The Dow Jones Industrial Average fell 350 points Thursday after a strong monthly employment report. Meanwhile, Cathie Wood’s Ark Invest ETFs sold while buying more Tesla shares. Meta platforms (Meta) stocks.
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A flood of economic data hit the markets on Thursday. First, ADP’s June National Employment Report showed an increase in jobs of 497,000 versus estimates for a 235,000 increase. ADP showed a gain of 278,000 jobs in May. ADP’s report provides a preview of the Labor Department’s June payrolls report on Friday.
But the Labor Department on Thursday revealed first claims for jobless aid rose to 239,000 versus 248,000 in the previous week.
Elsewhere, the S&P Global Services Purchasing Managers’ Index is expected at 54.1 at 9:45 a.m. ET, unchanged from the mid-month estimate. Also, the June Institute for Supply Management Services Index is estimated to reach 50.3 in May versus 50.8 in May.
Finally, the Labor Department’s JOLTS report is expected to show job openings fell to 9.9 million in April from 10.1 million in May.
The stock market today: Cathy Wood buys Meta shares
The electric vehicle is a giant Tesla (D.S.L.A) fell 2.7% Thursday as Cathie Wood’s Ark Invest ETFs sold nearly $8 million worth of shares in the Elon Musk-led company, according to Ark’s daily trading update.
Meanwhile, META stock lost 0.3% after Wood bought $1.6 million worth of shares in the social media company on Wednesday. Late Wednesday, Twitter launched a competitor called MetaThreads.
Dow Jones is a tech giant Apple (APL) and Microsoft (MSFT) fell after today’s stock market opened.
Chipotle Mexican Grill (CMG), Dynatrace (TD), MongoDB (MTP), Lam Research (LRCX) and Nvidia (NVDA) — as well as Dow Jones stocks JP Morgan Chase (JPM), visa (V) and Sales force (CRM) — is one of the best stocks to watch in the current stock market uptrend.
Tesla is an IBD Leaderboard stock, Lam Research is an IBD Swing Trader stock, while Nvidia is featured in this week’s Stocks Near a Buy Zone column. Dynatrace is the latest IBD Stock of the Day.
Dow Jones today: Oil prices, Treasury yields
After Thursday’s opening bell, the Dow Jones industrial average fell 1.05%, while the S&P 500 fell 1%. The tech-heavy Nasdaq composite was down 1.25% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQDown 1%, the SPDR S&P 500 ETF (espionage) lost 0.9% early Thursday.
The 10-year U.S. Treasury yield rose to 4.02%, well above its recent high set in late May. The yield rose to 3.94% on Monday.
After Wednesday’s solid gains, oil prices were modestly lower on Thursday morning. West Texas Intermediate futures were down about 0.5%, trading below $72 a barrel.
Stock market activity
Major indices were quiet again on Wednesday. The S&P 500 and Nasdaq composite each fell 0.2%. The Nasdaq 100, which represents some of the largest stocks in the composite, was almost flat.
Meanwhile, the Dow Jones industrial average fell 0.4%.
In Wednesday’s Big Picture column, “The Russell 2000 fell 1.3% and appears to have hit resistance around the 1,900 level. Wednesday’s loss snapped a six-day winning streak for the small-cap benchmark, its longest since January. Russell’s strength helped the stock market extend its gains. Hence the index’s fresh decline. may affect market breadth.”
As the stock market hits new highs this year, it’s an important time to read IBD’s The Big Picture column.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Salesforce, Visa
Dow Jones remains above a flat-base buy point at 143.37 despite Wednesday’s decline by bank leader JP Morgan. 5% buy area goes up to 150.54. JPM shares fell 1.3% Thursday morning.
Salesforce has been able to stabilize itself after a series of revenue declines. It is now testing support at the 50-day line, and a decisive rebound could create a fresh buying opportunity. According to IBD Leaderboard analysis, MegaCap Technology previously crossed a pair of alternative entries at 194.01 and 200.10.
In recent weeks, the stock has reached a 20% profit zone from a 178.94 cup-with-handle entry. CRM stock was down 0.7% Thursday morning.
Payments leader Visa on Wednesday gained 0.6% to close further above a flat base’s 235.57 buy point. A buy limit tops out at 247.35. V stock was down 0.2% in early Thursday trading.
And American Express (AXP) A cup-with-handle base closed near the 177.04 buy point.
4 Best Growth Stocks to Buy and Watch Stock market rally
Best stocks to buy and watch: Chipotle, Dynatrace
According to IBD MarketSmith model recognition, IBD Leaderboard Watchlist stock Chipotle is trying to break past the flat base’s 2,139.88 buy point. There was also an initial entry at 2,092.51 due to the trendline. Chipotle is the latest IBD Stock of the Day. CMG stock fell nearly 1% Thursday morning.
Software maker Dynatrace has developed a three-week-tightening chart pattern that indicates a brief consolidation where institutional investors are pausing their buying. Shares are about 3% away from their recent entry of 52.99. TT stock was down 1.5% Thursday morning.
IBD Swing Trader stock Lam Research moved above an initial buy point of 615.80 and a three-week-tight pattern with a 630.72 entry during last week’s gains. LRCX shares fell 1.4% in early Thursday trading.
MongoDB traded tight after its recent earnings-fueled surge, giving it a fresh entry. Shares are above a three-week-tight formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386. MDB shares were down 2.6% on Thursday morning.
Following its May 25 earnings-fueled break, Nvidia shares continue to rise. Amid the pullback since June 20, the stock offers another opportunity to buy the stock. After the stock found support at its 21-day high moving average, it made a trendline entry at 418. Nvidia is an IBD Leaderboard stock. Shares lost 1.3% on Thursday.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks to buy and watch in the stock market
These are four of the best stocks to buy and watch in today’s stock market, including the Dow Jones leader.
| Name of the company | Symbol | Perfect buying point | Type of point of purchase |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Sales force | (CRM) | 200.00 | Integration |
| Cloudflare | (Net) | 66.20 | Double bottom |
| year | (year) | 75.45 | Cup with handle |
Source: IBD data as of July 5, 2023
Join IBD experts as they analyze the leading stocks in the current stock market rally on IBD Live
Tesla stock
IBD Leaderboard Shares Tesla extended its winning streak to six sessions on Monday with a 0.95% gain. Amid recent gains, Tesla shares are firmly outside buy range beyond the double bottom’s 207.79 buy point.
TSLA stock threatened to erase Wednesday’s gains, sliding 2.7% Thursday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple fell 0.6% on Wednesday, continuing its decline from Friday’s record high of 194.48. Shares continue to hold sharply above the 157.38 buy point. Early Thursday, shares lost 0.6% in morning action.
Shares of Microsoft rose Wednesday, up 4% from June 16 at 351.47.
In recent weeks, the stock has reached the 20% to 25% profit zone from the 276.76 flat-base buy point, so investors may have taken at least some profits there. Shares of Microsoft were down 0.1% Thursday morning.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
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