The Dow Jones Industrial Average rallied 490 points Thursday, after the stock market sell-off worsened Wednesday. Apple stock slid on reportedly weak iPhone demand. Boeing rallied on 737 Max news. Meanwhile, Snowflake surged on strong earnings results.
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Among the Dow Jones leaders, Apple (AAPL) traded down nearly 3% early Thursday, while Microsoft (MSFT) edged up 0.4% in today’s stock market. Nike (NKE) added 1.7%, still below a buy point after Wednesday’s loss.
Electric-vehicle leader Tesla (TSLA) rose 1% Thursday. EV peer Rivian (RIVN) was up about 1%, while Lucid Group (LCID) fell 1%. Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were each up around 3% after Thursday’s open.
Among the top stocks to buy and watch, Li Auto, NXP Semiconductors (NXPI), Pfizer (PFE) and Zim Integrated Shipping (ZIM) are in or near new buy zones. The worsening stock market conditions mean the environment isn’t conducive to new purchases.
Microsoft and Tesla are IBD Leaderboard stocks. NXP is an IBD SwingTrader stock. Apple and Li Auto featured in this week’s Stocks Near A Buy Zone story.
Dow Jones Today: Jobless Claims
After the stock market open Thursday, the Dow Jones Industrial Average climbed 1.4% — bolstered by Boeing‘s (BA) big jump. The S&P 500 rose 1.1%, while the tech-heavy Nasdaq composite reversed from early losses to gain 0.75% in morning trade.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4% Thursday, while the SPDR S&P 500 ETF (SPY) ascended 0.3%. Elsewhere, the 10-year Treasury yield fell to around 1.41%.
The Labor Department said weekly jobless claims rose to 222,000 from last week’s 199,000. The number was better than Econoday estimates for initial unemployment claims of 245,000.
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Stock Market Pullback
On Wednesday, the stock market sell-off worsened, as investors responded to identification of the first case of coronavirus variant omicron in the U.S. The major stock indexes fell sharply for a second straight session. The Dow Jones Industrial Average closed below its long-term 200-day moving average. The S&P 500 gave up its key 50-day line. And the Nasdaq closed right at its own 50-day line.
Following the session, The Big Picture commented: “The Nasdaq raced out of the blocks, but gains melted away as the session wore on. It ended on a sour note, hitting lows of the day as it dipped 1.8%. But volume was lower for the day, which means the composite index did not add another distribution day.”
The stock market outlook was downgraded to “uptrend under pressure” Tuesday, so it’s an important time to read IBD’s The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Apple, Boeing, Nike
Apple shares slid about 3% Thursday morning after Blomberg reported that Apple warned its component suppliers that demand for the iPhone 13 lineup has weakened. Apple stock hit new highs Wednesday before reversing 0.3% lower.
At the end of Wednesday’s session, Apple shares were extended above a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Thursday’s premarket action suggests the stock could potentially open back in the 5% buy zone, which tops out at 160.93.
Aerospace giant Boeing jumped nearly 4% Thursday. China’s aviation authority issued an airworthiness directive setting the Boeing 737 Max up for a return to service in China, according to Reuters. Boeing shares closed Wednesday more than 30% off their 52-week high.
Retail leader Nike is attempting to rebound, after falling further below its cup base’s 174.48 buy point in two straight days of losses. Shares moved up 1.7% Thursday.
Stock Market Earnings: CrowdStrike, Five Below, Snowflake
Cybersecurity leader CrowdStrike climbed almost 4% early Thursday after reporting strong third-quarter earnings and sales results. Shares ended Wednesday more than 30% off their 52-week high.
Discount retailer Five Below reported third-quarter results that easily beat expectations and delivered a strong full-year forecast. The stock rallied about 4% Thursday, as it tries to regain its key 50-day benchmark. A cup-with-handle base with a 221.10 buy point is also forming.
Snowflake reported a narrower-than-expected loss for the third quarter while revenue blew past estimates. SNOW shares surged 10% Thursday, as they try to recover from Wednesday’s 8.6% tumble.
Stocks To Buy And Watch: Li Auto, NXP, Pfizer, Zim
Li Auto ended Wednesday just above a cup-with-handle base’s 34.93 buy point amid a sputtering breakout move. Shares raced higher Wednesday morning after strong delivery numbers, but closed with a 1% loss. Li Auto stock moved up about 3% Thursday.
Chip leader and new IBD SwingTrader stock NXP Semiconductors is trying to break out past a 227.60 buy point in a cup-with-handle base, but closed below the buy point amid Wednesday’s sharp reversal. Shares lost almost 1% Thursday.
Drug giant Pfizer is just out of buy range past a 51.96 buy point in a cup base following Wednesday’s 1.75% rise. The 5% buy zone topped out at 54.56. Shares dropped 0.7% Thursday.
Recent initial public offering Zim Integrated, an IPO Leader, continues to build a cup-with-handle base with a 60.19 buy point, according to IBD MarketSmith chart analysis, despite a two-day losing streak. Shares are about 11% away from the latest entry. ZIM stock rose about 2% Thursday.
Join IBD experts as they analyze leading stocks in the current stock market uptrend on IBD Live
EV Stocks: Xpeng, Lucid Motors, Rivian
Xpeng Motors remains slightly extended past its 48.08 buy point in a choppy cup base after Wednesday’s 7% skid. XPEV shares rose more than 3% Thursday.
Lucid Motors shares threatened to extend a two-day slide, falling about 1% Thursday. LCID stock remains far extended past a 28.49 buy point in a cup-with-handle base.
Hot IPO Rivian was up about 1% after Wednesday’s 3.4% decline.
RIVN shares closed Wednesday about 36% off their post-IPO highs. The decline is a potential positive for investors remaining disciplined and waiting for an IPO base to form before considering a purchase. The recent weakness is the start of Rivian’s first base formation.
Tesla Stock
Tesla stock rose 1% Thursday, on pace to rebound from Wednesday’s 4.35% decline. Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Wednesday about 12% off its 52-week high.
TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50. Tesla shares are likely forming a new base, but there is no new buy point yet.
Dow Jones Leaders: Microsoft
Among Dow Jones stocks, software giant Microsoft moved up 0.4% Thursday, on pace to snap a two-day losing streak. Positively, the stock’s RS line is at new highs, indicating strong stock market outperformance during this week’s market weakness.
On Oct. 18, Microsoft stock broke out past a flat base’s 305.94 buy point. The 5% buy zone topped out at 321.24, so the stock is extended.
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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