The Dow Jones Industrial Average fell on Thursday morning after the first data on unemployment claims. Investors are now awaiting Friday’s highly anticipated July jobs report.
Key earnings drivers on Thursday include Albemarle (ALB), Ali Baba (BABA) and WHAT (WHAT). Also on the move were IBD classification actions Energy Cheniere (LNG), Quantum Services (REP), elf beauty (ELF), eBay (EBAY) and Fortinet (FTNT).
Albemarle shares jumped almost 4% on solid results. Alibaba rebounded 6%. APA shares fell 3.5%. Chenière lost 1%. Quanta shares traded down more than 1%. ELF shares gained more than 4%. eBay fell 4%. Fortinet fell more than 10%.
You’re here (TSLA) traded down around 1% early Thursday. Somewhere else, Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were slightly lower than flat before today’s stock market open. And walmart (WMT) lost a fraction after the The Wall Street Journal reported the company is laying off hundreds of workers as part of a restructuring effort due to declining profits.
Against the backdrop of strengthening stock markets, Dow Jones stocks Chevron (CLC) and UnitedHealth (A H) – as good as Equine (EQNR), Exxon Mobil (XOM) and Vertex Pharmaceuticals (VRTX) – are among the stocks to watch. Keep in mind that continued equity market volatility is a reason to remain more cautious despite recent signs of strength.
Dow Jones Today: Treasury Yields, Oil Prices, Unemployment Insurance Claims
The Dow Jones Industrial Average lost 0.1%, while the S&P 500 fell slightly. The tech-heavy Nasdaq composite gained 0.3% in morning trading.
The 10-year Treasury yield fell to 2.71% on Thursday morning, on pace with a two-day winning streak. The 10-year Treasury yield is trying to rebound after hitting its lowest level since early April. Meanwhile, US oil prices fell, with West Texas Intermediate futures trading below $90 a barrel.
The first unemployment claims came out at 8:30 a.m. ET. Initial jobless claims rose to 260,000 from 256,000 the previous week, according to Econoday estimates. On Friday morning, the Labor Department’s July jobs report is due out. The US economy is expected to have created 250,000 jobs in July with an unemployment rate of 3.6%.
Stock market rally
Wednesday’s bull session saw gains of 2.6% on the Nasdaq, 1.3% on the Dow Jones Industrial Average, 1.4% on the Russell 2000 and 1.6% on the large-cap S&P 500.
Wednesday’s Big Picture The column commented, “Volume is up 19% on the Nasdaq from the previous day. That’s bullish. Want to see institutions hoard stocks with abandon, especially on strong days like Wednesday.”
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Dow Jones stocks to watch: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a buy point of 182.50. Be on the lookout for a potential handle to provide lower entry. Chevron stock traded down 0.2% on Thursday.
Health insurance giant and IBD classification UnitedHealth stock remains in the buy range above the 518.80 buy point of its double-bottom base with handle amid Wednesday’s 1% gain, according to IBD MarketSmith graphical analysis. Shares fell slightly on Thursday.
UNH stock shows a solid 94 over a perfect 99 IBD Composite Assessment, speak IBD inventory check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
Top stocks to watch: Equinor, Exxon, Vertex
IBD classification Equinor Watchlist stock is trading just ahead of the 38.80 double bottom buy point after Wednesday’s 1.9% decline. Shares fell 2% on Thursday morning.
IBD stock of the day Friday Exxon Mobil reclaimed the 50-day line last week and moved past an aggressive early entry around 93.24. But the energy giant dropped those two key levels on Wednesday, slipping 3.2%. Meanwhile, a cut base entry at 105.67 is also in play. XOM stock traded down 1% early Thursday.
Vertex Pharmaceuticals continues to trade below the 279.23 buy point and the 50-day line of its tumbler with handle in a recent slip. The company will release its results on Thursday evening. Vertex shares added 1% early.
Tesla stock rose another 2.3% on Wednesday, extending a winning streak to six sessions. Stocks are at their highest level since early May, but are still trying to decisively clear resistance around their 200-day line, which is a key level to watch.
Shares rose about 1% on Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares rebounded 3.8% on Wednesday, moving further to the right side of a new base. The stock fell 0.2% on Thursday morning.
Microsoft gained 2.8% on Wednesday as the stock recovered from two straight days of losses. The software giant is still trading below its long-term 200-day line. The stock closed around 20% off its 52-week high. Microsoft fell 0.4% early Thursday.
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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