Dow Jones futures fell early Thursday after another round of heavy sales on Wednesday sent major stock indexes to new corrective lows. More data on inflation – the producer price index of the Ministry of Labor – came out before the market opened. And media giant Dow Jones Disney collapsed after announcing a loss of earnings late Wednesday.
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Dutch Bros (BROS) and Rivian (RIVN) also reported gains late Wednesday. BROS shares fell 43%. Shares of Rivian jumped 3% after falling 28% for the week to Wednesday.
Electric vehicle giant Tesla (TSLA) fell more than 3% lower on Thursday morning. Dow Jones technology leaders Apple (AAPL) and Microsoft (MSFT) traded down 1.2% and 0.8%, respectively, in today’s stock market.
As stock market adjustments continue to deteriorate, leaders Dow Jones Chevron (CVX) and Merck (MRK) – along with Cheniere Energy (LNG), Exxon Mobil (XOM) and Northrop Grumman (NOC) – are among the best IBD shares to watch out for Thursday.
Cheniere Energy and Microsoft are shares of IBD Leaderboard. Exxon and Merck were introduced in the stock column near the buying area this week.
Dow Jones today: government bond yields, oil prices, inflation data
Prior to the opening on Thursday, Dow Jones futures fell 0.35% to fair value and S&P 500 futures lost 0.7%. Nasdaq 100 futures fell 1.3% in morning trading. Remember that the action at night in Dow futures and elsewhere does not necessarily turn into actual trading in the next regular session of the stock market.
Among exchange traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) fell by 1.7%. The SPDR S&P 500 ETF (SPY) lost 1.1%.
Yields on 10-year bonds fell to 2.82% on Thursday morning as bonds continued to recover from the stock market retreat. On Wednesday, the yield on 10-year bonds fell for the third day in a row, closing at 2.92%. US oil prices, meanwhile, traded more than 1 percent lower, with Texas Intermediate oil hovering around $ 104 a barrel after rebounding 6 percent on Wednesday.
CPI inflation is finally falling, but it is not enough
Producer prices rose 0.5% in April, down 1.4% in March, according to Econoday. Inflation among producers rose by 11% in April compared to the previous year, which is hotter than the estimate of 10.7%. The producer price index is a measure of the strength of prices based on sales prices received from local producers for their products.
On Wednesday, the consumer price index in April rose at an annual rate of 8.3%, lower than the 8.5% of the previous month, but higher than the forecast of economists.
Finally, unemployment applications rose to 203,000 for the first time. Initial unemployment applications were expected to fall to 190,000, compared with 200,000 from the previous week.
The stock market adjustment is deepening
On Wednesday, the main stock indices sold out sharply, reaching new corrective lows. The Nasdaq index fell 3.2%, leading to a stock market crash.
The Big Picture column on Wednesday commented: “The indices started strong and managed to stay green for most of the day. But the temporary break was used as a tactical opportunity to sell, causing a painful reversal of the closure.”
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Winnings at Dow Jones: Disney
Within the Dow Jones industrialists, Disney reported earnings and sales below analysts’ targets for its second fiscal quarter. But the growth of subscribers to the Disney + streaming service exceeded expectations by a large margin.
Shares of Disney fell more than 5% in early Thursday. Shares of DIS ended more than 40% of their 52-week high on Wednesday.
Five shares of Dow Jones to watch now
Dow Jones monitoring shares: Chevron, Merck
Dow Jones leader and energy giant Chevron in a flat base with 174.86 points to buy, according to an analysis of the IBD MarketSmith chart. Shares of CVX traded up 1.5% on Wednesday as they struggled to regain their 50-day line. Shares of Chevron fell 0.7% on Thursday morning.
The availability of CVX boasts a perfect IBD Composite Rating, to check the IBD Stock. Investors can use the IBD Composite Rating to easily assess the quality of the main and technical indicators of the shares.
Drug leader Merck is just under a glass with 89.58 points to buy after 1.6% progress on Wednesday. The shares remained unchanged early on Thursday. Positively, the line of relative strength of shares reached another peak, which shows a great superiority of the stock market during the current adjustment.
Three stocks with the highest growth to observe in the current stock market adjustment
Watching promotions: Cheniere, Exxon, Northrop
Shares of IBD Leaderboard Cheniere Energy are one of the best stocks to watch, although they continue to trade below their 50-day line. Shares rose 1% on Wednesday as they continue to carve a flat base showing 149.52 points to buy, according to an analysis of the IBD MarketSmith chart. Shares of LNG rose 0.3% on Thursday.
Energy giant Exxon Mobil topped the cup with 89.90 points to buy last week. But the shares gave up on Monday and remain about 3% below the buying point. This stops triggering the automatic selling rule. The volatile breakout illustrates the danger of owning any stock in the current market environment. Shares of XOM fell 0.9% on Thursday.
Defense contractor Northrop Grumman continues to engrave a cup with a handle with a buying point of 477.36. Shares are just below their 50-day line after a 0.8% loss on Wednesday. Shares of Northrop fell 1.6% on Thursday.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment
Tesla shares
Shares of Tesla fell more than 3% on Thursday morning, threatening to add to a decline of 8.25% on Wednesday. The shares remain sharply below their 50- and 200-day lines amid their recent weakness and are at their lowest level since February.
The shares traded up to 1243.49 on November 4 and are about 36% of this value.
Leaders of Dow Jones: Apple, Microsoft
Among Dow Jones shares, Apple shares fell 5.2% on Wednesday, falling to their lowest level since October 2021. Shares are well below their 200-day line and about 20% less than 52 – its weekly peak. Shares of Apple fell 2% on Thursday.
Software leader Microsoft fell 3.3 percent on Wednesday, its lowest level since June 2021. Shares closed about 25 percent from their 52-week high. Shares of MSFT fell 1% on Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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