The Dow Jones Industrial Average fell 225 points on Thursday, as global markets fell broadly following a shift in the Federal Reserve’s tone on Wednesday. Initial unemployment claims issued by the Department of Labor unexpectedly fell. Meanwhile, shares of tech giants Nvidia and Tesla were sold off on the stock market today.
First-time claims for unemployment benefits suddenly dropped to 201,000. They were expected to rise to 225,000 claims versus 220,000 claims the previous week.
Meanwhile, the Philadelphia Fed manufacturing index fell to -13.5 in September. It was expected to fall to 0.5, down from August’s reading of 12.0. Later in the morning, existing home sales from the National Association of Realtors are expected to rise to 4.10 million in August, compared to 4.07 million in July.
Darden shares rose 0.4%, while KBH shares fell 5.6% in early trading. Finally, FedEx shares jumped nearly 6% in morning trading.
Stock market today
Broadcom (Afgo) decreased by approximately 4% based on reports that Google-parent the alphabet (Google) He is Seeking to bring down the company As a supplier of AI chips as early as 2027. Rival supplier to Alphabet Marvell technology (MRVL) rose 0.4% in early trading. Alphabet shares fell 2.1% early Thursday.
Electric vehicle giant Tesla (TSLA) fell 1.7% Thursday morning, while Nvidia (NVDA) lost 1%. Dow jones technology icons apple (Camel) And Microsoft (MSFT) was trading mixed, after the stock market opened today.
Another leader in the stock market, Meta platforms (dead), down 0.8% in early trading.
Dow Jones Index Today: Oil Prices and Treasury Yields
After the opening bell on Thursday, the Dow Jones Industrial Average fell 0.65%, while the S&P 500 fell 0.9%. The tech-heavy Nasdaq Composite sold off 1% in morning trading.
Early moves on Thursday also showed that the yield on the 10-year US Treasury note reached 4.47%, hitting a new high in the wake of the Fed’s decision on Wednesday. The Federal Reserve’s policy committee took a major hawkish shift on Wednesday, dampening hopes for a quick shift to interest rate cuts in 2024.
Oil prices rebounded from Wednesday’s losses, with West Texas Intermediate crude futures rising 1% in morning trading. West Texas Intermediate crude futures traded at $90.50 a barrel on Thursday.
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Stock market extends losses
On Wednesday, the Dow Jones Industrial Average lost 0.2%, while the S&P 500 fell 0.9%. The high-tech Nasdaq Composite sold off 1.5%.
“The sell-off appears to have been linked to growing expectations that the US central bank will keep the cost of money at a higher level for longer than originally thought,” the Big Picture column commented on Wednesday. “Investors also appear to have shown disappointment at the low probability that it will lower the cost of money at a higher level for longer than originally thought.” The Fed will raise interest rates sharply next year – if the economy falls into recession.
Now is an important time to read IBD’s “Big Picture” column as the stock market continues its losses and hits recent lows. Be sure to read how to deal with ongoing stock market weakness and prepare for a new uptrend.
Dow Jones stocks: Caterpillar, Intel
Dow Jones index leader Caterpillar is approaching a new flat base buy point at 293.88 after strong gains since early June. CAT stock fell 0.4% on Tuesday, still just 5% away from its last buy point. Shares were down 1.7% Thursday morning.
Chip giant Intel fell below a flat 37.19 entry level, after Tuesday’s 4.3% sell-off. INTC stock rose 0.6% early Thursday.
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Stocks to watch: Airbnb, Amazon, Axon, DraftKings
The final IBD stock of the day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock gave up its 50-day line during Wednesday’s 2.7% decline. Airbnb shares fell 2.6% Thursday morning.
E-commerce giant Amazon is just below its 143.63 buy point in a flat base after a short-term breakout move last week. AMZN stock lost 2.8% early Thursday.
Axon Enterprises stock fell 0.2% on Wednesday, trading about 4% away from a cup-with-handle at a 217.61 buy point. AXON stock fell nearly 2% on Thursday.
DraftKings is building a cup with handle that has a buy point of 32.65, according to IBD MarketSmith pattern recognition. Shares continue to hold at their 50-day moving average, a key level to watch. DKNG stock fell 3% Thursday morning.
Learn how to time the market with IBD’s ETF market strategy
Top stocks in today’s stock market action
These are the four best stocks to buy and watch in the stock market today, including the leader of the Dow Jones.
|Company Name||Code||Correct point of purchase||Point of purchase type|
|Kings Project||(DKNG)||32.65||Cup with handle|
Source: IBD data as of September 20, 2023
Tesla stock reversed from strong gains to close down 1.5% on Wednesday. Shares remain above the early entry level of 261.18, although gains have faded. TSLA stock has an official 299.29 cup base buy point, but an early entry at 278.98 is in play as well.
On Thursday morning, TSLA stock fell 1.7%, extending Wednesday’s losses.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 2% on Wednesday, still below the 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a buy point of 198.23. Shares rose 0.1% Thursday morning.
Microsoft shares are moving beyond their 50-day line, with a 2.4% sell-off on Wednesday. On Thursday morning, the stock fell 0.3%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen To learn more about growth stocks and the Dow Jones Industrial Average.
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