Dow Jones futures fell on Thursday morning after a slew of economic news, including the first jobless claims from the Labor Department and US retail sales. Tesla shares continued to fall Thursday after ending a historic winning streak on Wednesday.
The number of initial jobless claims rose unexpectedly to 262,000 from 261,000 the previous week. It was expected to drop to 248,000.
In addition, US retail sales in May by the Commerce Department rose 0.3% from April's 0.4% increase. Econoday expects retail sales to fall 0.1%. Other economic releases included production indices from the Federal Reserve Banks in Philadelphia and New York, and import/export prices for May.
The Empire State manufacturing index rose to 6.6 in June from -31.8 in May. And the Philly Fed manufacturing index remained down at -13.7.
On the earnings side Jabil (JBL), lennar (LEN) and Kroger (KR) were key reporters Thursday morning. software giant Adobe (ADBE) will deliver results after market close.
Jabil fell nearly 1% in premarket trading following the release of the company's third-quarter results. Kroger was down nearly 3% in early morning trade after sales fell short of estimates.
Lennar late Wednesday reported better-than-expected earnings and sales for the fiscal second quarter, shipping more than 1,000 homes more than forecast as the tight US housing market shows strong demand for new homes. Lennar shares were up 3.3% early Thursday.
stock market today
EV giant Tesla (TSLA) ended a 13-day winning streak on Wednesday and slipped another 3% on Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today's market open.
Dexcom (DXCM), floor & decor (FND), Kinsale Capital (KNSL) and Churchill Downs (CHDN) – as well as Dow Jones shares Cisco systems (CSCO), 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 stock, while Floor & Decor was a recent IBD stock of the day. Churchill Downs was featured in this week's Stocks Near A Buy Zone story.
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Dow Jones today: oil prices, government bond yields
Before Thursday's opening bell, Dow Jones futures were down 0.1% from fair value. S&P 500 futures fell 0.3%. Nasdaq 100 futures were down 0.5% in morning trade, with Tesla and ASML Holding (ASML) by dragging the bottom of the index.
Among U.S. exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 0.5%, while the SPDR S&P 500 ETF (SPY) is down 0.3% early Thursday.
After Thursday's jobless claims and retail sales, the US 10-year Treasury yield rose to 3.81%. On Wednesday, the 10-year yield fell to 3.79% following the Federal Reserve's interest rate decision.
Oil prices remain near their recent lows after Wednesday's losses. West Texas Intermediate futures were up about 1% on Thursday to trade at about $69 a barrel.
stock market action
While the Nasdaq Composite closed about 0.4% higher on Wednesday, the S&P 500 was barely on the uptrend, up less than 0.1%. However, the price-weighted Dow Jones Industrial Average fell nearly 0.7%. Much of this had to do with a warning on one of its most expensive components (at least on a stock basis). UnitedHealth Group (UNH), which fell 6.4%.
Wednesday's Big Picture column said: “Another reason Wednesday's session turned out to be bullish for the S&P 500? The strength of its rise on Wednesday eliminated the May 31 payday from its 25-session tally. Why? At Wednesday's high of 4391, the index was up 5% from the close on May 31.”
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: Cisco, JPMorgan, Salesforce
Dow Jones networking giant Cisco Systems remains above a buy point of 50.58 on a cup and handle basis, and was up 0.3% on Wednesday. CSCO shares fell 0.6% premarket on Thursday.
Dow Jones banking leader JPMorgan is just below a flat base buy point of 143.37 after shedding 0.4% on Wednesday. JPM shares fell 0.5% early Thursday.
According to the IBD leaderboard analysis, Salesforce has surpassed the alternative entries at 193.91 and 200.00 for the past few weeks. For the past few weeks, shares have reached 20% gains from an entry at 178.94 cups with handles and are now attempting to recover from support at the 10-week moving average. CRM stock fell nearly 1% Thursday morning.
4 top growth stocks to buy and watch in the stock market rally
Top stocks to buy and watch: Dexcom, Floor & Decor, Churchill Downs
According to pattern recognition by IBD MarketSmith, Dexcom hit a flat base reading of 126.44 on Wednesday, up 0.9%. The 5% buy area rises to 132.76. DXCM shares fell premarket on Thursday.
IBD SwingTrader stock Floor & Decor recaptured its 50-day moving average during last week's gains, placing the flooring retailer in a new buy zone. FND stock is 5% off a traditional buy point at 101.39. Shares were down 1% early Thursday.
Insurance leader Kinsale Capital closed back below a buy point of 345.75 on Wednesday, down 2.4% in the session. The buy zone extends to 363.04. KNSL shares were flat on Thursday morning.
Last week, IBD Leaderboard Watchlist stock Churchill Downs found support around its 50-day moving average and triggered a bullish signal with an alternative entry at 139. However, the stock is still close to this level as it is also forming a flat base with a buy point of 150.45. Shares fell slightly 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|
|cloud flare||(NETWORK)||66.20||Double bottom|
Source: IBD data as of June 12, 2023
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IBD leaderboard stock Tesla fell 0.7% on Wednesday, reversing from a new high in 2023 and ending a 13-day winning streak. Shares are well above the buy point of a double bottom basis of 207.79. Shares closed 19% below their 52-week high on Wednesday.
TSLA stock threatened to add to Wednesday's losses, slipping 3.3% Thursday morning.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple stock rose 0.35% on Wednesday, remaining near its all-time high hit last week at 184.95. The stock continues to hold well above a buy point of 157.38. Early Thursday, AAPL shares fell 0.5%.
Microsoft shares rose 0.9% on Wednesday, hitting a new high of 339.04 for the fifth straight session. 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 of the profits. And as of Thursday morning, Microsoft shares were down 0.6%.
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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