Dow Jones futures extended losses Thursday morning after a key inflation report. U.S. and European markets fell hard after Russia-Ukraine cease-fire talks failed to make progress. Treasury yields rose, while U.S. oil prices rebounded sharply in the stock market today.
Before Thursday’s open, CrowdStrike (CRWD), Franco-Nevada (FNV) and JD.com (JD) reported their quarterly results. CRWD shares jumped 12%. FNV shares were slightly lower and JD shares slid more than 6% in morning trade. Meanwhile, Amazon (AMZN) stock jumped almost 5% after announcing a 20-for-1 stock split, along with a $10 billion buyback plan.
Among the Dow Jones leaders, Apple (AAPL) lost 1.3% and Microsoft (MSFT) declined 1.7% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Wednesday within striking distance of a new buy point.
Electric-vehicle leader Tesla (TSLA) skidded more than 1% early Thursday, threatening to snap a two-day win streak.
Amid the still volatile, headline-driven market, Costco (COST), Nucor (NUE), Quanta Services (PWR) and Union Pacific (UNP) are among Thursday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors largely in cash and on the sidelines.
Microsoft, Nucor and Tesla are IBD Leaderboard stocks. Quanta was Tuesday’s IBD Stock Of The Day. Costco was Tuesday’s IBD 50 Stocks To Watch pick and was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Talks, Inflation Report
Before Thursday’s market open, Dow Jones futures dropped 1.25% vs. fair value, and S&P 500 futures lost 1.2%. Nasdaq 100 futures dropped 1.5% vs. fair value. Remember that overnight action in Dow 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) lost 0.9%, and the SPDR S&P 500 ETF (SPY) moved down 0.7% before Thursday’s open.
In Europe, Frankfurt’s DAX benchmark index and the CAC-40 in Paris both tumbled more than 3% lower after Russia-Ukraine cease-fire talks failed to make progress after the countries’ foreign ministers met in Turkey Thursday.
The 10-year U.S. Treasury yield ticked up to 1.97%, after closing at 1.94% Wednesday following a three-day win streak. U.S. oil prices rebounded more than 5% Thursday, as West Texas Intermediate crude traded above $114 a barrel. WTI briefly plunged below $104 a barrel Wednesday before paring losses.
The Consumer Price Index hit a 7.9% annual rate in February, in line with Econoday estimates to hit another four-decade high in February. Consumer prices increased 0.8% month over month.
Lastly, initial jobless claims rose to 227,000, slightly above forecasts, vs. 215,000 in the prior week.
Stock Market Rally Attempt
The stock market posted strong action Wednesday, as the major stock indexes ended with big gains. All three major stock indexes snapped four-day losing streaks. That action echoed into Asian markets, where Japan’s Nikkei 225 soared 3.9% and benchmarks in Hong Kong and Shanghai closed more than 1% higher.
Wednesday’s The Big Picture commented, “Watch for evidence that: 1) The current leaders are not giving back much of well-fought ground. 2) New leadership is emerging. 3) Sellers are in fact weakening as a force within the stock market. 4) And authentic breakouts are taking good-quality stocks to new highs and making money for intrepid new buyers.”
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: UnitedHealth
Managed care giant UnitedHealth continues to show a 501.03 buy point in a double-bottom base. Shares ended Wednesday about 3% away from their latest entry after retaking their 50-day line. UNH shares were flat early Thursday.
Bullishly, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Anthem, Costco, Quanta Services, Union Pacific
Costco stock continues to build a cup base with a 571.59 buy point, according to IBD MarketSmith chart analysis. Keep an eye out for a handle to form, which would lower the risk-optimal entry. Bullishly, the stock’s relative strength line already hit new highs, a sign of extreme strength especially during periods of significant market weakness. Costco shares edged lower early Thursday.
IBD Leaderboard stock and steelmaker Nucor is back in buy range above a double bottom’s 126.77 buy point following Wednesday’s 3.2% gain that saw the stock retake the entry. The 5% buy area goes up to 133.11. Nucor stock was flat Thursday morning.
Tuesday’s IBD Stock Of The Day, Quanta Services, topped an 113.81 early buy point Tuesday during the session’s 8.2% surge. Meanwhile, the stock continues to move up the right side of a consolidation with a 124.79 buy point. PWR shares were unchanged early Thursday.
Union Pacific remains below its 256.21 flat-base entry after giving up the entry during Wednesday’s 3.1% decline. UNP shares were down 0.5% early Thursday.
Per Leaderboard analysis, Friday’s progress justified a boost in the position size by quarter to a half. The RS line had already been making new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock skidded more than 1% early Thursday, on pace to give back a part of Wednesday’s 4.2% advance. Shares regained their long-term 200-day moving average Wednesday.
The stock traded as high as 1,243.49 on Nov. 4, but ended Wednesday about 31% off that all-time high.
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Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares remains relatively far from the potential entry following Wednesday’s 3.5% climb. Apple shares dropped 1.3% Thursday.
AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions remain hesitant to sell their Apple shares. Apple shares rose 2% Wednesday.
Software leader Microsoft rose 4.6% Wednesday, snapping a four-day losing streak. Shares are still far below the 200-day line, as they continue to build a new base. MSFT stock lost 1.7% early 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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