Dow Jones futures fell Thursday morning after key inflation data led by the Labor Department's producer price index and weekly initial jobless claims. During this, Walt Disney ,district) took a dive on weak customer growth, while regional banks grappled with PacWest ,pacw) fell after the company's deposits fell nearly 10% in the week ended May 5.
The April producer price index rose 0.2% for the month, compared with an annual increase of 2.3%, cooler than both estimates. Core prices were up 0.2% month over month and up 3.2% year over year. They also fell short of expectations.
In addition, unemployment claims rose to 264,000 for the first time, their highest level since October 2021. They were expected to rise to 245,000 versus 242,000 in the previous week.
Early Thursday, Disney and trade desk ,TTD) were moving forward after earning.
Disney shares fell more than 5% after the company's streaming services units missed estimates for subscriber growth in Wednesday's earnings report.
The Trade Desk reported March-quarter earnings and revenue on Wednesday that topped estimates for Internet TV growth. TTD stock climbed nearly 4% in early Thursday trading as the company's own outlook topped views.
Advanced Micro Devices ,amd), ibd leaderboard stock NVIDIA ,NVDA), ibd swingtrader ideas Netflix ,nflx) And Uber Technologies ,Uber) — as well as Dow Jones stocks Nike ,NKE) And Visa ,V) — are among the best stocks to buy and watch the uptrend of the stock market.
Visa was featured in this week's Stocks Near a Buy Zone column. Netflix and Nvidia were the topics of the recent IBD Stock of the Day.
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Dow Jones Today: Oil Prices, Treasury Yields
Alphabet ,Google) is trending up the list, leaning to extend its 5.9% gain for the week through Wednesday.
US exchange-traded funds include the Nasdaq 100 tracker Invesco QQQ Trust (QQQSpy) traded down 0.2% in early Thursday trading.
The 10-year US Treasury yield fell to 3.39% on Thursday ahead of the PPI inflation report.
US oil prices continued to slide on Thursday morning after recovering from multi-month lows. West Texas Intermediate futures settled around $72 a barrel, down nearly 6% so far in May.
stock market rally
Wednesday's Big Picture column commented, “Beware the light at the end of the tunnel could be an oncoming train as complacent investors head into a potential collision with the June 1 debt cap deadline.”
After Wednesday's stock market rally, now is an important time to read IBD's The Big Picture column.
The five best Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: Nike, Visa
Nike shares fell 1.3% on Wednesday, down to a cup-with-handle's 127.59 buy point after last week's breakout effort. A new handle entry has also appeared on 128.78. The stock is looking for support near its 50 day line. NKE stock climbed 0.4% in early trading Thursday.
Visa shares remain in a buy range above the $230.15 cup-with-handle buy point after falling 0.8% on Wednesday. The buying limit goes up to 241.66. V stock was down 0.1% on Thursday.
4 Top Growth Stocks to Watch stock market rally
Best stocks to buy and watch: AMD, Nvidia, Netflix, Uber
Chip leader Advanced Micro Devices continues to rally to the right of a cup base, with a 102.53 buy point, according to IBD MarketSmith Pattern Recognition. Monday's surge saw AMD stock climb above the initial trendline entry, using the May 4 high of 91.64 as a buy point. Shares of AMD rose 0.3% on Thursday.
IBD Leaderboard Stock Nvidia ended Wednesday up 1.1%, still in a buy range above the 280.10 buy point in a minor consolidation. 5% buy zone goes up to 294.11. NVDA stock was up 0.2% in early Thursday trading.
Recent IBD Stock of the Day, Netflix moved above its 50-day moving average line on Monday. That affirmative action created a buying opportunity for aggressive investors. Moreover, Netflix shares are now close to a buy point of 349.90 from a cup-with-handle base. NFLX stock dropped nearly 1% Thursday morning.
Uber Technologies decisively moved above a buy point of 37.68 in a cup base, showing a 1.6% increase on Wednesday. UBER shares are still in the 5% buy zone which goes up to 39.56. The stock was unchanged on Thursday.
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Best stocks to buy and watch the stock market rally
Here are four of the best stocks to buy and watch in today's stock market, including two of the Dow Jones leaders.
|company's name||Sign||right purchase point||type of buy point|
|Nike||,NKE,||127.59||cup with handle|
|Visa||,V,||230.15||cup with handle|
|Advanced Micro Devices||,amd,||102.53||cup base|
Source: IBD data as of May 11, 2023
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Tesla stock dipped 0.4% on Wednesday, falling for a second day. Despite gains since late April, shares remain below their 50-day line as they look to make a new base. The stock closed Wednesday down 46% from its 52-week high.
TSLA stock appears to be rebounding from Wednesday's losses, trading slightly higher early Thursday.
Dow Jones Leaders: Apple, Microsoft
In the Dow Jones, shares of Apple fell 1% on Wednesday, bouncing back from two days of losses. They closed just short of their 52-week high, which was reached back in mid-August. The stock continues to add to gains above the buy point of 157.48 and it is outside the buying range running up to 165.35. AAPL stock was down slightly in the premarket on Thursday.
Microsoft shares climbed 1.7% to a 52-week high on Wednesday. The scrip remained above the flat-basis buy point of 276.86. MSFT stock fell 0.4% on Thursday morning.
Be sure to follow Scott Lehton on Twitter @IBD_SLehtonen For more information on Growth Stocks and the Dow Jones Industrial Average.
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