Dow Jones futures rise as 10-year yield tops 4%; Tesla dives on disappointing investor day
Dow Jones futures pared gains in mixed trade Thursday morning after a surprise drop in the Labor Department’s first-time jobless claims as March 10-year Treasury yield appeared to close above 4% for the first time since November. Dow Jones Leader Foreclosure (CRM) rose 15% on strong earnings results. Tesla (TSLA) shares fell more than 8% after the company’s disappointing Investor Day pushed back the unveiling of a next-generation vehicle to a “later date.”
Weekly initial jobless claims fell to 190k from 192k the previous week. Econoday estimates they should rise to 200,000.
On the earnings front best buy (BBY), Celsius (CELH), DoubleVerify (dv), Macy’s (M), octa (OCTA), snowflake (SNOW), splunk (SPLK) And Veeva systems (VEEV) were on the way.
Best Buy shares are down more than 2%, while Celsius has sold off nearly 5% in morning trade. DoubleVerify shares are up 7.5%. Macy’s shares are up 9.5% and Okta is up 15%.
Snowflake plunged 7% after its earnings report included a revenue outlook that fell well short of expectations. Finally, Splunk was down 4% while Veeva Systems was up 5.4%.
stock market today
Cryptocurrency Oriented Silvergate Capital (S.I) plunged 38% Thursday morning after posting more losses and further delaying its annual report. Dow Jones tech giants Apple (AAPL) And Microsoft (MSFT) traded up and down before the market opens.
IBD Leaderboard Watch List Palo Alto Networks (PANW), deer (EN), Great brothers (TOL) And wing stop (WING) – as well as Dow Jones stocks American Express (AXP), Cisco systems (CSCO) And JPMorgan Chase (JPM) — are among the top stocks to watch given the recent stock market weakness.
Palo Alto is a IBD Leaderboard watchlist stock. Deere was a recently chosen IBD Stock of the Day. And American Express was featured in this week’s “Stocks Near a Buy Zone” column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s market open, S&P 500 futures fell 0.6% and tech-heavy Nasdaq 100 futures shed 0.9% as the 10-year Treasury yield stayed more than 4% in morning action after hitting that level had briefly surpassed on Wednesday.
Dow Jones futures were up 0.1% from fair value, boosted almost entirely by Salesforce.com’s 15% gain. At the bottom of the Dow, Apple was trading down 0.7%.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.9% and the SPDR S&P 500 ETF (SPY) was down 0.7% early Thursday.
On Wednesday, the US 10-year Treasury yield settled at 3.99%, closing at its highest level since Nov. 9. The 10-year Treasury yield rose to 4.07% early Thursday.
US oil prices edged up after gaining in four out of five recent sessions. West Texas Intermediate futures were up 0.5%, nearly 2% on the week, to trade back above $78 a barrel.
Fight for the stock market rally
On Wednesday, the Dow Jones Industrial Average inched up while the S&P 500 lost 0.5%. The tech-heavy Nasdaq Composite slipped 0.7%, falling for the second straight day.
Wednesday’s Big Picture column commented, “As you can see in the accompanying Market Pulse chart, more CAN SLIM-grade stocks rose on strong volume than those that fell significantly on above-average trading. Write this to the strength of smaller companies in relation to market capitalization.”
Now is an important time to read IBD’s The Big Picture column amidst the now struggling stock market rally.
Five Dow Jones stocks to buy and watch
Dow Jones Stocks To Buy And Watch: American Express, Cisco, JPMorgan
American Express, featured in this week’s “Stocks Near a Buy Zone” column, is building a huge cup-and-handle base that shows a buy point of 182.25. Shares are just 3% below their buy point as they were up 1.1% on Wednesday. Bullishly, the stock’s relative strength line is at fresh highs, a particularly positive sign ahead of a potential breakout. AXP shares fell 0.5% Thursday morning.
