The Dow Jones industrial average fell Thursday as investors digested preliminary jobless claims data ahead of Federal Reserve Chairman Jerome Powell’s monetary policy report to the Senate Banking Committee. Meanwhile, Tesla stock slipped after another analyst downgrade.
Initial jobless claims rose by 264,000 more than estimates. According to Econoday estimates, they were expected to ease to 261,000 vs. 262,000 in the previous week. Also, May’s home sales numbers from the National Association of Realtors are expected to fall slightly to an annualized rate of 4.25 million versus April’s rate of 4.28 million. That home data is set for release at 10 a.m. ET.
The Senate calendar calls for Powell’s testimony to begin at 10 a.m. Wednesday. Pavel reiterated And he said interest rate hikes would dampen inflation, adding that “almost all FOMC participants expect it will be appropriate to raise interest rates a little more by the end of the year.”
Investor expectations see a more than 76% chance of a quarter-point hike at the central bank’s July meeting. CME FedWatch tool. That’s up 60% from a week ago.
Meanwhile, the The Bank of England raised its key interest rate By half a percentage point, it raised the lending rate to 5%, the highest level since April 2008.
Stock market today
EV is giant Tesla (D.S.L.A) Jupiter slipped nearly 3%. Morgan Stanley downgraded the stock to equal weight from overweight and raised its price target to 250 from 200. Dow Jones is a tech giant Apple (AAPL) and Microsoft (MSFT) was higher after today’s stock market opened.
Dexcom (DXCM), Chipotle Mexican Grill (CMG), McKesson (M.C.K) and year (year) — as well as Dow Jones stocks Boeing (B.A), JP Morgan Chase (JPM) and Sales force (CRM) — is one of the best stocks to buy or watch in a stock market boom.
Tesla is an IBD Leaderboard stock. McKesson is an IBD swing trader stock, while Chipotle is Wednesday’s Stock of the Day and near a buy zone on this week’s stock.
Dow Jones today: Oil prices, Treasury yields
After Thursday’s opening bell, the Dow Jones industrial average fell 0.2%, while the S&P 500 lost 0.3%. And the tech-heavy Nasdaq composite was down 0.1% in morning action.
On Thursday, the 10-year U.S. Treasury yield rose to 3.72%. The yield has been hovering between 3.57% and 3.85% recently, easing slightly to 3.72% on Wednesday.
Oil prices retreated sharply on Thursday morning. West Texas Intermediate futures fell nearly 2% to around $71 a barrel ahead of Thursday’s weekly oil inventory report from the Energy Information Administration.
Stock market activity
On Wednesday, the S&P 500 returned 0.5%, while small caps fared better. The Russell 2000 fell 0.2%. The Dow Jones industrial average fell 0.3%.
In Wednesday’s Big Picture column, “After falling just shy of testing the 14,000 level on Friday, the Nasdaq composite continued its biggest retreat in more than two months. Wednesday’s 1.2% decline marked its third straight decline. That didn’t happen. A four-day decline from May 1-4.”
It’s an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Boeing, JP Morgan, Salesforce
Dow Jones aerospace company Boeing faltered further in its breakout bid on Wednesday, falling 0.1%. Shares are now 4% below their recent buy trigger. BA stock fell 3.1% as a supplier on Thursday Spirit Aero Systems (S.P.R) Factory operations were shut down by striking workers.
Dow Jones bank leader JP Morgan is below a flat-base buy point of 143.37 after a 0.15% drop on Wednesday. JPM shares were up 0.1% in early Thursday trading.
Salesforce has been able to stabilize itself after a series of revenue declines. It is now testing support at the 21-day exponential moving average. According to IBD Leaderboard analysis, MegaCap Technology previously crossed a pair of fresh alternative entries at 194.01 and 200.10.
In recent weeks, the stock has reached a 20% profit zone from the 178.94 cup-with-handle entry and is now trying to break out of support at the 10-week line. CRM stock rose 0.8% Thursday morning.
4 Best Growth Stocks to Buy and Watch Stock market rally
Best stocks to buy and watch: Dexcom, Chipotle, McKesson, Roku
Despite a three-day losing streak on Wednesday, Dexcom remains in buy range above a flat base’s 126.44 buy point, according to IBD MarketSmith model approval. 5% buy area rises to 132.76. DXCM stock fell Thursday.
IBD Leaderboard Watchlist stock Chipotle is trading tighter after a big advance, making another entry at 2,139.88. Meanwhile, the stock is retreating to its 10-week line, where it is finding support. A decisive recovery from that level would also create a buying opportunity. CMG stock lost 0.4% Thursday morning.
IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry amid a four-day winning streak. A buy zone tops out at 421.61. Shares were slightly lower early Thursday.
Streaming giant Roku made a cup-with-handle base with a 75.45 buy point, even as shares extended their losing streak to five straight sessions on Wednesday. Roku shares lost 0.4% in early Thursday trading.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks to buy and watch in the stock market
These are four of the best stocks to buy and watch in today’s stock market, including the Dow Jones leader.
|Name of the company||Symbol||Perfect buying point||Type of point of purchase|
|ASML||(ASML)||683.18||Cup with handle|
Source: IBD data as of June 20, 2023
IBD Leaderboard stock Tesla slipped 5.5% on Wednesday after a Barclays downgrade, turning lower after hitting a new 2023 high. Shares have extended sharply above the 207.79 buy point of a double bottom base. They closed Wednesday at 18% off their 52-week high.
TSLA stock threatened to add to Wednesday’s losses, falling nearly 3% Thursday morning after a Morgan Stanley cut and price target hike.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell further from their all-time highs on Wednesday, falling 0.6% on the session. Last week, the stock rose to 186.99. The stock remains active above the 157.38 buy point. AAPL stock was up 0.3% in early Thursday trading.
Microsoft shares fell another 1.3% on Wednesday, falling sharply for a third straight session. Last week, the stock hit a record high of 351.47. Despite recent losses, MSFT shares are in the 20%-25% profit-taking zone from the 276.76 flat-base buy point, so investors are at least taking some profits. On Thursday morning, Microsoft shares were up 0.35%.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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