The Dow Jones Industrial Average fell Thursday after key economic data — the first unemployment claims and the Philadelphia Fed Manufacturing Index — were released. Bed Bath & More (BBBY), or BBY stock, plunged Thursday morning.
The BBBY stock appeared to end its streak of scorching gains Thursday after a renewed interest in the meme stock. Shares plunged 28% in morning trading after GameStop (GME) Chairman Ryan Cohen’s RC Ventures announced a plan to sell shares. Bed Bath & Beyond, a struggling retailer with big losses, rose a whopping 560% from a July 27 low of 4.54 to Wednesday’s high at 3:00 p.m.
The top profit movers on Thursday include: BJ’s Wholesale (BJ), Canadian solar energy (CSIQ), Dow Jones Stock Cisco Systems (CSCO), Keysight (TESTS), Kohls (KS), Sociedad Quimica Y Minra (SQM) and Synopsys (SNPS).
BJ’s Wholesale was up 9%, while Canadian Solar shares were up 7.5%. Cisco shares rose 6%, while Keysight shares gained 4.5% and Kohls plunged 9%. Synopsys beat the top and bottom line estimates, leading to a 1% increase. And SQM shares fell 5%.
Electric driving leader Tesla (TSLA) was up 0.3% Thursday morning. Elsewhere, Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) both fell after today’s stock market open.
In the current healthy stock market environment, Dow Jones shares Coca Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic Energy Systems (MPWR) and Ollie’s bargain outlet (OLLI) — are among the top stocks to buy and watch.
Albemarle and Costco were featured in the Stocks near a buy zone column this week. Costco shares were 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, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 fell 0.15%. And the tech-heavy Nasdaq composite was trading 0.25% lower in morning trading.
Of the exchange-traded funds, the Nasdaq 100-tracker Invesco QQQ Trust (QQQ) fell 0.25% and the SPDR S&P 500 ETF (SPY) fell 0.2% in early trading.
The yield on 10-year Treasuries fell to 2.86% early Thursday, after Wednesday’s jump to 2.89%. 10-year government bond yields are recovering after hitting their lowest levels since early April in recent weeks.
Meanwhile, US oil prices appeared to be recovering from this week’s losses, which had fallen to their lowest level since January. West Texas Intermediate futures were up 1%, just above $89 a barrel.
Unemployment Claims, Philly Fed Index, Home Sales
The number of first-time jobless claims fell to 250,000, lower than estimates calling for 265,000 from 262,000 in the previous week.
The Philadelphia Fed Manufacturing Index recovered to 6.2, well ahead of estimates expecting a negative 5.0. This index missed expectations at minus 12.3 in July for the second consecutive negative reading.
Existing home sales are expected to fall to 4.85 million in July, from 5.12 million in June. The National Association of Realtors’ July report is scheduled to be released at 10 a.m. ET
stock market rally
On Wednesday, the Nasdaq led the stock market down, falling 1.25%. The Dow Jones index and the S&P 500 followed with losses of 0.5% and 0.7% respectively.
Wednesday’s column in The Big Picture noted, “Mid-August would be a sleepy time for stock traders. But Wednesday gave stock market participants plenty of news to digest. In the end, the Wall Street bulls needed a well-deserved rest.”
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Dow Jones Earnings: Cisco Systems
Network giant and Dow Jones stock Cisco Systems reported its second-quarter results after closing Wednesday. Cisco shares rose 6% after 2023 revenue forecasts came in higher than expected, while fiscal 2022 fourth quarter results beat Wall Street estimates.
Cisco shares ended about 27% of their 52-week high on Wednesday.
Five Dow Jones Stocks to Watch Now
Dow Jones Stocks to Watch: Coca-Cola, Merck
Dow Jones soft drink giant Coca-Cola is building a flat base with a buy point of 67.30. A handle input at 65.14 is also in play. Shares are rebounding from their 50-day line and trying to outperform the entry. The stock moved slightly higher on Thursday.
Merck is also building a flat base, a pattern showing a buy point of 95.82. According to the IBD MarketSmith chart analysis, stocks are trying to stay above their 50-day line. Merck shares rose nearly 1% on Thursday.
MRK stocks show a solid 94 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.
4 top growth stocks to buy and watchrent Stock Market Rally
Top Stocks to Watch: Albemarle, Costco, Monolithic, Ollie’s
Lithium producer Albemarle remains in buying range after Friday’s breakout past a buy point of 273.78 in a large handle cup. The 5% buy zone goes up to 287.47. Earlier last week, stocks topped a smaller handle cup with a buy point of 250.25. Shares fell 1.1% on Wednesday, falling for the second day in a row. The stock was slightly higher on Thursday morning.
IBD Leaderboard stock Costco breaks past a handle cup with a 552.81 buy point. The stock rose 0.6% on Wednesday and moved higher in the 5% buying area. Shares rose 1% early Thursday.
Recent IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the appropriate buy point from 580.10 to 541.49. Meanwhile, the stock remains above an entry of 514.80. The stock rose 1.3% on Thursday.
Ollie’s Bargain Outlet recovers from its 10-week line – a critical support level – and puts the largest discount store in a new buying zone. Shares also cut a handle after a large cup base, bringing the latest buy point to 72.37. The current price action is about 11% away from those entries. Shares rose 0.3% on Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares lost 0.8% on Wednesday, extending Tuesday’s losses. Shares of the EV giant rose 0.3% on Thursday morning.
This week, the stock closed at its highest level since May 4. The stocks are once again trying to decisively clear the resistance around their 200-day line, which is an important level to watch. Tesla is about 27% lower than its 52-week high. The 3-for-1 stock split is set for August 24.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stock, Apple stock rose 0.9% on Wednesday as the stock continues to build the right side of a cup base with a buy point of 179.71. Another interpretation could be a large double bottom dating back to January. Anyway, the point of sale is identical. Keep an eye out for a possible handle to mold and offer a lower input.
Bullish, the stock’s relative strength is already at new highs, indicating a major outperformance of the stock market. The stock fell 0.55% on Thursday morning.
Microsoft fell 0.5% on Tuesday, finishing just behind the long-term 200-day line, which is an important resistance area to watch. The stock lost 0.5% early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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