Dow Jones futures fell 275 points on Thursday morning after a strong monthly jobs report from ADP. Cathie Wood’s Ark Invest ETFs sold more Tesla shares, while buying Metaplatforms (META) shares.
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A flood of economic data came out on Thursday. First, ADP’s June national jobs report jumped to 497,000 against estimates for a fall to 235,000 from 278,000 in May. The ADP report offers a preview of Friday’s June payroll report from the Department of Labor.
Then, initial claims for unemployment assistance from the Labor Department rose to 248,000 from 239,000 the previous week.
The S&P Global Services Purchasing Managers’ Index (PMI), released at 9:45 a.m., is expected at 54.1, unchanged from the mid-month estimate. In addition, the Institute for Supply Management’s June services index is expected to climb to 50.8 from 50.3 in May.
Finally, the Labor Department’s JOLTS report is expected to show job postings fell to 9.9 million in May from 10.103 million in April.
Stock market today: Cathie Wood buys Meta shares
Electric vehicle giant You’re here (TSLA) was down 0.5% on Thursday morning as Cathie Wood’s Ark Invest ETFs sold nearly $8 million off the Elon Musk-led company according to Ark’s daily trading update.
Meanwhile, META stock rose 2%, as Cathie Wood bought around $1.6 million in shares of the social media giant on Wednesday. On Wednesday night, Meta launched a Twitter rival called Threads.
Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Chipotle Mexican Grill (GCM), Dynatrace (DT), MongoDB (MDB), Research (LRCX) and Nvidia (NVDA) – as well as Dow Jones stocks JPMorgan Chase (JMP), Visa (V) and Selling power (CRM) – are among the best stocks to watch in the continued rise of the stock market.
Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while Nvidia was listed in the Stocks Near A Buy Zone column this week. Dynatrace was a recent IBD Stock of the Day.
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Dow Jones Today: Oil Price, Treasury Yields
Heading into Thursday’s opening bell, Dow Jones futures fell 0.8% from fair value. S&P 500 futures fell 0.9%, while Nasdaq 100 futures fell 1.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1%, while the SPDR S&P 500 ETF (SPY) lost 0.9% early Thursday.
The yield on the 10-year US Treasury rose to 4.04% as it topped its recent highs, set in late May. The yield stabilized on Monday at 3.94%.
Oil prices remained slightly higher on Thursday morning after strong gains on Wednesday. West Texas Intermediate futures rose about 0.5% to over $72 a barrel.
Market share
Major indices were quiet again on Wednesday. The S&P 500 and the Nasdaq composite each slipped about 0.2%. The Nasdaq 100, which represents some of the largest stocks in the composite, was nearly flat.
The Dow Jones Industrial Average fell 0.4%. American Express (AXP) closed near the 177.04 buy point of a cup base with handle.
Wednesday’s Big Picture column commented: “The Russell 2000 fell 1.3% and appears to be reaching resistance around the 1900 level. Wednesday’s loss ended a six-day winning streak for the index. The longest small-cap benchmark since January.The strength of the Russell has helped the stock market widen its lead, so a further decline in the index could affect the breadth of the market.
Now is an important time to read IBD’s The Big Picture column as the stock market continues near this year’s highs.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Salesforce, Visa
Dow Jones banking leader JPMorgan remains above a fixed base buy point of 143.37 despite Wednesday’s decline. The 5% buy zone rises to 150.54. JPM stock fell 0.4% on Thursday morning.
Salesforce managed to stabilize after falling after earnings. It is now testing the support at the 50 day line and a decisive bounce would create a new buying opportunity. Tech megacap previously topped a pair of alternative entries at 194.01 and 200.10, according to IBD Leaderboard analysis.
Over the past few weeks, shares have reached the 20% profit zone from an entry of 178.94 cup with handle. CRM stock fell 0.5% on Thursday morning.
Payments leader Visa closed above the buy point of 235.57 on a flat basis on Wednesday, with a gain of 0.6%. The buy range peaks at 247.35. V stock fell 0.3% early Thursday.
4 best growth stocks to buy and watch in the market Stock market rally
Best stocks to buy and watch: Chipotle, Dynatrace, MongoDB, Lam Research, Nvidia
The IBD Leaderboard Chipotle watchlist stock is trying to break above the buy point of 2,139.88 from the flat base, according to IBD MarketSmith pattern recognition. Early entry at 2,092.51 was also available due to a trendline. Chipotle was a recent IBD Stock of the Day. CMG stock fell a fraction on Thursday morning.
Software maker Dynatrace formed a tight three-week chart pattern, representing a brief consolidation in which institutional investors paused their buying. The shares are around 3% off their last entry at 52.99. DT stock was up 0.8% on Thursday morning.
IBD SwingTrader Lam Research stock broke an early buy point of 615.80 and a tight three-week setup with an entry of 630.72 on last week’s gains. LRCX stock traded down 0.8% early Thursday.
MongoDB traded tight after its recent earnings-fueled jump, which offered fresh entry. Stocks are above the tight three-week formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386. MDB stock fell 0.4% Thursday morning.
After its May 25 earnings-fueled gap, Nvidia shares have been trending steadily higher. Amid a pullback since June 20, the stock offers a fresh opportunity to buy stocks. It formed a trendline entry at 418 after the stock found support at its 21-day exponential moving average. Nvidia is an IBD rating stock. Shares fell slightly on Thursday.
Learn to Time the Market with IBD’s ETF Market Strategy
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 a leader in the Dow Jones.
| Company Name | Symbol | Correct point of purchase | Point of purchase type |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Mug with handle |
| Selling power | (RCMP) | 200.00 | Consolidation |
| Cloudy | (NET) | 66.20 | Double bottom |
| Roku | (ROKU) | 75.45 | Mug with handle |
Source: IBD data as of July 5, 2023
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard Tesla stock extended its winning streak to six sessions on Monday, rising 0.95%. Amid recent gains, Tesla shares remain well out of the buy range beyond the 207.79 double-bottom buy point.
TSLA stock threatened to give up some of Wednesday’s gains, falling 0.5% on Thursday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock continued to slip away from Friday’s high at 194.48, down 0.6% on Wednesday. Stocks continue to hold strong above a buy point of 157.38. Early Thursday, shares were down 0.6% in morning action.
Microsoft shares edged higher on Wednesday, holding about 4% off their all-time high on June 16 at 351.47.
Over the past few weeks, the stock has reached the 20%-25% profit zone from a fixed base buy point of 276.76, so investors could have taken at least some profit there. . And on Thursday morning, Microsoft shares were up 0.7%.
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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