The Dow Jones Industrial Average slashed heavy losses, as Treasury yields jumped after hot inflation data Thursday. Blue chip stocks Coca-Cola and Disney, along with PepsiCo, Twilio, Twitter and Uber, were key earnings movers Thursday.
Among the Dow Jones leaders, Apple lost 0.7% Thursday, while Microsoft dropped 1.2% in today's stock market. American Express, a Dow Jones stock to watch, is in buy range after Tuesday's breakout.
Electric-vehicle leader Tesla skidded around 0.5% Thursday, threatening to fall after Wednesday's 1.1% rise.
Amid a volatile stock market rally, Alphabet, Blackstone, CF Industries and Stifel Financial are among Thursday's top stocks to buy and watch. All four are in or near new buy zones.
Microsoft, Stifel and Tesla are IBD Leaderboard stocks. American Express was featured in this week's Stocks Near A Buy Zone column. Blackstone is an IBD SwingTrader stock. Stifel was a recent IBD Stock of the Day.
Dow Jones Today: Inflation Data
After the stock market open Thursday, the Dow Jones Industrial Average declined 0.3%, while the S&P 500 dropped 0.5%. The tech-heavy Nasdaq composite cut losses to 0.6% in morning trade. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved down 0.9%, and the SPDR S&P 500 ETF dropped 0.5% after Thursday's open.
The 10-year Treasury yield briefly spiked above 2% Thursday morning after the hot inflation report before paring some gains. Meanwhile, U.S. oil prices gained nearly 1%, as West Texas Intermediate crude moved back above $90 a barrel. WTI briefly topped $93 a barrel last week.
The consumer price index, the most widely followed monthly indicator of inflation, rose 7.5% over the past year, hotter than the expected 7.3% gain. That is an acceleration from December's 7% gain, and the highest level in 40 years. Month over month, consumer prices rose 0.6% in January, also higher than the expected 0.5% increase, according to Econoday.
Meanwhile, last week's initial jobless claims fell to 223,000 vs. the previous week's 238,000 first-time unemployment claims, according to the Labor Department.
Stock Market Rally
The stock market posted more positive action Wednesday, as all three major stock indexes logged strong gains. Amid the recent volatility, now is an important time to read IBD's The Big Picture column.
Wednesday's The Big Picture commented, "Wednesday's action hinted that Wall Street might take Thursday morning's monthly inflation data in stride."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Earnings: Coca-Cola, Disney
Coca-Cola reported better-than-expected fourth quarter earnings and sales ahead of Thursday's open, sparking a 0.4% loss in morning trade. KO shares are extended above a 57.66 flat-base entry, but poised to retake a 61.88 entry in a three-weeks-tight follow-on buying opportunity.
Rival PepsiCo also topped analyst estimates Thursday morning, as shares declined more than 2% in morning trade. PEP shares are trying to stem a three-week pullback, and find support around their 50-day line.
Disney beat analyst forecasts for the fiscal first-quarter earnings late Wednesday, as theme park revenue bounced back. Disney+ subscriptions also topped analyst views. DIS shares surged nearly 6% Thursday.
Stock Market Earnings: Twilio, Twitter, Uber
Twilio, Twitter and Uber Technologies reported before the stock market opens Thursday.
Twilio's fourth-quarter revenue blew past estimates as the company also projected profitability on an adjusted basis by 2023. TWLO shares surged more than 14% Thursday morning.
Twitter reported mixed fourth quarter results early Thursday, topping some earnings estimates, while falling short of revenue targets. The company also announced a new $4 billion share buyback plan. Twitter shares declined more than 3% early.
Uber reported strong fourth quarter revenue late Wednesday, sparking a 1.5% climb in morning action. UBER stock ended Wednesday about 37% off its 52-week high.
Dow Jones Stocks To Watch: American Express
American Express advanced 3.3% Tuesday, breaking out past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares are in the 5% buy range that tops out at 198.59. AXP stock traded up 0.2% Thursday.
Bullishly, the stock's relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Alphabet, Blackstone, CF Industries, Stifel
Outside the 30-stock Dow Jones industrials, FANG stock Alphabet attempted a breakout past a 3,019.43 buy point following strong earnings results last week, but fell more than 7% below the new entry following recent losses. GOOGL shares regained their 50-day line, rising 1.6% Wednesday. Shares were down 1.6% Thursday.
Despite Alphabet's sell signal, last week's strong earnings reaction was a big positive. Keep an eye on the search giant; it could be adding a handle to its current formation which could potentially result in a new entry.
IBD SwingTrader stock Blackstone is again approaching a double-bottom base's 136.56 buy point, and the stock is about 1% away from the entry following Wednesday's 4.6% advance. Shares lost almost 3% Thursday.
Fertilizer producer CF Industries is about 2% away from its ascending base's 74.87 buy point following Wednesday's 0.3% fall. CF stock boasts a perfect 99 IBD Composite Rating, per IBD Stock Checkup. Shares traded down 1.4% Thursday.
IBD Leaderboard stock Stifel Financial remains above a 78.70 buy point in a consolidation despite Wednesday's 0.7% fall. Its RS line hit a new high Tuesday. Shares were down 0.1% Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 0.5% Thursday, threatening to fall after Wednesday's 1.1% rise. The stock found much-needed support at its long-term 200-day moving average in recent sessions. But Tesla shares remain sharply below their 50-day line and there is no proper entry in sight.
The stock traded as high as 1,243.49 on Nov. 4, but ended Wednesday about 25% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rose 0.8% Wednesday, adding to Tuesday's 1.85% gain. Shares are again about 15% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares lost 0.7% Thursday.
A new base is likely forming, but it is slightly too early for a proper buy point. However, a decisive move past Thursday's high of 176.24 could be used as an early entry for aggressive investors.
Software leader Microsoft gained 2.2% Wednesday, as the top Dow Jones stock continues to build a new base. But shares remain below their 50-day line. MSFT stock was down 1.2% Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
