Dow Jones futures rose 200 points Thursday morning after the Labor Department’s first-time jobless claims and fourth-quarter GDP data. Brokerage firm Charles Schwab (SCHW) declined almost 2% after Morgan Stanley downgraded Schwab stock from overweight to equal-weight, with a lowered price target of 68.
Initial unemployment claims climbed to 198,000, topping Wall Street expectations for a rise to 195,000 vs. 191,000 in the previous week. Meanwhile, the final estimate of fourth-quarter GDP came in at 2.6%, below estimates that expected it to hold at 2.7%, unchanged from the second estimate.
Neogen shares jumped 5.6% in premarket trade, while RH tumbled nearly 6% after the company’s earnings and sales missed estimates.
Stock Market Today
PagerDuty (PD), IBD SwingTrader stock Meta Platforms (META) and IBD Leaderboard member Palo Alto Networks (PANW) — as well as Dow Jones stocks Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to buy and watch with the newfound market strength.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures rose 0.6% vs. fair value, and S&P 500 futures gained 0.55%. Tech-heavy Nasdaq 100 futures were up 0.65% in morning action.
The 10-year U.S. Treasury yield on Wednesday inched higher to 3.56%, rising for a third straight day. Last week, the 10-year yield briefly touched its lowest level since mid-September. On Thursday, the 10-year ticked lower to 3.55%.
U.S. oil prices looked to bounce back from Wednesday’s mild losses. West Texas Intermediate futures traded between $73 and $74 a barrel.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average rallied 1%, while the S&P 500 moved up 1.4%. And the Nasdaq composite outperformed with a 1.8% advance.
Wednesday’s Big Picture column commented, “Good places to spot emerging new leadership? Go to lists of the IBD 50 and Big Cap 20 and rank them in terms of best gains. IBD Stock Screener, IBD Stock Of The Day, IBD Stock Analysis and IBD 50 Stocks To Watch also offer excellent places to do efficient research.”
Now is an important time to read IBD’s The Big Picture column following Wednesday’s big gains.
Dow Jones Stocks To Watch: Cisco Systems, Nike
Cisco Systems is within striking distance of a flat base‘s 51.84 buy point, according to IBD MarketSmith pattern recognition. Bullishly, the stock’s relative strength line hit a new high last week, a sign of stock market outperformance. CSCO stock rose 0.3% Thursday morning.
Nike shares continue to trace a flat base that has a 131.41 buy point. The stock failed to hold above its 50-day line last week, meeting resistance, but may be setting up for another attempt. NKE stock moved up nearly 1% Thursday.
Top Stocks To Buy And Watch: PagerDuty, Meta, Palo Alto
Recent IBD Stock Of The Day and IBD Leaderboard watchlist stock PagerDuty is building a large cup with handle that stretches back to March 2022. The correct buy point is 33.87, and shares are about 4% away from that entry after Wednesday’s 2.1% advance. PD stock inched lower Thursday morning.
Backstory: PagerDuty uses a form of artificial intelligence known as machine learning to automate its cloud platform. But it’s not part of a new wave of software companies using content-creating “generative AI” technology.
On the company’s recent fourth-quarter earnings call, the company “noted the typical style of AI utilized by the PagerDuty platform is called analytical AI,” analyst Matthew Hedberg of RBC Capital said in a note.
Backstory: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the “metaverse,” a virtual reality world.
IBD Leaderboard stock Palo Alto Networks continues to trade near its 192.94 buy point out of a cup with handle. The buy area will run up to 202.59 if the stock retakes the entry. PANW stock was up 0.8% premarket Thursday.
Backstory: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Stocks To Buy And Watch In Stock Market Rally
These are four top stocks to watch in today’s stock market, including two Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|Meta Platforms||(META)||197.26||Flat base|
|Palo Alto Networks||(PANW)||192.94||Cup with handle|
|Cisco Systems||(CSCO)||51.84||Flat base|
Source: IBD Data As Of March 30, 2023
Tesla stock rallied 2.5% Wednesday, rebounding from Tuesday’s losses. Shares continue to trade above their 50-day line, and are again finding support around that level. The stock closed Wednesday 50% off its 52-week high.
TSLA stock moved up 0.8% Thursday morning, looking to add to Wednesday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gained 2% Wednesday, adding to Monday’s drop. Shares remain near their recent highs after solid gains in recent weeks. AAPL stock moved up 0.4% Thursday.
Microsoft shares recaptured a flat base’s 276.86 buy point during Wednesday’s 2% climb. The stock is in the 5% buy area that goes from the buy point to 290.70. And shares rose 0.8% early Thursday.
Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company’s investments in AI startup OpenAI, the firm behind the buzz-worthy ChatGPT application.
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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