Dow Jones Rallies On Jobless Claims, Strong GDP; Cathie Wood Sells $7 Million In Tesla Stock

The Dow Jones Industrial Average rose Thursday after a surprise drop in first-time unemployment claims and strong first-quarter GDP data. Meanwhile, two of Cathie Wood’s ARK Invest ETFs sold more than $7 million in Tesla stock.

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First-time jobless claims from the Labor Department unexpectedly dropped to 239,000 vs. 264,000 in the previous week. They were anticipated to rise to 270,000. Further, the Commerce Department’s third estimate of first-quarter GDP rose to 2.0%, higher than the expected 1.4% estimate.

Early Thursday, Micron Technology (MU), McCormick (MKC), Paychex (PAYX) and Simply Good Foods (SMPL) are key earnings movers. Meanwhile, Dow Jones giant Nike (NKE) will report after the close.

Micron stock dived 5% in morning trade, while McCormick declined 2.5%. Paychex shares reversed slightly lower, and SMPL stock was up almost 4%.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) dipped 0.3% Thursday morning, amid the stock sales by Cathie Wood’s Ark Invest ETFs. This month, Wood has dumped more than 500,000 shares of the EV stock.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed after today’s stock market open.

Other stock market leaders in the stock market rally include Alphabet (GOOGL) and Meta Platforms (META). Alphabet shares dropped 1.2%, while META stock moved down 0.5%.

Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Lam Research (LRCX) — as well as Dow Jones stocks JPMorgan Chase (JPM), Merck (MRK) and Salesforce (CRM) — are among the best stocks to watch in the ongoing stock market pullback.

Tesla is an IBD Leaderboard stock, Floor & Decor remains an IBD SwingTrader stock, while MongoDB is featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 inched higher. The tech-heavy Nasdaq composite lost 0.2% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.4%, while the SPDR S&P 500 ETF (SPY) rose 0.1% early Thursday.

The 10-year U.S. Treasury yield ticked higher to 3.82%. The yield recently has bobbed in a range between 3.57% and 3.85%. It settled higher Wednesday at 3.71%.

Oil prices edged lower Thursday morning, continuing to hold near recent lows. West Texas Intermediate futures traded below $70 a barrel, effectively flat for the week and down not quite 4% from a June 21 high.

Stock Market Action

On Wednesday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 edged lower. The tech-heavy Nasdaq composite rose 0.3%.

Wednesday’s Big Picture column commented, “Of course, the relatively tight ranges for the equity indexes may have a lot to do with portfolio managers and equity trading desks awaiting another salvo of important inflation data on the U.S. economy. On Friday before the open, expect some fireworks to follow the latest report on the personal consumption expenditures index, one of the Federal Reserve’s most closely monitored price indicators.”

Now is an important time to read IBD’s The Big Picture column as the stock market remains in an uptrend but is pulling back.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce

Dow Jones banking leader JPMorgan climbed more than 1% early Thursday after positive results from the Federal Reserve’s bank stress test. JPM stock is about 3% below a 143.37 flat-base buy point after Wednesday’s slight drop. Shares are right at their 50-day line.

Drug giant Merck is forming a flat base with a 119.65 buy point, as the stock dropped 0.8% Wednesday, further under the 50-day line. MRK stock inched lower Thursday.

Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.

In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock fell 0.2% Thursday morning.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Best Stocks To Buy And Watch: Chipotle, McKesson, MongoDB, Lam Research

IBD Leaderboard watchlist stock Chipotle rebounded from support at its 10-week line and is building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 is also in play due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock rose a fraction Thursday morning.

IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. Shares were down 0.2% Thursday.

MongoDB is trading tightly after its recent earnings-fueled jump, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline entry around 386. MDB stock rose 0.4% Thursday morning.

Lam Research moved above a 615.80 early buy point and a three-weeks-tight pattern with a 630.72 entry during this week’s gains. LRCX stock fell modestly Thursday.

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Best Stocks To Buy And Watch In Stock Market Rally

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Source: IBD Data As Of June 28, 2023

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

Tesla Stock

IBD Leaderboard stock Tesla rose sharply for a second straight day, with a 2.4% gain. Despite recent losses, Tesla shares remain sharply out of buy range beyond a double-bottom’s 207.79 buy point.

TSLA stock looked to add to Wednesday’s gains, but turned slightly lower Thursday.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock hit another record high Wednesday, trading as high as 189.90. Shares continue to hold sharply above a 157.38 buy point. Early Thursday, AAPL stock was up 0.1%.

Microsoft shares rose 0.4% Wednesday, moving higher for a second consecutive session. On June 16, MSFT stock hit an all-time high at 351.47. In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Thursday morning, Microsoft shares were down 0.6%.

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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