Dow Jones futures moved lower while tech futures took a dive Thursday morning, as Facebook stock crashed following a weak earnings report. AbbVie, Qualcomm and Spotify also reported late Wednesday. ConocoPhillips and Eli Lilly delivered results early Thursday. Meanwhile, Amazon and Ford earnings are due after the market closes.
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Among the Dow Jones leaders, Apple (AAPL) faded 1.2% premarket Thursday, while Microsoft (MSFT) lost 1% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, is nearing a new buy point.
Electric-vehicle leader Tesla (TSLA) dropped nearly 3% premarket Thursday, on pace to add to Wednesday’s losses.
Among Thursday’s top stocks to buy and watch, Baker Hughes (BKR), CF Industries (CF), UPS (UPS) and Vertex Pharmaceuticals (VRTX) are in or near new buy zones.
CF Industries, Microsoft and Tesla are IBD Leaderboard stocks. Vertex was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Jobless Claims
Ahead of the stock market open Thursday, Dow Jones futures moved down 0.4% vs. fair value. S&P 500 futures declined 1.4%, while Nasdaq 100 futures plunged 2.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 2.2%, and the SPDR S&P 500 ETF (SPY) traded down 1.1% before Thursday’s open.
The 10-year Treasury yield ticked up above 1.8% Thursday morning. The 10-year Treasury yield closed above 1.76% Wednesday, snapping a two-day win streak.
The Labor Department reported that last week’s initial jobless claims fell to 238,000 vs. 260,000 in the prior week, and fewer than Econoday estimates that called for a drop to 250,000.
Stock Market Rally
The stock market posted more solid gains Wednesday, another positive session in the wake of Monday’s follow-through day. Amid the recent strength, now is an important time to read IBD’s The Big Picture column.
Wednesday’s The Big Picture commented, “the four-day rally is moderating. After back-to-back vaults of more than 3%, the Nasdaq climbed less than 1% the next two days. Surely, no index can sustain outsized gains for long, but it’s a reminder that the Nasdaq and S&P 500 could be ready to pause. The volatility since the new year suggests investors should be ready for more turbulence.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Stock Market Earnings: Meta, Qualcomm, Spotify
Meta Platforms (FB), formerly Facebook, reported fourth-quarter results late Wednesday that missed estimates, as did the outlook. FB shares crashed 22% early Thursday.
Qualcomm (QCOM) easily beat Wall Street’s expectations for the December quarter, and guided higher for the current period. But QCOM shares slid 1% in premarket trade.
Spotify (SPOT) met expectations for new subscribers in the December quarter. But its March-quarter guidance missed views. SPOT stock tumbled nearly 12% in early morning trade Thursday.
AbbVie (ABBV) slightly beat the Street’s estimates late Wednesday, but shares still fell marginally in morning trade. The stock hit a new high Wednesday.
Meanwhile, ConocoPhillips (COP) and Eli Lilly (LLY) reported ahead of Thursday’s open.
ConocoPhillips shares dipped Thursday morning after the energy leader reported its fourth-quarter results. COP shares are extended sharply beyond a 78.08 buy point.
Eli Lilly traded lower early Thursday despite the company’s strong earnings and sales results. Shares are forming a base with a 284.01 buy point, but are still below their 50-day line.
Amazon Earnings, Ford On Deck
After the stock market close Thursday, e-commerce giant Amazon (AMZN) and Ford Motor (F) will report their quarterly results.
FANG stock Amazon is expected to earn $3.72 per share on sales of $137.7 billion. AMZN shares closed Wednesday about 20% off their 52-week high.
Wall Street expects Ford Motor to earn 45 cents per share on revenue of $41.2 billion. Ford shares are below their 50-day line, and about 20% off their 52-week high.
Dow Jones Earnings: Merck
Dow Jones medical stock Merck (MRK) reported better-than-expected results early Thursday, but earnings guidance for 2022 missed estimates.
MRK shares fell less than 1% premarket Thursday. In recent weeks, the stock is moving up the right side of a new base that has a 91.50 buy point.
Dow Jones Stocks To Watch: American Express
American Express decisively regained its 10-week moving average last week with an 11.5% advance. AXP shares are moving up the right side of a new base with a 189.13 buy point, according to IBD MarketSmith chart analysis. Be on the lookout for a potential handle to offer a more risk-optimal entry. Shares were down 0.5% premarket Thursday following Wednesday’s 0.3% rise.
Bullishly, the stock’s relative strength line is just shy of new highs amid this week’s continued ascent. A strong RS line, particularly during a volatile general market, highlights American Express as a stock to watch.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Watch: Baker, CF Industries, UPS, Vertex
Oilfield equipment leader Baker Hughes is just below a 27.76 cup-base buy point after Wednesday’s 2.3% fall. Shares were down 0.4% premarket Thursday.
Fertilizer producer CF Industries is trying to break out past an ascending base’s 74.87 buy point, but is having some difficulty staking a decisive claim to the entry. Bullishly, the stock’s RS line is close to new highs, indicating strong stock market outperformance. CF stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock is right below the new entry following Wednesday’s 0.1% gain. Shares lost 0.7% premarket Thursday.
Shipping leader UPS added to Tuesday’s breakout gains, rallying 0.6% Wednesday. Shares are slightly extended past a 219.55 buy point in a double bottom. UPS stock edged lower premarket Thursday.
New IBD Leaderboard stock Vertex Pharmaceuticals extended gains past a 234.68 buy point Wednesday with a 3.2% rally, according to IBD MarketSmith chart analysis. The 5% buy range ran up to 246.41, so the stock is now extended. Shares lost 0.5% premarket Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded nearly 3% premarket Thursday, on pace to extend a losing streak to three sessions. The stock found much-needed support at its long-term 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.
The stock traded as high as 1,243.49 on Nov. 4, but ended Wednesday about 27% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock advanced 0.7% Wednesday, moving further above the key 50-day line. Shares are again about 15% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. A new base is likely forming, but it is slightly too early for a new buy point. Apple shares dropped 1.2% premarket Thursday.
Software leader Microsoft climbed 1.5% Wednesday, as the top Dow Jones stock continues to rebound after finding support at the 200-day line last week. Shares dropped 1% premarket 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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