The Dow Jones Industrial Average dropped Thursday morning amid a heavy slate of economic data. The losses threatened to extend the stock market's four-day losing streak, with chip and oil stocks leading the early declines, as the month of September kicked off.
Key earnings movers Thursday included Ciena, Five Below, MongoDB, Okta, Ollie's Bargain Outlet, Pure Storage and Veeva Systems.
Ciena slid 6% as Five Below shares rallied more than 2%. MDB stock dived 18% while Okta stock plunged 24%. Ollie's moved down around 5%, as Pure Storage shares gained almost 3%. And Veeva stock crumbled 12% in morning trade.
Chip giants Advanced Micro Devices and Nvidia declined 5% and 8.3%, respectively, leading early losses among chip stocks. The companies said that the U.S. government has imposed export restrictions on certain chip sales to China.
Chipmaker Intel led declines among Dow Jones stocks, down 2.1%. The VanEck Semiconductor ETF showed a 2.6% morning loss.
Electric-vehicle leader Tesla stock dropped 1.3% Thursday. Among the Dow Jones industrials, tech titans Apple and Microsoft fell 0.5% and 1%, respectively, after today's stock market open.
In the stock market's current volatility, Arista Networks, Costco, GlobalFoundries and Ulta Beauty — as well as Dow Jones player Chevron — are among the top stocks to buy and watch. Keep in mind the market's increased volatility is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of a recent breakout, while Chevron and Ulta Beauty were featured in this week's Stocks Near A Buy Zone column. Arista was the IBD Stock Of The Day on Friday.
Dow Jones Today: Treasury Yields, Oil Prices
Early Thursday, the Dow Jones Industrial Average fell 0.7%, while the S&P 500 traded down 1%. The tech-heavy Nasdaq composite lost 1.4% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 1.4%, and the SPDR S&P 500 ETF was down 1% in early trade.
The 10-year Treasury yield ticked higher to 3.25% early Thursday. On Wednesday, the 10-year Treasury yield notched its highest closing level since June 28.
U.S. oil prices continued to retreat Thursday, threatening to add to a three-month slide. West Texas Intermediate futures declined more than 2% to trade between $87 and $88 a barrel.
Economic Data: Jobless Claims,
First-time jobless claims came out Thursday morning at 8:30 a.m. ET. Initial unemployment claims unexpectedly dropped to 232,000, below estimates that had expected a rise to 246,000. Claims stood at 243,000 a week ago.
S&P Global delivered its August manufacturing Purchasing Managers' Index, or PMI at 9:45 a.m. ET. The PMI dropped to lowest level since July 2020 amid further loss of new orders. PMI came in at 51.5, just above S&P's initial flash estimate for the month at 51.3 — and down from 52.2 in July, as estimates for the month declined across all four of the world largest developed economies.
The Institute for Supply Management's Manufacturing index, out at 10 a.m. ET, came in at 52.8, topping estimates that called for a reading of 52.0.
Stock Market Gives Up Key Level
On Wednesday, the stock market posted another disappointing performance, as the major stock indexes closed at session lows. The Dow Jones Industrial Average led the stock market lower, dropping 0.9%, while the Nasdaq composite and S&P 500 declined 0.6% and 0.8%, respectively. The Nasdaq fell further below its 50-day moving average and the 12,000 level.
Wednesday's The Big Picture column commented, "Indeed, Wall Street may be bracing for another surprise on Friday, when the August nonfarm payrolls report hits the wires. The July report highlighted a red-hot rate of net new hires; will last month's numbers also encourage the U.S. central bank to believe it's still behind the curve in taming inflation?"
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron is up about 19% from a mid-July low. It is methodically building a cup base with a 182.50 buy point — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. An early entry at 164.76 is also in play. The stock dropped around 1% early Thursday, as oil prices extended their decline.
CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, GlobalFoundries, 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 holding near recent highs despite the recent market weakness, a bullish sign. ANET shares were down 1.4% early Thursday.
IBD Leaderboard stock Costco fell further below its 552.81 buy point from a cup with handle, as shares declined 0.4% Wednesday. Wait for a bullish retake of the entry before buying shares. Shares traded down 0.5% early Thursday.
GlobalFoundries was unable to retake its 61.98 buy point off a double bottom Wednesday, as shares reversed 2.1% lower. An alternative entry from a handle is in play at 66.06. GFS stock fell 3% Thursday.
Cosmetics leader Ulta Beauty is back above a double bottom's 417.08 buy point following Wednesday's 0.7% loss. ULTA shares fell 0.2% Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock dropped 0.75% Wednesday, extending a losing streak to five sessions. Shares of the electric-vehicle giant fell more than 1% Thursday morning.
Tesla stock continues to grapple with resistance around its 200-day line, and is now approaching its 50-day line, which is a potential support level to watch. Tesla is about 34% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped another 1.1% Wednesday, as they fell further below their 200-day line. The stock is about 12% away from a buy point at 176.25 off a cup with handle. Despite the recent losses, the stock's relative strength line is holding near new highs, indicating steady stock market outperformance. Shares fell 0.5% Thursday morning.
Microsoft declined 0.6% Wednesday, closing further below its 50-day line. Shares remain sharply below their long-term 200-day line and about 25% off their 52-week high. The stock lost 1% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
