Dow Jones falls on strong jobs data; Hot AI stock plunges 24% in earnings

The Dow Jones Industrial Average fell Thursday after key economic data, with the release of the ADP jobs report and the Labor Department's weekly jobless claims. Now hot AI stock (AI) plunged as much as 24% after the release of its first-quarter earnings report.


ADP's jobs report showed May job growth of 278k, much stronger than the expected 160k figure but still slightly below April's 296k figure. The ADP report is a precursor to Friday's jobs data from the Labor Department.

Meanwhile, initial jobless claims rose to 232,000, slightly below the 235,000 forecast from 229,000 the previous week.

Additionally, the manufacturing PMI index came in at 48.4, slightly below the estimate of 48.5. Finally, Wall Street expects the ISM manufacturing index to fall to 47.0 in May, down from 47.1 in April. The ISM appears at 10 a.m, which pre-announced some fiscal fourth-quarter results in mid-May, released a full-year 2024 revenue outlook that fell short of analysts' estimates. The stock was up more than 20% this week but is likely to lose most of it.

Other important revenue drivers are: Tough (CHWY), CrowdStrike (CRWD), NetApp (NTAP), north current (JWN), octa (OCTA), Foreclosure (CRM) and Veeva systems (VEEV).

Chewy's shares rose 20% as CrowdStrike reported earnings and revenue for the April quarter that beat analyst estimates. CRWD stock plummeted 8.5% as growth in a key metric, annual recurring revenue, slowed.

NetApp is up more than 6% in early trade, while Nordstrom shares are up 9.3%.

CRM stock fell nearly 8%, while Veeva stock rose 13%. Also, Okta is down 19% in early morning trading.

stock market today

Lucid Motors (LCID) slipped 13% after the stock announced a $3 billion stock offering and separate private placement. Giant for electric vehicles Tesla (TSLA) was trading down nearly 2% on Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower after the market open today.

Arista Networks (ANET), IBD Leaderboard Stock ASML (ASML), cloud flare (NET) and Taiwan Semiconductor (TSM) – as well as Dow Jones shares Boeing (BA), Cisco systems (CSCO) and Foreclosure (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

Arista was recently an IBD Stock of the Day, while ASML and Salesforce are among the IBD Leaderboard stocks. And Cisco was featured 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 0.4%, while the S&P 500 lost 0.1%. The tech-heavy Nasdaq Composite Index slipped slightly in morning trade.

Among U.S. exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 0.1%, while the SPDR S&P 500 ETF (SPY) is down 0.15% early Thursday.

The 10-year US Treasury yield fell to 3.58% on Thursday. On Wednesday, the 10-year government bond yield fell sharply for the second straight day.

US oil prices fell Thursday morning, extending this week's losses. West Texas Intermediate futures shed 0.5% on Thursday, sending West Texas Intermediate futures below $68 a barrel.

stock market action

On Wednesday, the Dow Jones Industrial Average lost 0.4% while the S&P 500 lost 0.6%. The Nasdaq Composite was also down 0.6%, down from its 2023 highs.

Wednesday's Big Picture column said, “So for tech investors, the first five months after a cheesy 2022 should feel a lot nicer.” But in this tale of two stock markets, the blue chips outside of tech are real mixed.” “

Now is an important time to read IBD's The Big Picture column given the recent positive shift in the market outlook.

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

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

Dow Jones networking giant Cisco Systems is building a cup base with a buy point of 52.66. Look for a possible handle that would indicate a previous entry. CSCO stock fell 1% on Wednesday, ending a three-day winning streak. CSCO shares fell 0.4% on Thursday.

Dow Jones aerospace giant Boeing rose 0.5% on Wednesday to close back above its 50-day moving average. Stocks are still forming a flat base with a buy point of 221.43, according to pattern recognition by IBD MarketSmith. BA shares were up 0.6% early Thursday.

According to leaderboard analysis, Salesforce has surpassed the alternative entries at 194.01 and 200.10 for the past few weeks. Meanwhile, its relative strength line made a new high on Wednesday, a bullish signal. Shares hit the 20 percent profit zone at an entry of 178.94 cups with Henkel, allowing investors to take some profits ahead of the first-quarter results release late Wednesday.

CRM stock fell more than 6% Thursday morning. Late Wednesday, Salesforce reported earnings and sales for the April quarter that beat analysts' estimates as operating margins improved on cost cuts encouraged by activist investors. The sales prospects are only limited by views.

The 4 top growth stocks to watch stock market rally

The best stocks to buy and watch: Arista, ASML, Cloudflare, TSMC

Network giant Arista Networks fell well below its buy point of 171.54 during Wednesday's 4.6% decline, according to pattern recognition by IBD MarketSmith. ANET shares gained 0.5% on Thursday morning.

IBD leaderboard stock ASML, despite falling 0.7% on Wednesday, is just outside the buy range above a buy point of 683.28 in a cup with a handle. ASML rose 0.6% on Thursday.

Leading cybersecurity provider Cloudflare broke above a buy point of 66.30 in a double bottom on Wednesday. The shares closed in the 5% buy range stretching to 69.62. NET stock was down 1.7% on Thursday, falling in tandem with results from CrowdStrike and Okta.

Chipmaker Taiwan Semiconductor fell 3.3% on Wednesday, falling back into the buying range above the 95.92 buy point. The 5% buy range extends to 100.72. TSM shares rose 1% Thursday morning.

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 watch in today's stock market, including two top performers in the Dow Jones.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.28 Cup with handle
Foreclosure (CRM) 200.10 consolidation
Boeing (B.A.) 221.43 flat base
Arista Networks (A NET) 171.54 cup bottom
Source: IBD data as of May 31, 2023

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

Tesla stock

Tesla shares gained 1.4% on Wednesday, nearing the buy point from a cup base of 207.89. The stock is above its 200-day long-term moving average for the first time since Sept. 21. Shares closed 35% below their 52-week high on Wednesday.

TSLA stock looked to extend Wednesday's gains but fell 1.7% on Thursday morning.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares were down modestly on Wednesday, ending a four-day winning streak after hitting a fresh 52-week high at 179.35. The stock continues to hold well above a buy point of 157.48 and is outside of the buy range that extended to 165.35. AAPL shares fell 0.1% in morning trade on Thursday.

Microsoft shares rebounded from fresh highs, falling almost 0.9% on Wednesday. They traded as high as 335.94. From a flat base buy point of 276.86, stocks have entered the 20% to 25% profit zone, so investors could at least take some profits here. As of Thursday morning, MSFT shares are down 0.8%.

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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