The Dow Jones Industrial Average rose more than 250 points Thursday morning after a sharp rebound in China's markets gave global trade a lift. Weekly first-time jobless claims came out early from the Labor Department. And Disney earnings topped Wall Street's estimates, sending shares of the entertainment giant up more than 5% in early morning trade.
In a market where the Federal Reserve's monetary strategy remains closely tied to job market performance, investors are closely watching the week's initial unemployment claims, which rose to 196,000. That's higher than the expected 192,000, and contrasts with last week's claims, which came in below forecasts at 183,000.
More earnings reports Thursday include AbbVie, AstraZeneca, Axcelis Technologies, Impinj and PepsiCo.
AbbVie gained more than 2% on its fourth-quarter results, while AstraZeneca rallied 6% after Thursday's open.
Axcelis dropped 1% despite beating expectations for the fourth quarter and guiding higher for sales in the March quarter and full year ahead. Impinj edged above Wall Street's targets for the fourth quarter, sparking a near-7% rise in morning trade.
Lastly, PepsiCo shares climbed nearly 3% after beating earnings estimates, raising its dividend and announcing a new stock buyback plan.
Stock Market Today
Electric-vehicle leader Tesla traded up 4.5% Thursday morning, while Dow Jones tech giants Apple and Microsoft were sharply higher after today's stock market open.
IBD Leaderboard stock Visteon, Etsy and Wingstop — as well as Dow Jones stocks Caterpillar and JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Visteon is an IBD Leaderboard stock. Etsy was a recent IBD Stock Of The Day. Caterpillar was featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average rose 0.85%, with Disney doing the heavy lifting. The S&P 500 moved up 0.8%, and the tech-heavy Nasdaq composite gained 1.2% in morning action, as Tesla and several China-based stocks led the index.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded up 1.1% and the SPDR S&P 500 ETF rose 0.8% early Thursday.
The 10-year U.S. treasury yield ended a three-day win streak Wednesday, falling to 3.65%. The 10-year yield ticked lower to 3.58% Thursday morning.
Oil prices drifted lower Thursday morning after a fourth straight gain Wednesday. West Texas Intermediate futures dipped more than 1%, falling below $78 a barrel.
Stock Market Rally
On Wednesday, the Dow Jones Industrial Average dropped 0.6%, and the S&P 500 declined 1.1%. Meanwhile, the Nasdaq composite sold off 1.7%.
Wednesday's The Big Picture column commented, "So, while 2023 is off to a terrific start for equities, it can still be immensely valuable among short-term investors to take at least partial profits on the way up. And the actions in the clothing apparel industry show why."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, JPMorgan
Top Dow Jones stock Caterpillar is back in buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares were down 0.3% Wednesday. CAT stock rose 0.7% Thursday morning.
Banking giant JPMorgan is still in the 5% buy range above a 138.76 flat-base buy point after a 0.7% loss Wednesday. The 5% buy zone tops out at 145.70. JPM shares traded up 0.2% early Thursday.
JPM stock shows a strong 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Visteon, Etsy, Wingstop
IBD Leaderboard stock Visteon gained 0.2% Wednesday, barely in buy range above a 152.20 cup buy point. VC stock boasts a perfect 99 IBD Composite Rating. Visteon shares were up 2% Thursday.
Backstory: The Detroit firm is a leading supplier of automotive parts for vehicle manufacturers. It specializes in ride performance and clean air products and systems. Ford and General Motors are major customers. Earnings are due Feb. 16.
Etsy continues to hang just out of buy range past a 137.01 buy point in a cup with handle amid a 0.7% fall Wednesday. The 5% buy area topped out at 143.86. Etsy stock rose 0.3% early Thursday.
Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.
Wingstop is close to adding a handle to a cup base, which would lower the correct entry from 170.97 to 169.04. WING stock was slightly lower Thursday morning.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Monster | 104.75 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Etsy | 137.01 | Cup with handle | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 170.97 | Cup base |
Source: IBD Data As Of Feb. 9, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock climbed another 2.3% Wednesday, extending a win streak to seven sessions and closing at its highest level since Nov. 4. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Wednesday about 48% off its 52-week high.
Shares looked to add to Wednesday's gain, rising 4.5% Thursday morning. Tesla stock has more than doubled from its Jan. 6 lows at 101.81.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 1.8% Wednesday, nearly giving back the entirety of Tuesday's advance. Shares are around 15% off their 52-week high and are moving up the right side of a new base. Apple stock traded up 1.2% Thursday.
Microsoft stock reversed from big gains Wednesday, ending with a 0.3% decline. Shares are rebounding from their 200-day line and are about 16% off the 52-week high. Microsoft shares were up 1.8% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
