The Dow Jones Industrial Average fell on Thursday after the early release of fourth quarter GDP and the first unemployment claims. Meanwhile, Tesla shares surged as much as 11% following strong fourth-quarter results and subsequent comments from Elon Musk, his chief executive.
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The Department of Commerce’s GDP slowed to 2.9% annualized in Q4, beating expectations of growth of 2.7% and 3.2% in Q3. Additionally, the Labor Department’s initial unemployment claims unexpectedly dropped to 186,000. Claims were expected to increase to 202,000 versus 190,000 the previous week.
The fourth quarter earnings season continues. american airlines (AAL), IBM (IBM), master Card (MA), Mobile Eye Global (MBLY), Service Now (now) and Southwest Airlines (Luv).
American Airlines shares were down 1% in morning trading, while Southwest shares were down nearly 4%. Dow Jones shares IBM beat Wall Street’s fourth-quarter expectations, but the stock fell more than 3.5% in early-morning trading.
Mastercard’s stock price rose less than 1% after reporting in the fourth quarter. Mobileye’s stock price saw him rise more than 11% following strong fourth-quarter results. Finally, revenue growth was in line with expectations, although ServiceNow’s December quarter earnings outperformed views. NOW shares rose nearly 3% in morning trading.
stock market today
Electric-vehicle leader Tesla rose 7% on strong fourth-quarter results and a sharp hike in analysts’ price targets.Dow Jones Tech Giant apple (AAPL) and microsoft (MSFT) rose after the stock market opened today.
IBD Leaderboard Strains Axon Enterprise (AXON), Recent IBD Stock Of The Day Etsy (ETSY), monster beverage (MNST) and Vertex Pharmaceuticals (VRTX) — similar to Dow Jones name chevron (CVX), JP Morgan Chase (JPM) and visa (V) — The market continues to rise and ranks among the top stocks to buy and watch.
Axon is an IBD Leaderboard stock. Etsy and Vertex were his recent IBD Stocks Of The Day. Axon and JP Morgan were featured in this week’s ‘Stocks Close to the Buy Zone’ column.
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Dow Jones Today: Oil Prices, US Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.15% and the S&P 500 gained 0.2%. The tech-heavy Nasdaq rate cut climbed to 0.7% in the morning.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7%, while the SPDR S&P 500 ETF (SPY) rose 0.2% early Thursday morning.
Internationally, Hong Kong’s Hang Seng Index re-opened after the year-end holiday, rising 2.4%. The mainland’s Shanghai stock exchange remains closed until Friday.
10-year US Treasury yields climbed to 3.5% Thursday morning, and we expect them to bounce back after two days of decline. With the bond rally heading into his fourth week, the 10-year yield is now trading near his lowest level since mid-September.
Oil prices rose nearly 2% on Thursday, with West Texas Intermediate futures above $81 a barrel. Crude oil has fallen less than 1% in his first week after hitting an eight-week high on Monday.
stock market rally
On Wednesday, the Dow Jones Industrial Average rose and the S&P 500 cut early losses to less than 0.1%. The tech-heavy Nasdaq Composite rose 0.2% and narrowed its losses after falling more than 2%.
The Big Picture column on Wednesday commented: We also examine key sectors within the daily new highs list of the IBD data table — just an example list. “
With the ongoing stock market rally, now is an important time to read IBD’s The Big Picture column.
5 Dow Jones Stocks to Buy Now and Watch
Dow Jones stocks to buy and watch: Chevron, JP Morgan, Visa
Energy giant Chevron closes out the right side of the cup base with a buy point at 189.78. IBD MarketSmith pattern recognition. Note the handle that offers lower entry. Chevron’s fourth quarter earnings are due to be released on Friday. CVX shares rose 3% on Thursday after the company raised its dividend and announced a $75 billion share buyback program.
The CVX strain shows a solid 91 out of a full 99 IBD overall rating according to the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Banking giant JP Morgan is above the 138.76 flat base buy point after four straight gains. JPM shares rose 0.3% on Thursday morning.
Payments leader Visa is trading in a buy range above the buy point of 220.08 handles in a long pattern. The 5% buy area moves up to 231.08. Visa shares rose 0.5% early Thursday ahead of the company’s fiscal first quarter results, which are expected after the close.
