Dow Jones reverses on key economic data; 10-year Treasury yield nears 11-year high – Investor’s Business Daily | Jewelry Dukan

The Dow Jones Industrial Average turned higher Thursday morning after initial jobless claims fell unexpectedly, retail sales rose and factory indicators fell. Meanwhile, the 10-year government bond yield remains close to hitting June’s 11-year high.


The Labor Department’s initial jobless claims fell to 213,000. They were expected to rise to 228k from 222k the previous week. And U.S. retail sales rose 0.3% in August from July, comfortably beating Econoday estimates, which had expected total sales to remain flat. But the Philadelphia Fed manufacturing index came in at -9.9, well below the expected reading of 3.1.

Elsewhere, a tentative agreement was reached to avoid a railroad workers’ strike as early as Friday, the Biden administration announced. This news lifted rail stocks such as CSX (CSX) and Union Pacific (UNP) after falling on Wednesday.

Adobe (ADBE) reported better-than-expected quarterly earnings, but sales lagged slightly as the company released its pre-opening results instead of its usual after-hours report. The reason for this is that the software giant has confirmed that it is buying online design collaboration company Figma for $20 billion. ADBE shares plummeted 13%.

Market leader in electric vehicles Tesla (TSLA) was up 1% on Thursday. Among the Dow Jones Industrials are tech titans Apple (AAPL) and Microsoft (MSFT) were lower after the market open today.

Given the current volatility of the market Arista Networks (A NET), DoubleVerify (DV), Palo Alto Networks (PANW) and Pure storage (PSTG) – as well as Dow Jones shares rafters (CVX) – are among the top stocks to buy and watch. Keep in mind that the increased volatility in the market is a good reason for investors to be more defensive, especially after Tuesday’s market slump.

DoubleVerify is an IBD Leaderboard stock. Chevron and Palo Alto were featured in this week’s “Stocks Near a Buy Zone” column.

Dow Jones Today: Treasury Yields, Oil Prices

After Thursday’s opening bell, the Dow Jones Industrial Average reversed from early losses and rose 0.25%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq Composite gained 0.1% in morning action.

Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is up 0.2% and SPDR S&P 500 ETF (SPY) is up 0.15% in early trade.

The 10-year Treasury yield rose to 3.45% on Thursday morning. On Tuesday, the 10-year Treasury yield hit its highest close since June 14 and is just below the 11-year high of 3.48% set on June 14.

U.S. oil prices fell more than 1% early Thursday as West Texas Intermediate futures traded around $87 a barrel. Natural gas futures fell 6% as the rail strike was averted, meaning coal shipments will not be disrupted. Natgas futures were up 9% on Wednesday.

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Stock market rally under pressure

On Wednesday, the Nasdaq Composite led the way, up 0.7%. The S&P 500 was up 0.3%, while the Dow Jones Industrial Average was up just 0.1%.

Wednesday’s The Big Picture column commented, “Energy continues to rank #1 on the IBD equity research charts for medium and long-term performance. The sector was up 4% on a price-weighted basis on Tuesday. Confirming bullish action: Energy Select Sector SPDR (XLE) marched 2.8% higher, while crude oil futures rose to $88.98 a barrel for the fourth time in five sessions. VanEck Oil Services (OIH) was up 3.6%.”

The best way to find leadership in emerging markets is to use the relative strength line. The RS line measures a stock’s price performance against the S&P 500. When the stock is outperforming the broader market, the RS line moves up. When a stock underperforms the broad market, the line points down.

The RS line is drawn on all IBD and MarketSmith charts. In addition, the IBD Stock Screener includes a list of quality stocks with relative strength lines at new highs. MarketSmith also has the RS Blue Line Dot list, which looks for RS lines at new highs. (IBD MarketSmith offers free access for a whole week.)

If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.

Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch right now

Keep an Eye on Dow Jones Stocks: Chevron

Dow Jones stock Chevron is up 2.4% and once again nearing a cup with Handle’s last buy point at 166.93 – according to IBD MarketSmith chart analysis – amid a strong performance by energy stocks this year. The stock fell 1.45% early Thursday.

CVX stock is showing a strong 97 out of 99 perfect IBD Composite Ratings, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

3 top growth stocks to buy and watchrightde Stock market rally

Top stocks to watch: Arista, DoubleVerify, Palo Alto Networks, Pure Storage

Arista Networks added a handle to a double-bottom basis, placing the correct entry at 132.97, according to chart analysis by IBD MarketSmith. An early entry at 126.80 is also in play. Arista’s relative strength line is close to the highs. ANET shares were slightly lower early Thursday.

IBD leaderboard stock DoubleVerify holds above a buy point of 28.07 in a bottoming base. The shares are in the 5% buy zone that extends to 29.47. DV shares lost 2% on Thursday morning.

Cybersecurity leader Palo Alto Networks is nearing a buy point of 193.01 in a cup with a handle, despite falling 0.5% on Wednesday. According to the IBD leaderboard commentary, there is an early entry around 187 based on a trendline. Shares lost nearly 1% on Thursday.

Pure Storage is approaching a buy point of 31.62 in a mug with a handle. Meanwhile, an early entry is also in play after the stock has moved above a downtrend line within this handle. Shares are down more than 1% on Thursday.

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live

Tesla stock

Tesla shares rebounded 3.6%, rebounding from Wednesday’s 4% slide. Stocks reclaimed their 200-day moving average, which they had just abandoned. The electric vehicle giant gained 1% on Thursday morning.

Shares are about 27% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1% on Wednesday, recovering a small portion of Tuesday’s 5.9% plunge. They remain below their 50-day and 200-day moving averages. The stock is about 14% away from a buy point at 176.25 for a mug with a handle. Apple shares fell 0.3% on Thursday.

Microsoft inched up Wednesday, failing to recoup much of Tuesday’s 5.5% decline. The software giant remains well below its 50-day and 200-day moving averages. Shares are about 28% off their 52-week high. Microsoft shares fell 1.2% on Thursday morning.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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