The Dow Jones Industrial Average dropped Thursday after jobless claims rose and GDP data showed stronger-than-expected growth. Meanwhile, Meta Platforms dived despite strong results. And Amazon earnings are on deck.
The Labor Department's first-time unemployment claims rose to 210,000 vs. 198,000 in the previous week. Also, third-quarter GDP from the Commerce Department accelerated to 4.9% vs. second-quarter growth of 2.1%. Estimates called for a rise to 4.2%.
Meta stock tumbled more than 6% Thursday morning after the company warned of weakening advertising demand. Shares initially jumped late Wednesday after the company beat Wall Street's estimates.
Elsewhere on the earnings front, Align Technology, Baker Hughes, Bristol-Myers and IBM were key movers Thursday. They were joined by Mastercard, Merck, Mobileye, Nextracker and ServiceNow.
Align shares plummeted 22%, while Baker Hughes stock was up 3.7%. BMY shares tumbled 3%, as IBM stock moved up almost 4%.
Mastercard dropped 5%, while MRK stock rallied 3% in early action. MBLY raced 8% higher, as Nextracker cut gains to 1%. Finally, ServiceNow shares jumped 6% in morning trade.
Looking ahead, Amazon is due to report after the market close.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday's opening bell, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 lost 0.65%. The tech-heavy Nasdaq composite declined 1.2% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 1.2%, while the SPDR S&P 500 ETF moved down 0.6% early Thursday.
The yield on the 10-year U.S. Treasury bond ticked lower to 4.92% Thursday morning. On Wednesday, the benchmark settled at 4.95%.
Oil prices were sharply lower Thursday, erasing Wednesday's rebound. West Texas Intermediate futures traded below $84 a barrel.
Stock Market Correction
Thursday's market action was in line with Wednesday's, which saw the Dow Jones Industrial Average drop 0.3% by the session's close. The S&P 500 ended the day down 1.4% while the tech-heavy Nasdaq composite sold off 2.4%.
Wednesday's Big Picture column commented, "The Nasdaq composite, at 12,821, is now down for the fourth quarter. It's also coming close to a key test of institutional support at the long-term 200-day moving average, which rose to 12,767 on Wednesday."
Now is an important time to read IBD's The Big Picture column, with the current outlook back in market correction status. Be sure to read how to handle changing market forces.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Electric-vehicle giant Tesla fell 1.5% early Thursday, as Nvidia lost 2%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded lower after today's stock market open.
IBD Leaderboard member Arista Networks, Lululemon Athletica, Meta Platforms and Light & Wonder — as well as Dow Jones stocks Walmart and Salesforce — are among the best stocks to buy and watch in the new stock market correction.
Light & Wonder is a recent IBD Stock Of The Day.
Dow Jones Stocks: Walmart, Salesforce
Dow Jones retail giant Walmart is tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. This week, shares regained their key 50-day line and are about 2% away from their latest entry. WMT stock inched higher Thursday.
Software leader Salesforce is battling for support around its long-term 200-day line. CRM stock gained 0.7% Thursday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Light & Wonder Eyes Buy Point
Arista slipped 2.3% Wednesday, closing back below the 50-day line and about 6% away from a 198.70 buy point in a flat base. The company reports third-quarter results Oct. 30. ANET stock sold off 1.5% early Thursday.
Lululemon dropped 1.65% Wednesday, still below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was down 1.3% Thursday morning.
Facebook-parent Meta Platforms tumbled below its 50-day line during the session's 4.2% decline Wednesday. Then Meta shares lost another 6% Thursday.
Casino games maker Light & Wonder reversed lower Wednesday, down more than 5%. Shares continue to trace a flat base with a 79.97 buy point. But the market is in a correction, increasing risk. LNW stock was slightly higher early Thursday.
Best Stocks In Today's Stock Market Action
These are four best stocks to 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 | |
| Lululemon | 406.94 | Flat base | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 24, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock skidded 1.9% Wednesday, finishing back under the 200-day line and ending a two-day rally. Shares are trying to find support around that long-term level, and are nearly 30% off their 52-week high.
Shares moved down 1.5% early Thursday, threatening to extend Wednesday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple lost 1.35% Wednesday, still holding above potential support around the 200-day line. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares dropped 1.1% early Thursday.
Microsoft stock gained 3.1% Wednesday, as shares moved above two earlier entries — a 336.14 buy point and a 340.86 buy trigger. And on Thursday morning, MSFT stock declined 2% in early trade.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
