Dow Jones futures defended narrow gains Thursday morning ahead of a possible second round of Russia-Ukraine cease-fire talks and additional Fed Chief Jerome Powell testimony before Congress. Treasury yields moved quietly lower, while U.S. oil prices briefly surged above $116 a barrel before paring gains.
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After the close Wednesday, Snowflake (SNOW) and Pure Storage (PSTG) were among the companies reporting their quarterly results. SNOW shares plunged 20% early Thursday, while Pure Storage stock jumped 10% in premarket trade. Meanwhile, Best Buy (BBY) rallied 5% on results early Thursday, while Kroger (KR) jumped nearly 6% in morning trade.
Among the Dow Jones leaders, Apple (AAPL) inched higher and Microsoft (MSFT) traded down 0.3% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, is nearing a new buy point.
Intel (INTC) dragged 2.3% lower in early trade, following a Morgan Stanley downgrade. Electric-vehicle leader Tesla (TSLA) declined 0.7% premarket Thursday.
Amid the volatile, headline-driven market, Commercial Metals (CMC), Northern Oil & Gas (NOG), Palo Alto Networks (PANW) and Ryan Specialty (RYAN) are among Thursday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Commercial Metals was featured in this week’s Stocks Near A Buy Zone column. Ryan Specialty is an IPO Leader.
Dow Jones Today: Fed Chief Powell, Russian Invasion
Ahead of Thursday’s market open, Dow Jones futures traded up 0.3%, while S&P 500 futures rose 0.25%. The Nasdaq 100 futures moved up 0.1% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%, and the SPDR S&P 500 ETF (SPY) added 0.2% before Thursday’s open.
The 10-year Treasury yield ticked down to 1.86% Thursday morning. On Wednesday, the 10-year Treasury yield surged back above 1.86%. On Feb. 15. the 10-year Treasury yield peaked above 2.06% — its highest level since August 2019. Meanwhile, U.S. oil prices trimmed gains to about 3% Thursday. West Texas Intermediate crude briefly traded above $116 a barrel before paring gains.
Federal Reserve chief Jerome Powell is set to testify before Congress for a second straight day Thursday at 10 a.m. ET. In prepared comments Wednesday, Powell said, “We will use our policy tools as appropriate to prevent higher inflation from becoming entrenched while promoting a sustainable expansion and a strong labor market. We have phased out our net asset purchases. With inflation well above 2% and a strong labor market, we expect it will be appropriate to raise the target range for the federal funds rate at our meeting later this month.”
In Ukraine, Russian forces overcame the city of Kherson, becoming the first regional capital to come under Russian occupation since the start of the invasion. Ukraine officials agreed to a second round of cease-fire talks scheduled for Thursday. The two countries held an earlier round of negotiations on Monday.
First-time unemployment claims dropped to 215,000, better than Econoday expectations for claims of 232,000.
Stock Market Rally Attempt
The stock market posted strong action Wednesday, as the major stock indexes rallied with sharp gains. Thursday will be Day 6 of the ongoing rally attempt, which means a follow-through day — signaling the start of a new uptrend — is possible anytime now. Amid the current volatility, it’s an important time to read and follow IBD’s The Big Picture column.
Wednesday’s The Big Picture commented, “There were strong gains across all indexes, with jumps high enough to justify a follow-through day. The fly in the ointment was volume, which was lower on both the Nasdaq and, according to early data, also on the New York Stock Exchange. This missing vital ingredient means it did not qualify as a rally confirmation.”
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
UnitedHealth is building a double-bottom base that offers a 501.03 buy point. Shares ended Wednesday above their 50-day moving average after a 1.9% gain. UNH stock traded unchanged early Thursday.
Bullishly, the stock’s relative strength line is right at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Commercial Metals, Northern Oil, Palo Alto, Ryan Specialty
Texas-based Commercial Metals — a manufacturer of metal products for the construction industry — is trying to break out past a 38.82 buy point in a consolidation. Shares are about 1% above the entry, as the stock regained the entry Wednesday. The 5% buy area goes up to 40.76. CMC stock shows a 98 out of a perfect 99 IBD Composite Rating, per IBD Stock Checkup. CMC shares were up 0.5% Thursday morning.
Northern Oil & Gas is still in buy range past a cup-with-handle’s 25.57 buy point, according to IBD MarketSmith chart analysis, after Wednesday’s 1.75% advance. NOG shares were unchanged Thursday.
Cybersecurity leader Palo Alto Networks continues to hold above a consolidation’s 572.77 buy point after Wednesday’s 0.9% gain. The 5% buy area goes up to 601.41. The RS line hit a new high on the breakout day. Last week, the company reported strong earnings and sales. Palo Alto shares were flat early Thursday.
IPO Leader Ryan Specialty is again trying to break out past a 40.65 buy point in a double bottom with handle, as the IPO stock rallied nearly 5% Wednesday. RYAN shares were unchanged Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock declined about 0.7% Thursday morning, threatening to give back a part of Wednesday’s 1.8% gain. Shares decisively regained their long-term 200-day moving average during Monday’s surge. Now look for the stock to continue its move up the right side of a new base. The next key test for the stock could be the 50-day line, which sits about 8% above its current price. A retake of that line would be bullish for the stock’s base-building process, while heavy resistance could signal a longer-term consolidation period.
The stock traded as high as 1,243.49 on Nov. 4, but ended Wednesday about 29% 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 are about 6% away from the new buy point. AAPL stock found support at its long-term 200-day line last week, but remains below its 50-day moving average. Apple shares inched higher Thursday.
How the Dow Jones stock handles potential resistance at the 50-day line will be key to the likelihood of a breakout. If the stock finds stout resistance, then a more lengthy consolidation period would be likely. However, if the stock decisively regains that level, then a breakout could be on the near horizon. For now, Apple stock is about 2.5% below the 50-day line.
The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions are hesitant to sell their Apple shares.
Software leader Microsoft rose 1.8% Wednesday, closing just above the 200-day line. Shares continue to build a base. MSFT stock fell 0.3% 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 Ahead Of Cease-Fire Talks; Snowflake Crashes On Earnings appeared first on Investor’s Business Daily.
