The Dow Jones Industrial Average rose 175 points on Thursday after the Labor Department’s surprise jump in initial jobless claims. Bitcoin price fell 2% on Thursday, as crypto bank Silvergate Capital (SI) collapsed by 40% on the announcement of the closure of its operations and the liquidation of its subsidiary Silvergate Bank.
Initial jobless claims jumped to 211,000, above Econoday expectations which called for a slight increase to 195,000 from 190,000 the previous week. Low weekly jobless claims continue to demonstrate continued strength in the labor market, fueling market fears that the Federal Reserve may continue to raise interest rates for longer.
Investors are bracing for a crucial jobs report from the Department of Labor on Friday. Economists expect an increase of 220,000 non-farm payrolls in February, with an unemployment rate of 3.4%. In January, payrolls jumped by 517,000, nearly double Econoday’s high estimate. The average hourly wage is expected to increase by 0.3%.
On the earnings side, Asana (ASAN), JD.com (JD) and MongoDB (MDB) were on the move.
Asana climbed 13% after reporting strong fourth-quarter results and issuing strong guidance. JD fell 5.6% even after significantly beating expectations for the fourth quarter. And MDB shares plunged 10% after the company released weak earnings guidance.
stock market today
American Express (AXP) climbed 2.4% after announcing a 120 million share buyback plan and increasing its dividend by 15%. Etsy (ETSY) sold more than 6% after Jefferies double downgraded the stock from buy to underperforming.
Silicon Valley banker stocks SVB Financial Group (SIVB) fell more than 39% after the company launched a $2.25 billion bid package after reporting a $1.8 billion loss in its Treasuries and portfolio investments backed by mortgages.
VE Giant You’re here (TSLA) reversed its initial losses to rebound around 1.5% on Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher after the stock market opened.
IBD Ranking Stock Alteryx (AYX), Palo Alto Networks (PANW), New relic (NEW) and Selling power (CRM) – as well as Dow Jones American Express stocks and JPMorgan Chase (JPM) – are among the best stocks to buy and watch, amid a stock market rally trying to shrug off rate hike fears.
Alteryx is an IBD ranking stock. New Relic was recently an IBD Stock of the Day. And Salesforce was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Price, Treasury Yields
After the market opened on Thursday, the Dow Jones Industrial Average rose 0.5% and the S&P 500 0.55%. The tech-heavy Nasdaq composite rose 0.6% in morning stock, with Chinese companies JD.com and Tesla weighing on early action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) gained 0.55% early Thursday.
The 10-year US Treasury yield edged higher on Powell’s hawkish comments, settling at 3.97%. Then on Thursday, the 10-year yield fell to 3.96% after the unemployment insurance claims data.
Oil prices stabilized after two consecutive days of losses. West Texas Intermediate futures traded just below $77 a barrel early Thursday.
Stock market rally
On Wednesday, the Dow Jones Industrial Average ended with a modest loss of 0.2%, while the S&P 500 and the Nasdaq ended slightly higher, with gains of 0.1% and 0.4% respectively.
Wednesday’s Big Picture column commented: “A surprise bounce in the last half hour of trading on Wednesday saved the stock market from a real bump on the head. But the pullback, which began early in the afternoon on Monday- midday, underscored how bumpy the current road to a healthy recovery in equities remains.”
Now is an important time to read IBD’s The Big Picture column amid the stock market rally.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: American Express, JPMorgan
American Express remains close to a buy point of 182.25 in a giant mug with handle despite losing 0.3% on Wednesday. On the upside, the stock’s relative strength line remains near its highs, a particularly positive sign before a possible breakout. AXP stock rose 2.4% on Thursday morning, looking to break a three-day losing streak after the announcement of the new buyback plan.
Banking giant JPMorgan fell even lower than its fixed buy point of 138.76 during the stock’s 0.6% decline on Wednesday, according to IBD MarketSmith’s chart analysis. Stocks also broke below support at their 50-day line, which is a key level to watch. Shares of JPM traded down 0.6% early Thursday.
The JPM stock is posting a 92 out of a perfect IBD composite rating of 99, according to the IBD stock balance sheet. The composite rating is designed to help investors easily find the highest growth stocks.
4 best growth stocks to buy and watch in the market Stock market rally
Top Stocks to Buy and Watch: Palo Alto, New Relic
Palo Alto Networks continues to trade quietly after the stock rose 12.5% on Feb. 22 and is about to add a handful. Stocks remain within striking distance of the 193.01 buy point of a base. PANW stock traded down 0.2% on Thursday morning.
Pass: On February 21, the cybersecurity giant announced strong results for the quarter ended January, which saw earnings hit $1.05 per share, up 81% from a year earlier, with an increase 26% of its revenue to $1.7 billion.
The recent IBD Stock Of The Day, New Relic, is working on a flat basis with a buy point of 80.98 following the February 8 earnings fueled surge. NEWR stock fell 0.3% on Thursday.
Backstory: New Relic provides a suite of cloud-based software products that enables organizations to collect, store and analyze massive amounts of data in real time. Customers gain increased visibility into their enterprise software to help them make data-driven decisions.
Alteryx and Salesforce close to latest buy points
IBD Leaderboard Alteryx stock continues to struggle after dropping a buy point from the 66.50 trendline in a handle on an early stage cut in this week’s losses. A conventional entry at 70.73 is also in play. Alteryx was down 0.2% on Thursday.
Pass: The Irvine, California company has created a self-service platform for data analysis. Demand is clearly strong, with sales rising from a low of $100 million per quarter in 2021 to $216 million in Q3 2022, up 75% from a year ago, to $301 million. in the fourth quarter of 2022, up 73%. This rapid revenue growth is one of the reasons Alteryx also posted fourth-quarter earnings of 84 cents per share, possibly the biggest quarterly profit in the company’s history.
Last week, Dow Jones leader Salesforce staged a bullish spread beyond a buy point of 178.94 on strong fourth-quarter results. But the gains fade a bit amid the four-day losing streak, with stocks down 0.2% on Wednesday. The stock is in the 5% buy zone which rises to 187.89. CRM stock lost 0.3% on Thursday.
Pass: Salesforce sells software under a subscription model. Its software helps businesses organize and manage sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce. Salesforce said it dissolved its “M&A committee”, implying it will no longer make big acquisitions, amid growing pressure from activist investors.
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Stocks to buy and watch in the stock market rally
These are the top six stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
|Company Name||Symbol||Correct point of purchase||Point of purchase type|
|New relic||(NEW)||80.98||Flat bottom|
|Alteryx||(AYX)||70.73||Mug with handle|
|American Express||(AXP)||182.25||Mug with handle|
|Palo Alto Networks||(PANW)||193.01||Consolidation|
|JP Morgan||(JMP)||138.76||Flat bottom|
|Selling power||(RCMP)||178.94||Mug with handle|
Source: IBD data as of March 8, 2023
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Tesla stock slipped another 3% on Wednesday, falling for a third straight day after the stock was downgraded. The electric vehicle giant is also facing an investigation over possible steering wheel issues.
Shares closed Wednesday about 53% off their 52-week high. Aggressive investors can use the February 16 high at 217.65 as a potential entry. However, to be sure, Tesla stock would have to cross the 200-day line, which is now below 220.
Tesla shares reversed 1.6% on Thursday morning, looking to rebound from recent losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.8% on Wednesday, rebounding from Tuesday’s losses. The stock rose 0.8% early Thursday.
Microsoft shares extended Tuesday’s losses, falling 0.2% on Wednesday. The stock is still around 20% off its 52-week high after recent declines. MSFT stock rose 1.4% on Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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