Dow Jones Falls 225 Points After Unemployment Insurance Claims; Netflix Earnings Due

The Dow Jones Industrial Average fell more than 225 points Thursday morning after the Labor Department’s initial unemployment claims. Meanwhile, netflix (NFLX) earnings are expected after the market close, kicking off fourth-quarter tech earnings.


Initial jobless claims fell to 190,000 against. 205,000 the previous week. Claims are expected to reach 215,000, according to Econoday estimates.

Elsewhere on the economic front, housing starts and permits – as well as the Philadelphia Fed’s manufacturing index – were released. Housing starts and permits for December fell to 1.382 million and 1.330 million, respectively, against expectations for 1.362 million and 1.380 million.

Additionally, the Philadelphia Fed Index came in at -8.9 in January, better than the expected reading of -10.3 and higher from a reading of -13.8 in December.

Alcoa (AA) and Discover financial services (DFS) announced its results on Wednesday evening, while Attached (Quick and Procter & Gamble (PG) earnings came out ahead of Thursday’s open.

Alcoa shares slid more than 3%, while Discover shares fell more than 6%. Fastenal rose 1% after beating revenue and net income estimates. And P&G stock fell nearly 2% after earnings matched estimates and sales beat targets.

stock market today

Charles Schwab (SCHW) fell almost 5% after a rare double downgrade by Bank of America. Roblox (RBLX) slipped more than 7% after Morgan Stanley downgraded the stock from an equal weighting to an underweight.

Electric vehicle manager You’re here (TSLA) fell almost 1% on Thursday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both significantly lower after today’s stock market open.

IBD Ranking Stock Fluorine (FLR), recent IBD stock of the day Medpace (MEDP), monster drink (MNST) and Vertex Pharmaceuticals (VRTX) – as well as Dow Jones names Amgen (AMGN), Chevron (CLC) and walmart (WMT) – are among the best stocks to buy and watch as the market tests the strength of a fresh rally.

Fluor and Medpace are IBD ranked stocks.

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Dow Jones Today: Oil Price, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.7% and the S&P 500 lost 0.75%. And the tech-heavy Nasdaq composite fell 1% with Nvidia (NVDA) leading the declines.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1% and the SPDR S&P 500 ETF (SPY) traded 0.7% early Thursday.

The 10-year Treasury yield rose to 3.39% on Thursday morning, reversing a small portion of Wednesday’s drop to 3.37%.

Oil prices rebounded on Thursday, taking West Texas Intermediate futures above $80 a barrel. On Wednesday, WTI futures ended an eight-day rise, reversing after hitting their highest level since early December.

Stock market rally

On Wednesday, the Dow Jones Industrial Average sold 1.8% and the S&P 500 lost 1.6%. The Nasdaq Composite fell 1.2%, ending a seven-day winning streak.

Wednesday’s The Big Picture column warned: “Practically, it’s time to cut stocks. Exposure should remain at 20%-40%, although much depends on the success of breakouts. While dozens of quality stocks have managed to break out of the basics, MarketSmith’s list of recent breakouts shows less than 10 still up more than 5% from buy points.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Amgen, Chevron, Walmart

Pharmaceutical giant Amgen is shaping a flat base that has a buy point of 296.77, according to IBD MarketSmith Pattern Recognition. First, Amgen shares need to retake their 50-day line, which is a key resistance level to watch. AMGN shares fell 1% early Thursday.

Energy giant Chevron fell back below its 50-day line on Wednesday’s 1.8% drop as it remains below the buy point of 189.78 on a flat basis. Chevron’s fourth quarter results are expected Jan. 27. Shares of CVX lost 0.4%, despite rising oil prices.

The CVX stock is posting a solid 93 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. The composite rating is designed to help investors easily find the highest growth stocks.

Discount retailer Walmart fell even lower than its 50-day line after Wednesday’s 2.5% loss. The stock is building a handle cup base which has a buy point of 154.74. Shares of Walmart edged up 0.2% on Thursday morning.

