The Dow Jones Industrial Average dropped Thursday in the wake of Wednesday’s big Fed-driven gains. The 10-year Treasury yield ticked above 3% Thursday morning, looking to rebound from two straight days of losses. Etsy and SHOP stock plunged more than 12% apiece after missing on earnings. And Twitter stock climbed after Elon Musk secured new financing for his Twitter deal.
Key earnings movers Thursday included APA (APA), CF Industries (CF), Chesapeake Energy (CHK), Continental Resources (CLR) and fortnite (FTNT). Each of them reported late Wednesday. Meanwhile, ConocoPhillips (COP) and Shopify (SHOP) reported early Thursday.
Among oil producers, APA shares slide more than 4%. Chesapeake dropped about 0.5%. Continental was up almost 1% and Conoco shares were slightly lower. Fertilizer play CF moved up more than 3%. Fortinet jumped more than 5%. And Shopify tumbled 16%.
electric-vehicle giant Tesla (TSLA) traded down more than 1% Thursday morning, on pace to snap a three-day win streak. Dow Jones Leaders Manzana (AAPL) and microsoft (MSFT) each moved down more than 1.5% in today’s stock market.
Amid the stock market rally attempt launched Monday, Dow Jones leader Merck (MRK)—along with Cheniere Energy (LNG), Exxon Mobil (XOM), nourish (NTR) and World WrestlingEntertainment (WWE) — are among IBD’s top stocks to watch for Thursday.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday’s open, the Dow Jones Industrial Average moved down 0.9%, and the S&P 500 lost 1.1%. The tech-heavy Nasdaq composite sold off 1.5% in morning trade.
The 10-year Treasury yield ticked above 3% Thursday morning. On Wednesday, the 10-year Treasury yield hit a new 52-week high and briefly topped 3% before reversing lower.
Meanwhile, US oil prices gained 0.8% ahead of Thursday’s meeting of the Organization of Petroleum Exporting Countries. West Texas Intermediate crude traded just below $109 a barrel.
First-time unemployment claims rose to 200,000 vs. the previous week’s 180,000 claims. They had been expected to fall to 178,000, per Econoday estimates.
Stock Market Rally Attempt
On Wednesday, the major stock indexes rallied strongly after the Federal Reserve hiked its benchmark interest rate a half-point and set a June 1 start to drawing down its balance sheet, while Fed chief Jerome Powell seemed to rule out an even bigger rate-hike.
In technical terms, Wednesday was Day 3 of a new rally attempt. that means a follow-through day — which would launch a new confirmed uptrend — could potentially occur as soon as Thursday.
Wednesday’s The Big Picture column commented, “As noted in the Big Picture on Monday, the Nasdaq has delivered a few positive reversals — meaning it turned early losses into gains. And Wednesday’s reversal certainly qualifies as one of the best in weeks, if not months. Going from a morning drop of as much as 1.6% before the news, the composite index finished up 3.2%.”
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Dow Jones Stocks To Watch: Merck
Dow Jones drug stock Merck is below a cup-with-handle base’s 89.58 buy point following a brief breakout attempt last week. Shares rallied 1.6% Wednesday, ending about 1% below the latest entry. Merck stock traded slightly lower Thursday morning.
On a positive note, the stock’s relative strength line recently hit new highs, indicating big stock market outperformance during the current stock market correction.
Stocks To Watch: Cheniere, Exxon, Nutrien, WWE
Cheniere Energy is nearing a flat base’s 149.52 buy point following Wednesday’s 4.2% gain, which was prompted by the company’s strong sales results. LNG shares rose 1% Thursday morning.
Energy giant Exxon Mobil broke out past a cup with handle’s 89.90 buy point Wednesday, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 94.40. Exxon shares edged lower early Thursday.
IBD Leader Board Stock Nutrient is rebounding from its 50-day line, a key support level, amid three straight days of gains. Shares rally 1.6% Wednesday. Nutrient stock traded down 0.2% Thursday morning.
World Wrestling Entertainment is back above a 60.94 buy point in a cup with a handle following Wednesday’s 2.3% gain. Meanwhile, a new flat base shows a 63.81 buy point. WWE shares were slightly lower Thursday morning.
Tesla stock traded down more than 1% Thursday morning, still looking to extend a win streak to four sessions. Shares decisively regained their 50- and 200-day lines during Wednesday’s 4.8% advance.
Shares of the EV giant finished Wednesday about 17% away from a cup-with-handle base’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 23% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
among dow jones stocks, Apple shares jumped more than 4% Wednesday, finishing just above its 50-day line. Apple stock fell 1.6% Thursday.
Software leader Microsoft gained 2.9% Wednesday, ending just below the 50-day line, which will be a key level to watch. The stock closed around 20% off its 52-week high. MSFT shares moved down 1.8% Thursday morning.
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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