Dow Jones Rallies on Jobless Claims; Further inflation data; Tesla shares near 2022 lows

The Dow Jones Industrial Average rose more than 200 points on Thursday as energy stocks and exposure to China weighed on early trade. The Labor Department’s weekly jobless claims data proved higher than expected. Tesla shares briefly fell nearly 3% after Bloomberg reported the company was shortening factory shifts in Shanghai and delaying new hires due to slowing demand in the Chinese auto market.


The Labor Department said first-time jobless claims rose to 230,000 from 225,000 the previous week. That was higher than economists’ estimate for 228,000. On Friday, wholesale inflation data is due out with the Producer Price Index, or PPI.

Chevron ( CVX ) led the Dow Jones industrial average with a 2% gain as oil prices rebounded. It also announced a 25% increase in 2023 capital spending. Exxon Mobil ( XOM ) plowed almost 3% higher on expanded earnings guidance and after ramping up its share buyback program to $50 billion.

In the meantime, Ciena (CIEN) and GameStop (GME) reported earnings before the market opened on Thursday. Ciena is up more than 16%. GME shares rose 1.5% after reporting a quarterly decline in sales and a smaller loss than a year ago.

The electric car giant Tesla ( TSLA ) fell 1.3% on Thursday. Dow Jones technology leaders apple (AAPL) and Microsoft ( MSFT ) was mixed after today’s stock open.

Celsius (CELH), an IBD Leaderboard stock Dexcom (DXCM), QLA (KLAC) and Trane Technologies (TT) – also names Dow Jones Caterpillar (CAT), Chevron and Home Depot (HD)—among the best stocks to buy and watch.

Dexcom and Trane are IBD Leaderboard stocks. Caterpillar and Home Depot are featured in this week’s Stocks Near the Buy Zone column. Celsius was recently an IBD 50 Stocks to Watch pick and a New American stock. Caterpillar was recently the IBD stock of the day.

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Dow Jones today: Oil prices, Treasury yields

The Dow Jones Industrial Average was up 0.7% and the S&P 500 was up 0.65% after Thursday’s opening bell. The tech-heavy Nasdaq composite rose 0.9% in morning action as China-based stocks topped the list.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.6% and the SPDR S&P 500 ETF ( SPY ) rose 0.7% on Thursday.

The 10-year Treasury yield rose to 3.48% on Thursday morning. On Wednesday, the 10-year Treasury yield fell to 3.4%, its lowest close since Sept. 12.

Meanwhile, US oil prices rebounded after four straight heavy losses, which saw West Texas Intermediate futures hit a new 2022 low. WTI futures rose 2% on Thursday morning to just above $74 a barrel.

Stock market rally

On Wednesday, the tech-heavy Nasdaq composite fell for a fourth straight session, while the S&P 500 extended its losing streak to five sessions. The Dow Jones industrial average rose to snap a three-day losing streak.

Wednesday’s The Big Picture column commented, “Bull markets need broad participation to survive. That hasn’t happened, at least so far, in the recent rally attempt, so a more defensive stance may be needed. An inverted yield curve appears to be supporting This view predicts weaker economic conditions in 2023.”

Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks to Buy and Watch: Caterpillar, Home Depot, Chevron

Dow Jones member Caterpillar continues to pull away from its cup base’s 238 buy point, After gaining 0.3% on Wednesday, according to IBD MarketSmith model recognition. CAT shares rose 0.8% on Thursday.

The CAT stock shows a solid 94 out of a perfect 99 IBD Composite Rating according to the IBD Stock Check.

Energy giant Chevron rose 0.3% Wednesday, still below the 182.50 buy point in the consolidation base. Stocks are trying to stop their current slide around the 50-day line. CVX shares rose 2% Thursday morning as oil prices rebounded amid this week’s decline.

The Home Depot retail store has ceased operations Wednesday about 5% below the cup base’s 333.08 buy point. The stock is close to adding a handle to the cup base, which has reduced the correct buy point to 329.77. HD shares were up 0.1% on Thursday.

4 Best Growth Stocks to Watch on Current Stock Market Rally

Best stocks to buy and watch: Celsi, Dexcom, KLA, Trane

Energy drink maker Celsius triggered a 7-8% loss trigger on Wednesday’s slide from a buy point of 118.29 a cup base. While the stock could add a handle to the cup base, investors who bought during Friday’s move should reduce their exposure. Shares rose 2.4% on Thursday.

IBD Leaderboard stock Dexcom is nearing a flat base entry at 123.46 and then about 4% away from that buy point. on Wednesday An increase of 0.9%. Dexcom shares rose 3.5% on Thursday.

Chip leader KLA finished just below a buy point of 392.60 on Wednesday, according to IBD MarketSmith chart analysis. A key technical strength is the stock’s strong RS line, which made another new high during Wednesday’s action. KLA shares rose 0.6% on Thursday.

Trane Technologies ended about 3% lower than a 181.72 buy point in a cup-handle after a 1.2% session gain on Wednesday. Shares were slightly lower Thursday morning.

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

Tesla shares

Tesla shares fell another 3.2% Wednesday, falling sharply for the third straight session. Shares are already down more than 10% this week.

Despite the losses, the stock is above its 52-week low set in mid-November. Shares are about 57% off their 52-week high. Meanwhile, the stock is seeing some resistance around the 200 price level, which is a key area to watch as the stock may attempt another rally. For now, the stock looks set to return to its 2022 lows.

Shares fell 3% to 169 shares Thursday morning before paring losses to 1.3%. Shares are a few points above their 52-week low at 166.19.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 1.4% Wednesday, made a recent low and fell further below the 50-day line. The stock is about 23% below its 52-week high. Apple shares rose 0.7% on Thursday.

Microsoft fell 0.3% Wednesday, as shares continue to flood above the 50-day line. The software giant remains about 30% below its 52-week high. Microsoft shares rose 0.2% on Thursday.

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


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