The Dow Jones Industrial Average rebounded Thursday after the stock market sell-off accelerated on Wednesday. China-based stocks surged after central bank stimulus measures triggered a rally in Hong Kong. Apple stock is testing a key level, while Netflix earnings are due after the close. Meanwhile, Intuitive Surgical also reports late Thursday.
Among the Dow Jones leaders, Apple rose 0.5% Thursday, while Microsoft was up 2% in today's stock market. Also among the Dow 30, Cisco Systems is just above a recent buy point, as it battles for support at the 50-day line.
Electric-vehicle leader Tesla traded up 1.2% Thursday. Lucid Group rallied around 3%. And Chinese EV leaders Li Auto and Xpeng Motors were squarely higher.
Among Thursday's top stocks to watch, Ameriprise Financial, Mosaic and Taiwan Semiconductor Manufacturing are in or near new buy zones. Keep in mind the current stock market health should have investors on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Mosaic is an IBD SwingTrader stock. Ameriprise featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields
After the stock market open Thursday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 moved up 0.8%. The tech-heavy Nasdaq composite climbed 1.4% as Trip.com, JD.com and other China-based names dominated the top of the Nasdaq 100 in morning trade.
Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.9% in early trade, and the SPDR S&P 500 ETF moved up 0.3%.
The 10-year Treasury yield ticked down to 1.82% Thursday morning. On Wednesday, the 10-year Treasury yield dropped from two-year highs, closing below 1.83%.
The Labor Department reported first-time unemployment claims jumped to 286,000, well above estimates. Forecasts called for claims to fall to 207,000 vs. the prior week's 230,000, per Econoday estimates.
Stock Market Sell-Off Worsens
The stock market posted another disappointing performance Wednesday, ending with heavy losses after reversing from early gains. The Nasdaq tumbled further below its long-term 200-day moving average. Meanwhile, the S&P 500 closed at its lowest level since Dec. 1.
Wednesday's The Big Picture commented: "The Nasdaq composite was up 1% and fluctuated the rest of the session. It closed 1.1% lower, spending a second consecutive day below the 200-day moving average. The Nasdaq's drop of more than 10% is what most of Wall Street would consider a correction, which concurs with IBD's new market outlook."
Amid this recent weakness, now is an important time to check out IBD's The Big Picture. Instead of buying stocks, investors should keep leading stocks that are showing relative strength on their watchlist. These could be some of the market leaders during the next decisive uptrend.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Earnings: Travelers
Blue-chip insurer Travelers reported earnings ahead of the market open Thursday, handily topping earnings and sales estimates. Shares jumped 2.2% in morning trade.
TRV stock closed Wednesday below a 163.39 buy point in a consolidation, but is trying to retake that entry.
Stock Market Earnings: Alcoa, Baker Hughes, Intuitive Surgical
Alcoa reported strong fourth-quarter earnings after Wednesday's close, sparking a 5% rise in morning trade. AA shares are extended beyond a 52.96 double-bottom entry.
Energy stock leader Baker Hughes reported mixed results ahead of Thursday's open. The stock moved up about 4% in early trade. Shares are trying to break out past a 27.76 buy point in a cup base.
Intuitive Surgical will report after the close Thursday. The company is expected to report per-share earnings of $1.28 on sales of $1.5 billion. ISRG shares are more than 20% off their 52-week high.
Netflix Earnings
FANG stock Netflix will report earnings after the close Thursday. Netflix earnings are expected to fall 30% year over year to 83 cents per share on sales of $7.7 billion.
NFLX stock has been in a steep decline since mid-November. Shares closed more than 25% off its 52-week high Wednesday, sharply below their 200-day moving average.
Three Top Growth Stocks To Watch In The Current Stock Market Weakness
Dow Jones Stocks To Watch: Cisco Systems
Cisco Systems, another Dow Jones stock, closed Wednesday just above a 58.73 double-bottom entry, according to IBD MarketSmith chart analysis, as it tries to find support at the 50-day line. Shares rose 0.5% Thursday.
The stock's relative strength line made a new high in recent weeks, confirming the Dow Jones stock as a market leader, but the ongoing stock market weakness is dragging the stock down.
Stocks To Watch: Ameriprise, Mosaic, Taiwan Semi
IBD Leaderboard stock Ameriprise Financial slid 2.3% Wednesday, ending just below a 312.25 buy point in a flat base, according to IBD MarketSmith chart analysis. The 5% buy zone runs up to 327.86. The stock's relative strength line also made a new high, on the Jan. 4 breakout day. AMP shares were up 0.5% Thursday morning.
Mosaic gave back a part of last week's breakout move above a 41.25 entry on a cup-with-handle base, sliding nearly 4% Wednesday. MOS stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock was slightly lower Thursday.
Taiwan Semiconductor fell further below its 135.60 buy point in a cup-with-handle base, dropping more than 2% Wednesday. TSM stock remains up nearly 9% in January, after reporting fourth-quarter results Jan. 14. Shares moved up 0.4% Thursday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors
Li Auto stock extended this week's losses Wednesday, falling 4%. The stock continues to build the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares rose more than 3% Thursday.
Xpeng Motors, Tuesday's IBD 50 Stocks To Watch pick, skidded 7.4% Wednesday, tumbling back below the 50-day line. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares rallied around 3% Thursday.
Among U.S.-based EV stocks, Lucid Motors shares rose about 3% Thursday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock's basing process ran into more trouble during Tuesday's 7.1% slide and the stock is sharply below the key 50-day line.
Tesla Stock
Tesla stock traded up 1.2% Thursday, looking to snap a two-day losing streak. Shares attempted to regain their 50-day line Tuesday, but were turned away. A new handle entry at 1,208.10 is available.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Wednesday about 20% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock declined 2.1% Wednesday, finishing just below the key 50-day line. Shares remain about 9% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.5% Thursday.
Software leader Microsoft climbed 0.2% Wednesday, as the top Dow Jones stock continues to etch a flat base with a 349.77 buy point. With the stock below its 50-day line, it clearly has more work to do before a potential breakout. Shares were up 2% Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
