The Dow Jones Industrial Average fell more than 225 points Thursday morning before paring losses, as Federal Reserve Chairman Jerome Powell spoke at the Cato Institute’s annual monetary conference.
CASY shares fell more than 2% due to mixed results. Copart shares were down 4%, while Dave & Buster shares fell more than 7%.
advanced micro devices (amd) rose after Stifel Nicolaus began the stock with a buy rating, while first solar (FSLR) jumped 2% on an update to Goldman Sachs to buy. electric vehicle leader Tesla (TSLA) decreased more than 1% on Thursday.
In the current market volatility, Arista Networks (A NETWORK), Costco (COST), restaurant brands (QSR) Y ultra beauty (ULTA), as well as Dow Jones stocks Chevron (CLC), are among the top items to buy and watch. Keep in mind that increased market volatility is a good reason for investors to be more defensive.
Dow Jones Today: Treasury Yields, Oil Prices
After the opening bell on Thursday, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq Composite traded down 0.4% in morning trading.
The 10-year Treasury yield rose to 3.28% early Thursday, and continued to fall after Wednesday’s drop to 3.26%. Earlier this week, the 10-year Treasury yield hit its highest closing level since June 15.
the european central bank raised interest rates by 75 basis points on Thursday morning, moving to fight record inflation. An energy crisis has Europe on the verge of a recession.
US oil prices rose on Thursday, recovering somewhat from Wednesday’s sharp sell-off. West Texas Intermediate futures traded just above $82 a barrel.
Earlier Thursday, the Labor Department’s first-time jobless claims fell to 222,000, well below the expected rise to 240,000. Jobless claims were 232,000 in the previous week.
Stock market rally under pressure
On Wednesday, the Nasdaq Composite and smaller issues led higher. The former rallied 2.1%, finally breaking a nasty seven-session selling streak.
Wednesday’s Big Picture column commented: “If the current bounce really has legs, expect the major averages to jump back above their own 50-day moving averages. The summer bounce above this intermediate technical level was successful. But the benefit of the Hindsight shows that resistance at the longer-term 200-day averages has proven too strong so far this year.”
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Dow Jones Stocks to Watch: Chevron
Dow Jones shares Chevron fell 1.3% on Wednesday, halting its decline just above the key 50-day line. The stock added a handle to a cup basis, moving the correct buy point to 166.93, according to IBD MarketSmith chart analysis, amid strong performance by energy stocks so far this year. The stock rose 0.5% early Thursday.
CLC Actions shows a strong 97 from a perfect 99 IBD Composite Classification, for him IBD stock check. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Top Stocks to Watch: Arista, Costco, Restaurant Brands, Ulta
Arista Networks has added an identifier to a double bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is starting to give way as the stock remains below its 200-day long-term line. ANET shares were down 0.6% early Thursday.
IBD classification table Costco stock rebounded from its 50-day line on Wednesday and is about 4% below its 552.81 buying point for a mug with a handle. The stock came close to triggering the 7% to 8% stop loss sell rule earlier this week. Shares traded down 0.8% on Thursday.
Restaurant Brands rose 2% on Wednesday, ending just 2% higher for a mug with a handle that has a buy point of 61.19. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants worldwide. The stock was down 0.7% early Thursday.
Cosmetics retailer Ulta Beauty moved straight out of the buy range last Wednesday a buy point of 417.08 at a double bottom base. The RS line hit another new high as the stock shows abnormal strength in a weak market environment. ULTA shares were down 0.5% on Thursday morning.
tesla shares rose 3.4% on Wednesday, bouncing off its 50-day line, which remains a potential support level to watch. Shares of the electric vehicle giant fell more than 1% on Thursday morning.
Tesla shares have found resistance at their 200-day line in recent months and are down 32% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among dow jones stocksApple shares rose 0.9% on Wednesday as tech giant Dow Jones introduced the iPhone 14, but are still below their 50-day line. The stock is within 12% of the buy point at 176.25 for a mug with a handle. Despite recent losses, the stock’s relative strength line remains near new highs, indicating continued outperformance in the stock market. Shares fell 0.8% on Thursday.
Microsoft rose 1.9%, snapping a seven-session losing streak. The software giant remains well below its 50 and 200 day lines. Stocks are above their 52-week high. The stock fell 0.7% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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