Dow Jones Rallies 175 Points After Key Inflation Data; Palantir Dives On Downgrade

The Dow Jones Industrial Average rose 175 points Thursday in the final trading session of August. Meanwhile, key inflation data was released, including the Fed’s favorite inflation indicator. Palantir Technologies (PLTR) dived on an analyst downgrade.


Early Thursday, the Labor Department released its personal income and outlays report for July. Personal income rose 0.3% on month, in line with estimates. Personal consumption expenditures rose 0.5%, less than the expected 0.6%.

The PCE price index — seen by the Fed as a key metric on inflation — climbed 0.2% on the month, matching estimates, with an annual 3.3% increase that also met views. Finally, the core PCE price index was up 0.2%, giving it a gain of 4.2%, year over year. Both numbers met Wall Street’s predictions.

Also, the Labor Department’s initial jobless claims fell to 228,000 vs. 238,000 in the previous week. The monthly job cuts report from Challenger, Gray & Christmas showed employers announced 75,151 layoffs in August. That was a 217% increase over June and a 267% jump vs. year-ago levels.

Thursday morning, Salesforce (CRM), along with CrowdStrike (CRWD), Dollar General (DG), Okta (OKTA) and Veeva Systems (VEEV), were key earnings movers.

CRM stock surged 6% after the company reported July-quarter earnings and revenue that topped estimates. Other key metrics came in above expectations.

CrowdStrike shares rose 5.1% in early trade, while OKTA stock jumped more than 8%. DG stock plunged 18%, and Veeva stock was up 3.5% in morning trade.

Stock Market Today

Palantir dived more than 7% after Morgan Stanley downgraded the stock from equal-weight to underweight, with a 8 price target.

Electric-vehicle giant Tesla (TSLA) traded up 0.1% Thursday, while Nvidia (NVDA) rose 0.5%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) were modestly higher after today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and Meta Platforms (META). GOOGL stock gained 0.3% while Meta shares rose 0.7% in early action.

Baker Hughes (BKR), Cadence Design Systems (CDNS), Synopsys (SNPS) and Tidewater (TDW) — as well as Dow Jones stocks IBM (IBM), Merck (MRK) and Visa (V) — are among the best stocks to watch in the ongoing stock market rebound.

Baker Hughes is an IBD Leaderboard watchlist stock. Merck is featured in this Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.5%, with Salesforce pulling hard to the upside. The S&P 500 gained 0.2%. Okta was a top tech advancer as the tech-heavy Nasdaq composite moved up 0.3% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.3%, while the SPDR S&P 500 ETF (SPY) traded up 0.2% early Thursday.

Early action also showed the 10-year U.S. Treasury yield easing to 4.10% after Thursday’s inflation data, after Wednesday’s drop to 4.11%.

West Texas Intermediate oil prices extended the week’s gains, after ending the past five weeks above $80 a barrel. WTI futures traded up around 1% Thursday morning, above $82 a barrel.

Stock Market Trend

On Wednesday, the Dow Jones Industrial Average added 0.1%, while the S&P 500 rose 0.4%. And the Nasdaq composite climbed 0.5%, rising for a fourth straight session.

Wednesday’s Big Picture column commented, “That test comes in the form of fresh data on U.S. inflation. Namely, the PCE (personal consumption expenditures) price index, a favorite of the Federal Reserve, hits the wires before the market opens Thursday.”

Now is an important time to read IBD’s The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year’s highs.

Five Best Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks: IBM, Merck, Visa

Dow Jones leader IBM is trying to break out past a cup-with-handle’s 146.50 buy point, with a 0.3% rise Wednesday. IBM stock rose 0.4% Thursday.

Drug giant Merck fought to stay above its 50-day line with a 1% rise on Wednesday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares inched lower early Thursday.

And Dow Jones payments leader Visa is breaking out past its latest entry, a flat base’s 245.37 buy point, according to IBD MarketSmith pattern recognition. V stock gained 0.1% Thursday.

4 Top Growth Stocks To Buy And Watch In The Stock Market Rally

Stocks To Watch: Baker, Cadence, Synopsys, Tidewater

Oil field services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock moved down 0.3% in early morning trade.

Cadence Design Systems is in a flat base with a 248.16 buy point. Shares moved above an early entry at 237.91 on Wednesday CDNS was up 0.2% Thursday.

Tuesday’s IBD 50 Stocks To Watch pick, Synopsys, is trading in a flat base with a 468.03 entry. Meanwhile, an extra entry at 456.82 is also in play. SNPS stock gained 0.4% Thursday.

IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was up 1.6% early Thursday.

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Best Stocks In 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
Oracle (ORCL) 127.54 Flat base
Visa (V) 235.57 Flat base
SLB (SLB) 58.70 Cup with handle
Synopsys (SNPS) 468.03 Flat base
Source: IBD Data As Of Aug. 30, 2023

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Tesla Stock

Tesla stock dipped 0.1% Wednesday, snapping a three-day win streak. Amid their recent rebound, shares are trying to regain their 50-day line. A decisive retake of the moving average would be bullish for the stock’s base-building prospects.

Early Thursday, Tesla stock looked to bounce back from Wednesday’s losses, rising 0.1%.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock climbed 1.9% Wednesday, retaking its key 50-day line in bullish fashion. AAPL stock is building a flat base with a 198.23 buy point. AAPL stock rose 0.3% early Thursday.

Microsoft shares are also rebounding from their recent lows, but the stock remains below its 50-day line. And on Thursday morning, the stock moved up 0.5%.

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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