Dow Jones Falls As Jobless Claims Jump; Pivotal Jobs Report On Deck

The Dow Jones Industrial Average fell Thursday morning after the Labor Department’s weekly unemployment claims data. Meanwhile, the pivotal September payroll report is due out Friday morning.


Conagra (GAC), Constellation Brands (ZST) and McCormick (MKC) are the main reporters for Thursday’s results. Conagra rebounded more than 2%, while Constellation fell 1% in morning trading. And McCormick’s shares rose more than 5% despite missing third-quarter earnings and sales targets.

Interactive Platoon (PTON) increased by less than 1% after the company said it plans cut about 500 jobs, or about 12% of its remaining workforce. Chief executive Barry McCarthy said the company had six months to prove it could survive on its own. Shares are more than 90% off their 52-week high.

Leader in electric vehicles You’re here (TSLA) traded up 0.5% on Thursday as Mizuho lowered its price target on the stock from 391.67 to 370. Among Dow Jones industrialists, tech titans Apple (AAPL) and Microsoft (MSFT) were shuffled after today’s stock market open.

As the stock market continues to search for a bottom, Cummins (CMI), Murphy UNITED STATES (MUSA), Neurocrine Biosciences (NBIX), Vertex Pharmaceuticals (VRTX) and World wrestling entertainment (WWE) — as well as the Dow Jones stock UnitedHealth (A H) – are among the best stocks to watch. Despite this week’s gains, the market’s status remains “in correction” and investors are likely to remain on the defensive.

Vertex is a recent addition to IBD classification. Cummins is a IBD Swing Trader Stock. Murphy USA was featured in the Stock column near a buy zone this week, along with three other best stock ideas. The global struggle was a Stock of the day Thursday. Neurocrine was a Stock of the day September 26.

Dow Jones Today: Treasury Yields, Oil Prices, Unemployment Insurance Claims

After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.15%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite gained 0.5% in morning action.

Among exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ) was up 0.5% and the SPDR S&P 500 ETF (TO SPY) increased by 0.1%.

The 10-year Treasury yield rose to 3.77% on Thursday morning. The 10-year Treasury yield fell to 3.56% this week before rebounding. Last week, the 10-year Treasury yield briefly topped 4%, the lowest it had been in over a decade.

Meanwhile, U.S. oil prices gave back a small chunk of their recent gains, easing on Thursday, with West Texas Intermediate futures still holding above $87 a barrel. Last week, oil fell to its lowest level of the year – around $76 a barrel – before rebounding. On Wednesday, OPEC+ agreed to cut production by up to 2 million barrels per day, the the biggest drop since the start of the pandemic.

The Labor Department’s first unemployment claims came out at 8:30 a.m. ET. Initial claims rose to 219,000, above estimates which called for an increase to 203,000 from 193,000 the previous week, according to Econoday.

Stock market rally attempt

On Wednesday, the Nasdaq pared its losses to just 0.3%, while the S&P 500, losing 1.8% early on, managed to pare that decline to less than 0.2%. The Dow Jones Industrial Average, up a combined 5.5% in Monday and Tuesday sessions, edged down 0.1%.

Wednesday’s Big Picture warned: “For sure the next inflation data will grab attention later this month. But in the short term, investors will now be digesting another steady stream of third quarter results. This news will give fund managers more clues about the high level of inflation, and a certain slowdown in the US economy, affects earnings, perhaps the No. 1 factor in stock prices.”

Monday’s market advance kicked off another rally attempt, which was your day 1. Day 2 and 3 action is irrelevant until the index breaks above its last low, from Friday. However, if this bottom is breached, the rally attempt is over and the market continues to search for a bottom.

Then, on day 4 or later, investors should wait for a trailing day. From Thursday (day 4), you are looking for a strong rise in the Nasdaq or S&P 500 in higher volume than the previous session. A sufficiently large increase in climbing volume marks a follow-up day. This would give investors the green light to start buying top-tier stocks overshooting the fair buy points.

Now, before a possible follow-up day, is the perfect time to build a strong watchlist best performing stocks. Many long-term leaders tend to break out at or near the trailing, market bottom signal. Missing that first opportunity can be a costly mistake.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: UnitedHealth

Dow Jones UnitedHealth stock rose 0.75% on Wednesday, extending a three-session winning streak and closing just below the key 50-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith graphical analysis. UNH stock fell 0.5% on Thursday morning.

UNH stock shows a solid 94 over a perfect 99 IBD Composite Assessment, speak IBD inventory check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics. UnitedHealth releases its third quarter results on October 14.

4 growth stocks to watch in the currentrent Stock market correction

Top stocks to watch: Cummins, Murphy USA, Neurocrine, Vertex, WWE

Cummins is moving quickly to the right side of a cup base that has a buy point of 233.95. Stocks recovered their 50-day line this week in strong volume, a positive sign. The company’s next results are Nov. 4. Cummins stock rose 0.3% on Thursday morning.

Murphy USA, the leader in gas stations and mini-markets, is building a flat base with a buy point of 303.19. Shares were down more than 1% on Wednesday, continuing their decline after Tuesday’s bearish reversal. The stock is finding strong resistance at its 50-day line. A decisive recovery from this level would be bullish for the stock’s basis building outlook. Third quarter results are expected on October 26. The shares rose 0.1% on Thursday.

Neurocrine Biosciences is trying to break above the buy point of 109.36 from a flat base, according to IBD MarketSmith graphical analysis. Stocks briefly topped entry on Tuesday, but are now about 1% below the buy trigger. The RS line hit a new high on Friday, a bullish signal. Shares fell 0.1% early Thursday.

IBD Ranking Stock Vertex Pharmaceuticals is rapidly approaching the buy point of 306.05 on a flat basis and above an early entry at 296.24. While market weakness may keep you on the sidelines, the stock’s resilience makes it a great idea to watch. Its RS line is just off new highs, a potential sign of a big stock market outperformance. VRTX stock fell nearly 1% on Thursday, even as RBC raised its price target from 276 to 281.

World Wrestling Entertainment is trying to top the entry of 75.33 from a cut base, but closed about 2% below the entry after Wednesday’s 0.5% drop. The RS line hit a new high this week. WWE shares added 0.1% on Thursday.

Join the IBD experts as they analyze the top stocks in the current stock market rally attempt on IBD Live

Tesla Stock

Tesla Stock slipped 3.5% on Wednesday, closing at its lowest level since July 18. Shares rose 0.5% on Thursday morning. Mizuho analyst Vijay Rakesh lowered the company’s price target on Tesla shares from 391.67 to 370. In a research note, the analyst estimates that the September quarter for electric vehicle manufacturers was mostly compliant, as sourcing and logistics “remain a challenge”. The company has retained a buy rating on Tesla shares.

The shares are around 40% off their 52-week high and significantly below their 50- and 200-day lines. The electric vehicle giant’s third-quarter results are on Oct. 19.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones Stocks, Apple shares rose 0.2% on Wednesday, up for a third straight day. Stocks are still around 20% off their 52-week high and below their 50- and 200-day lines. Third-quarter results are October 27. Apple stock rose 0.1% on Thursday morning.

Microsoft edged higher on Wednesday, extending a three-session winning streak and continuing its rebound from last week’s 52-week low. The software giant remains around 30% off its 52-week high. Microsoft shares slid 0.2% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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