The Dow Jones Industrial Average surged 450 points Thursday, as Treasury yields slid toward a third straight decline. Apple stock rebounded from Wednesday’s losses. Three top stocks to buy and watch are Advanced Micro Devices, CrowdStrike and Palo Alto Networks.
Among the Dow Jones leaders, Apple (AAPL) rallied 1.3% Thursday, while Microsoft (MSFT) moved up 1.2% in today’s stock market. Merck (MRK) and Salesforce.com (CRM) eyed new buy points in the current stock market correction. UnitedHealth Group (UNH) briefly surged past a new buy point on strong earnings results.
Tesla (TSLA) gained 0.7% Thursday, on pace to extend a win streak to four sessions.
Among companies reporting earnings, Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) reported strong earnings results ahead of the market open.
Among the top stocks to watch, Advanced Micro Devices (AMD), CrowdStrike (CRWD) and Palo Alto Networks (PANW) are in or near new buy zones, although the market outlook, for now, remains “in correction.”
Advanced Micro Devices, Microsoft and Tesla are IBD Leaderboard stocks. AMD was Wednesday’s IBD Stock Of The Day. Palo Alto Networks is an IBD SwingTrader stock. Microsoft and Salesforce featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields Fall
The Dow Jones Industrial Average moved up 1.3%, while S&P 500 rose 1.4%. The Nasdaq composite jumped 1.35% in morning trade.
U.S. Stock Market Today Overview
Last Update: 10:42 AM ET 10/14/2021
The 10-year Treasury yield dipped 1 basis point Thursday morning to below 1.53%, putting yields on pace for a third straight decline. The yield’s recent highs topped out above 1.6% on Friday.
Among exchange traded funds, Innovator IBD 50 (FFTY) gained 1.6% Thursday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.5%. And the SPDR S&P 500 ETF (SPY) ascended 1.2%.
Stock Market Rally Attempt
The Nasdaq and S&P 500 continue to hold above last week’s correction lows, as both snapped three-day losing streaks on Wednesday. Meanwhile, the Dow Jones Industrial Average may be setting up for another test of its 50-day moving average where it has previously found stout resistance.
On Wednesday, The Big Picture commented, “IBD’s stock market outlook has been in “correction” all this month. While energy, financials and a few other select industries are outperforming, the general market is directionless. With the stock market unsure of its next steps, staying in cash makes sense as a defensive mechanism.”
Dow Jones Earnings: UnitedHealth
UnitedHealth surged over 6% Thursday morning after the company topped Wall Street earnings estimates ahead of the market open.
UNH stock is tracing a flat base with a 431.46 buy point, according to IBD MarketSmith chart analysis. Shares are trying to break out past the new entry in morning trade.
Stock Market Earnings: Bank of America, Citigroup, Wells Fargo
Banking giants Bank of America, Citigroup and Wells Fargo reported strong earnings Thursday morning.
Bank of America climbed over 2% in morning trade, on pace to end a three-day losing streak. Bank of America earnings jumped to 85 cents a shares on revenue of $22.9 billion.
Citigroup lost 0.3% Thursday, as it looks for support around its long-term 200-day moving average.
Wells Fargo slid over 2%, dropping further below its key 50-day line. Wells Fargo earned $1.17 a share on revenue of $18.83 billion.
Dow Jones Stocks To Buy And Watch: Merck, Salesforce
Merck and Salesforce are top Dow Jones stocks to watch in today’s stock market action.
Merck rallied 0.1% Thursday, looking to snap a four-day losing streak. Shares gave up their buy point Wednesday, but are trying to retake the entry. On Oct. 1, Merck stock broke out past a 79.33 buy point in a flat base after the company said its new Covid drug reduced the risk of hospitalization by half in a final-phase study.
Dow Jones software leader Salesforce is in buy range past a 275.32 buy point in a cup with handle following a Sept. 23 breakout move. Shares rallied nearly 1% Thursday.
Salesforce has a strong relative strength line. Strong relative strength lines during weak general market conditions are indicative of potential market leaders.
Stocks To Watch: AMD, CrowdStrike, Palo Alto
IBD Leaderboard stock Advanced Micro Devices decisively regained its 50-day line Wednesday, rallying nearly 4%. The stock moved up another 1.5% Thursday morning. AMD is forming a double bottom pattern that shows a 114.59 buy point.
According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
CrowdStrike stock rallied about 0.5% Thursday morning, on pace to add to Wednesday’s 7% advance that saw the stock bullishly retake its key 50-day moving average. Meanwhile, shares are approaching a 289.34 buy point in a cup base, according to IBD MarketSmith chart analysis. The stock is about 6% away from the correct entry, so be on the lookout for a handle to offer a more risk-optimal entry.
IBD SwingTrader stock Palo Alto Networks is in buy range past a 496.02 entry in a short consolidation. Shares gained 1.6% Thursday, and are in the buy zone above the new entry. Bullishly, the stock’s relative strength line hit a new high Thursday, reaffirming the stock’s leadership status.
Tesla stock rallied 0.7% Thursday, on pace to make it four straight up days. TSLA shares are moving further above a 764.55 buy point in a cup with handle.
TSLA shares closed Wednesday about 10% below record highs. On Jan. 25, Tesla stock hit a record high of 900.40, after climbing as much as 93% from a 466 buy point in a cup-with-handle pattern.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple bounced 1.3% following Wednesday’s 0.4% loss. Apple stock is on pace to snap a four-day losing streak, but remains far below its 50-day line.
Software giant Microsoft gained 1.2% Thursday, as the stock moves further above the 50-day line. A new flat base is forming with a 305.94 buy point.
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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