Dow Jones Futures Fall on Strong Jobs Data; Hot AI Stock Crashes on Profits

Dow Jones futures fell Thursday morning amid key economic data, with the release of the ADP jobs report and the Labor Department’s weekly unemployment claims. Meanwhile, AI’s hot stock (AI) slumped 19% after its first-quarter earnings report.


ADP’s jobs report showed May job growth of 278,000, much stronger than the expected figure of 160,000, but still down slightly from April’s 296,000 count. The ADP report is a precursor to Friday’s employment data from the Labor Department.

Meanwhile, initial jobless claims reached 232,000, slightly below the 235,000 expected from 229,000 the previous week.

Also, the manufacturing PMI is due out at 9:45 am. Finally, Wall Street expects the ISM manufacturing index for May to decline slightly to 47.0 from 47.1 in April. ISM leaves at 10 a.m., which pre-announced some fiscal fourth-quarter results in mid-May, released a full-year 2024 revenue outlook that missed analysts’ estimates. The stock has rebounded more than 20% this week, but is poised to lose most of it.

Other key profit drivers include Soft (CHWY), CrowdStrike (CRWD), NetApp (NTAP), Nordström (JWN), Okta (OKTA), Selling power (CRM) and Veeva systems (VEV).

Shares of Chewy jumped 17% premarket, while CrowdStrike reported earnings and revenue for the April quarter that beat analysts’ estimates. CRWD stock fell 10% as growth in a key indicator, annual recurring revenue, slowed.

NetApp rose nearly 7% in premarket trading, with Nordstrom stock rising 4.8%.

CRM stock fell 6.3%, while Veeva stock jumped 9.3%. Additionally, Okta plunged 20% in early morning trading.

stock market today

Lucid Engines (LCID) slipped 13% after announcing a $3 billion stock offering and separate private placement. Electric vehicle giant You’re here (TSLA) was trading down 1% on Thursday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were higher ahead of today’s stock market open.

Arista Networks (ANET), IBD classification stock ASML (ASML) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Selling power (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

Arista was a recent IBD stock of the day, while ASML and Salesforce are IBD Leaderboard stocks. And Cisco was featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Price, Treasury Yields

Ahead of Thursday’s opening bell, Dow Jones futures fell 0.3% from fair value, while S&P 500 futures fell slightly. Futures on the tech-heavy Nasdaq 100 fell 0.1% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 0.1%, while the SPDR S&P 500 ETF (SPY) rose 0.2% early Thursday.

The 10-year US Treasury yield traded Thursday at 3.66%. On Wednesday, the 10-year rate fell sharply for a second day in a row.

US oil prices fell on Thursday morning, extending this week’s losses. West Texas Intermediate futures fell 0.5% on Thursday, pushing West Texas Intermediate futures below $68 a barrel.

Market share

On Wednesday, the Dow Jones Industrial Average lost 0.4%, while the S&P 500 fell 0.6%. The Nasdaq composite also lost 0.6%, pulling away from its 2023 highs.

Wednesday’s Big Picture column commented, “So for tech investors, after a lackluster 2022, the first five months should be a lot nicer. But in this story of two stock markets, blue chips outside of tech have really been mixed.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Cisco, Boeing, Salesforce

Dow Jones networking giant Cisco Systems is building a cup base with a buy point of 52.66. Keep an eye out for a potential handle, which would show an earlier entry. CSCO stock fell 1% on Wednesday, ending a three-day winning streak. CSCO stock rose 0.4% pre-market Thursday.

Aerospace giant Dow Jones, Boeing, climbed 0.5% on Wednesday, returning above its 50-day line. The stock is still forming a flat base with a buy point of 221.43, according to IBD MarketSmith pattern recognition. BA stock rose 0.2% early Thursday.

Salesforce has topped alternate entries at 194.01 and 200.10 in recent weeks, according to ranking analysis. Meanwhile, its relative strength line hit a new high on Wednesday, a bullish signal. Shares hit the 20% profit zone from an entry of 178.94 cup with handle, so investors would be justified in taking profits ahead of the company’s first quarter results on Wednesday night.

CRM stock fell more than 6% on Thursday morning. On Wednesday evening, Salesforce reported April quarter earnings and revenue that beat analysts’ estimates as operating margins improved amid cost-cutting spurred by activist investors. Its revenue prospects are bordered only by views.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: Arista, ASML, Cloudflare, TSMC

Networking giant Arista Networks fell significantly below its buy point of 171.54 during Wednesday’s 4.6% decline, according to IBD MarketSmith Model Recognition. ANET shares gained 0.5% on Thursday morning.

IBD Leaderboard ASML stock remains just outside the buy range after a buy point of 683.28 in a cup with a handle despite falling 0.7% on Wednesday. The ASML fell slightly on Thursday morning.

Cybersecurity leader Cloudflare broke above a buy point of 66.30 in a double bottom on Wednesday. The shares closed in the 5% buy zone, which rises to 69.62. The NET stock fell 2.6% premarket on Thursday, heading for a synchronized decline after earnings from CrowdStrike and Okta.

Chip foundry Taiwan Semiconductor fell 3.3% on Wednesday, falling back into the buy range past the buy point of 95.92, a double bottom. The 5% buy zone extends up to 100.72. TSM stock rose slightly on Thursday morning.

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Best stocks to buy and watch during the stock market rally

These are the four best stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.

Company NameSymbolCorrect point of purchasePoint of purchase type
ASML (ASML)683.28Mug with handle
Selling power (RCMP)200.10Consolidation
Boeing (BA)221.43Flat bottom
Arista Networks (A NET)171.54cup bottom
Source: IBD data as of May 31, 2023

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rebounded 1.4% on Wednesday, closing in on the buy point of 207.89 by a cup base. The stock is above its 200-day long-term line for the first time since Sept. 21. Shares closed Wednesday 35% off their 52-week high.

TSLA stock threatened to give up some of Wednesday’s gains, falling more than 1% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares edged lower on Wednesday, snapping a four-day winning streak after hitting a new 52-week high at 179.35. The stock continues to hold well above a buy point of 157.48 and is outside the buy range that hit 165.35. AAPL stock rose 0.3% in premarket trading on Thursday.

Microsoft shares reversed from new highs, falling nearly 0.9% on Wednesday. They traded up to 335.94. Shares have reached the 20%-25% profit zone from a fixed base buy point of 276.86, so investors could take at least some profit here. On Thursday morning, MSFT stock was up 0.1%.

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


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