The Dow Jones Industrial Average dropped 125 points Thursday after the Labor Department released a hotter-than-expected report on the Consumer Price Index, a key inflation gauge. Meanwhile, Walgreens stock surged on earnings results.
Consumer prices rose 0.4% for September, higher than the 0.3% estimate, with an annual increase at 3.7%, also hotter than the 3.6% forecast. Core inflation held steady, up 0.3% for the month, in line with estimates, with a 4.1% rise in annual prices that also matched expectations.
Meanwhile, initial unemployment claims edged up to 209,000 vs. 207,000 in the previous week.
On the earnings front, Delta Air Lines, Domino's Pizza, Fastenal and Walgreens Boots Alliance were key earnings movers Thursday morning.
DAL stock climbed nearly 1% in morning trade, while Domino's shares rose almost 3%. Fastenal stock jumped 5%. Finally, Dow Jones member Walgreens rallied 5% in early trading.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite rose 0.1% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.1%, while the SPDR S&P 500 ETF moved down 0.2% early Thursday.
The yield on the 10-year U.S. Treasury bond rose to 4.64% after the hot CPI inflation report.
Oil prices took a modest bounce following Wednesday's drop. West Texas Intermediate futures moved back above $84 a barrel, trading up about 2% so far for the week. The Energy Information Administration's weekly inventory report is due out at 10:30 a.m. ET.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average climbed 0.2%, while the S&P 500 rose 0.4%. The tech-heavy Nasdaq composite moved up 0.7% in weak trade, and closed above its 50-day moving average for the first time since mid-September.
Wednesday's Big Picture column noted that, while some uptrends start out red-hot, others move more slowly. "As past follow-throughs in 2023 have shown, upside can always be limited. However, these factors may help equities maintain positive momentum for now," the column said.
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing a new uptrend. Be sure to read how to handle the newfound stock market strength and raise your exposure methodically.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Tesla rose 0.5% early Thursday, while Nvidia gained 1.1%. Dow Jones tech icons Apple and Microsoft traded mixed after today's stock market open.
IBD Leaderboard member Arista Networks, DraftKings, Meta Platforms and Modine Manufacturing — as well as Dow Jones stocks Salesforce and UnitedHealth — are among the best stocks to buy and watch in the new stock market uptrend.
Meta is an IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column. DraftKings was IBD's Stock Of The Day on Wednesday.
Dow Jones Stocks: Salesforce, UnitedHealth
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock rose 0.5% Thursday morning.
Health insurer UnitedHealth closed Wednesday still in buy range above a 515.86 buy point in a cup base, per IBD MarketSmith chart analysis. The 5% buy area goes up to 541.65. UnitedHealth reports third-quarter results ahead of Friday's market open. UNH stock moved up 0.1% Thursday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: DraftKings Makes Bullish Move
Arista pulled back for a second-straight day, down 1.5% Wednesday. A bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. Meanwhile, shares are just shy of a 198.70 buy point out of a flat base. ANET reports third-quarter results Oct. 30. Shares bounced 1.1% 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 moved further above their 50-day moving average during Wednesday's 1.55% rise. DKNG stock fell 0.2% Thursday morning.
Social media giant Meta Platforms is in buy range after a strong move past a 312.87 buy point. And now META stock is moving past a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. META stock dipped 0.2% Thursday.
Tuesday's IBD 50 Stocks To Watch pick, Modine, is breaking out past a 49.60 buy point in a flat base, with a 4.1% advance Wednesday. MOD stock was down slightly Thursday morning.
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 |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Duolingo | 167.53 | Double bottom with handle | |
| DraftKings | 32.65 | Consolidation |
Source: IBD Data As Of Oct. 11, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Hits Buy Point
Tesla stock dipped 0.2%, still holding above its 50-day line and just above 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. Tesla reports quarterly results Oct. 18.
Shares moved up 0.5% early Thursday in morning trades.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.8%, tentatively moving above its 50-day line. If AAPL stock can rebound, it likely would have a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares gained 0.8% early Thursday.
Microsoft shares climbed another 1.2% Wednesday, further above their 50-day line after solid gains in recent sessions. A new base is forming, with an early entry at 340.86. Earnings results are out Oct. 24. And on Thursday morning, MSFT stock was down 0.1% after the Internal Revenue Service said Microsoft may owe more than $29 billion in back taxes.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
