Dow Jones futures rose 100 points early Thursday, while tech futures extended losses after the stock market sell-off Wednesday, triggered by hawkish Fed minutes. Walgreens Boots Alliance jumped on strong fiscal Q1 results. Tesla stock declined 2% in early morning trade, as it tests a key support level.
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Among the Dow Jones leaders, Apple (AAPL) fell 1% premarket Thursday, while Microsoft (MSFT) moved down 0.5% in today’s stock market. Also among the Dow 30, Walgreens (WBA) rallied 2.4% in early action, after reporting a beat and raise quarter, and launching a new healthcare reporting segment.
Home Depot (HD) remains in a buy zone, while Nike (NKE) fell further below a key level on Wednesday.
Electric-vehicle leader Tesla (TSLA) traded down 2% premarket Thursday. Its rival, Rivian (RIVN), added 0.5%. Lucid Group (LCID) dropped almost 2%. And Chinese EV leaders Li Auto (LI), Nio (NIO) and Xpeng Motors (XPEV) were mixed Thursday morning.
Among Thursday’s top stocks to buy and watch, Commercial Metals (CMC), Huntsman (HUN), Goldman Sachs (GS), Nucor (NUE) and Wells Fargo (WFC) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Commercial Metals was Tuesday’s IBD 50 Stock To Watch. Tesla was featured in this week’s Stocks Near A Buy Zone column, while Nucor is an IBD SwingTrader stock.
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Dow Jones Today: Fed Minutes, Treasury Yields
Ahead of the stock market open Thursday, Dow Jones futures rose 0.25% vs. fair value, while S&P 500 futures moved up less than 0.1%. Nasdaq 100 futures lost 0.5%. Remember that premarket 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) declined 0.6% premarket Thursday, and the SPDR S&P 500 ETF (SPY) traded a fraction in the red.
The 10-year Treasury yield ticked up near 1.74% Thursday morning. On Wednesday, the 10-year Treasury yield finished above 1.7%, its highest close since April 5 and just shy of 2021’s intraday high of above 1.76%.
Minutes from the Federal Reserve’s Dec. 14-15 policy meeting, released Wednesday afternoon, signaled an apparent consensus that $4.5 trillion in Covid-era asset purchases unwind at a rate of more than $50 billion per month. Markets seized on the sentence: “Many participants judged that the appropriate pace of balance sheet runoff would likely be faster than it was during the previous normalization episode.”
The Labor Department said Thursday morning that last week’s jobless claims rose to 207,000, slightly higher than expected. Initial unemployment claims were expected to rise to 205,000 vs. 198,000 in the prior week, per Econoday estimates.
Elsewhere, crude oil prices rose about 2% Thursday morning, trading above $79 a barrel for the first time since mid-November.
Stock Market ETF Strategy And How To Invest
Stock Market Rally Weakens
The stock market posted sharp losses Wednesday, as the major stock indexes closed at sessions lows. The Nasdaq composite broke below its key 50-day moving average.
Wednesday’s The Big Picture commented: “At this point, making new buys in any stocks warrants extra caution. Cutting losses in leading stocks that are suddenly showing unusual weakness is also smart portfolio management.”
Following Wednesday’s stock market sell-off, it’s an important time to read IBD’s The Big Picture.
IBD’s 2022 Stock Market Forecast
Stocks On The Move: Dollar General, Target Downgraded
Early Thursday, Wells Fargo downgraded Dollar General (DG) and Target (TGT), sparking sharp losses ahead of the market open.
Dollar General dropped nearly 2% after being downgraded from overweight to equal weight. Shares finished Wednesday just above a 231.83 buy point in a cup with handle.
Target slid 1.75% premarket Thursday. The retail giant was downgraded to equal weight from overweight. TGT shares are below their long-term 200-day moving average.
Meanwhile, Walgreens Boots Alliance jumped 2% Thursday after the company reported better-than-expected quarterly results. The stock is tracing a cup base with a 57.15 entry.
