The Dow Jones Industrial Average dropped Thursday after initial unemployment claims came in higher than expected. Meanwhile, Cisco Systems and Walmart crumbled on disappointing earnings reports.
The Labor Department said first-time jobless claims rose to 231,000 vs. 217,000 in the previous week. They were expected to climb to 222,000. Further, the Philadelphia Fed manufacturing index unexpectedly improved to -5.9 in November vs. October's -9.0 reading. It was expected to edge lower to -11.0.
Early Thursday, Cisco Systems plummeted nearly 12% after reporting fiscal first-quarter earnings late Wednesday that topped estimates, though product orders fell again. The company's outlook for CSCO stock in the current January-ending quarter came in well short of expectations.
Meanwhile, Walmart plunged more than 6% after the company cautioned that consumer spending may be softening. Walmart did, however, beat third-quarter estimates, as earnings were $1.53 a share on sales of $160.8 billion. Analysts expected profits of $1.52 a share on revenue of $159.65 billion.
Walmart's plunge stands in sharp contrast to fellow big-box retailer Target which soared nearly 18% Wednesday on its earnings news. Target was down 2.1% Thursday.
Other earnings movers for the session include Alibaba, Macy's, NetEase and Palo Alto Networks.
BABA stock plunged 8.7% in morning trade, while Macy's stock soared nearly 13%. NTES stock declined nearly 5%, as Palo Alto Networks tumbled around 7% off its earnings report.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 inched lower. The tech-heavy Nasdaq composite dropped 0.2% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.3%, while the SPDR S&P 500 ETF inched lower early Thursday.
The yield on the 10-year U.S. Treasury bond dropped to 4.48%. On Wednesday, the benchmark had settled at 4.53%.
Oil prices threatened to fall for a third-straight session, as West Texas Intermediate futures declined more than 1%. WTI prices are trading below $76 a barrel, back near their recent lows.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average climbed another 0.5%, while the S&P 500 moved up 0.2%. The tech-heavy Nasdaq composite cut gains to just 0.1%.
Wednesday's Big Picture column commented, "So, selling pressure was hardly unusual. And the confirmed uptrend, triggered by the follow-through day on Nov. 1 by the tech and retail-rich Nasdaq composite, nonetheless remains fully intact."
Now is an important time to read IBD's The Big Picture column after the recent gains. Be sure to read how to invest during the ongoing stock market uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
IBD Leaderboard stock Amazon, along with MercadoLibre, ServiceNow and Toll Brothers — as well as Dow Jones stocks Intel, Walmart and UnitedHealth — are among the best stocks to watch in the current market rally.
MercadoLibre and Nvidia were featured in this Stocks Near A Buy Zone column. Amazon and NOW stock are members of IBD Leaderboard.
Dow Jones Stocks To Watch
Chip giant Intel is extended beyond a 37.22 buy point in a double-bottom base, according to IBD MarketSmith chart analysis. Intel stock rallied 3.05% Wednesday, topping an extra buy point at 40.07. INTC rose nearly 1% early Thursday.
Retail titan Walmart closed Wednesday in buy range past a 165.85 buy point. But WMT stock sold off 6.5% Thursday morning after the company's earnings report.
Health care giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock was slightly higher Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: Toll Brothers Breaks Out
Amazon gave up its cup base's 145.86 buy point during Wednesday's 1.8% drop. Shares remain above an early entry at 134.48. AMZN stock moved down 1.9% Thursday.
MercadoLibre moved further past a 1,398.59 buy point, according to IBD MarketSmith pattern recognition, during Wednesday's 0.8% gain. MELI stock was down 0.7% Thursday morning.
ServiceNow is out of buy range past a 607.90 entry in a double-bottom base. The 5% buy zone went up to 638.30. The pattern also may be interpreted as a flat base with a 614.36 buy point. NOW stock dipped 0.4% Thursday.
Homebuilder Toll Brothers is still in buy range past a cup-with-handle's 82.39 buy point in the wake of Tuesday's breakout move. The buy zone goes up to 86.51. TOL stock gained 0.6% Thursday morning.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | 145.86 | Cup base | |
| UnitedHealth | 546.78 | Handle entry | |
| Toll Brothers | 82.39 | Cup with handle | |
| MercadoLibre | 1,398.59 | Cup with handle |
Source: IBD Data As Of Nov. 14, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla traded down 3% early Thursday, while Nvidia lost 0.2%.
Graphics-chip giant Nvidia is in buy range past a double-bottom base's 476.09 entry despite Wednesday's 1.55% drop.
Tesla stock rallied more than 2% Wednesday, extending a win streak to four sessions. Shares are trying to decisively clear their 50-day line after retaking the 200-day line earlier this week. Shares are around 20% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded higher after today's stock market open. Apple gained 0.3% Wednesday, closing at its highest level since Sept. 5. Shares are above an early entry at 182.34, as they continue to trace a consolidation that has a 198.23 buy point. Apple shares tacked on 0.8% Thursday.
Microsoft stock moved down 0.2% Wednesday, reversing from all-time highs at 373.13. The stock is above a cup base's 366.78 buy point. In recent weeks, shares rose above an early buy trigger at 346.20. MSFT stock climbed 0.6% Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
