Dow Jones futures dropped Thursday morning after the Labor Department’s initial unemployment claims. Meanwhile, Rivian stock dived after the company announced a debt offering.
First-time jobless claims rose to 207,000 vs. 204,000 in the previous week. They were expected to rise to 210,000.
The jobs report from the Labor Department looms Friday. Wall Street expects that report to show moderate strength, with 150,000 new jobs. The jobless rate is expected to tick down to 3.7% from 3.8%. Average hourly wages are seen growing 0.3%.
Rivian (RIVN) dived nearly 9% in premarket trade after the company said it will offer $1.5 billion worth of convertible debt. Rivian also provided a preliminary view of its third-quarter revenue, which was in-line with estimates.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures fell 0.35% vs. fair value, while S&P 500 futures lost 0.4%. Tech-heavy Nasdaq 100 futures moved down 0.4% vs. fair value.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.3%, while the SPDR S&P 500 ETF (SPY) dropped 0.35% early Thursday.
Early action also showed the 10-year U.S. Treasury yield rising to 4.76%, bouncing back from Wednesday’s losses. Still, the 10-year yield is just off its long-term highs.
Oil prices extended their declines, falling nearly 2% Thursday morning. West Texas Intermediate futures traded below $83 a barrel.
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Stock Market Today
Electric-vehicle giant Tesla (TSLA) rose a fraction Thursday morning, while Nvidia (NVDA) climbed 0.6%. Dow Jones tech icons Apple (AAPL) and Microsoft (IBD) traded mixed ahead of today’s stock market open.
IBD Leaderboard member Arista Networks (ANET), Duolingo (DUOL), DraftKings (DKNG), and Zscaler (ZS) — as well as Dow Jones stocks Caterpillar (CAT) and Chevron (CVX) — are among the companies to watch in the ongoing stock market correction.
Tesla is a new IBD SwingTrader stock, while Arista is featured in this Stocks Near A Buy Zone column.
Stock Market Correction
On Wednesday, the Dow Jones Industrial Average reversed 0.4% higher, while the S&P 500 advanced 0.8%. The tech-heavy Nasdaq composite rallied 1.4%.
Wednesday’s Big Picture column commented, “Meanwhile, the so-called Magnificent Seven megacap techs did a lot of the day’s heavy lifting. The average gain among this elite group of stocks on Wednesday was 2.1%. Could they help bring the stock market out of its funk?”
Thursday is Day 7 of a rally attempt on the Nasdaq, so a follow-through day is still possible.
Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the stock market weakness and prepare for a new uptrend.
Learn How To Time The Market With IBD’s ETF Market Strategy
Dow Jones Stocks: Caterpillar, Chevron
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point after strong gains since early June. CAT stock slipped 1.5% Wednesday, further below the 50-day line. Shares edged lower early Thursday.
Dow Jones oil and gas giant Chevron tumbled 2.3% Wednesday. Last week, CVX stock broke out past a short handle entry at 168.96. Meanwhile, a cup base within a larger consolidation continues to show a 172.88 buy point. Shares are now below their 50-day line, a bearish signal. Chevron shares dropped 1% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Duolingo Below Buy Point
Arista climbed 0.6% Wednesday, still above the 50-day line. A bullish rebound from that level places the stock in a new buy area, but the market outlook still shows a correction. So, investors should stay in cash. ANET stock rose 0.1% early Thursday.
DraftKings is building a consolidation that has a 34.49 buy point, per IBD MarketSmith pattern recognition. An early entry looms at 32.65. Shares are below their 50-day moving average, and the stock needs to move above that level. DKNG rose 0.2% in premarket trades.
IPO Leader Duolingo jumped 3% Wednesday, but is still below its latest buy point at 167.35. The new entry is the result of a handle forming on a double-bottom base. But it is above a 162.20 buy point. DUOL stock was unchanged early Thursday.
Recent IBD Stock Of The Day Zscaler rebounded 2.4% Wednesday, as tries to hold above its 50-day line. ZS stock rose a fraction premarket.
Best Stocks In Today’s Stock Market Action
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|Uber Technologies||(UBER)||49.49||Flat base|
|Duolingo||(DUOL)||167.53||Double bottom with handle|
|DraftKings||(DKNG)||32.65||Cup with handle|
Source: IBD Data As Of Oct. 3, 2023
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Tesla Stock Hits Buy Point
Tesla stock raced nearly 6% higher Wednesday, decisively retaking its 50-day line and moving into an alternative buy area. The buy zone starts at 254.77 and goes up to 258.40 for aggressive investors. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 6% away from that entry.
Shares rose 0.4% early Thursday, looking to add to Wednesday’s gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple moved up 0.7% Wednesday, rebounding from Tuesday’s losses. Shares are trying to bounce back from their recent lows. Amid the continued weakness, the stock is sharply below its 50-day line after September’s losses. If AAPL stock can rebound, it would likely have a double-bottom base with a 189.98 buy point. Shares inched higher early Thursday.
Microsoft shares rallied 1.8% Wednesday, recovering about half of Tuesday’s sharp losses. And on Thursday morning, MSFT stock rose 0.4%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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