The Dow Jones Industrial Average sold off on Thursday morning after key inflation data. Tech leaders Okta, Splunk and Snowflake posted big earnings-related moves, and Dow Jones Salesforce stock plunged after its quarterly results. Meanwhile, Chinese electric vehicle stocks Li Auto and Nio posted record auto sales.
Inflation data, unemployment insurance claims, income changes
The Commerce Department’s PCE price index, the Federal Reserve’s preferred measure of inflation, was released Thursday morning. The index posted a colder-than-expected 0.3% rise for October, making a 6% year-on-year increase, which was in line with estimates. Personal income climbed 0.7% in October, beating Econoday’s estimate of 0.4%.
The PCE price index tracks changes in the prices of goods and services purchased by consumers throughout the economy.
Meanwhile, first-time jobless claims from the Labor Department fell to 225,000 from 240,000 the previous week. They were expected to drop an inch to 238,000.
Companies that reported profits include Box (BOX), General dollar (DG), five below (FIVE), Pure storage (PSTG), Dow Jones software stock Selling power (CRM), Snowflake (SNOW) and Splunk (SPLK).
Shares of BOX lost nearly 1% early on, while shares of Dollar General slid nearly 7%. Shares of Five Below jumped more than 11%, while Pure Storage rose more than 4%. Salesforce fell 8%, while Snowflake climbed 3%. Splunk jumped more than 12% in morning trading.
Chinese electric vehicle stocks Li-Auto (LI) and Nio (NIO) announced its monthly auto sales on Thursday. Shares of Li Auto slipped 1.3% and Nio 3.3%.
Electric vehicle giant You’re here (TSLA) was trading down 0.3% on Thursday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.
IPO leader Deploy Technologies (ARRY), IBD Ranking Action Arista Networks (A NET), Celsius (CELH) and Chubb (CB) — as well as the names of the Dow Jones Boeing (BA), caterpillar (CAT) and Chevron (CVX) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard Stock and was recently an IBD Stock of the Day. Boeing is an IBD SwingTrader stock and was one of four leaders featured in this week’s Stocks Near A Buy Zone column. Celsius was Monday’s IBD 50 Stocks To Watch pick.
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Dow Jones Today: Oil Price, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average lost 1.15%, while the S&P 500 fell 0.5%. The tech-heavy Nasdaq composite was down 0.5% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 0.5% early Thursday, and the SPDR S&P 500 ETF (SPY) fell 0.55%.
The 10-year Treasury yield slipped to 3.58% on Thursday morning, touching its lowest level since Oct. 4. Meanwhile, US oil prices added another 1%, sitting on a three-day rebound after hitting their lowest level since December 2021 on Monday. West Texas Intermediate futures were trading above $81 a barrel.
Stock market rally
The stock market posted strong action on Wednesday, with the tech-heavy Nasdaq composite jumping 4.4%. The Dow Jones Industrial Average rose 2.2%, while the S&P 500 rose 3.1%.
Wednesday’s The Big Picture commented: “Stock indexes rallied sharply on Wednesday after Fed Chairman Jerome Powell told a meeting at the Brookings Institute that it made ‘sense’ to moderate the pace of gains. rate hikes. However, he still expects rates to rise to “a sufficiently restrictive level.”
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: Boeing, Caterpillar, Chevron
Aerospace giant Boeing rebounded 2% on Wednesday, breaking even above the 173.95 buy point by a cup basis. The 5% buy zone rises to 182.65. Boeing shares rose slightly on Thursday.
Dow Jones member Caterpillar finished just shy of its cut base’s 238 buy points, according to IBD MarketSmith’s pattern recognition, following Wednesday’s 0.55% rise. CAT stock fell 0.1% on Thursday.
The CAT stock boasts a solid 94 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet.
Energy giant Chevron rebounded another 1.3% on Wednesday, retaking a buy point of 182.50 in a consolidation basis. CVX shares gained 0.6% on Thursday morning as oil prices extended their recent gains.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Array, Arista, Celsius, Chubb
The solar leader and IPO stock Array Technologies fell further below its buy point of 22.40 in a cup with handle during Wednesday’s slight decline, triggering the 7%-8% loss trigger, according to the recognition of IBD MarketSmith models. Clearly, the attempt to break out the stock is not working and investors should act accordingly. ARRY stock was down 1.2% on Thursday morning.
IBD Leaderboard Arista Networks stock broke out of the buy range above the buy point of 132.97 from a choppy base amid Wednesday’s 4.2% advance. ANET shares fell 0.1% on Thursday.
Energy drink maker Celsius jumped more than 8% on Wednesday as the stock continues to form a cup base with a buy point of 118.29. Monday’s reversal will potentially result in a handle that offers lower entry, but it’s too early to know for sure. The stock rose 0.6% on Thursday.
Chubb is still trading above the 216.10 one-cup buy point with a handle on Wednesday after the session’s 1.3% gain. The 5% buy zone peaks at 226.91. The insurance giant was trading up 0.2% on Thursday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock rose 7.7% on Wednesday, closing at its highest level since Nov. 11. On November 22, the stock hit a 52-week low of 166.19. The shares are around 52% off their 52-week high and significantly below their 50- and 200-day moving averages.
The electric vehicle giant rose 0.3% on Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 4.9% on Wednesday, ending a three-day losing streak and returning to its key 50-day line. The stock is around 20% off its 52-week high. Apple stock traded 0.2% on Thursday.
Microsoft rebounded 6.2% on Wednesday, ending a three-day losing streak and hitting its highest level since Sept. 13. The software giant remains around 26% off its 52-week high. Microsoft shares fell 0.1% on Thursday morning.
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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