Dow Jones Falls On Surprise Jump In Jobless Claims; Costco Slides On Sales Drop

The Dow Jones Industrial Average fell Thursday morning after a surprise jump in the Labor Department’s weekly first-time jobless claims.  Meanwhile, membership warehouse retailer Costco (COST) slid more than 3% after reporting its first monthly same-store sales drop in nearly three years.

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Early Thursday, initial unemployment claims jumped to 228,000. Economists expected a slight rise to 201,000, compared with 198,000 in the previous week.

Late Wednesday, Costco said global same-store sales fell 1.1% in March. The last time those sales fell was in April 2020. Costco said U.S. same-store sales fell 1.5% in March, and there was a 2.4% decrease in Canada. Internationally, those sales rose 2%. E-commerce comparable sales slid 12.7%.

On the earnings front, Constellation Brands (STZ) and Levi Strauss (LEVI) offered results Thursday.

STZ stock rose 1% after the company reported mixed fourth-quarter results, while Levi shares fell more than 12% despite narrowly beating views.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) moved down around 2% Thursday morning . Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.

IBD Leaderboard stock Axon Enterprise (AXON), ServiceNow (NOW) and Southern Copper (SCCO) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Nike (NKE) — are among the top stocks to buy and watch with the ongoing market strength.

Boeing was featured in this week’s Stocks Near A Buy Zone column. Axon, Skyline and Microsoft were all recent IBD Stock Of The Day subjects.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.3%, and the S&P 500 lost 0.35%. The tech-heavy Nasdaq composite traded down 0.4% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.8%, while the SPDR S&P 500 ETF (SPY) fell 0.4% early Thursday.

The 10-year U.S. Treasury yield on Thursday ticked higher to 3.29%. On Wednesday, the 10-year yield closed at its lowest level since mid-September.

U.S. oil prices paused after this week’s already-big gains, trading slightly higher in early morning trade. West Texas Intermediate futures traded just below $81 a barrel.

Stock Market Rally

On Wednesday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq composite sold off 1.1%.

Wednesday’s Big Picture column commented, “Hundreds of banks will report quarterly earnings and updated guidance in the next two weeks, starting with Dow Jones component JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) on April 14. Many investors will be reluctant to add to exposure until they are confident this volatile group isn’t headed into a ‘contagion event.'”

Now is an important time to read IBD’s The Big Picture column with the stock market in an uptrend.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Boeing, Cisco Systems, Nike

Dow Jones leader Boeing is nearing a flat base’s 221.43 buy point, according to IBD MarketSmith pattern recognition. Shares fell 1.8% Wednesday, still holding above their 50-day line. BA stock fell 0.4% early Thursday.

Cisco Systems broke out past a flat base’s 51.84 buy point during last week’s advance. Bullishly, the stock’s relative strength line hit a new high in recent weeks, a sign of market outperformance. Shares lost 1.6% Thursday.

Nike shares continue to see stout resistance around their 50-day line, falling 2.3% Wednesday. They continue to trace a flat base that has a 131.41 buy point. An early entry at 126.16 is also in play. NKE stock moved 1.5% Thursday.

4 Top Growth Stocks To Watch In The Stock Market Rally

Top Stocks To Buy And Watch: Axon, ServiceNow, Southern Copper

IBD Leaderboard stock Axon closed further below a 226.10 buy point Wednesday in a short consolidation with a 2.6% drop. Meanwhile, it also gave up an early entry at 221.79, above the March 21 high. AXON stock was down 0.7% Thursday.

Backstory: Axon’s products are considered key for law enforcement, helping to build public trust. Meanwhile, its cloud-based software for managing police evidence, records and communications is geared to make officers more productive.

IBD SwingTrader pick ServiceNow continues to move up the right side of a cup base with a 494.72 buy point despite Wednesday’s 1.8% fall, which could be the start of a potential handle. NOW stock lost 0.5% early Thursday.

Backstory: NOW software tracks and manages services provided by information-technology departments. Also, its self-service tech portal enables workers to access administrative and workflow tools. In the latest quarter, the Santa Clara, Calif-based enterprise software maker said earnings jumped 56% to $2.28 per adjusted share. Revenue climbed 20% to $1.94 billion.

Southern Copper appeared to find support at its 50-day line, about 6% away from a double-bottom’s 78.75 buy point after Wednesday’s 0.8% drop. SCCO stock was slightly lower Thursday morning.

Backstory: Southern Copper engages in the development, production and exploration of copper, zinc, silver and other minerals and metals. It has operations in Peru and Mexico. The company trades on the New York Stock Exchange and the Lima Stock Exchange. A bet on copper is a bet on a stronger global economy as well as green energy. Copper is used heavily in renewable energy projects and electric vehicles.

Learn How To Time The Market With IBD’s ETF Market Strategy

Stocks To Buy And Watch In Stock Market Rally

These are four top stocks to watch in today’s stock market, including two Dow Jones leaders.

Source: IBD Data As Of April 5, 2023

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

Tesla Stock

Tesla stock fell another 3.7% Wednesday, extending this week’s losses. Shares triggered the 7%-8% loss rule from a buy point at 200.76 in a cup with handle. And they fell sharply below their 50-day line, a key support level. The stock closed Wednesday 52% off its 52-week high.

TSLA stock dropped 2.5% in Thursday trade.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 1.1% Wednesday, down a second day in a row. Shares remain near their highest level since August. AAPL stock fell 0.8% Thursday.

Microsoft shares remain in buy range past a flat base’s 276.86 buy point amid a third-straight fall Wednesday. The stock is in the 5% buy area that goes from the buy point to 290.70. MSFT stock moved down 0.6% early Thursday.

Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications suite. That follows the company’s investments in artificial intelligence startup OpenAI, the firm behind the buzzworthy ChatGPT application.

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

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