Dow Jones falls 225 points after jobless claims; Earnings due from Netflix

The Dow Jones Industrial Average fell more than 225 points Thursday morning after the Labor Department’s first jobless claims. Meanwhile, Netflix (NFLX) earnings are due after the market close, kicking off fourth-quarter tech earnings.


Initial jobless claims fell to 190,000 from 205,000 the previous week. Claims were expected to rise to 215,000, according to Econoday estimates.

Elsewhere on the economic front, new housing starts and permits were released – along with the Philadelphia Federal Reserve’s manufacturing index. Housing starts and permits for December fell to 1.382 million and 1.330 million, respectively, versus expectations for 1.362 million and 1.380 million.

Also, the Fed Branch Index came in at -8.9 in January, better than the -10.3 expected and higher than December’s -13.8.

Alcoa (AA) and Discover financial services (DFS) reported gains late Wednesday, while Clasp (FAST) and Procter and Gamble (PG) earnings came out before the open on Thursday.

Alcoa shares fell more than 3%, while Discover shares sold off more than 6%. Fastenal rose 1% after beating top- and bottom-line estimates. And P&G shares fell nearly 2% after earnings met estimates and sales beat targets.

Stock market today

Charles Schwab (BLACK) fell nearly 5% after a rare double downgrade by Bank of America. Roblox (RBLX) fell more than 7% after Morgan Stanley downgraded the stock from equal weight to underweight.

A leader in electric vehicles Tesla (TSLA) fell nearly 1% on Thursday. Tech giants Dow Jones An apple (AAPL) and Microsoft (MSFT) were both quadratically lower thereafter today’s stock market open.

IBD ranking availability Fluorine (FLR), recent IBD stock of the day Medpace (MERP), A monster drink (MNST) and Vertex Pharmaceuticals (VRTX) — as well as Dow Jones names Amgen (AMGN), Chevron (CVX) and Walmart (WMT) — are among the best stocks to buy and watch as the market tests the strength of another rally.

Fluor and Medpace are IBD ranking stocks.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s open, the Dow Jones Industrial Average was down 0.7% and the S&P 500 lost 0.75%. And the tech Nasdaq composite fell 1%. Nvidia (NVDA) leads to the declines.

Among us exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 1%, and the SPDR S&P 500 ETF (A SPY) were trading down 0.7% in early Thursday trading.

The yield on the 10-year Treasury rose to 3.39% on Thursday morning, regaining a small portion of Wednesday’s decline to 3.37%.

Oil prices recovered on Thursday, sending West Texas Intermediate futures back above $80 a barrel. On Wednesday, WTI futures ended an eight-day rally, reversing after reaching their highest level since early December.

Stock market rallies

On Wednesday, the Dow Jones Industrial Average fell 1.8% and the S&P 500 lost 1.6%. The Nasdaq Composite fell 1.2 percent, snapping a seven-day winning streak.

The Big Picture column on Wednesday warned: “On a practical level, it’s time to cut back on stocks. Exposure should remain 20% to 40%, although much depends on the success of breakouts. While dozens of quality stocks have broken out of bases, MarketSmith’s list of recent breakouts show less than 10 still more than 5% of buy points.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market rally.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Amgen, Chevron, Walmart

Drug giant Amgen is forming a flat base that has 296.77 buy points, according to IBD MarketSmith pattern recognition. First, Amgen stock needs to take over its 50-day line, which is a key resistance level to watch. Shares of AMGN were down 1% early Thursday.

Energy giant Chevron fell back below its 50-day line during Wednesday’s 1.8% decline as it remains below a flat base of a 189.78 buy point. Chevron’s fourth-quarter earnings are expected on Jan. 27. CVX shares lost 0.4% despite a rise in oil prices.

CVX shares showing a solid 93 out of a perfect 99 IBD Composite Ratingaccording to IBD Stock Check. The Composite Rating is designed to help investors easily find the highest growth stocks.

Discount retailer Walmart fell further below its 50-day line after Wednesday’s loss of 2.5%. The stock is forming a cup-with-handle base that has a 154.74 buy point. Walmart shares were up 0.2% Thursday morning.

