Dow Jones falls on rising jobless claims; Powell speech now; Tesla stock slides on downgrade

The Dow Jones Industrial Average fell on Thursday as investors processed initial jobless claims data. Fed Chair Jerome Powell began his monetary policy report to the Senate Banking Committee. Meanwhile, Tesla stock has been on an uptrend following another downgrade by analysts.




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Initial jobless claims rose to 264,000, beating estimates. Econoday estimates they are likely to fall to 261k from 262k the previous week. In addition, the National Association of Realtors’ Existing Home Sales numbers unexpectedly rose to 4.3 million in May. They were expected to fall slightly to an annualized rate of 4.25 million compared to April’s 4.28 million.

The Senate schedule called for Powell’s testimony to begin at 10 a.m. ET. On Wednesday, Powell reiterated that further rate hikes are likely to lower inflation, saying, “Almost all FOMC participants believe it will be appropriate to raise interest rates a bit more by year-end.”

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

Meanwhile, the Bank of England raised interest rates by half a percentage point and raised lending rates to 5%, the highest since April 2008.

On the earnings side Darden restaurants (DRI) and KB Home (KBH) were the key gain drivers on Thursday morning. Darden shares posted a 3% sell-off in morning trade, while KBH shares were down nearly 2%.

stock market today

EV giant Tesla (TSLA) reversed higher on Thursday. Morgan Stanley downgraded the shares from overweight to equal weight and raised the price target to 250 from 200. Dow Jones technology giants Apple (AAPL) and Microsoft (MSFT) were higher after the market open today.

Dexcom (DXCM), Chipotle Mexican Grill (CMG), McKesson (MCK) and roku (ROKU) – as well as Dow Jones shares Boeing (BA), JPMorgan Chase (JPM) and Foreclosure (CRM) – are among the best stocks to buy or watch when the stock market is up.

Tesla is an IBD leaderboard. McKesson is an IBD SwingTrader stock, while Chipotle was featured in Wednesday’s Stock of the Day and in this week’s “Stocks Near A Buy Zone” column.


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Dow Jones today: oil prices, government bond yields

After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.1%. And the tech-heavy Nasdaq Composite was up 0.5% in morning trade.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.2%, while the SPDR S&P 500 ETF (SPY) is down 0.25% early Thursday.

On Thursday, the US 10-year Treasury yield rose to 3.72%. The yield has recently fluctuated in a range between 3.57% and 3.85%, and settled slightly lower at 3.72% on Wednesday.

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

stock market action

On Wednesday, the S&P 500 was down 0.5% while small caps held up even better. The Russell 2000 fell 0.2%. The Dow Jones Industrial Average fell 0.3%.

Wednesday’s Big Picture column said: “After narrowly falling short of testing the 14,000 level on Friday, the Nasdaq Composite Index continued its biggest decline in more than two months. A 1.2% drop on Wednesday marked the third straight decline. This hasn’t happened since 1990.” four-day decline from May 1-4.

With stock markets continuing to rally, now is an important time to read IBD’s The Big Picture column.


The five best Dow Jones stocks to buy and watch right now


Dow Jones Stocks To Buy And Watch: Boeing, JPMorgan, Salesforce

Dow Jones aerospace giant Boeing saw another failure in its breakout attempt on Wednesday, falling 0.1%. Shares are now 4% below their last buy trigger. As a supplier, BA shares fell another 3.1% on Thursday Spirit AeroSystems (SPR) closed the factory due to striking workers.

Dow Jones banking leader JPMorgan is just below a flat base buy point of 143.37 after falling 0.15% on Wednesday. JPM shares rose 0.1% early Thursday.

Salesforce was able to stabilize after the slump in earnings that followed. It is now testing support at the 21-day exponential moving average. According to IBD leaderboard analysis, the megacap technology company previously surmounted two new alternative entries at 194.01 and 200.10.

For the past few weeks, shares hit the 20% profit-taking zone on an entry at 178.94 cups with Henkel and are now trying to recover from the support at the 10-week moving average. CRM stock was up 0.8% Thursday morning.


4 top growth stocks to buy and watch in the stock market rally


The best stocks to buy and watch: Dexcom, Chipotle, McKesson, Roku

Pattern recognition by IBD MarketSmith Dexcom remains range bound beyond the 126.44 buy point despite a 3 day losing streak starting Wednesday. The 5% buy range goes to 132.76. DXCM shares fell slightly on Thursday.

IBD leaderboard watchlist stock Chipotle is trading tight after a big rally making another entry at 2139.88. Meanwhile, the stock is also falling back to its 10-week moving average, where it appears to be finding support. A decisive recovery from this level would also create a buying opportunity. CMG shares lost 0.4% Thursday morning.

IBD SwingTrader stock McKesson is range-buying past a 401.53 cup-with-henkel entry amid a four-day winning streak. The buy zone peaks at 421.61. Shares were slightly lower early Thursday.

Streaming giant Roku is building a mug with a handle at a buy point of 75.45, even as the stock extended its losing streak to five sessions on Wednesday. Roku stock lost 0.4% early Thursday.


Learn how to drive the market with IBD’s ETF market strategy


The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and keep an eye on in today’s stock market, including a Dow Jones leader.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
roku (ROKU) 76.62 cup bottom
Source: IBD data as of June 20, 2023

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


Tesla stock

IBD leaderboard stock Tesla slipped 5.5% Wednesday after a downgrade by Barclays, turning lower after hitting a new 2023 high. Shares remain well above the 207.79 buy point higher on a double bottom basis. They closed 18% below their 52-week high on Wednesday.

TSLA stock threatened to add to Wednesday’s losses but rose 0.5% in Thursday morning trade after Morgan Stanley downgraded its price and raised its price target.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock fell further from Wednesday’s all-time highs, shedding 0.6% in the session. Shares traded as high as 186.99 last week. The stock continues to hold well above a buy point of 157.38. Early Thursday, AAPL shares were up 1.1%.

Microsoft shares fell another 1.3% on Wednesday, falling sharply for the third consecutive month. Last week the stock hit a record high of 351.47. Despite the recent losses, MSFT stock remains in the 20-25% profit-taking zone from a flat base buy point of 276.76, allowing investors to take at least some profits. And as of Thursday morning, Microsoft shares were up 1%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.

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