Dow Jones futures fell, while tech futures jumped Thursday morning after weekly jobless claims and revised first-quarter GDP estimates came out ahead of the market open. Meanwhile, chipmaker Nvidia (NVDA) soared more than 28% after reporting a smaller-than-expected earnings decline, bolstered by a “surging demand” for AI chips.
Initial claims from the Labor Department unexpectedly fell to 229,000 vs. 242,000 in the previous week. They were expected to rise to 248,000, per Econoday estimates.
Also, the second estimate of first-quarter GDP from the Commerce Department came in at 1.3%, higher than Wall Street’s estimate at 1.1% growth. Further, personal consumption expenditures rose to 3.8% from 3.7% in the previous period. They were expected to remain unchanged.
Chip giant Nvidia spiked in premarket trade after the company crushed Wall Street’s targets for its fiscal first quarter on record data-center sales. Chief Executive Jensen Huang said his company is ramping up production to meet demand as the chip industry goes “through two simultaneous transitions — accelerated computing and generative AI.”
Other key earnings movers include Best Buy (BBY), Dollar Tree (DLTR), ELF Beauty (ELF), Snowflake (SNOW) and Splunk (SPLK).
Best Buy advanced nearly 5% in premarket trade, while Dollar Tree shares tumbled more than 8%. ELF stock, on the IBD Leaderboard watchlist, jumped 11% on strong fiscal fourth-quarter earnings and sales results.
Snowflake reported first-quarter earnings that topped Wall Street targets, but the company’s product revenue outlook missed views amid slowing growth for cloud computing partners such as Amazon.com (AMZN). SNOW stock plunged 10% in premarket trade.
Finally, Splunk rallied nearly 9% in morning action.
Stock Market Today
C3.ai (AI) surged more than 16% after Nvidia’s bullish earnings results. Electric-vehicle giant Tesla (TSLA) traded 1.5% higher Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML) and Shopify (SHOP) — as well as Dow Jones stocks Boeing (BA) and Salesforce (CRM) — are among the best stocks to buy and watch in the stock market uptrend.
ASML and Salesforce are IBD Leaderboard stocks, and Boeing was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, tech-heavy Nasdaq 100 futures rallied 2.2% with Nvidia and Advanced Micro Devices (AMD) spearheading the early gains. S&P 500 futures rose 0.7%.
Dow Jones futures fell 0.2% vs. fair value, as Intel (INTC) and Cisco Systems (CSCO) dragged low on the list.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 2.1%, while the SPDR S&P 500 ETF (SPY) rose 0.8% early Thursday.
The 10-year U.S. Treasury yield on Thursday traded up to 3.76%. The 10-year yield is at its highest level since mid-March, with investors exiting bonds as the federal debt-ceiling impasse worsens. Late Wednesday, Fitch Ratings placed the U.S. government’s AAA credit rating on a negative watch. Fitch cited “the increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit.”
U.S. oil prices fell right back into their recent trading range after touching their highest level since early May on Wednesday. West Texas Intermediate futures dropped 2% Thursday morning, sending WTI futures below $73 a barrel.
Stock Market Action
On Wednesday, the Dow Jones Industrial Average fell 0.8%. The S&P 500 declined 0.7%, while the Nasdaq composite dropped 0.6%.
Wednesday’s Big Picture column commented that a last-hour mini rally “followed the release of minutes from the Fed’s May 3 meeting, in which the U.S. central bank hiked rates to the current range of 5%-5.25% in an ongoing bid to permanently quell inflation.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce
Dow Jones aerospace giant Boeing dropped 1.6% Wednesday, closing further below its 50-day line. Shares are still forming a flat base with a 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved down 0.1% early Thursday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, its relative strength line hit a new high last week, a bullish signal. Salesforce reports first-quarter results after the market close on May 31. CRM stock jumped 2.5% Thursday morning, after Wedbush raised the stock’s price target to 230, from 220.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, ASML, Shopify
Chip leader Advanced Micro Devices moved further out of buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a slight rise Wednesday. The 5% buy area went up to 107.66. AMD shares rallied 9% premarket Thursday, moving higher in line with Nvidia’s earnings.
IBD Leaderboard stock ASML fell further below its 683.28 buy point in a cup with handle during Wednesday’s 2.15% drop. ASML scrambled 5.1% higher Thursday morning.
Shopify joined IBD Leaderboard Monday, as it made a bullish move above a trendline entry near 62. Shares rose 1.1% Wednesday, recovering a part of Tuesday’s big losses. SHOP stock was up another 1.5% Thursday.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|ASML||(ASML)||683.28||Cup with handle|
|Advanced Micro Devices||(AMD)||102.53||Cup base|
Source: IBD Data As Of May 24, 2023
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Tesla stock skidded another 1.5% Wednesday, adding to Tuesday’s losses. Shares are finding support around their 50-day line, as they build a cup base with a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry. Shares closed Wednesday 42% off their 52-week high.
TSLA stock looked to rebound from Wednesday’s losses, moving up 1.5% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares reversed from early losses to close with a small gain Wednesday, snapping a two-day losing streak. Shares remain just off their recent 52-week high at 176.39. The stock continues to hold sharply above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock fell 0.5% in premarket trade Thursday.
Microsoft shares fell 0.45% Wednesday, adding to Tuesday’s losses and moving further away from their recent 52-week high at 322.72. Shares are significantly above a 276.86 flat-base buy point. On Thursday morning, MSFT stock was up 2.3%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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