Dow Jones Futures Rally On Inflation Data; Apple Chipmaker Breaks Out On Earnings


The Dow Jones Industrial Average rallied Thursday after early jobless and inflation data. Apple chip supplier Taiwan Semi is breaking out past a buy point after reporting strong earnings ahead of the market open. And Delta Air Lines and KB Home climbed on earnings results.




X



Among the Dow Jones leaders, Apple (AAPL) rose 0.3% Thursday, hoping to add to a four-day advance. Microsoft (MSFT) was up 0.5% in today’s stock market. Also among the Dow 30, financial leaders Goldman Sachs (GS) and JPMorgan Chase (JPM) are near new buy points.

Electric-vehicle leader Tesla (TSLA) traded slightly higher Thursday. EV truck rival Rivian (RIVN) lost 1%. Lucid Group (LCID) was down 1% as well. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were lower.

Among Thursday’s top stocks to buy and watch, Applied Materials (AMAT), Commercial Metals (CMC), Diamondback Energy (FANG), SVB Financial (SIVB) are in or near new buy zones.

Microsoft and Tesla are IBD Leaderboard stocks. Applied Materials is an IBD SwingTrader stock. Commercial Metals and SVB Financial featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Jobless Claims, Inflation Data

After the stock market open Thursday, the Dow Jones Industrial Average moved up 0.3%, with Boeing (BA) clocking a 2.8% gain. The S&P 500 rose 0.2%. And the tech-heavy Nasdaq composite advanced 0.35%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.4% and the SPDR S&P 500 ETF (SPY) traded up 0.3% Thursday.

The 10-year Treasury yield ticked up above 1.73% Thursday morning. On Wednesday, the 10-year Treasury yield dropped for a second straight day, closing below 1.73%.

Early Thursday, the Labor Department said initial jobless claims unexpectedly rose to 230,000 vs. 207,000 in the prior week. First-time unemployment claims were estimated to fall to 205,000, per Econoday.

Meanwhile, the Producer Price Index rose 9.7% in December from a year ago, just below forecasts for a 9.8% jump. Month over month, December’s producer prices rose 0.2%, below the 0.4% Econoday estimate.

Next, Federal Reserve governor Lael Brainard — the White House’s pick for the No. 2 job at the Fed — will testify at her confirmation hearing at 10 a.m. ET. In prepared remarks, Brainard said reducing inflation will be the central bank’s top priority.

Stock Market Rally Rebounds

The stock market posted a lackluster performance Wednesday, as the major stock indexes ended sharply off their highs. The Nasdaq extended a win streak to three sessions, but remains below its key 50-day benchmark.

Wednesday’s The Big Picture commented: “On Wednesday, the Nasdaq rushed 1% higher before pulling back to settle for a 0.2% gain. While its action this week has been mostly encouraging, the index must first retake its 50-day moving average before even trying for gains this year.”

For more daily stock market commentary, check out IBD’s The Big Picture.


Five Best Dow Jones Stocks To Watch Now


Stock Market Earnings: Delta, KB Home, TSMC

Real estate developer KB Home reported late Wednesday, topping profit estimates, but falling short of revenue targets. KBH stock jumped 10% in morning trade. Shares are set to reclaim their 50- and 200-day moving averages.

Delta Air Lines (DAL) reported fourth-quarter results early Thursday, as shares moved up around 1%. The stock ended Wednesday above its 50-day line, but below its 200-day average.

Chip foundry Taiwan Semiconductor Manufacturing (TSM) climbed more than 7% after reporting strong earnings results early Thursday. TSM stock is set to break out past a saucer-with-handle base’s 135.60 buy point at the market open if the gains persist.

Prior to its Tuesday morning earnings report, TSM stock kicked off this week with a strong December sales report on Monday, posting a 32% increase vs. the same month in 2020. The manufacturer supplies chips to Apple and Qualcomm (QCOM), among others.

Dow Jones Stocks To Buy And Watch: Goldman Sachs, JPMorgan

Dow Jones stock Goldman Sachs tumbled more than 3% Wednesday, giving up its critical 50-day line. Shares continue to trace a cup-with-handle base with a 412.76 buy point, according to IBD MarketSmith chart analysis, but Wednesday’s losses were a setback. Shares were up 1% Thursday.

JPMorgan shows a 173.06 buy point in a cup base. The stock regained support at its 50-day line in a 5.6% rally last week. JPM stock is just 3% away from the new buy point amid a five-day win streak. Shares rose 0.3% Thursday.


Three Top Growth Stocks To Watch In The Current Stock Market Rally


Stocks To Buy And Watch: Applied Materials, Commercial Metals, Diamondback, SVB Financial

IBD SwingTrader stock Applied Materials bullishly regained its 159.10 entry in a flat base, placing the chip leader back in a buy range. Shares rallied 4% Thursday.

IBD 50 stock Commercial Metals moved back above a 36.96 buy point from a cup base, according to IBD MarketSmith chart analysis, after Wednesday’s 2.8% rise. Shares were up 1.5% Thursday.

Oil producer Diamondback Energy moved further out of buy range past a 117.81 buy point, following Wednesday’s 0.2% gain. The 5% buy area topped out at 123.70. Bullishly, the stock’s RS line hit a new high on the breakout day, boosting the energy stock’s cred as a potential market leader. Diamondback stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares were down 0.3% Thursday.

SVB Financial is tracing a cup base with a 763.32 buy point. Look for a potential handle to offer a more risk-optimal buy point. Shares advanced 0.6% Wednesday, finishing about 3% away from the new buy point. Shares were up 0.4% Thursday.


Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live


EV Stocks: Li Auto, Xpeng, Lucid Motors, Rivian

Li Auto stock added to Tuesday’s advance, rising 3.15% Wednesday. The stock is moving up the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares fell 0.1% Thursday.

Xpeng Motors regained its 50-day line during Wednesday’s 5.7% advance. Shares were fashioning a cup with handle, but that formation is gone now. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares lost 0.4% Thursday.

Among U.S.-based EV stocks, Lucid Motors shares dropped around 1% Thursday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock is moving up the right side of a new base after regaining their 50-day line during Tuesday’s 9% surge.

EV-truck maker and recent initial public offering Rivian moved down 1% Thursday, on pace to give back a part of Wednesday’s 3.5% rally. RIVN shares closed Wednesday more than 50% off their post-IPO highs. Continue to wait for an IPO base to form before considering a purchase. Recent sharp losses are a significant setback in the stock’s basing process and there is no new buy point in sight with the stock coming off all-time lows.

Tesla Stock

Tesla stock traded up 0.1% Thursday, looking to extend a win streak to four sessions. Shares moved back above their 50-day moving average Wednesday, a bullish development for the stock’s base-building progress. Last week, the EV leader gave up its critical 50-day moving average line and triggered the 7%-8% loss-cutting sell rule from a 1,119.10 trend line buy point.

Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 11% off that 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rallied 0.3% Wednesday, giving it four straight up sessions. Shares are about 15% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.3% Thursday.

Software leader Microsoft rose 1.05% Wednesday, extending its win streak to four sessions. The top Dow Jones stock continues to etch a flat base with a 349.77 buy point, but the stock clearly has more work to do before a potential breakout. Shares were up 0.5% Thursday.

Be sure to follow Scott Lehtonen on 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





Source link