Buy and watch 4 top growth stocks stock market rally
Top stocks to buy and watch: Axon, Etsy
Security leader Axon gained 1.7% on Wednesday, returning to a buy range above the handle cup-based 189.72 buy point. The buy zone tops out at 199.21. Axon shares rose 0.4% Thursday morning.
Backstory: Formerly known as Taser International, the company has capitalized on the business opportunity presented by public demand for increased police surveillance. The company’s line of body cameras and accompanying software is currently the market leader. The Scottsdale, Arizona-based company also boasts a cloud-based digital evidence platform.
Etsy topped the buy point of 137.01 on cups with handles on Monday, but fell further below entry on Wednesday with a 0.6% loss. If the stock recovers its buy point, the 5% buy area will move up to 143.86. ETSY shares rose 2.8% on Thursday.
Backstory: The company is a provider of online e-commerce platforms where creators of arts and crafts, vintage items and other unique items sell their products. Over the last few years, it has a unique business model that has grown from a niche e-commerce market to a top-of-mind shopping destination across multiple categories.
Monster, Vertex Eye Purchase Points
Monster Beverage is close to 104.75 buy points on a flat basis after Wednesday’s 0.5% gain. MNST shares rose 0.1% on Thursday.
Backstory: Monster Beverage leads the duopoly of privately held competitors Red Bull and energy drinks. The company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.
Monster dominated energy drinks in the United States, capturing 39% market share last year, and the company’s revenue hit $5.5 billion, according to Jefferies data. Red Bull holds his 37% share of the US energy drink market in 2021. Celsius (CELH) continues its impressive growth, accounting for 4.9% of the market.
Recent IBD Stock Of The Day, Vertex Pharmaceuticals, is approaching the buy point at 324.85 on a cup basis after recovering its bullish 50-day line in recent sessions. VRTX shares rose 0.4% on Thursday.
Backstory: The company is best known for treating cystic fibrosis, which Vertex estimates has 88,000 patients. Of those, 20,000 are still able to receive conventional oral therapy, but analysts say his latest regimen of three drugs could strengthen Vertex’s position against rivals. We are focusing on new features of Vertex, such as. AbbVie (ABBV).
Stocks to buy and monitor in the stock market rally
These are the top 7 stocks to buy and watch on the stock market today, including 3 Dow Jones leaders.
| company name | symbol | correct purchase point | Base type |
|---|---|---|---|
| monster | (MNST) | 104.75 | flat base |
| vertex | (VRTX) | 324.85 | cup base |
| axon | (Axon) | 189.72 | cup with handle |
| Etsy | (ETSY) | 137.01 | cup with handle |
| JP Morgan | (JPM) | 138.76 | flat base |
| chevron | (CVX) | 189.78 | cup base |
| visa | (5) | 220.08 | cup with handle |
Source: IBD data as of 26 January 2023
Join IBD experts as they analyze key stocks in the current stock market rally on IBD Live
Tesla Stock Rises on Earnings, Musk Comments
Tesla’s stock surged Wednesday, extending its winning streak to four sessions ahead of the company’s earnings announcement after the close. Despite the recent rally, the stock is still well below his 50-day line and his 200-day line. Tesla shares have closed down about 62% from their 52-week high.
Shares of the EV giant surged 7% Thursday morning after the company’s strong fourth quarter performance. Tesla’s earnings rose 40% to $1.19 per share, and earnings rose 37% to $24.32 billion. Earnings beat expectations, but sales fell short of analyst expectations.
Musk told investors Wednesday that so far in January, Tesla is “seeing the strongest orders in its history.” Orders are coming in “almost twice as fast,” and Model Y prices are rising, he said.
“I think there are a lot of people who want to buy a Tesla but can’t, so these price changes make a big difference for the average consumer,” Musk said.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 0.5% on Wednesday, snapping a four-day winning streak. After strong gains in recent sessions, the stock remains above the 50-day line. Still, the stock is down about 21% from his 52-week high. Apple will announce its quarterly results on February 2nd. AAPL shares climbed he 1.6% on Thursday.
Microsoft’s stock fell 0.6% Wednesday following the company’s fourth-quarter earnings report. MSFT stock has fallen below his 50-day line. The stock remains 24% away from its 52-week high, but a more decisive retake would be bullish for the stock’s outlook. The stock rose 1.8% in the early hours of Thursday.
Follow Scott Lehtonen on Twitter. @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average here.
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