The Dow Jones Industrial Average dropped Thursday after a surprise jump in the Labor Department’s weekly jobless claims. That came as GameStop (GME) dived after the company fired its chief executive and elevated Ryan Cohen to executive chairman.
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The final round of initial unemployment claims before the Federal Reserve’s rate policy meeting next week showed applications jumping to 261,000 vs. 232,000 from the previous week. They were expected to edge higher to 235,000, according to Econoday. Claims hit their highest level since October 2021.
Meanwhile, GME stock plunged 22% Thursday morning. Late Wednesday, GameStop terminated CEO Matt Furlong and said that its per-share loss narrowed to 14 cents, while sales dropped to $1.34 billion.
Other key earnings reports include Smartsheet (SMAR) and Toro (TTC).
Enterprise software firm Smartsheet beat Wall Street’s targets for its fiscal first quarter but disappointed with its sales outlook. SMAR stock plunged 20% in early trading. Finally, Toro shares tumbled more htan 4% after their earnings results.
Stock Market Today
Electric-vehicle giant Tesla, already up nine days in a row, rose 0.3% Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) traded modestly higher after today’s stock market open.
Dexcom (DXCM), Fortinet (FTNT), Kinsale Capital (KNSL) and Taiwan Semiconductor (TSM) — as well as Dow Jones stocks Cisco Systems (CSCO), McDonald’s (MCD) and Salesforce (CRM) — are among the best stocks to buy or watch in the stock market uptrend.
Tesla is an IBD Leaderboard stock, while McDonald’s was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite climbed 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.2%, while the SPDR S&P 500 ETF (SPY) edged up early Thursday.
The 10-year U.S. Treasury yield on Thursday fell to 3.77%. On Wednesday, the 10-year yield extended a win streak to four sessions, closing just shy of its late-May highs.
U.S. oil prices extended Wednesday’s gains Thursday morning. West Texas Intermediate futures rose nearly 1% Thursday, moving above $73 a barrel.
Stock Market Action
The Dow Jones Industrial Average on Wednesday rose 0.3%, while the S&P 500 dropped 0.4%. The tech-heavy Nasdaq composite sold off 1.3%.
Wednesday’s Big Picture column commented, “Amid a confirmed stock market uptrend, you wish to see indexes rise in higher volume vs. the prior session and fall in lower turnover. Wednesday’s case? It turned out to be a session of earnest profit taking by mutual funds, hedge funds, banks, pension plans and the like. Nasdaq volume jumped 10% while the NYSE saw turnover bulge nearly 14% vs. Tuesday.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Cisco, McDonald’s, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a 52.56 buy point. Keep an eye out for a potential handle, which is a few trading days away from forming. That would show an earlier entry. CSCO stock edged lower Thursday.
Dow Jones restaurant giant McDonald’s has fallen below its 10-week moving average, a bearish sign. The stock is trying to hold above the 281.67 buy point from a breakout two months ago. Gains are quickly dwindling.
While the stock is near a buy point, its action suggests to avoid buying right now. Look for a more bullish rebound before considering a purchase of shares. MCD stock traded up 0.2% early Thursday.
Salesforce rallied past alternative entries at 193.91 and 200.00 in recent weeks, according to Leaderboard analysis. Last week, shares reached the 20% profit zone from a 178.94 cup-with-handle entry, but are now pulling back. The stock is setting up for a key test of its 50-day line. CRM stock inched lower Thursday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Dexcom, Fortinet, Kinsale, TSMC
Dexcom continues to form a flat base with a 126.44 buy point, even after Wednesday’s 4.5% skid, according to IBD MarketSmith pattern recognition. DXCM shares lost 0.4% Thursday.
Insurance leader Kinsale Capital closed Wednesday in the 5% buy area past a 345.75 buy point. The buy zone runs up to 363.04. KNSL stock edged lower Thursday.
Monday’s IBD Stock Of The Day, Fortinet, gave up its flat base’s 69.07 buy point during Wednesday’s 3.6%…
Read More: Dow Jones Falls On Surprise Jump In Jobless Claims; GME Stock Crashes 22%