Wednesday, July 24, 2024

Dow Jones falls on rising jobless claims; Pavel speech now; Tesla stock skids on downgrade

The Dow Jones industrial average fell on Thursday as investors digested initial jobless claims data. Federal Reserve Chairman Jerome Powell begins his monetary policy statement to the Senate Banking Committee. Meanwhile, Tesla stock slipped after another analyst downgrade.


Initial jobless claims rose by 264,000 more than estimates. They were expected to fall to between 261,000 and 262,000 in the previous week, according to Econoday estimates. Also, May’s existing home sales numbers from the National Association of Realtors unexpectedly rose to 4.3 million. They were expected to fall slightly to an annualized rate of 4.25 million versus 4.28 million in April.

The Senate calendar called for Powell’s testimony to begin at 10 a.m. ET. On Wednesday, Pavel reiterated And he said interest rate hikes would dampen inflation, adding that “almost all FOMC participants expect it will be appropriate to raise interest rates a little more by the end of the year.”

Investors see a more than 76% chance of a quarter-point hike at the Fed’s July meeting. CME FedWatch tool. That’s up 60% from a week ago.

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

in income, Tartan Restaurants (TRI) and KP Home (KBH) Thursday morning’s major earnings moves. Tartan shares were down 3% in morning trade, while KBH shares were down nearly 2%.

Stock market today

EV is giant Tesla (D.S.L.A) Jupiter slipped nearly 3%. Morgan Stanley cut the stock from overweight to equal weight and raised its price target to 250 from 200. Dow Jones is a tech giant Apple (APL) and Microsoft (MSFT) was higher after today’s stock market opened.

Dexcom (DXCM), Chipotle Mexican Grill (CMG), McKesson (M.C.K) and year (year) — as well as Dow Jones stocks Boeing (B.A), JP Morgan Chase (JPM) and Sales force (CRM) — is one of the best stocks to buy or watch in a stock market boom.

Tesla is an IBD Leaderboard stock. McKesson is an IBD SwingTrader stock, while Chipotle was featured in Wednesday’s Stock of the Day and A Buy Zone column near this week’s stocks.

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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 lost 0.15%. And the tech-heavy Nasdaq composite rose 0.15% in morning action.

Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQtraded up 0.2%, while the SPDR S&P 500 ETF (espionage) fell 0.25% early Thursday.

On Thursday, the 10-year U.S. Treasury yield rose to 3.72%. The yield has been hovering between 3.57% and 3.85% recently, easing slightly to 3.72% on Wednesday.

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

Stock market activity

On Wednesday, the S&P 500 returned 0.5%, while small caps fared better. The Russell 2000 fell 0.2%. The Dow Jones industrial average fell 0.3%.

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

It’s an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Boeing, JP Morgan, Salesforce

Dow Jones aerospace giant Boeing faltered further in its breakout bid on Wednesday, falling 0.1%. Shares are now 4% below their recent buy trigger. BA stock fell 3.1% as a supplier on Thursday Spirit Aero Systems (S.P.R) Factory operations were shut down by striking workers.

Dow Jones bank leader JP Morgan is below a flat-base buy point of 143.37 after a 0.15% drop on Wednesday. JPM shares were up 0.1% in early Thursday trading.

Salesforce has been able to stabilize itself after a series of revenue declines. It is now testing support at the 21-day exponential moving average. According to IBD Leaderboard analysis, MegaCap Technology previously crossed a pair of fresh alternative entries at 194.01 and 200.10.

In recent weeks, the stock reached the 20% profit-taking zone from the 178.94 cup-with-handle entry, and is now trying to break out of support at the 10-week line. CRM stock rose 0.8% Thursday morning.

4 Best Growth Stocks to Buy and Watch Stock market rally

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

Despite three straight days of losses as of Wednesday, Dexcom remains in buy range above a flat base’s 126.44 buy point, according to the IBD MarketSmith model consensus. 5% buy area goes up to 132.76. DXCM stock fell Thursday.

IBD Leaderboard Watchlist stock Chipotle is trading tighter after a big advance, making another entry at 2,139.88. Meanwhile, the stock is retreating to its 10-week line, where it is finding support. A decisive recovery from that level would also create a buying opportunity. CMG stock lost 0.4% Thursday morning.

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

Streaming giant Roku made a cup-with-handle base with a 75.45 buy point, even as shares extended their losing streak to five straight sessions on Wednesday. Roku shares lost 0.4% in early Thursday trading.

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

Best stocks to buy and watch in the stock market

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

Name of the company Symbol Perfect buying point Type of point of purchase
ASML (ASML) 683.18 Cup with handle
Sales force (CRM) 200.00 Integration
Cloudflare (Net) 66.20 Double bottom
year (year) 76.62 cup base
Source: IBD data as of June 20, 2023

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

Tesla stock

IBD Leaderboard stock Tesla slipped 5.5% on Wednesday after a Barclays downgrade, turning lower after hitting a new 2023 high. Shares have extended sharply above the 207.79 buy point of a double bottom base. They closed Wednesday at 18% off their 52-week high.

TSLA stock threatened to add to Wednesday’s losses, falling nearly 3% Thursday morning after a Morgan Stanley downgrade and price target hike.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell further from their all-time highs on Wednesday, falling 0.6% on the session. Last week, the stock rose to 186.99. The stock remains active above the 157.38 buy point. AAPL stock was up 0.3% in early Thursday trading.

Microsoft shares fell another 1.3% on Wednesday, falling sharply for a third straight session. Last week, the stock hit a record high of 351.47. Despite recent losses, MSFT stock is in the 20%-25% profit-taking zone from the 276.76 flat-base buy point, so investors can at least take some profits. On Thursday morning, Microsoft shares were up 0.35%.

Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.

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