Dow Jones futures dived Thursday morning, after the strong gains that followed Wednesday’s Federal Reserve announcement of a 75-basis-point rate hike for the first time since 1994. Tesla (TSLA) stock skidded nearly 4% after the electric-auto maker hiked most of its U.S. prices, with some models rising by up to $6,000.
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Up next, Chief Executive Elon Musk will hold a town hall meeting with Twitter (TWTR) employees, addressing staff for the first time. Twitter shares gained nearly 3% Thursday morning. Twitter stock was a lonely advancer, up 2% in premarket trade.
Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both down more than 2% ahead of today’s stock market open.
Amid a stock market correction, Dow Jones leaders Chevron (CVX), as well as Diamondback Energy (FANG), HealthEquity (HQY), Northrop Grumman (NOC), Quanta Services (PWR) and World Wrestling Entertainment (WWE), are among the stocks holding up the best despite the market weakness.
Quanta is an IBD Leaderboard watchlist stock. And WWE was featured in this week’s Stocks Near A Buy Zone column. HealthEquity was Tuesday’s IBD Stock Of The Day.
Dow Jones Today: Treasury Yields, Oil Prices, Jobless Claims
Ahead of Thursday’s open, Nasdaq 100 futures led the declines, diving 2.2% and poised to wipe out Wednesday’s advance. Dow Jones futures sold off 1.6% vs. fair value, and S&P 500 futures dropped 1.9%. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 2.3%. The SPDR S&P 500 ETF (SPY) lost 2% in early trade.
The 10-year Treasury yield ticked higher to 3.43% Thursday morning following Wednesday’s fall to 3.39%. The 10-year Treasury yield remains near its highest level since April 2011. Meanwhile, U.S. oil prices extended their recent losses, with West Texas Intermediate trading just above $113 a barrel. In early March, WTI briefly topped out above $130.
The Labor Department said first-time unemployment claims held steady at 229,000, unchanged vs. the prior week. Initial jobless claims were expected to fall to 220,000 per Econoday estimates.
Stock Market Correction
The stock market finished with strong gains Thursday, as the Nasdaq led the way with a 2.5% surge.
Wednesday’s The Big Picture column commented, “A news conference with Fed Chairman Jerome Powell also indicated that the bank would do the same during its next meeting on interest rate policy on July 26-27. This would mean short-term interest rates may hit as high as 2.5% by summer’s end. That would reach the highest level since 3% in January 2008.”
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 Stocks To Watch: Chevron
Dow Jones leader and energy giant Chevron fell further below its flat base’s 174.86 buy point, according to IBD MarketSmith chart analysis, following Wednesday’s 2% decline. The stock is close to triggering the 7%-8% loss-cutting rule, which would indicate a failed breakout. CVX shares are already below their key 50-day benchmark, another indicator of weakness. Chevron shares slid nearly 3% Thursday morning.
CVX stock boasts a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Two Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Diamondback, HealthEquity, Northrop, Quanta, WWE
Energy leader Diamondback Energy is below a consolidation base’s 148.09 buy point, as the stock fell 1.9% Wednesday. Shares were down nearly 3% Thursday morning.
Tuesday’s IBD Stock Of The Day, HealthEquity, broke out past a cup with handle’s 66.23 buy point Tuesday. The stock remains in the 5% buy area that goes up to 69.54, as shares eased 0.3% Wednesday. Keep in mind the weak market environment should keep you on the sidelines. Shares were off 0.3% Thursday morning.
Northrop Grumman is trying to halt its recent slide around its 50-day moving average and is about 4% below its cup-with-handle’s 477.36 buy point. NOC shares dipped 0.3% Thursday.
Big Cap 20 stock Quanta Services is tracing a cup with handle that has a 138.56 buy point. Shares are at their 50-day line, which is a key support level to watch. Quanta shares traded effectively flat early Thursday.
IBD Leaderboard stock World Wrestling Entertainment is out of buy range above a flat base’s 63.81 buy point, according to IBD MarketSmith chart analysis, as WWE shares surged nearly 5% Wednesday. The 5% buy zone topped out at 67.00. WWE shares were little changed early Thursday.
Per Leaderboard commentary, the relative strength line for WWE stock is at highs and has been gaining ground since January. The base is first stage, a bonus for the chart.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock raced 5.5% higher Wednesday, rising for a second straight day. Shares threatened to give up those gains, trading down nearly 4% Thursday morning after the company raised most its U.S. auto prices. The base price of a Model 3 remains $46,990.
The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 44% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 2% Wednesday, but still remain near their lowest level since June 2021. The stock is far below its long-term 200-day line and is about 25% off its 52-week high. AAPL stock traded down about 2% Thursday.
Software leader Microsoft gained 3% Wednesday, but remains sharply below its 50- and 200-day lines. The stock hit a 52-week low Tuesday and is about 30% off its 52-week high. MSFT shares dropped more than 2% 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 Dive After Fed-Fueled Rebound; Tesla Hikes U.S. Prices; Elon Musk-Twitter Meeting Next appeared first on Investor’s Business Daily.
