Dow Jones futures moved higher Thursday morning, boosted by early gains from Boeing. The broader market traded effectively flat ahead of early jobless data. Apple chip supplier Taiwan Semi is poised to break out after reporting strong earnings ahead of the market open. Delta Air Lines and KB Home also climbed on earnings results.
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Among the Dow Jones leaders, Apple (AAPL) fell 0.2% premarket Thursday, threatening to snap a four-day advance. Microsoft (MSFT) was flat in today’s stock market. Also among the Dow 30, financial leaders Goldman Sachs (GS) and JPMorgan Chase (JPM) are near new buy points.
Electric-vehicle leader Tesla (TSLA) traded barely higher premarket Thursday. EV truck rival Rivian (RIVN) lost 0.5%. Lucid Group (LCID) dropped around 1%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were squarely lower.
Among Thursday’s top stocks to buy and watch, Applied Materials (AMAT), Commercial Metals (CMC), Diamondback Energy (FANG), SVB Financial (SIVB) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Applied Materials is an IBD SwingTrader stock. Commercial Metals and SVB Financial featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Jobless Claims
Ahead of the stock market open Thursday, Dow Jones futures moved up 0.15% vs. fair value, with Boeing (BA) clocking a 2.6% gain. S&P 500 futures inched up 0.1%. Nasdaq 100 futures also hovered 0.1% above fair value. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.1% and the SPDR S&P 500 ETF (SPY) traded up 0.15% premarket Thursday.
The 10-year Treasury yield ticked up near 1.74% Thursday morning. On Wednesday, the 10-year Treasury yield dropped for a second straight day, closing below 1.73%.
Early Thursday, initial jobless claims are expected to fall to 205,000 vs. 207,000 in the prior week. The Labor Department will report first-time unemployment claims at 8:30 a.m. ET.
Next, Federal Reserve governor Lael Brainard — the White House’s pick for the No. 2 Fed official — will testify at her confirmation hearing at 10 a.m. ET. In prepared remarks, Brainard commented that reducing inflation will be the central bank’s top priority.
CPI Inflation Rate Hits New 39-Year High, But Dow Jones Rises
Stock Market Rally Rebounds
The stock market posted a lackluster performance Wednesday, as the major stock indexes ended sharply off their highs. The Nasdaq extended a win streak to three sessions, but remains below its key 50-day benchmark.
Wednesday’s The Big Picture commented: “On Wednesday, the Nasdaq rushed 1% higher before pulling back to settle for a 0.2% gain. While its action this week has been mostly encouraging, the index must first retake its 50-day moving average before even trying for gains this year.”
For more daily stock market commentary, check out IBD’s The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Stock Market Earnings: Delta, KB Home, TSMC
Real estate developer KB Home reported late Wednesday, topping profit estimates, but falling short of revenue targets. KBH stock jumped over 6% in premarket trade. Shares are set to reclaim their 50- and 200-day moving averages.
Delta Air Lines (DAL) reported fourth-quarter results early Thursday, as shares climbed around 2% premarket. The stock ended Wednesday above its 50-day line, but below its 200-day average.
Chip foundry Taiwan Semiconductor Manufacturing (TSM) climbed over 4% after reporting strong earnings results early Thursday. TSM stock is set to break out past a saucer-with-handle base’s 135.60 buy point at the market open if the gains persist.
Prior to its Tuesday morning earnings report, TSM stock kicked off this week with a strong December sales report on Monday, posting a 32% increase vs. Dec. 2020. The manufacturer supplies chips to Apple and Qualcomm (QCOM), among others.
Dow Jones Stocks To Buy And Watch: Goldman Sachs, JPMorgan
Dow Jones stock Goldman Sachs tumbled over 3% Wednesday, giving up its critical 50-day line. Shares continue to trace a cup-with-handle base with a 412.76 buy point, according to IBD MarketSmith chart analysis, but Wednesday’s losses were a setback. Shares were narrowly higher premarket Thursday.
JPMorgan shows a 173.06 buy point in a cup base. The stock regained support at its 50-day line in a 5.6% rally last week. JPM stock is just 3% away from the new buy point amid a five-day win streak. Shares rose 0.4% premarket Thursday.
Three Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Applied Materials, Commercial Metals, Diamondback, SVB Financial
IBD SwingTrader stock Applied Materials bullishly regained its 159.10 entry in a flat base, placing the chip leader back in a buy range. Shares rallied 2% premarket Thursday.
IBD 50 stock Commercial Metals moved back above a 36.96 buy point from a cup base, according to IBD MarketSmith chart analysis, after Wednesday’s 2.8% rise. Shares were flat premarket Thursday.
Oil producer Diamondback Energy moved further out of buy range past a 117.81 buy point, following Wednesday’s 0.2% gain. The 5% buy area topped out at 123.70. Bullishly, the stock’s RS line hit a new high on the breakout day, boosting the energy stock’s cred as a potential market leader. FANG stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares were unchanged premarket Thursday.
SVB Financial is tracing a cup base with a 763.32 buy point. Look for a potential handle to offer a more risk-optimal buy point. Shares advanced 0.6% Wednesday, finishing about 3% away from the new buy point. Shares were unchanged premarket Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian
Li Auto stock added to Tuesday’s advance, rising 3.15% Wednesday. The stock is moving up the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares fell 1.5% premarket Thursday.
Xpeng Motors regained its 50-day line during Wednesday’s 5.7% advance. Shares were fashioning a cup with handle, but that formation is gone now. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares lost a little more than 1% premarket Thursday.
These Are The 5 Best EV Stocks To Buy And Watch Now
Among U.S.-based EV stocks, Lucid Motors shares dropped around 1% premarket Thursday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock is moving up the right side of a new base after regaining their 50-day line during Tuesday’s 9% surge.
EV-truck maker and recent initial public offering Rivian moved down 0.5% premarket Thursday, on pace to give back a part of Wednesday’s 3.5% rally. RIVN shares closed Wednesday more than 50% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight with the stock coming off all-time lows.
Tesla Stock
Tesla stock traded essentially flat premarket Thursday, looking to extend a win streak to four sessions. Shares moved back above their 50-day moving average Wednesday, a bullish development for the stock’s base-building progress. Last week, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 11% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock rallied 0.3% Wednesday, giving it four straight up sessions. Shares are about 15% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares fell 0.2% premarket Thursday.
Software leader Microsoft rose 1.05% Wednesday, extending its win streak to four sessions. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout. Shares were flat premarket Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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The post Dow Jones Futures Rise; Apple Chipmaker Set To Break Out On Earnings appeared first on Investor’s Business Daily.
