The Dow Jones Industrial Average rose Thursday morning as energy stocks and China-exposed issues boosted early trade. Weekly jobless claims data from the Labor Department came in higher than expected. And Tesla stock briefly fell nearly 2% after Bloomberg reported the company had shortened shifts at the Shanghai factory and delayed new hires due to slowing demand in the Chinese auto market. .
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First-time jobless claims rose to 230,000 from 225,000 the previous week, the Labor Department said. That was above economists’ estimate for 228,000. Headline inflation data is due out Friday along with the producer price index, or PPI.
Chevron (CVX) led Dow Jones Industrials, up 2% as oil prices rebounded. It also announced a 25% increase in capital spending for 2023. Exxon Mobil (XOM) rose nearly 3% on the back of an expanded earnings forecast and after increasing its share buyback program to $50 billion.
Meanwhile, Respect (CIEN) and GameStop (GME) reported earnings ahead of Thursday’s market open. Ciena climbed more than 16%. GME shares rose 1.5% after posting a quarterly decline in sales and a smaller loss from a year ago.
Electric vehicle giant You’re here (TSLA) was trading down 0.7% on Thursday. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after the stock market opened today.
Celsius (CELH), IBD Ranking Action Dexcom (DXCM), KLA (KLAC) and Trane Technology (TT) – as well as Dow Jones names caterpillar (CAT), Chevron and Home deposit (HD)—are among the best stocks to buy and watch.
Dexcom and Trane are IBD ranked stocks. Caterpillar and Home Depot were featured in this week’s Stocks Near A Buy Zone column. Celsius was a recent IBD 50 Stocks To Watch pick and a New America stock. Caterpillar was one of the IBD stocks of the day recently.
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Dow Jones Today: Oil Price, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.35%, while the S&P 500 gained 0.3%. The tech-heavy Nasdaq composite rose 0.4% in morning action, with China-based stocks topping the list.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4% and the SPDR S&P 500 ETF (SPY) gained 0.3% early Thursday.
The 10-year Treasury yield rose to 3.48% on Thursday morning. On Wednesday, the 10-year Treasury yield fell to 3.4%, its lowest close since Sept. 12.
Meanwhile, U.S. oil prices rebounded from four straight heavy losses, which saw West Texas Intermediate futures hit a new low in 2022. WTI futures traded up 2% to settle just above $74 a barrel early Thursday.
Stock market rally
On Wednesday, the tech-heavy Nasdaq composite fell for a fourth consecutive session, while the S&P 500 extended its losing streak to five sessions. Dow Jones Industrialists edged higher to end a three-day losing streak.
Wednesday’s The Big Picture column commented: “Bull markets need broad participation to survive. This hasn’t happened in the last attempted rally, at least so far, so a more defensiveness may be needed. The inverted yield curve appears to support this view, predicting weaker economic conditions in 2023.”
Now is an important time to read IBD’s The Big Picture column amid current stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Caterpillar, Home Depot, Chevron
Dow Jones member Caterpillar continues to pull back from buying point 238 by a cup base, according to IBD MarketSmith model recognition, following Wednesday’s 0.3% gain. CAT stock rose 0.8% on Thursday.
The CAT stock is posting a solid 94 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.
Energy giant Chevron rose 0.3% Wednesday, still squarely below a buy point of 182.50 in a consolidation basis. Stocks are trying to stem their current slide around their 50-day line. CVX shares climbed 2% on Thursday morning as oil prices rebounded amid this week’s decline.
End of Home Depot home improvement retailer Wednesday about 5% below the buy point of 333.08 a cup basis. Stocks are about to add a handle to the base of the cup, which would lower the correct buy point to 329.77. HD stock traded down 0.1% on Thursday.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Celsius, Dexcom, KLA, Trane
Energy drink maker Celsius triggered the 7% to 8% loss trigger from the buy point of 118.29 a cup basis during Wednesday’s slide. While the stock could add a handle to the base of the cut, investors who bought on Friday’s breakout should reduce their exposure. The stock was up 2.4% on Thursday.
IBD Leaderboard Dexcom stock is approaching a base entry at 123.46 and is around 4% from that buying point after Wednesday increase of 0.9%. Dexcom stock rose 3.5% early Thursday.
The KLA chip leader ended Wednesday just below a buy point of 392.60, according to chart analysis from IBD MarketSmith. A key technical strength is the stock’s strong RS line, which hit a new high in Wednesday’s action. UCK shares rose 0.6% on Thursday.
Trane Technologies ended Wednesday about 3% below a buy point of 181.72 in a cup with a handle after the session’s 1.2% rise. Shares were down slightly on Thursday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla shares slipped another 3.2% Wednesday, down sharply for a third consecutive session. Shares are already down more than 10% this week.
Despite the losses, the stock remains above its 52-week low, set in mid-November. The shares are around 57% off their 52-week high. Meanwhile, the stock appears to be experiencing some resistance around the 200 price level, which is a key area to watch if the stock is able to mount another rally attempt. For now, it looks like the stock is back to its 2022 low.
The shares were down almost 1% on Thursday morning to around 172 per share, just a few points above its 52-week low price at 166.19.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.4% Wednesday, hitting a recent low and falling further below the 50-day line. The stock is about 23% off its 52-week high. Apple stock traded 0.7% on Thursday.
Microsoft fell 0.3% Wednesday, as stocks continue to tread water above the 50-day line. The software giant remains around 30% off its 52-week high. Microsoft shares fell 0.2% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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