The Dow Jones Industrial Average kept on hitting new highs Thursday as the stock market sought to build on Wednesday's Fed-fueled rally. The gains came as traders digested the Labor Department's initial unemployment claims and U.S. retail sales results. But Adobe was left out of the party, as its stock tumbled on a disappointing earnings outlook.
First-time jobless claims unexpectedly dropped to 202,000. They were expected to rise to 223,000 vs. 220,000 in the previous week, per Econoday forecasts.
Also, the Commerce Department said that November retail sales rose 0.3% for the month, handily topping estimates for a 0.1% drop.
Key earnings movers Thursday include software giant Adobe and Jabil. Adobe beat Wall Street's targets for its fiscal fourth quarter but disappointed with its outlook. ADBE stock tumbled more than 6% in morning trade.
Meanwhile, Jabil shares rallied nearly 8% early Thursday. The stock closed Wednesday squarely below its 50-day moving average.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 rallied 0.3%. And tech-heavy Nasdaq composite climbed 0.4% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.8%, while the SPDR S&P 500 ETF rose 0.55% early Thursday.
The yield on the 10-year U.S. Treasury bond kept plunging, dropping below the 4% mark to 3.96% Thursday morning. On Wednesday, the benchmark tumbled to 4.03%, its lowest level since August. All bond yields took a dive Wednesday once the Federal Reserve indicated three possible rate cuts in 2024.
Oil prices looked to rebound for a second day Thursday, as West Texas Intermediate futures rose nearly 2% Thursday morning. WTI remained just below $71 a barrel. This week, WTI hit its lowest level since late June.
Stock Market Rally
The Dow Jones index, Nasdaq and S&P 500 all soared by 1.4% Wednesday after the Fed's announcement. The Dow surged to a record high, while the Nasdaq and S&P 500 hit new 52- week highs.
Wednesday's Big Picture column commented, "(Fed Chair Jerome) Powell acknowledged that more rate hikes are unlikely and the Fed needs to start thinking about a weaker job market. But he refused to declare victory on inflation and added that policymakers still don't want to rule out further hikes. As in prior occasions, Powell said economic data will guide the Fed's decisions."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to invest during the ongoing stock market uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Buy And Watch
IBD Leaderboard stock Amazon, IBD SwingTrader issue Booking, Eli Lilly and Snowflake — along with Dow Jones stocks Boeing, JPMorgan Chase and Visa — are among the best stocks to buy and in the current market rally.
Apple and Snowflake are featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks To Watch: JPMorgan Breaks Out
Aerospace stock Boeing moved further past a cup base's 243.10 buy point Wednesday, with a 0.9% rise. The 5% buy zone tops out at 255.26. BA stock rose 0.1% Thursday.
Banking giant JPMorgan is breaking out past a 159.38 buy point in a cup base, rallying 0.3% Wednesday. JPM stock climbed 0.6% Thursday.
Payments leader Visa finished Wednesday at the top of the buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock dipped 0.1% Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Stocks To Buy And Watch: SNOW Breaks Out
IBD Leaderboard stock Amazon continues to trade right at a cup base's 145.86 entry, with shares closing further above the buy point Wednesday amid a 0.9% rise. AMZN stock rose another 0.7% Thursday morning.
IBD SwingTrader stock Booking broke out past a 3,207.32 handle entry last week, and moved through its buy zone by Wednesday's close. BKNG stock was up another 0.4% Thursday.
Drug giant Eli Lilly continues to trace a flat base with an official buy point at 629.97. An early entry would be in play if the stock is able to bounce strongly from its 50-day line. LLY stock dropped more than 1% Thursday morning.
Artificial intelligence leader Snowflake is breaking out past a cup-with-handle's 192.66 buy point, according to IBD MarketSmith pattern recognition. SNOW stock climbed 1.6% Wednesday, closing further above the buy trigger and extending a win streak to five sessions. SNOW stock rallied 0.9% early Thursday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Amazon | 145.86 | Cup base | |
| JPMorgan | 159.38 | Cup base | |
| Booking | 3,207.32 | Handle entry | |
| Snowflake | 192.66 | Cup with handle |
Source: IBD Data As Of Dec. 11, 2023
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Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla moved up 3.4% early Thursday, while Nvidia gained 0.3%.
Graphics-chip giant Nvidia rallied 0.9% Wednesday, back in buy range above a 476.09 double-bottom entry.
Tesla stock got help from the Fed and rallied 1% Wednesday, snapping a two-day skid. TSLA is trying to find support around its 50-day line, a key level to watch. The stock's big double-bottom pattern has a 278.98 buy point, while an early entry is in play at 252.75.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded mixed after today's stock market open.
Apple stock moved up 1.7% Wednesday, as its breakout move continues to gain traction. Shares are in buy range above a cup-with-handle entry at 192.93. Apple shares rose 0.6% Thursday.
Microsoft stock edged lower Wednesday, about 2% above a cup base's 366.78 buy point and in buy range. And the software giant was down 1.3% Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