Dow Jones Stocks To Buy And Watch: Home Depot, Nike
Home Depot stock dropped 1.4% Wednesday, but remains in a buy zone on a rebound from support. HD shares were flat premarket Thursday.
Dow Jones retail leader Nike is tracing a new flat base that has a buy point at 179.20, according to IBD MarketSmith chart analysis. Shares dropped 2.5% Wednesday, falling further below its 50-day moving average. Nike shares edged lower premarket Thursday.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Commercial Metals, Huntsman, Goldman, Nucor, Wells
IBD SwingTrader stock Nucor broke out past a 122.16 buy point during Wednesday’s 4.8% advance. NUE shares were up 0.3% premarket Thursday. Nucor was IBD’s Stock of the Day on Wednesday.
Tuesday’s IBD 50 Stock To Watch, Commercial Metals, remains above a cup base’s 36.96 buy point despite falling 0.8% Wednesday. The 5% buy area tops out at 38.81. Keep in mind the company’s earnings results are next week, so this breakout carries extra risk. Shares were unchanged Thursday premarket.
Huntsman is squarely in buy range past a 34.57 flat-base entry following Wednesday’s 1.05% loss. The 5% buy range goes up to 36.30. HUN stock shows a 94 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Huntsman stock was flat premarket Thursday.
Dow Jones member Goldman Sachs declined 2.2% Wednesday, giving back a large part of Tuesday’s advance and closing right at the 50-day line. Shares are tracing a cup base with a 426.26 buy point. Be on the lookout for a potential handle to offer a more risk-optimal entry. GS stock was up 0.3% premarket Thursday.
Wells Fargo snapped a two-day win streak Wednesday, dropping 0.9% and falling below a flat base’s 52.67 buy point, according to IBD MarketSmith chart analysis. Shares rallied 1.5% premarket Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
EV Stocks: Li Auto, Nio, Xpeng, Lucid Motors, Rivian
Li Auto stock continues to work on a new base, but fell further below its 50-day line after Wednesday’s 3.8% decline. The stock was unchanged early Thursday.
Nio stock skidded another 5.4% Wednesday, closing about 55% off its 52-week high. Shares remain sharply below their 50- and 200-day moving averages. Shares traded flat premarket Thursday.
Xpeng Motors slid 3.1% Wednesday, falling below the key 50-day line. There is no valid buy point yet, as shares continue to form the right side of a new base. The stock dropped around 1% premarket Thursday.
Among U.S.-based EV stocks, Lucid Motors shares dropped almost 2% premarket Thursday, on pace to add to Wednesday’s 6.9% dive. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base, but huge gains have faded. Shares found resistance at their 50-day line this week, indicating the stock’s consolidation could require more time.
Recent initial public offering Rivian was up 0.5% premarket Thursday, looking to snap a four-day losing streak. RIVN shares closed Wednesday about 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 near all-time lows.
Five Best Dow Jones Stocks To Watch Now
Tesla Stock
Tesla stock moved down 2% premarket Thursday, on pace to extend a losing streak to three sessions. Shares are set for a key test of their 50-day moving average line. If the stock fails to hold above this level, then more weakness could be imminent.
On Monday, Tesla shares broke out past a 1,119.10 buy point, which was a result of a daily-chart trendline and/or a weekly-chart handle. The stock gave up that buy point during Wednesday’s 5.35% skid.
Shares traded as high as 1,243.49 on Nov. 4, and the stock ended Wednesday about 12% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock ended Wednesday down 2.7%, but remains about 14% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Apple shares lost 1% premarket Thursday.
Software leader Microsoft fell further below its 50-day line during Wednesday’s 3.8% tumble. 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 moved down 0.5% 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, Tech Futures Drop After Stock Market Sell-Off; Tesla Tests Key Support appeared first on Investor’s Business Daily.
