The Dow Jones Industrial Average rallied Thursday after Wednesday’s stock market rebound fizzled. Tech giant Meta Platforms (FB) soared more than 18%. Meanwhile, PayPal (PYPL), Qualcomm (QCOM) and Twitter (TWTR) were key earnings movers early Thursday. Apple earnings are due after the close.
Dow Jones stocks Caterpillar (CAT) and McDonald’s (MCD) reported earnings ahead of Thursday’s market open. Fellow Dow stock Amgen (AMGN) filed its earnings report late Wednesday.
Stock Market Today: Facebook Soars
Facebook-parent Meta Platforms reported better-than-expected first-quarter earnings results late Wednesday, but fell short on revenue. FB shares soared more than 18% in morning trade.
PayPal met Wall Street earnings and sales targets, sparking a 4.5% climb in early morning trade. Qualcomm crushed Wall Street views for its fiscal second quarter and guided higher for the current period. QCOM shares jumped around 8%.
Twitter reported its quarterly results, sending shares about 1% higher Thursday morning. And electric-vehicle giant Tesla (TSLA) rallied around 1% Thursday morning.
Among the Dow Jones leaders, Apple (AAPL) rose more than 2% ahead of its earnings report, and Microsoft was up 0.7% in today’s stock market.
Amid a new stock market correction, Dow Jones leader American Express (AXP) – along with Expedia (EXPE), Palo Alto Networks (PANW) and IBD Leaderboard watchlist stock World Wrestling Entertainment (WWE) – are among Thursday’s top stocks to watch.
Microsoft and Tesla are IBD Leaderboard stocks. Expedia and Palo Alto Networks were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After Thursday’s open, the Dow Jones Industrial Average advanced 0.6%. Meanwhile, the S&P 500 rose 1.3% and the Nasdaq jumped 1.9%. The S&P 500 and the Nasdaq Composite are each sitting on three consecutive weekly losses.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.9%. The SPDR S&P 500 ETF (SPY) moved up 1.3%.
The 10-year Treasury yield advanced to 2.85% Thursday, after closing Wednesday at 2.81%. Last week, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, US oil prices eased lower, with Texas Intermediate crude trading below $ 102 a barrel.
US GDP and weekly jobless claims came out at 8:30 am ET. First-quarter GDP unexpectedly declined 1.4% in the first quarter vs. fourth-quarter growth of 6.9%. Meanwhile, initial unemployment claims fell to 180,000 vs. 184,000 in the prior week.
Stock Market Correction
On Wednesday, the major stock indexes gave up solid gains to finish mixed and well off their intraday highs.
What happens next is unclear. As the market heads into the final sessions of April, a rebound could launch another new rally attempt. But with all three major indexes eyeing losses that would deepen the stock market correction, investors should be on the defensive.
That means take profits and raise cash. Also, keep a watchlist of stocks holding up well in a down market is a good way to prepare for the next stock market uptrend.
Searching for the next uptrend’s leaders while the market is still correcting is a challenge. One helpful method is to use a stock’s relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.
Wednesday’s The Big Picture column commented, “The S&P 500 ended up surrendering the bulk of its gains, though it closed up 0.2%. The fact it failed to defend the 4,200 level was disappointing, given that it spent the bulk of the day above it “The S&P sectors closed mixed, with materials and energy the biggest winners. Communication services was by far the worst laggard.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Earnings: Amgen, Caterpillar, McDonald’s
Dow Jones stocks Caterpillar and McDonald’s reported earnings ahead of Thursday’s open. Amgen reported late Wednesday.
Caterpillar topped first-quarter earnings and sales targets, but shares still fell nearly 4% in morning trade. CAT shares are trying to find support around their 50-day line following a failed breakout move past a 227.15 buy point.
McDonald’s stock rallied around 1% after reporting better-than-expected first-quarter results. Shares are building the right side of a new base, but closed Wednesday below their 200-day line.
Amgen reported strong first-quarter results, but weak guidance sent shares tumbling more than 5%. Amgen shares are tracing a cup with handle that has a 258.55 buy point.
Dow Jones Stocks To Watch: American Express
Dow Jones financial stock American Express finished Wednesday farther below their 50-day line and about 8% away from a cup with handle’s 194.45 buy point after Wednesday’s 0.6% fall. AXP shares rose 1.2% Thursday morning.
Keep an eye on the stock’s relative strength line. Amid its recent rise, the RS line is starting to move closer to its old highs, meaning it is again outperforming the broad market.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Expedia, Palo Alto, WWE
Thursday’s IBD Stock Of The Day, Expedia, continues to build a cup with handle with a 204.08 buy point, according to IBD MarketSmith chart analysis. Shares remain below their 50-day line after Wednesday’s 2.2% rise. EXPE stock shows a 92 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares traded up 0.9% Thursday morning.
Top cybersecurity stock Palo Alto Networks closed right at the 50-day line after two straight days of losses. PANW stock rose almost 1% early Thursday.
IBD Leaderboard watchlist stock World Wrestling Entertainment is also testing its 50-day moving average, falling 1.7% Wednesday. Shares are just below a 60.94 buy point in a cup with handle. WWE stock was slightly lower Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock rallied more than 1% Thursday morning after the stock broke down through its 50- and 200-day moving averages during Tuesday’s 12.2% dive.
Shares of the EV giant finished Wednesday about 24% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4 and is about 30% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares gave up support at its long-term 200-day line, sliding 3.7% Wednesday. Shares rose more than 2% Thursday morning. Apple earnings are due out after the close. The iPhone maker is expected to earn $ 1.42 per share on sales of $ 94 billion.
Software leader Microsoft jumped nearly 5% Wednesday, but is still below its 50- and 200-day lines. The stock closed about 20% off its 52-week high. MSFT shares rallied 0.7% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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