The Dow Jones Industrial Average surged higher Thursday after a day of Fed-fueled stock market volatility. Tesla stock skidded on earnings results. Apple earnings are due late. And Intel, McDonald’s, Mastercard, and Vertex Pharmaceuticals were also key earnings movers Thursday.
Among the Dow Jones leaders, Apple (AAPL) rallied 2.2% Thursday ahead of the company’s results after the close. Meanwhile, Microsoft (MSFT) rose 2% in today’s stock market.
Chips were mixed, with Xilinx (XLNX) and Nvidia (NVDA) posting strong early moves. Meanwhile, Intel (INTC) slumped more than 4% after delivering a mixed outlook. Chip gear maker Teradyne (TER) plummeted 24% on weak guidance.
Netflix (NFLX) powered more than 5% higher after activist investor Bill Ackman’s Pershing Square Holdings disclosed a 3.1 million-share stake in the online entertainment giant worth more than $1 billion.
Tesla (TSLA) skidded over 4% Thursday. The electric-vehicle leader reported earnings late Wednesday.
Among Thursday’s top stocks to watch, American International Group (AIG), Baker Hughes (BKR), CF Industries (CF) and Matson (MATX) are near new buy zones. Keep in mind the current stock market status cautions investors to remain on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks.
Dow Jones Today
After the stock market opened Thursday, the Dow Jones Industrial Average surged 1.5%, while the S&P 500 moved up 1.6%. The tech-heavy Nasdaq composite rallied 1.5% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) scaled up 1.4% Thursday, and the SPDR S&P 500 ETF (SPY) moved up 1.2%.
The 10-year Treasury yield ticked down below 1.8% Thursday morning. On Wednesday, the 10-year Treasury yield jumped, closing below 1.85% and just shy of multi-year highs. Oil prices jumped, sending West Texas Intermediate 1% higher, to above $88 a barrel — a new seven-year high.
The Labor Department said first-time unemployment claims fell to 260,000, slightly lower than forecast, vs. a much higher-than-expected 286,000 in the prior week, per Econoday.
Meanwhile, the Commerce Department said the U.S. economy grew at a 6.9% annual rate in the fourth quarter of 2021, higher than the Econoday forecast of a 5.7% annual rate. In the third quarter, GDP grew at a 2.3% annual rate.
Stock Market Sell-Off Continues
Despite Wednesday’s disappointing performance, the indexes held above Monday’s intraday lows, so the ongoing rally attempt is still intact. Monday was Day 1 of a new rally attempt. Now, be on the lookout for a follow-through day, which is when a major index posts strong gains in volume heavier than the prior day. Follow-throughs occur as early as Day 4 of the attempted rally.
Wednesday’s The Big Picture cautioned: “Initially the market rallied after the Federal Open Market Committee (FOMC) issued a policy statement that signaled an upcoming hike in the Fed funds rate. The U.S. central bank said it will end winding down asset purchases before its mid-March meeting. A first interest-rate hike is also likely to occur that month. This was in line with Wall Street expectations. But Powell spooked the stock market by saying inflation is actually getting worse as wage hikes and supply-chain issues continue to take a toll.”
Amid this recent weakness, now is an important time to check out IBD’s The Big Picture.
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard.
Investors also can create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Earnings: Intel, McDonald’s
Chip giant Intel beat Wall Street’s targets for the fourth quarter but gave a mixed outlook for the current period. Shares slid more than 4% in morning trade.
McDonald’s (MCD) reported weaker-than-expected earnings and sales results, as shares dropped almost 1% Thursday morning.
Stock Market Earnings: Mastercard, Vertex
Mastercard (MA) reported earnings ahead of Thursday’s open, beating both earnings and revenue targets. Shares slipped 0.3% as investors dug into the early report.
Vertex Pharmaceuticals (VRTX) reported better-than-expected results late Wednesday. Shares traded 0.5% higher early Thursday. Vertex is an IBD Sector Leader.
