Dow Jones futures rose Thursday morning after initial unemployment claims and GDP data. Meanwhile, CarMax (KMX) dived on weak earnings results.
The Labor Department’s first-time jobless claims rose less than expected, up to 204,000 vs. 201,000 in the previous week. They were expected to rise to 211,000.
Meanwhile, the third estimate of second-quarter GDP held steady at 2.1%. It was expected to rise to 2.3% vs. the 2.1% in the second estimate. Personal consumption expenditures rose 0.8%, lower than the 1.7% estimate.
Key earnings reports overnight include Micron Technologies (MU), CarMax, Jabil (JBL) and Jefferies (JEF).
Micron slid nearly 4% after the company reported fiscal fourth-quarter profit and revenue that topped analyst estimates. But the company’s outlook came in mixed as pricing slowly stabilizes.
CarMax plunged more than 12% on Q2 earnings results. Jabil stock jumped 3%, while Jefferies shares sold off 3.6% in premarket trade.
Stock Market Today
Software maker Workday (WDAY) tumbled 10% after the company lowered its outlook for subscription revenue growth through fiscal 2027 at an analyst day on Wednesday.
Electric-vehicle giant Tesla (TSLA) traded down 0.6% Thursday morning, while Nvidia (NVDA) fell 0.4%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) both dropped ahead of today’s stock market open.
Airbnb (ABNB), DraftKings (DKNG), IBD Leaderboard stock Meta Platforms (META) and Uber Technologies (UBER) — as well as Dow Jones stocks Amgen (AMGN) and Caterpillar (CAT) — are among the stocks to watch in the ongoing stock market correction.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Thursday’s opening bell, Dow Jones futures rose 0.15% vs. fair value, while S&P 500 futures gained 0.1%. Tech-heavy Nasdaq 100 futures moved down 0.1% vs. fair value.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.2%, while the SPDR S&P 500 ETF (SPY) moved up 0.3% early Thursday.
Early action also showed the 10-year U.S. Treasury yield falling to 4.61%, pausing after more new long-term highs Wednesday.
Oil prices paused Thursday morning after Wednesday’s sharp gains. West Texas Intermediate futures traded at $93 a barrel.
Check Out IBD MarketSmith’s Extended Access Offer: 4 Weeks For $24.95
Stock Market Correction
On Wednesday, the Dow Jones Industrial Average dropped 0.2%, while the S&P 500 was nearly flat. The tech-heavy Nasdaq composite rose 0.2%.
Wednesday’s Big Picture column commented, “Clearly, the stock market is relaying this message: While all stocks carry a higher risk of immediate losses, the case is even more bearish among smaller companies. Considering investors’ fear about the economy after the Federal Reserve hoisted short-term interest rates from a 0%-0.25% target range in early 2022 to 5.25%-5.5% now, the stock market seems to be thinking logically.”
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 ongoing stock market weakness and prepare for a new uptrend.
IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen finished Wednesday just above a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition. Shares inched higher Thursday morning.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock rose 1.2% Wednesday, setting up for a potential retake of the 50-day line. Shares gained 0.1% Thursday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Airbnb, DraftKings, Meta, Uber
Recent IBD Stock Of The Day Airbnb continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock remains below its 50-day line amid Wednesday’s 1.3% rise. Airbnb shares lost a fraction Thursday morning.
DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch, after two straight days of solid gains. DKNG stock dipped early Thursday.
IBD Leaderboard stock and social media giant Meta Platforms is tracing a base with 326.20 buy point. A handle appears to show a 312.87 buy point, but it is slightly in the lower half of the pattern. Meta stock cut losses to 0.4% Wednesday. Shares edged lower in premarket trading.
Uber Technologies continues to consolidate below its 50-day line, rising 2% Wednesday. Uber is forming a flat base with a 49.49 entry. Shares ticked up 0.1% Thursday.
Learn How To Time The Market With IBD’s ETF Market Strategy
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)||143.63||Flat base|
|DraftKings||(DKNG)||32.65||Cup with handle|
Source: IBD Data As Of Sept. 25, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock moved down 1.5% Wednesday, still significantly below its 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 14% away from that entry.
With Tesla likely to report its third-quarter deliveries on Monday, Wall Street is now predicting the number will lag the EV giant’s record-setting 466,140 vehicles in the second quarter. Until recently, analysts had forecast Tesla’s third-quarter deliveries would outpace Q2.
On Thursday morning, TSLA stock fell 0.6%, threatening to add to Wednesday’s losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple declined another 0.9% Wednesday, hitting a nearly five-month low. Shares are sharply below their 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares dropped 0.4% Thursday morning.
Microsoft shares reversed 0.2% higher Wednesday after hitting a recent low during the session. And on Thursday morning, the stock fell 0.6% in early trades.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks