The Dow Jones Industrial Average dropped Thursday after the Labor Department's initial unemployment claims. Meanwhile, Rivian stock plunged after the company announced a debt offering.
First-time jobless claims rose to 207,000 vs. 204,000 in the previous week. They were expected to rise to 210,000.
The jobs report from the Labor Department looms Friday. Wall Street expects that update to show moderate strength, with 150,000 new jobs. The jobless rate also is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.
Rivian offered one of the more notable stock moves, as it plunged 19% in morning trade. The company said it plans to offer $1.5 billion worth of convertible debt. Rivian also provided a preliminary view of its third-quarter revenue, which was in line with estimates.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 lost 0.7%. The tech-heavy Nasdaq composite moved down 1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 1%, while the SPDR S&P 500 ETF dropped 0.4% early Thursday.
Early action also showed the 10-year U.S. Treasury yield falling to 4.72%, adding to Wednesday's losses. Still, the 10-year yield is just off its long-term highs.
Oil prices extended their declines, falling nearly 2% Thursday morning. West Texas Intermediate futures traded below $83 a barrel.
Stock Market Correction
On Wednesday, the Dow Jones Industrial Average reversed 0.4% higher, while the S&P 500 advanced 0.8%. The tech-heavy Nasdaq composite rallied 1.4%.
Wednesday's Big Picture column commented, "Meanwhile, the so-called Magnificent Seven megacap techs did a lot of the day's heavy lifting. The average gain among this elite group of stocks on Wednesday was 2.1%. Could they help bring the stock market out of its funk?"
Thursday is Day 7 of a rally attempt on the Nasdaq, so a follow-through day is still possible.
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the stock market weakness and prepare for a new uptrend.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Electric-vehicle giant Tesla declined 1.5% Thursday while Nvidia rose 0.2%. Dow Jones tech icons Apple and Microsoft were mixed after today's stock market open.
IBD Leaderboard member Arista Networks, Duolingo, DraftKings, and Zscaler — as well as Dow Jones stocks Caterpillar and Chevron — are among the companies to watch in the ongoing stock market correction.
Tesla is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock slipped 1.5% Wednesday, further below the 50-day line. Shares fell 0.4% early Thursday.
Dow Jones oil giant Chevron tumbled 2.3% Wednesday. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are now below their 50-day line, a bearish signal. Chevron shares dropped 0.9% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Duolingo Below Buy Point
Arista climbed 0.6% Wednesday, still above the 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash. ANET stock rose 0.1% early Thursday.
DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are below their 50-day moving average, and the stock needs to move above that level. DKNG rose 0.2% in morning trades.
IPO Leader Duolingo jumped 3% Wednesday, yet remains below its latest buy point at 167.35. The new entry is the result of a handle forming on a double-bottom base. Still, shares are above a 162.20 buy point. DUOL stock was slightly lower early Thursday.
Recent IBD Stock Of The Day Zscaler rebounded 2.4% Wednesday, as tries to hold above its 50-day line. ZS stock fell a fraction Thursday.
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Uber Technologies | 49.49 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Duolingo | 167.53 | Double bottom with handle | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Oct. 3, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock Hits Buy Point
Tesla stock raced nearly 6% higher Wednesday, decisively retaking its 50-day line and moving into an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 6% away from that entry.
Shares dropped 1.5% early Thursday, threatening to give up a small part of Wednesday's gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.7% Wednesday, rebounding from Tuesday's losses. Shares are trying to bounce back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September's losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares lost 0.4% early Thursday.
Microsoft shares rallied 1.8% Wednesday, recovering about half of Tuesday's sharp losses. And on Thursday morning, MSFT stock fell 1.1%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
