Dow Jones Futures Rise On Jobless Claims, PPI Inflation Data; Cathie Wood Sells Tesla Stock
Dow Jones futures remained higher Thursday morning after another round of cool inflation data, with the release of the June producer price index, while unemployment claims unexpectedly fell. Cathie Wood’s Ark Invest ETFs sold around $5.7 million in Tesla stock Wednesday.
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The PPI, a measure of prices received for goods and services, showed that overall prices, as well as core producer prices, both rose 0.1%, below the 0.2% estimate. Producer prices rose 0.1% year over year, lower than the projected 0.5% year-over-year gain, with core inflation up 2.4% on the year, below the 2.8% estimate.
Meanwhile, initial unemployment claims unexpectedly dropped to 237,000 vs. 248,000 in the previous week. They were expected to edge higher to 249,000.
On the earnings front, Delta Air Lines (DAL), Fastenal (FAST) and PepsiCo (PEP) reported early Thursday.
Delta stock jumped more than 4% after better-than-expected Q2 results. FAST stock slid nearly 3% in morning action. And PepsiCo shares rallied 2.3% after beating estimates and raising guidance.
Earnings reports from big banks mark the official launch of the season on Friday, with JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) are due to report.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) climbed 0.8%, even after Cathie Wood’s Ark Invest ETFs sold more than 20,000 shares, worth about $5.7 million, on Wednesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) also were squarely higher ahead of today’s stock market open.
Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 1.1%, while Meta shares rose 1.5% in premarket trade. Meta stock was upgraded at TD Cowen, from market perform to outperform.
Dynatrace (DT), Meta Platforms, Monolithic Power Systems (MPWR) and Nvidia (NVDA) — as well as Dow Jones stocks American Express (AXP), Caterpillar (CAT) and Salesforce (CRM) — are among the best stocks to watch in the current stock market pullback.
Tesla is an IBD Leaderboard stock, while American Express was featured in this Stocks Near A Buy Zone column. Dynatrace was a recent pick for IBD Stock Of The Day.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures rose 0.2% vs. fair value, while S&P 500 futures gained 0.4%. Nasdaq 100 futures climbed 0.7% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.7%, while the SPDR S&P 500 ETF (SPY) rose 0.3% early Thursday.
The 10-year U.S. Treasury yield continued to edge lower, to 3.83%, after the PPI inflation data. The yield settled Wednesday at 3.86%.
Oil prices looked to extend Wednesday’s gains, with West Texas Intermediate modestly higher Thursday morning. WTI futures traded just below $76 a barrel. OPEC expects strong demand growth for oil next year due to Asian economies.
Stock Market Action
On Wednesday, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite climbed 1.15%.
Wednesday’s Big Picture column commented, “Investors not only witnessed more evidence on Wednesday that a March 29 follow-through day — as highlighted by IBD’s Big Picture column that same day — proved that institutions have been deploying more cash into stocks. They also saw rallies in the government bond and commodity arenas as well.”
Now is an important time to read IBD’s The Big Picture column as the stock market at this year’s highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: American Express, Caterpillar, Salesforce
American Express is trying to break out past a cup-with-handle base’s 177.04 buy point. Shares briefly topped the buy trigger Wednesday before closing below it. AXP stock rose 0.3% Thursday morning.
Industrial giant Caterpillar is in buy range past a 250.89 buy point in a cup with handle, according to IBD MarketSmith pattern recognition. CAT stock inched higher early Thursday.
Salesforce decisively rebounded from its 50-day line Wednesday, entering a new buy area. Shares then broke out past a flat base’s 225 buy point, according to IBD Leaderboard analysis, during Wednesday’s 2.8% advance. CRM stock added 0.6% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Dynatrace, Meta, Monolithic Power, Nvidia
Software maker Dynatrace remains above a three-weeks-tight chart pattern’s 52.99 entry despite Wednesday’s 1.6% decline. Tight action represents a brief consolidation in which institutional investors pause their buying. Shares are in the 5% buy area that goes up to 55.64, per IBD MarketSmith chart analysis. DT stock tacked on 2.1% Thursday morning.
Facebook parent Meta Platforms has been tightly consolidating for the last three weeks, putting a new entry at 298.12. With the stock so far extended from its previous base, this buy point should be used as an add-on entry. Meta shares added 1.5% premarket Thursday.
Chip leader Monolithic Power broke out Wednesday, rising 3.4% to close above a 553.64 buy point in a flat base. Shares are in the buy area that goes up to 581.32. MPWR stock gained 1.1% early Thursday.
Following its May 25 earnings-fueled gap-up, Nvidia shares have been trending consistently higher. Amid a pullback since June 20, the stock is offering another opportunity to buy shares. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Nvidia shares rose 1.1% Thursday morning.
Learn How To Time The Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Cup with handle |
Source: IBD Data As Of July 10, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla added 0.8% Wednesday, a three-day losing streak Thursday, up just 0.1%. Despite the recent declines, Tesla shares remain sharply out of buy range beyond a double bottom’s 207.79 buy point and near their 2023 highs.
TSLA stock looked to add to Wednesday’s gains, climbing 0.7% Thursday. Tesla plans to report its second-quarter results on July 19.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rebounded 0.9% Wednesday, ending a three-day losing streak. AAPL stock continues to hold sharply above a 157.38 buy point. Early Thursday, shares gained 0.7% in morning action.
Microsoft shares found support at their 50-day line Wednesday, bouncing 1.4% to place the stock in a new buy area. And on Thursday morning, Microsoft shares were up 0.7%.
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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