The Dow Jones Industrial Average fell more than 225 points Thursday morning before paring losses as Federal Reserve Chairman Jerome Powell spoke at the Cato Institute’s annual monetary conference.
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Key earners overnight included Casey’s General Stores ( CASY ), Copart ( CPRT ) and Dave & Buster’s Entertainment ( PLAY ).
CASY shares declined more than 2% on mixed results. Copart shares fell 4%, while Dave & Buster’s fell more than 7%.
Advanced Micro Devices ( AMD ) rose after Stifel Nicolaus started the stock with a buy rating, while First Solar ( FSLR ) rose 2% on a Goldman Sachs upgrade to buy. Electric vehicle leader Tesla ( TSLA ) declined more than 1% on Thursday.
Among the Dow Jones industrials, tech titans Apple ( AAPL ) and Microsoft ( MSFT ) were both lower after the market opened today.
In the current market volatility, Arista Networks (ANET), Costco (COST), Restaurant Brands (QSR), and Ulta Beauty (ULTA), as well as Dow Jones stocks Chevron (CVX) – These are among the top issues to buy and watch. Note that increased market volatility is a good reason for investors to be more defensive.
Costco is a stock in the IBD rankings following a recent breakout, while shares of Apple and restaurant brands were featured in the Stocks column near a buy zone this week.
Dow Jones today: Treasury yields, oil prices
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite fell 0.4% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 0.55% and the SPDR S&P 500 ETF ( SPY ) retreated 0.45% in early trade.
The 10-year Treasury yield rose to 3.28% early Thursday, continuing to fall after Wednesday’s drop to 3.26%. Earlier this week, the 10-year Treasury yield hit its highest closing level since June 15.
The European Central Bank raised interest rates by 75 basis points on Thursday morning to fight record inflation. An energy crisis has Europe on the brink of recession.
US oil prices edged higher on Thursday, recovering somewhat from Wednesday’s sharp sell-off. West Texas Intermediate futures traded above $82 a barrel.
Early Thursday, first-time jobless claims from the Labor Department fell to 222,000, well below the expected increase to 240,000. Jobless claims were 232,000 the previous week.
Collection of the stock market under pressure
On Wednesday, the Nasdaq Composite and smaller issues led the gains. The former rebounded 2.1%, finally snapping a nasty seven-session selling streak.
Wednesday’s The Big Picture column commented, “If the current bounce really has legs, expect the major averages to jump above their own 50-day moving averages. The summer bounce above this intermediate technical level was successful. But the benefit of hindsight shows that resistance at the longer-term 200-day moving averages has proven too strong so far this year.”
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Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Chevron
Shares of Dow Jones Chevron fell 1.3% on Wednesday, paring its slide just above the key 50-day line. Shares added a handle to a cup base, moving the correct buy point to 166.93, according to IBD MarketSmith chart analysis, amid a strong performance in energy stocks so far of year Shares were up 0.5% early Thursday.
CVX stock scores a strong 97 out of a perfect 99 IBD Composite Rating, according to IBD Stock Check. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.
The 4 most important growth stocks to buy and watch in the current stock market rally
Top stocks to watch: Arista, Costco, restaurant brands, Ulta
Arista Networks added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is starting to give way as the stock remains below its long-term 200-day line. ANET shares fell 0.6% early Thursday.
IBD Leaderboard Costco shares retook their 50-day line on Wednesday and are about 4% below their 552.81 cup-with-handle buy point. The stock came close to triggering the 7% to 8% loss selling rule earlier this week. Shares fell 0.8% on Thursday.
Restaurant Brands rose 2% on Wednesday, ending just 2% off a handle mug that has a buy point of 61.19. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants worldwide. Shares were down 0.7% early Thursday.
Cosmetics retailer Ulta Beauty broke out of buy range last Wednesday with a 417.08 buy point on a double-bottom basis. The RS line hit another new high as the stock market demonstrates abnormal strength in a weak market environment. ULTA shares were down 0.5% Thursday morning.
Join IBD’s experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla shares rallied 3.4% on Wednesday, rebounding from its 50-day line, which remains a potential support level to watch. Shares of the electric vehicle giant fell more than 1% on Thursday morning.
Tesla shares found resistance at their 200-day line in recent months and are about 32% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gained 0.9% on Wednesday as the Dow Jones tech giant unveiled the iPhone 14, but are still below their 50-day line. The stock is about 12% off a buy point at 176.25 a cup with a handle. Despite recent losses, the stock’s relative strength line remains near new highs, indicating consistent stock market outperform. Shares fell 0.8% on Thursday.
Microsoft rose 1.9%, snapping a seven-game losing streak. The software giant remains well below its 50-day and 200-day lines. Shares are near their 52-week high. Shares were down 0.7% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more growth stocks and the Dow Jones Industrial Average.
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