4 Biggest Growth Stocks to Buy and Watch Stock market rallies

Top stocks to buy and watch: Fluor, Medpace

Stocks in the IBD Ranking Fluor is trying to break through a flat base of a 36.16 buy point, but the stock gave up its buy point during Tuesday’s 3.4% decline. If the stock repeats this entry, the 5% buy zone tops out at 37.97. Shares of FLR were down 0.65% early Thursday.

Background: Fluor manages major infrastructure projects in the oil and gas, chemical, mining and transportation industries. This is a game with a twist on the winnings. The poor EPS rating reflects net losses in 2019 and 2020 and an expected decline in 2022 earnings to 86 cents per share. Analysts, however, are predicting a 95% gain next year to $1.68 per share.

Medpace rallied on Wednesday, approaching a 235.82 buy point on consolidation. Last week, shares moved above an early entry at 220.09. The company’s earnings results are expected on February 13. Shares of Medpace were down 0.6% early Thursday.

Background: Medpace is a Clinical Contract Resource Organization, or CRO. It helps drug manufacturers conduct the clinical trials needed to gain approval for new drugs. In the third quarter, the company posted an upward outlook for 2023, calling for sales growth of 18% in the middle of its guidance.

Monster, Vertex Trace Flat Bases

Monster Beverage struggled for support around its 50-day line amid Wednesday’s 1.4% decline. Shares are tracking a flat base with a buy point at 104.75. Shares of MNST fell 0.3% on Thursday.

Background: A monster drink runs an energy drink duopoly with private competitor Red Bull. The company’s portfolio of energy drink brands includes Monster Energy, Reign and NOS Energy.

Monster dominates energy drinks in the U.S. and had a 39 percent market share last year, according to Jefferies data, leading to a record $5.5 billion in revenue for the company. Red Bull accounted for 37% of the US energy drink market in 2021. Emerging competitor Celsius (CELH), which is in impressive growthoccupies 4.9% of the market.

IBD Stocks of the Day Wednesday, Vertex Pharmaceuticals, is nearing a 324.85 buy point in a flat base after bullishly reclaiming its 50-day line this week. Shares of VRTX fell 0.8% on Thursday.

Background: The company is well known for its treatments for cystic fibrosis, a market Vertex estimates at 88,000 patients. Of these, there are still 20,000 patients who could receive the old oral treatment. But analysts are keeping an eye on what’s new from Vertex, including an updated three-drug regimen that could strengthen Vertex’s position against rivals AbbVie (ABBV).

Stocks to Buy and Watch in the Stock Market Rally

These are seven of the best stocks to buy and watch in today’s stock market, including three Dow Jones leaders.

Company name Symbol Right point of purchase Type of foundation
A monster (MNST) 104.75 Flat base
Fluorine (FLR) 36.16 Flat base
Vertex (VRTX) 324.85 Flat base
Medpace (MERP) 235.82 Consolidation
Amgen (AMGN) 296.77 Flat base
Chevron (CVX) 189.78 Cup base
Walmart (WMT) 154.74 Mug with a handle
Source: IBD data as of January 19, 2023

Join IBD’s experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla stock

Tesla shares fell 2.1% on Wednesday, giving up some of Tuesday’s 7.4% jump. Despite their recent recovery, shares remain sharply below their 50- and 200-day lines. In early January, the stock hit a 52-week low of 101.81. Tesla shares closed Wednesday about 66% off their 52-week high. Tesla’s earnings are due to be released on January 25.

Shares of the EV giant appeared to recover from Wednesday’s losses, but were down about 1% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Between Dow Jones Stocks, Apple shares fell 0.5% on Wednesday, closing at their highest level since Dec. 15. Shares remain about 24% below their 52-week high. Apple will report its quarterly earnings on February 2. Shares of AAPL traded down 0.7% on Thursday.

Microsoft shares fell 1.9% on Wednesday, snapping a seven-day winning streak. The software giant is about 25% off its 52-week high. MSFT’s earnings are due to be released on January 24th. Shares were trading 1.3% lower in early Thursday trading.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


Top Growth Stocks to Buy and Watch

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