Dow Jones Falls As Nvidia Surges On Earnings; Tesla Rallies As Lucid, Rivian Dive

By SCOTT LEHTONEN

The Dow Jones Industrial Average fell 50 points Thursday morning, as Apple stock traded above a new buy point. Lucid and Rivian threatened to add to Wednesday's sharp losses. Retail stocks were in motion as Macy's and Kohl's ran higher on earnings news. And chipmakers rallied behind Nvidia, which surged more than 10% following its late-Wednesday earnings report.

Among the Dow Jones leaders, Apple rose 0.2% Thursday, while Microsoft moved down 0.6% in today's stock market. Nike continues to trade under a new buy point after a recent breakout attempt.

Among the electric-vehicle leaders, Tesla rallied 1.5% Thursday. Rivian slid about 10%, while Lucid Motors skidded about 8%. Chinese EV leaders Li Auto and Xpeng Motors are at or near buy points.

Graphics-chip maker Nvidia — along with Cisco Systems — posted earnings results after the close Wednesday. Elsewhere, Alibaba, JD.com, Kohl's and Macy's reported earnings ahead of Thursday's open.

Among the top stocks to buy and watch, Alphabet, Apple and Shopify are in or near buy zones.

Alphabet, Microsoft and Tesla are IBD Leaderboard stocks. Xpeng was featured in this week's Stocks Near A Buy Zone story. Apple is an IBD SwingTrader stock and was Wednesday's IBD Stock Of The Day.

Dow Jones Today: Jobless Claims

After the stock market open Thursday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 moved up 0.1%. The tech-heavy Nasdaq composite gained 0.2% in morning trade, with Nvidia and Advanced Micro Devices running at the head of the list

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.3%, and the SPDR S&P 500 ETF gained 0.25% Thursday. The VanEck Semiconductor ETF rallied more than 2%.

The Labor Department reported that jobless claims rose to 268,000, missing Econoday estimates that expected initial claims for jobless benefits to decline to 261,000 from 267,000 a week earlier.

Stock Market ETF Strategy And How To Invest

Stock Market Rally

The stock market took another breather Wednesday, as the major stock indexes posted modest losses. The Nasdaq and S&P 500 remain just off all-time highs.

On Wednesday, The Big Picture commented, "With stock market indexes near all-time highs despite a cloudy economic picture, it seems bears and bulls alike saw Wednesday as a time for a pause."

For daily stock market commentary, be sure to check out IBD's The Big Picture.

Right now, the current pullback is normal, so investors have good cause to remain upbeat about the health of the uptrend. Breakouts in top growth stocks remain fair game. And watch for stocks that are holding up the best during this week's weakness; going forward, they could continue to be some of the market's leaders.

Five Best Dow Jones Stocks To Watch Now

Dow Jones Stocks To Buy And Watch: Apple, Nike

IBD SwingTrader stock Apple is in buy range above a new cup-with-handle base with a 153.27 buy point, according to IBD MarketSmith chart analysis, following Wednesday's breakout. Shares traded up 0.2% Thursday.

One possible flaw is the stock's lagging relative strength line. That line is coming off recent lows amid a four-day win streak, but the weak RS line indicates sharp stock market underperformance vs. the S&P 500. Ideally, the RS line should hit a new high on the breakout day or shortly thereafter to confirm the stock as a market leader.

Dow Jones retail leader Nike remains squarely below its cup base's 174.48 buy point amid the stock's recent weakness. Shares inched 0.2% higher Thursday.

Dow Jones Earnings: Cisco

Cisco Systems missed fiscal first-quarter revenue targets and its revenue outlook also came in below expectations. Shares tumbled nearly 7% in morning trade. Cisco shares ended Wednesday about 3% away from a new buy point of 58.74 out of a cup with handle.

Stocks On The Move: Boeing

Boeing rose over 1% Thursday after JPMorgan upgraded the stock from neutral to overweight with a 275 price target. It was the stock's second upgrade in as many days. Shares are wrestling to retake support at their 200-day moving average, but remain nearly 20% off their 52-week high.

Stocks To Buy And Watch: Alphabet, Shopify

Alphabet remains just above a 2,925.18 buy point in a flat base, according to IBD MarketSmith chart analysis, following Tuesday's slight fall. The 5% buy area runs up to 3,071.44. Shares were down 0.1% Thursday.

IBD Stock Checkup shows GOOGL stock with a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.

On Friday, Shopify stock broke out past a 1,650.10 buy point in a consolidation with a surge of more than 12%. The stock gave up its buy point during Wednesday's 2.2% fall. SHOP shares climbed 0.5% Thursday.

Stock Market Earnings: Alibaba, JD, Macy's, Kohl's

Chinese retail giants Alibaba and JD.com posted earnings results ahead of the Thursday's open. Meanwhile, U.S. retailers Macy's and Kohl's also reported.

Alibaba dropped almost 10% early Thursday after the company missed earnings and sales estimates. BABA stock ended Wednesday more than 40% off its 52-week high.

JD.com rallied over 6% after the company's third-quarter results topped estimates. JD shares are moving up the right side of a giant base, but they are still more than 20% from new highs.

Macy's shares soared over 12% Thursday morning after the company handily beat the Street's earnings and sales estimates. Macy's stock finished Wednesday extended past a 22.40 buy point and is set to hit new highs at the market open.

Kohl's surged nearly 10% after posting strong third-quarter results ahead of the open, breaking out past a new buy point. The stock is above a 60.60 buy point in a double-bottom base.

Nvidia Earnings

Chip giant Nvidia beat analyst estimates for its third quarter due to strong data-center processor sales. The company earned an adjusted $1.17 a share on sales of $7.1 billion, topping estimates that called for earnings of $1.11 a share on sales of $6.8 billion. Shares surged over 10% in morning trade.

Nvidia stock ended Wednesday sharply above a 230.53 buy point in a consolidation following an Oct. 25 breakout.

Join IBD experts as they analyze leading stocks in the current stock market uptrend on IBD Live

EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto continues to build a cup with handle that shows a 34.93 buy point. Shares fell almost 2% Thursday, adding to Wednesday's 1.8% decline.

Xpeng Motors closed just above a 48.08 buy point in a choppy cup base following Wednesday's 3.4% loss. Shares lost 2.6% Thursday.

Lucid Motors shares skidded about 8% Thursday, threatening to add to Wednesday's 5.35% decline. LCID stock is far extended past a 28.49 buy point in a cup-with-handle base.

Hot new issue Rivian was in danger of extending Wednesday's 15% dive, sliding another 10% in morning trade Thursday. Despite the stock's initial surge, remember that investors should be disciplined about buying new issues. Wait for an IPO base to form and offer a valid buy point before considering a purchase. The recent weakness could be the start of its first base formation, so keep a close eye on the stock's price action.

Tesla Stock

Tesla stock rallied about 1.5% Thursday, looking to add to Wednesday's 3.25% rise.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Wednesday about 12% off its 52-week high. TSLA shares remain sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. The chart also showed an alternate entry at 900.50.

Dow Jones Leaders: Microsoft

Among the top Dow Jones stocks, software giant Microsoft moved down 0.6% Thursday. Shares hit new highs Wednesday before reversing lower.

On Oct. 18, Microsoft stock broke out past a flat base's 305.94 buy point. The 5% buy zone tops out at 321.24, so the stock is now extended.

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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