Dow Jones futures clung to modest gains Thursday after key economic data — first-time jobless claims and the Philadelphia Fed Manufacturing Index. Bed Bath & Beyond (BBBY), or BBBY stock, dived Thursday morning.
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BBBY stock appeared set to halt its string of torrid gains Thursday, following revived interest in the meme stock. Shares plunged as much as 18% in premarket trade before paring losses to 14% after GameStop (GME) Chairman Ryan Cohen’s RC Ventures disclosed a plan to sell shares. Bed Bath & Beyond, a struggling retailer with big losses, surged as much as 560% from a July 27 low of 4.54 to Wednesday’s high at 30.00.
Key earnings movers Thursday include BJ’s Wholesale (BJ), Canadian Solar (CSIQ), Dow Jones stock Cisco Systems (CSCO), Keysight (KEYS), Kohl’s (KSS), Sociedad Quimica Y Minra (SQM) and Synopsys (SNPS).
BJ’s Wholesale jumped 5.6%. Canadian Solar stock surged almost 7%. Cisco shares rallied 5%. Keysight stock gained 3%. Kohls tumbled 7%. Synopsys beat estimates on the top and bottom lines, sparking a 1% rise. SQM shares declined 4%.
Electric-vehicle leader Tesla (TSLA) traded up 0.6% Thursday morning. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both inched lower ahead of today’s stock market open.
In the current healthy stock market environment, Dow Jones stocks Coca-Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic Power Systems (MPWR) and Ollie’s Bargain Outlet (OLLI) — are among the top stocks to buy and watch.
Albemarle and Costco were featured in this week’s Stocks Near A Buy Zone column. Costco stock was added to IBD Leaderboard and SwingTrader in the wake of Tuesday’s breakout move. Albemarle was a recent IBD Stock Of The Day.
Dow Jones Today: Treasury Yields, Oil Prices
Early Thursday, Dow Jones futures rose 0.1% vs. fair value, while S&P 500 futures moved up 0.15%. And Nasdaq 100 futures traded up 0.2% in morning trade.
Remember that overnight action 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) rose 0.2%, and the SPDR S&P 500 ETF (SPY) rose 0.15% in early trade.
The 10-year Treasury yield ticked lower to 2.86% early Thursday, following Wednesday’s jump to 2.89%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April in recent weeks.
Meanwhile, U.S. oil prices looked to rebound from this week’s losses that dipped to their lowest level since January. West Texas Intermediate futures traded up 1%, just above $89 a barrel.
Jobless Claims, Philly Fed Index, Home Sales
First-time jobless claims fell to 250,000, lower than estimates that called for a rise to 265,000 vs. 262,000 in the previous week.
Also out at 8:30 a.m. is the Philadelphia Fed Manufacturing Index. The index rebounded to 6.2, sharply higher than estimates that expected a negative 5.0. This index missed expectations in July at minus 12.3 for its second straight negative reading.
Existing home sales are expected to fall to 4.85 million in July vs. 5.12 million in June. The National Association of Realtors’ July report will be released at 10 a.m.
Stock Market Rally
On Wednesday, the Nasdaq led the stock market lower, declining 1.25%. The Dow Jones industrials and S&P 500 followed up with losses of 0.5% and 0.7%, respectively.
Wednesday’s The Big Picture column commented, “The middle of August is supposed to be a sleepy time for equity traders. But Wednesday gave stock market participants plenty of news to digest. In the end, Wall Street bulls needed a well-deserved rest.”
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.
Dow Jones Earnings: Cisco Systems
Networking giant and Dow Jones stock Cisco Systems reported its second-quarter earnings results after the close Wednesday. Cisco shares jumped almost 5% after its fiscal 2023 revenue outlook came in ahead of expectations while fiscal fourth-quarter results for 2022 topped Wall Street estimates.
Cisco shares finished Wednesday about 27% off their 52-week high.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Coca-Cola, Merck
Dow Jones soda giant Coca-Cola is building a flat base that has a 67.30 buy point. A handle entry at 65.14 is also in play. Shares are rebounding from their 50-day line and trying to top the handle entry. The stock inched lower early Thursday.
Merck also is building a flat base, a pattern that shows a 95.82 buy point. Shares are trying to hold above their 50-day line, according to IBD MarketSmith chart analysis. Merck shares were unchanged Thursday.
MRK stock shows a solid 94 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.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Albemarle, Costco, Monolithic, Ollie’s
Lithium producer Albemarle remains in buy range following Friday’s breakout past a 273.78 buy point in a large cup-with-handle base. The 5% buy zone goes up to 287.47. Earlier last week, shares topped a smaller cup with handle with a 250.25 buy point. Shares moved down 1.1% Wednesday, falling for a second-straight day. The stock was down about 1% Thursday morning in unison with SQM’s drop.
IBD Leaderboard stock Costco is breaking out past a cup with handle with a 552.81 buy point. The stock rose 0.6% Wednesday, moving higher in the 5% buy area. Shares edged 0.3% higher early Thursday.
Recent IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, shares remain above a 514.80 entry. The stock was flat Thursday.
Ollie’s Bargain Outlet is rebounding from its 10-week line — a critical support level — placing the top discount retailer in a new buy zone. Shares are also carving a handle after a large cup base, putting the latest buy point at 72.37. Current price action is about 11% away from that entry. Shares were unchanged Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock lost 0.8% Wednesday, extending Tuesday’s losses. Shares of the EV giant rose 0.8% Thursday morning.
This week, the stock closed at its highest level since May 4. Shares are trying to again decisively rise above resistance around their 200-day line, which is a key level to watch. Tesla is about 27% off its 52-week high. Its 3-for-1 stock split is set for Aug. 24.
Tesla Announces 3-For-1 Stock Split Date: Is Now The Time To Buy?
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 0.9% Wednesday, as the stock is continues to build the right side of a cup base that has a 179.71 buy point. Another interpretation could be a large double bottom that spans back to January. Either way, the buy point is identical. Keep an eye out for a potential handle to form and offer a lower entry.
Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market outperformance. Shares dropped 0.25% Thursday morning.
Microsoft fell 0.5% Tuesday, ending just shy of the long-term 200-day line, which is a key resistance area to watch. The stock added 0.2% 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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The post Dow Jones Futures Rise After Key Economic Data; BBBY Stock Dives 18% appeared first on Investor’s Business Daily.
