields
After Thursday’s opening bell, the Dow Jones industrial average fell 0.1%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite was lower in morning action.
The yield on the 10-year US Treasury bond fell to 4.48%. On Wednesday, the benchmark stood at 4.53%.
Oil prices threatened to fall for a third-straight session as West Texas Intermediate futures fell more than 1%. WTI prices are trading below $76 a barrel, near their recent lows.
Stock market rally
On Wednesday, the Dow Jones Industrial Average rose another 0.5%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite pared gains of just 0.1%.
Wednesday’s Big Picture column noted, “So, selling pressure is not unusual. And the confirmed rally was fueled by a tech- and retail-heavy Nasdaq mix on Nov. 1, though fully intact.”
Now is an important time to read IBD’s The Big Picture column after recent wins. Be sure to read how to invest during the current stock market boom.
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Stock Market Today: Top Stocks to Watch
Share on the IBD Leaderboard Amazon (AMZN), with Free market (Meli), Service now (Now) and Dole Brothers (TOL) — as well as Dow Jones stocks Intel (INTC), Walmart and United Health (UNH) — is one of the best stocks to watch in the current market uptrend.
MercadoLibre and Nvidia are featured next to these stocks in the A Buy Zone column. Amazon and NOW stocks are members of the IBD Leaderboard.
Dow Jones Stocks to Watch
According to IBD MarketSmith chart analysis, chip giant Intel has extended a double-bottom base beyond the 37.22 buy point. Intel shares rose 3.05% on Wednesday, topping out at 40.07 on an additional buy point. INTC rose nearly 1% in early Thursday trading.
Retail titan Walmart ended Wednesday in overbought range, above the 165.85 buy point. But WMT stock fell 6.5% Thursday morning after the company’s earnings report.
Health care company UnitedHealth added a handle to a major consolidation, showing a new buy point at 546.78. UNH stock was slightly higher Thursday.
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Amazon gave up its Cup platform’s 145.86 buy point during Wednesday’s 1.8% drop. Shares remain above the initial entry at 134.48. AMZN stock fell 1.9% Thursday.
MercadoLibre crossed a 1,398.59 buy point during Wednesday’s 0.8% gain, according to IBD MarketSmith model approval. MELI shares were down 0.7% on Thursday morning.
ServiceNow is out of buying range at a double-bottom base above the 607.90 entry level. A 5% buy zone rose to 638.30. This pattern can also be interpreted as a flat base with a buy point of 614.36. Now the stock is down 0.4% on Thursday.
Homebuilder Dole Brothers remains in buy range after Tuesday’s breakout move, pushing past Cup-With-Handle’s 82.39 buy point. A buy zone going up to 86.51. TOL stock was up 0.6% Thursday morning.
Best stocks in today’s stock market action
These are four of the best stocks to watch in today’s stock market, including the Dow Jones leader.
|Name of the company||Symbol||Perfect buying point||Type of point of purchase|
|United Health||(UNH)||546.78||Handle the entry|
|Dole Brothers||(TOL)||82.39||Cup with handle|
|Free market||(Meli)||1,398.59||Cup with handle|
Source: IBD data as of November 14, 2023
Fantastic Seven Stocks: Nvidia, Tesla
Graphics-chip giant Nvidia is in buy range, despite a 1.55% drop on Wednesday, above the 476.09 entry of the double-bottom floor.
Tesla shares rose more than 2% on Wednesday, extending a winning streak to four sessions. After retrieving the 200-day line earlier this week, the stock is trying to clear its 50-day line decisively. Shares are 20% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple (APL) and Microsoft (MSFT), traded higher after today’s stock market opened. Apple gained 0.3% on Wednesday, ending at its highest level since September 5. Shares are above the initial entry at 182.34 as they continue consolidation with a 198.23 buy point. Apple shares fell 1.1% on Thursday.
Microsoft shares fell 0.2% on Wednesday to an all-time high of 373.13. The stock is above a buy point of 366.78 per cup base. In recent weeks, shares have risen above an initial buy trigger at 346.20. MSFT shares rose 0.6% on Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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