The Dow Jones Industrial Average fell Thursday morning amid a slew of economic data. The losses threatened to extend the four-day streak of stock market losses, with chip and oil stocks leading early declines, beginning in September.
The main factors for earnings on Thursday included respect (a hundred), five below (five), MongoDB (MDB), octa (OKTA), primary point of sale (OLLI), pure storage (PSTG) and Veeva . Systems (VEEV).
Ciena stock is down 6% as Five Under shares are up more than 2%. MDB stock is down 18% while Okta is down 24%. Ollie is down about 5%, with Pure Storage shares gaining nearly 3%. Veeva’s stock collapsed 12% in morning trading.
Chip giants Advanced Micro Devices (AMD) and nvidia (NVDA) are down 5% and 8.3%, respectively, leading early losses among chip stocks. The two companies said the US government has imposed export restrictions on some chip sales to China.
chip maker Intel Corporation (INTC) led declines among shares of Dow Jones, down 2.1%. The VanEck Semiconductor ETF (SMH) showed a morning loss of 2.6%.
Electric vehicle leader Tesla was down 1.3% Thursday. Among the Dow Jones industrial companies, technology giants apple (AAPL) and Microsoft (MSFT) is down 0.5% and 1%, respectively, after the stock market opened today.
In the current volatility of the stock market, Arista Networks (Network), costco (cost), GlobalFoundries (GFS) and Ulta Beauty (ULTA) – as well as a Dow Jones player chevron (CVX) – Among the top stocks to buy and watch. Keep in mind that the increased volatility in the market is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of the recent hack, while Chevron and Ulta Beauty featured in this week’s Stocks Near A Buy Zone column. Arista was the IBD stock for the day on Friday.
Dow Jones today: Treasury yields and oil prices
Early Thursday, the Dow Jones Industrial Average was down 0.7%, while the S&P 500 was down 1%. The heavy Nasdaq Composite lost 1.4% in morning trading.
Among the exchange-traded funds, the Nasdaq 100 index tracker Invesco QQQ Trust (QQQ) is down 1.4%, and the SPDR S&P 500 ETF (SPY) is down 1% in early trade.
The 10-year Treasury yield rose to 3.25% early Thursday. On Wednesday, the 10-year Treasury yield hit its highest closing level since June 28.
Oil prices in the United States continued to decline on Thursday, threatening to further decline over three months. West Texas Intermediate crude futures are down more than 2% to trade between $87 and $88 a barrel.
Economic data: unemployment claims,
Jobless claims were first released Thursday morning at 8:30 a.m. ET. Initial jobless claims fell unexpectedly to 232,000, below estimates that had forecast a rise to 246,000. Claims reached 243,000 a week ago.
S&P Global provided the August Manufacturing Purchasing Managers’ Index, or PMI, at 9:45 a.m. ET. The PMI fell to its lowest level since July 2020 amid further losses in new orders. The Purchasing Managers’ Index came in at 51.5, slightly above the S&P’s preliminary estimate for the month of 51.3 – and down from 52.2 in July, as estimates for the month declined in all four of the world’s largest advanced economies.
The Institute for Supply Management’s manufacturing index came in at 10 AM ET at 52.8, beating estimates that called for a reading of 52.0.
The stock market gives up the main level
On Wednesday, the stock market posted a disappointing performance, with major stock indexes closing at session lows. The Dow Jones Industrial Average led the stock market’s decline, falling 0.9%, while the Nasdaq Composite and S&P 500 were down 0.6% and 0.8%, respectively. The Nasdaq has fallen more than the 50-day moving average and the 12,000 level.
The Big Picture column commented on Wednesday, “Indeed, Wall Street may be preparing for another surprise on Friday, when the August non-farm payrolls report hits the wires. July’s report highlighted an impressive rate of net new hires; last month’s numbers will also encourage the US central bank to Believing he is still behind the curve in taming inflation?”
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Five Dow Jones stocks to watch right now
Dow Jones stocks to watch: Chevron
Chevron’s stock in Dow Jones is up about 19% from its mid-July low. It is systematically building a cup base with a buy point of 182.50 – according to IBD MarketSmith chart analysis – amid a solid performance of energy stocks this year so far. Early entry at 164.76 plays too. The stock was down about 1% early Thursday as oil prices continued to slide.
A stock CVX 97 potent 99 IBD stock shows the perfect compound, according to an IBD stock inspection. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Growth Stocks You Should Buy and Watch on Cursstock market rally
Top stocks to watch: Arista, Costco, GlobalFoundries, Ulta
Arista Networks has added a handle to the double bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is flat near the recent highs despite the recent market weakness, which is a bullish sign. Shares of ANET were down 1.4% early Thursday.
IBD Leaderboard Costco stock fell more than its 552.81 buy point of a cup with a handle, as shares fell 0.4% Wednesday. Wait for a bullish entry to recover before buying a stock. Shares were trading 0.5% early Thursday.
GlobalFoundries was unable to recover its buy point of 61.98 from Wednesday’s double bottom, as shares tumbled 2.1%. Alternate entry from the handle is on at 66.06. GFS stock fell 3% Thursday.
Leading cosmetics company Ulta Beauty is back above its double-bottomed 417.08 buying point after Wednesday’s 0.7% loss. ULTA shares were down 0.2% Thursday morning.
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Tesla stock fell 0.75% on Wednesday, extending its losing streak to five sessions. Shares of the electric car giant fell more than 1% Thursday morning.
Tesla stock continues to struggle with resistance around the 200-day line, and is now approaching the 50-day line, a potential support level to watch. Tesla is down about 34% from its 52-week high.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones shares, Apple shares fell another 1.1% on Wednesday, falling further below the 200-day line. The stock is about 12% off a buy point at 176.25 from a cup with a handle. Despite the recent losses, the stock’s relative strength line has held steady near new highs, indicating a flat performance in the stock market. Shares were down 0.5% Thursday morning.
Microsoft fell 0.6% on Wednesday, closing further below the 50-day streak. Stocks are still sharply below the long-term 200-day line and about 25% off their 52-week high. The stock lost 1% early Thursday.
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