The Dow Jones Industrial Average sold off Thursday morning after key inflation data. Tech leaders Okta, Splunk and Snowflake posted big earnings-related moves, and Dow Jones stock Salesforce dived after its quarterly results. Meanwhile, Chinese electric-vehicle stocks Li Auto and Nio reported record auto sales.
Inflation Data, Jobless Claims, Earnings Movers
The Commerce Department's PCE Price Index, the Federal Reserve's preferred measure of inflation, came out Thursday morning. The index showed a 0.3% rise for the month of October, cooler than estimates, making a 6% year-over-year increase, which was in line with estimates. Personal income climbed 0.7% in October, topping the 0.4% Econoday estimate.
The PCE price index tracks the change in prices of goods and services purchased by consumers throughout the economy.
Meanwhile, first-time jobless claims from the Labor Department fell to 225,000 vs. 240,000 in the previous week. They were expected to inch lower to 238,000.
Companies that reported earnings include Box, Dollar General, Five Below, Pure Storage, Dow Jones software stock Salesforce, Snowflake and Splunk.
BOX stock lost almost 1% early, while Dollar General shares slid nearly 7%. Five Below shares surged more than 11%, while Pure Storage rallied more than 4%. Salesforce tumbled 8%, while Snowflake climbed 3%. Splunk jumped more than 12% in morning trade.
Stock Market Today
Chinese electric-vehicle stocks Li Auto and Nio reported their monthly auto sales early Thursday. Li Auto shares skidded 1.3%, and Nio dropped 3.3%.
Electric-vehicle giant Tesla traded up 0.3% Thursday morning. Dow Jones tech leaders Apple and Microsoft were lower after today's stock market open.
IPO Leader Array Technologies, IBD Leaderboard stock Arista Networks, Celsius and Chubb — as well as Dow Jones names Boeing, Caterpillar and Chevron — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock Of The Day. Boeing is an IBD SwingTrader stock and was one of the four leaders featured in this week's Stocks Near A Buy Zone column. Celsius was Monday's IBD 50 Stocks To Watch pick.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average lost 1.15%, while the S&P 500 fell 0.5%. The tech-heavy Nasdaq composite moved down 0.5% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust lost 0.5% early Thursday, and the SPDR S&P 500 ETF dropped 0.55%.
The 10-year Treasury yield slid to 3.58% Thursday morning, touching its lowest level since Oct. 4. Meanwhile, U.S. oil prices added another 1%, sitting on a three-day rebound after touching their lowest level since December 2021 on Monday. West Texas Intermediate futures traded above $81 a barrel.
Stock Market Rally
On Wednesday, the stock market posted strong action, as the tech-heavy Nasdaq composite surged 4.4%. The Dow Jones Industrial Average rallied 2.2%, while the S&P 500 rose 3.1%.
Wednesday's The Big Picture commented, "The stock market indexes rallied strongly on Wednesday after Fed Chair Jerome Powell told a gathering at the Brookings Institute that it "makes sense" to moderate the pace of rate hikes. However, he still expects rates to rise to "a sufficiently restrictive level."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market volatility.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Caterpillar, Chevron
Aerospace giant Boeing rallied 2% Wednesday, moving further above a cup base's 173.95 buy point. The 5% buy area goes up to 182.65. Boeing shares inched higher Thursday.
Dow Jones member Caterpillar ended just shy of its cup base's 238 buy point, according to IBD MarketSmith pattern recognition, in the wake of Wednesday's 0.55% climb. CAT stock lost 0.1% Thursday.
CAT stock boasts a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
Energy giant Chevron rebounded another 1.3% Wednesday, retaking a 182.50 buy point in a consolidation base. CVX shares gained 0.6% Thursday morning, as oil prices extended their recent gains.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: Array, Arista, Celsius, Chubb
Solar leader and IPO stock Array Technologies fell further below its 22.40 buy point in a cup with handle during Wednesday's slight fall, triggering the 7%-8% loss trigger, according to IBD MarketSmith pattern recognition. Clearly, the stock's breakout attempt is not working, and investors should act accordingly. ARRY stock was down 1.2% Thursday morning.
IBD Leaderboard stock Arista Networks moved out of buy range above a choppy base's 132.97 buy point amid Wednesday's 4.2% advance. ANET stock was down 0.1% Thursday.
Energy-drink maker Celsius surged more than 8% Wednesday, as the stock continues to form a cup base with a 118.29 buy point. Monday's reversal will potentially result in a handle that will offer a lower entry, but it is too early to be certain. The stock was up 0.6% Thursday.
Chubb is trading further above a cup-with-handle's 216.10 buy point Wednesday after the session's 1.3% gain. The 5% buy area tops out at 226.91. The insurance giant traded up 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 raced 7.7% higher Wednesday, closing at its highest level since Nov. 11. On Nov. 22, the stock notched a 52-week low price at 166.19. Shares are around 52% off their 52-week high and sharply below their 50- and 200-day moving average lines.
The EV giant traded up 0.3% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares jumped 4.9% Wednesday, snapping a three-day losing streak and retaking its key 50-day line. The stock is around 20% off its 52-week high. Apple stock traded down 0.2% Thursday.
Microsoft rallied 6.2% Wednesday, ending a three-day losing streak and reaching its highest level since Sept. 13. The software giant remains about 26% off its 52-week high. Microsoft shares fell 0.1% Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
