The Dow Jones Industrial Average and other major stock indexes traded mixed Thursday, after legislators voted to approve President Donald Trump's tax bill. Among the early movers was artificial intelligence stock Snowflake, which soared on the stock market today after the company's earnings report.
After the opening bell, the Dow Jones Industrial Average dropped 0.1%, while the S&P 500 edged higher. And the tech-heavy Nasdaq composite moved up 0.5%. (Click here for the latest news on today's intraday stock action.)
The 10-year Treasury yield started to slip lower as it reached 4.59% early Thursday. And oil prices dropped, as West Texas Intermediate futures traded around $60.50 per barrel.
Early Thursday, the U.S. House of Representatives passed President Donald Trump's tax-and-spend bill. The package, which now goes to the Senate, is designed to cut taxes but also increase already-swollen deficits, a growing concern for bond markets.
Among exchange traded funds, the Invesco QQQ Trust gained 0.5%, while the SPDR S&P 500 ETF ticked up 0.1% after the open.
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On the economic front, the Labor Department's initial unemployment claims unexpectedly dropped to 227,000 vs. 229,000 in the previous week. They were expected to rise to 230,000, according to Econoday estimates.
Further, existing home sales for April, due out at 10 a.m. ET, are expected to come in at an annual 4.13 million unit rate vs. 4.02 in March. The better forecast reflects the uptick in pending home sales for the month. Still, the housing market remains depressed, according to Econoday.
In stocks, Snowflake surged 9% Thursday on first-quarter earnings that topped Wall Street targets while revenue met views. June quarter product revenue forecasts from the company came in above expectations.
Other key earnings movers were Urban Outfitters and Zoom Communications. Urban stock soared 19% higher, while Zoom stock declined 4%.
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Dow Jones Stocks Take A Dive
On Wednesday, blue chips on the Dow Jones Industrial Average tumbled 1.9%, or 816 points, while the S&P 500 dropped 1.6% and the Nasdaq declined 1.4%.
Ongoing stock market action makes now an important time to read IBD's The Big Picture column for how to handle current conditions and to track the updated exposure level.
Among the best companies to watch in the current stock market are Birkenstock, Spotify, Robinhood and Axon Enterprise
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com and Microsoft.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Microsoft Above Buy Point
Shares of Dow Jones component Microsoft have shot up over the last few weeks, bullishly retaking their 200-day moving average for the first time since Jan. 29 and clearing a 448.38 buy point in a cup base, according to MarketSurge chart analysis. Microsoft stock added 1.2% Thursday.
Outside the Dow, Birkenstock surged last week, rallying up the right side of a cup base that has a 62.66 buy point. A handle with a 59.50 entry is close to finishing as well. Birkenstock shares rose 0.6% in morning action.
Recent IBD Stock Of The Day Spotify is back in buy range above a 621.20 double-bottom entry. Spotify shares added 0.4% early Thursday.
IBD Leaderboard watch list stock Robinhood has cleared an aggressive alternate entry of 51.07 in recent sessions and is approaching a 66.91 buy point in an abnormally deep cup base, according to IBD MarketSurge chart analysis. Robinhood shares climbed 1.7% Thursday.
Finally, Taser-maker Axon is breaking out past a 715.99 buy point following last week's gains. Axon stock lost 1% Thursday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Thursday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Microsoft | 448.38 | Cup base | |
| Robinhood | 66.91 | Cup base | |
| Birkenstock | 62.66 | Cup base | |
| Spotify | 621.20 | Double bottom |
Source: IBD Data as of May 20
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Dow Jones Leaders: Amazon, Apple, Nvidia
Magnificent Seven stocks continue to rebound from their recent lows and are now approaching buy points. One of them, Dow Jones component Amazon, is building a cup-with-handle with a 214.84 buy point. Amazon stock rose 0.6% in morning action on Thursday.
IPhone maker Apple threatened to extend a losing streak to seven sessions Thursday, with a 0.5% morning drop. Shares gave up their 50-day moving average this week.
During last week's bullish gains, Nvidia decisively regained its long-term 200-day moving average, which was a key resistance level. And Nvidia stock gained 1% Thursday.
Finally, Tesla reversed 1.3% higher in early action Thursday, bouncing back from Wednesday's 2.7% drop. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 28% off its record high of 488.54, reached on Dec. 18.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