Banking giant JPMorgan remains in a buying range above its flat base buy point of 138.76 despite shedding 0.6% on Wednesday, according to chart analysis by IBD MarketSmith. Stocks rebounded off their key 50-day moving average last week. JPM shares fell 0.8% early Thursday.
JPM share showing a solid 95 out of 99 perfect IBD Composite Ratings, per IBD inventory check. The Composite Rating is designed to help investors easily find top growth stocks.
Cisco Systems was down 0.2% on Wednesday, further falling below the buy point from a flat base of 50.81. Stocks are attempting to halt their slide around their 50-day moving average and are about 4% below the entry. CSCO shares edged higher on Thursday.
4 top growth stocks to buy and watch stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
IBD Leaderboard Watch Palo Alto Networks is building the right side of a base that shows a buy point of 193.01 after last week’s rise of more than 10%. PANW shares traded 0.3% lower on Thursday morning.
Backstory: Last week, the cybersecurity giant announced strong results for the quarter ended in January, during which earnings hit $1.05 per share, up 81% year over year on revenue jumping 26% to 1.7 billion dollars.
Wingstop is still struggling to hold above a 169.04 cup with handle entry after recent losses. Investors should wait for signs of renewed strength before considering buying stocks, especially given the deteriorating general market conditions. WING shares rose 0.6% early Thursday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. International locations include Mexico, Colombia, Panama, Singapore and the UK. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total presence to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Buying Points
Deere shares rose 0.1% on Wednesday, still closing below its 50-day moving average. Shares are 6% below a buy point of 448.50 on a flat basis. DE shares fell 0.3% on Thursday morning.
Backstory: As an industrial pioneer, Deere has shrugged off recession and inflation fears to deliver solid profits. Last year, higher commodity prices made farmers buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker reported a 124% increase in earnings per share on a 32.2% increase in total sales, beating both estimates. Earnings growth accelerated for the second straight quarter.
The builder Toll Brothers builds a mug with a handle that has a buy point of 63.29. Bullishly, the stock is showing a line of relative strength at fresh highs during this week’s market action. TOL warehouse shows a solid 95 IBD Composite Rating. Toll Brothers shares were down slightly early Thursday.
Backstory: Last week, luxury homebuilder Toll Brothers beat earnings and sales forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month slide in US existing home prices in January showed signs of slowing.
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Stocks to buy and watch in the stock market rally
These are six top stocks to buy and watch in today’s stock market, including two top Dow Jones stocks.
|Company Name||symbol||Correct purchase point||Type of purchase point|
|Great brothers||(TOL)||63.29||Cup with handle|
|Cisco systems||(CSCO)||50.81||flat base|
|Palo Alto Networks||(PANW)||193.01||consolidation|
|JP Morgan||(JPM)||138.76||flat base|
|wing stop||(WING)||169.04||Cup with handle|
Source: IBD data as of March 1, 2023
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Tesla shares fell 1.4% after the market close on Wednesday ahead of the company’s Investor Day. CEO Elon Musk announced his “Master Plan 3”. Musk’s ambitious plan calls for a full electric vehicle transition and $10 trillion in spending to create a “sustainable energy future.”
Despite their strong recovery since Jan. 6, shares are still below the 200-day moving average. This key level is emerging as a potential area of resistance. Shares closed around 46% below their 52-week high on Wednesday.
Tesla stock threatened to add to Wednesday’s losses, dipping more than 8% in early morning trading on Thursday after Investor Day failed to unveil a next-generation electric vehicle.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 1.4% on Wednesday to close just below its 200-day moving average. Shares are about 19% off their 52-week high. Apple shares lost 0.7% on Thursday.
Microsoft shares remain below their 200-day moving average after shedding 1.3% on Wednesday. The stock is more than 20% off its 52-week high after recent declines. MSFT shares fell 0.4% early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-climb-ahead-of-jobless-claims-tesla-dives-on-disappointing-investor-day/?src=A00220&yptr=yahoo Dow Jones futures rise as 10-year yield tops 4%; Tesla dives on disappointing investor day