4 best growth stocks to buy and watch in the market Stock market rally

Top stocks to buy and watch: Fluorine, Medpace

IBD Leaderboard Fluor stock is trying to break above the buy point of 36.16 on a flat basis, but the shares gave up their buy point on Tuesday’s 3.4% decline. If stocks retake this entry, the 5% buy zone peaks at 37.97. FLR stock fell 0.65% early Thursday.

Past: Fluor manages major infrastructure projects in the oil and gas, chemical, mining and transport sectors. This is a profit turnaround game. A poor EPS rating reflects net losses in 2019 and 2020 and an expected earnings decline in 2022 to 86 cents per share. Analysts, however, see earnings jump 95% next year to $1.68 per share.

Medpace edged higher on Wednesday, closing in on the 235.82 buy point of a consolidation. Last week, shares moved above an early entry at 220.09. The company’s results are expected on February 2. 13. Medpace shares fell 0.6% early Thursday.

Past: Medpace is a Clinical Contract Resource Organization, or CRO. It helps drug makers conduct the clinical studies needed to get new drugs approved. In the third quarter, the company issued a bullish outlook for 2023, calling for 18% sales growth amid its forecast.

Sample, Vertex Trace Flat Bases

Monster Beverage is battling for support around its 50-day line amid Wednesday’s 1.4% decline. Stocks are charting a flat base with a buy point of 104.75. MNST stock fell 0.3% on Thursday.

Past: Monster Beverage runs an energy drink duopoly with privateer competitor Red Bull. The Company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.

Monster dominates energy drinks in the United States and claimed a 39% market share last year, according to Jefferies data, generating a record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the US energy drink market in 2021. Challenger on the rise Celsius (CELH), which is experiencing impressive growth, claimed 4.9% of the market.

Wednesday’s IBD stock, Vertex Pharmaceuticals, is approaching a buy point of 324.85 in a flat base after rallying higher from its 50-day line this week. VRTX stock fell 0.8% on Thursday.

Past: The company is well known for its treatments for cystic fibrosis – a market that Vertex estimates has 88,000 patients. Of these, there are another 20,000 patients who could receive his old-fashioned oral treatments. But analysts are watching for new Vertex, including an updated three-drug regimen that could strengthen Vertex’s position against its rival. AbbVie (ABBV).

Stocks to buy and watch in the stock market rally

These are the top seven stocks to buy and watch in today’s stock market, including three leaders from the Dow Jones.

Company Name Symbol Correct point of purchase Basic type
Freak (MNST) 104.75 Flat bases
Fluorine (FLR) 36.16 Flat bases
Summit (VRTX) 324.85 Flat bases
Medpace (MEDP) 235.82 Consolidation
Amgen (AMGN) 296.77 Flat bases
Chevron (CLC) 189.78 cutting patterns
walmart (WMT) 154.74 Mug with handle
Source: IBD data as of Jan 19, 2023

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock slipped 2.1% on Wednesday, giving up some of Tuesday’s 7.4% rise. Despite their recent rally, stocks remain well below their 50 and 200 day lines. In early January, shares hit a 52-week low at 101.81. Tesla stock closed Wednesday about 66% off its 52-week high. Tesla’s revenue is expected in January. 25.

Shares of the electric vehicle giant appeared to rebound from Wednesday’s losses, but fell about 1% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, shares of Apple fell 0.5% on Wednesday, closing at their highest level since Dec. 21. 15. The stock remains around 24% off its 52-week high. Apple will release its quarterly results on February 2. 2. AAPL stock traded down 0.7% on Thursday.

Microsoft stock fell 1.9% on Wednesday, ending a seven-day winning streak. The software giant is around 25% off its 52-week high. Revenue from MSFT is expected in January. 24. Stocks traded down 1.3% 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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