Dow Jones Rises 300 Points After Surprise Jobless Claims; Block Crashes 22% On Short Seller Report

The Dow Jones Industrial Average rose more than 300 points Thursday, rebounding after Wednesday’s Fed-fueled stock market selloff, and in the wake of a surprise drop in the Labor Department’s first-time jobless claims. Meanwhile, Block (SQ) crashed as much as 22% after a short seller accused the company of overstated user counts.

X

Advanced Micro Devices (AMD), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) moved higher in morning trade.

Weekly initial unemployment claims fell to 191,000 vs. 192,000 in the previous week. They were expected to rise to 195,000, according to Econoday estimates.

Further, the Commerce Department’s February new homes sales fell more than expected to 640,000 vs. January’s 670,000. They were expected to fall to 645,000. (For our latest coverage of the market’s action, go to our Stock Market Today page.)

And shares of Block plunged more than 20% after short seller Hindenburg Research issued a report, saying “Our research indicates that Block has wildly overstated genuine user counts and understated its customer acquisition costs.”

Earnings Results: Darden, KB Home

Chewy (CHWY), Darden Restaurants (DRI), General Mills (GIS) and KB Home (KBH) were earnings movers Thursday morning.

Chewy shares dropped 6.8%. Darden stock lost 1.9% in morning trade, falling further below a 152.18 flat-base entry. General Mills shares rallied 2.1%. And KBH stock advanced 7%, moving closer to a 41.02 buy point.

Stock Market Today

Advanced Micro Devices added 4% Thursday morning, extending the stock’s gains above a flat base’s 89.04 buy point. Nvidia climbed 3.1% after Needham raised the graphics chipmaker’s price target from 270 to 300.

Electric-vehicle giant Tesla traded 4% higher Thursday. Dow Jones tech giants Apple (AAPL) and Microsoft were sharply higher after today’s stock market open.

Align Technology (ALGN), IBD SwingTrader stock Meta Platforms and IBD Leaderboard Palo Alto Networks (PANW) — as well as Dow Jones stocks Nike and Salesforce (CRM) — are among the top stocks to watch in the ongoing stock market correction.

Palo Alto is an IBD Leaderboard stock. Align was a recent IBD Stock Of The Day. Microsoft was featured in this week’s Stocks Near A Buy Zone column. And Meta is an IBD SwingTrader stock.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox

Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.9%, while the S&P 500 gained 1.1%. The tech-heavy Nasdaq composite rallied 1.7% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.6% and the SPDR S&P 500 ETF (SPY) moved up 1.1% early Thursday.

The 10-year U.S. Treasury yield ticked lower to 3.5% as bonds rallied and the dollar swooned after the Federal Reserve’s interest rate decision. On Thursday, the 10-year continued lower, ticking down to 3.47%.

U.S. oil prices paused after Wednesday’s modest gains saw West Texas Intermediate back above $70 a barrel. WTI futures traded narrowly lower Thursday, holding just above the $70 level.

Stock Market Correction

On Wednesday, the Nasdaq composite swung from an early gain that almost hit 1.3% to end Wednesday’s heavily watched session off 1.6%. The S&P 500 and the Dow Jones Industrial Average lost 1.6% to 1.7%. Meanwhile, small banks led the smacking of small caps, as the Russell 2000 slid 2.8%.

Wednesday’s Big Picture column commented, “Does this mean it’s time to throw in the towel? Absolutely not. One thing has not changed: In the stock market, human emotions rule. Fear can quickly turn into greed. Put another way, institutional investors can change their thinking from market valuations as being excessive to offering good value.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market correction.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Watch: Nike, Salesforce

Since bottoming on Oct. 3, Nike shares have rallied as much as 59% to their recent high at 131.31. Now the stock is consolidating within a flat base that offers a 131.41 buy point, according to IBD MarketSmith pattern recognition.

Following Wednesday’s 4.9% tumble, the stock bearishly gave up its 50-day moving average, a key benchmark, just one day after a strong retake of that level. NKE stock moved up 2.2% early Thursday.

In recent weeks, Dow Jones leader Salesforce showed big upside strength after strong fourth-quarter results. The stock is now above a 178.94 cup-with-handle entry after recent big gains. Still, the market is in a correction, so investors should avoid new purchases until the market environment improves. CRM stock moved up 1% early Thursday.

3 Top Growth Stocks To Watch In The Stock Market Correction

Top Stocks To Watch: Align, Meta, Palo Alto

Align Technology continues to trace a consolidation that has multiple buy points: a 357.10 early entry and a conventional entry at 368.97. Shares rose 1.1% Thursday morning.

Backstory: The company makes clear teeth-straightening systems called Invisalign. UBS analyst Kevin Caliendo says investors recently regained confidence in Align stock, which has surged 50% this year. December-ended quarter results from Align and its competitors, management commentary, U.S. economic data and a recent uptick in demand for Invisalign cases support this view, he said in a note to clients.

Backstory: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the “metaverse,” a virtual reality world that has yet to take hold.

IBD Leaderboard stock Palo Alto Networks gave up its 192.94 buy point out of a cup with handle during Wednesday’s 1.85% decline. If the stock retakes the buy point, the buy area will run up to 202.59. PANW stock traded up 2.1% Thursday.

Backstory: On Feb. 21, the cybersecurity giant announced good results for the January-ended quarter that saw earnings hit $1.05 a share, up 81% vs. a year earlier, on a 26% jump in revenue to $1.7 billion.

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

Stocks To Watch In Stock Market Correction

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

Source: IBD Data As Of March 23, 2023

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

Tesla Stock

Tesla stock skidded 3.25% Wednesday, ending a two-day win streak and giving back a part of Tuesday’s bullish gains. Shares continue to rebound from their 50-day moving average. Shares closed Wednesday around 50% off their 52-week high.

TSLA stock gained 4% Thursday morning, as it looked to rebound from Wednesday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares reversed 0.9% lower Wednesday after the session saw the stock hit its highest level since Sept. 12. AAPL rose 1.5% Thursday.

Microsoft shares broke out above a flat base’s 276.86 buy point Friday. But the stock fell further below that entry during Wednesday’s 0.5% drop. MSFT stock gained 2% early Thursday.

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

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

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

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks