The Dow Jones Industrial Average rose on Thursday after the Labor Department released weekly unemployment claims data. Meanwhile, Tesla stock fell after Elon Musk’s Cybertruck warning as the electric car giant failed to deliver its quarterly earnings. And Netflix (NFLX) rose on strong results.
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First-time weekly claims for unemployment benefits fell surprisingly to 198,000. Claims were expected to rise modestly in the week ending October 14, to 211,000 versus 209,000 the week before. Furthermore, the Philadelphia Fed’s manufacturing index improved to -9.0 in October after some wild swings in August and September.
In terms of profits, Alcoa (aa), AT&T (T), L Research (LRCX), along with Netflix and Tesla (TSLA), was the main driver of earnings Thursday morning.
AA stock fell 2.3% in morning trading, while AT&T stock jumped more than 8%. Lam shares were sold off by 2%.
Tesla stock fell 7% after the electric vehicle leader reported worse-than-expected earnings and revenue late Wednesday, but also said deliveries of the Cybertruck would begin next month.
However, CEO Elon Musk warned, “We have dug our own grave with the Cybertruck,” saying, “There will be enormous challenges in getting to volume production with the Cybertruck, and then making the Cybertruck cash flow positive.”
Musk continued, “I want to temper expectations for the Cybertruck. It’s a great product, but financially, it will take 12 to 18 months to be a significant positive contributor to cash flow.”
Finally, Netflix shares rose nearly 15% after the streaming giant late Wednesday smashed expectations for new subscribers in the third quarter. Netflix said it added 8.76 million new subscribers during the period, beating analysts’ consensus of 6.06 million. The company also exceeded earnings expectations and met revenue expectations.
Dow Jones Index Today: Oil Prices and Treasury Yields
After the opening bell on Wednesday, the Dow Jones Industrial Average rose less than 0.1%, while the S&P 500 rose 0.1%. The Nasdaq Composite, which was dominated by technology stocks, rose 0.1% in morning trading.
Among the US exchange-traded funds is the Nasdaq 100 Index Invesco QQQ Trust (QQQ) by 0.4%, while the SPDR S&P 500 ETF rose (spy) rose 0.2% early Thursday.
The yield on the 10-year US Treasury note rose to 4.94% on Thursday morning, extending already huge gains this week. The 10-year Treasury yield hit a new long-term high on Wednesday, settling at 4.9%.
Oil prices fell about 1% on Thursday morning, entering negative territory for the week. West Texas Intermediate crude futures were trading near $86 a barrel, down not quite 4% since the start of October.
Struggling stock market rally
On Wednesday, the Nasdaq Composite Index fell 1.6%, while the S&P 500 Index fell 1.3%. Finally, the Dow Jones Industrial Average fell 1%.
“The stock market’s uptrend from the lows of late September and early October has been on shaky ground lately. That’s why the IBD recommends an exposure level of 0% to 20%,” commented a Big Picture column on Wednesday.
Now is an important time to read IBD’s “Big Picture” column, as stock market forecasts show signs of a compressed uptrend. Be sure to read about how to deal with changing stock market expectations.
Learn how to time the market with IBD’s ETF market strategy
Stock market today
Nvidia (NVDA) gained about 1% in morning trading. Meanwhile, technology icons in the Dow Jones apple (Camel) And Microsoft (Inflammatory bowel disease) was trading higher after the stock market opened today.
Member IBD Leaderboard Arista Networks (network), Lululemon Athletica (Lulu), Meta platforms (dead) And Regeneron Pharmaceuticals (regen) – as well as Dow Jones stocks C. B. Morgan Chase (JBM) And Sales force (Customer relationship management) – are among the best stocks to buy and watch in a still-struggling stock market uptrend.
Meta is an IBD SwingTrader stock, while JPMorgan appears in the column of stocks near the buy zone. Regeneron was IBD Stock of the Day on Friday.
Dow Jones stocks: JP Morgan, Salesforce
Dow Jones banking giant JPMorgan fell 1.1% on Wednesday, snapping a losing streak for three straight sessions. Shares are struggling to reclaim their 50-day line, building a flat base with a buy point of 159.38, according to IBD MarketSmith chart analysis. Early entry looms at 153.11, using Friday’s high as a trigger to buy. JPM stock rose 0.1% in morning trading Thursday.
Software leader Salesforce is facing resistance around its 50-day top line. If the stock reclaims this key level, it will approach a 228.79 buy point in a double-bottom base. CRM stock rose 1% Thursday morning.
4 top growth stocks to buy and watch at Stock market pool
Stocks to Buy and Watch: LULU Gives Up Buy Point
Arista stock fell 0.6% on Wednesday, near a buy point at 198.70 on a flat base. The recent bullish bounce off the 50-day line in recent sessions has put the stock in a new buy zone. The company announced third-quarter results on October 30. ANET stock was up nearly 1% early Thursday.
Lululemon stock rose past a flat buy point of 406.94 on Monday, a 10.3% advance. But shares fell back below that entry during Wednesday’s 1.8% decline. LULU stock rose 0.3% Thursday morning.
Social media giant Meta Platforms is trying to find support around a 312.87 buy point after Wednesday’s 2.2% drop. Meanwhile, Meta stock remains below the official cup base buy point of 326.20. The company announced third-quarter results on October 25. Meta shares rose 1.2% on Thursday.
Biotech leader Regeneron is trying to surpass a flat-base buy point of 847.50, according to IBD MarketSmith pattern recognition. Earnings are scheduled to be released on November 2. REGN stock fell 0.2% on Thursday.
Top stocks in today’s stock market action
These are the four best stocks to buy and watch in the stock market today, including the leader of the Dow Jones.
| Company Name | Code | Correct point of purchase | Point of purchase type |
|---|---|---|---|
| Meta platforms | (dead) | 312.87 | Handling entry |
| Sales force | (Customer relationship management) | 228.79 | Double bottom |
| Lululemon | (Lulu) | 406.94 | Flat base |
| Arista Networks | (network) | 198.70 | Flat base |
Source: IBD data as of October 18, 2023
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Tesla shares
Ahead of the earnings announcement, Tesla stock fell nearly 5% on Wednesday. Shares fell below the key 50-day line, which is an important level to watch.
TSLA stock has an official cup-with-handle base with a buy point at 278.98. If Thursday’s losses continue, shares will be more than 20% away from that entry.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple continued its losing streak for four sessions on Wednesday, falling by 0.7%. Stocks are trying to rebound from recent lows. If AAPL stock can continue its rebound, it will likely form a double-bottom base with a buy point of 189.98. Apple is scheduled to report its fourth-quarter financial report on November 2. Shares rose 0.4% early Thursday.
Microsoft shares fell 0.6% on Wednesday, as shares continued to hold above their 50-day line. A new base is being formed, with an early entry at 340.86. There is also an early entry at Monday’s high of 336.14. Earnings results will be released on October 24. On Thursday morning, MSFT stock rose 1.1%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen To learn more about growth stocks and the Dow Jones Industrial Average.
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