Dow Jones futures rebounded by more than 200 points Thursday from a sharp stock market sell-off, as Wall Street reacted to a GDP report along with unemployment data. Meanwhile, it was reported that famed investor Cathie Wood bought more than 110,000 shares of Tesla stock.
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Ahead of Thursday’s opening bell, Dow Jones futures bounced 0.6% vs. fair value, while S&P 500 futures gained 0.7%. Tech-heavy Nasdaq 100 futures rebounded 1% in early morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 1%, while the SPDR S&P 500 ETF (SPY) rose 0.7% early Thursday.
The yield on the 10-year U.S. Treasury bond dropped to 3.84% in morning trading. On Wednesday, the benchmark drifted lower to 3.87%, just off its lowest level since late July.
Oil prices snapped their five-day rebound Wednesday, with a big downside reversal. West Texas Intermediate futures fell 1.8% Thursday morning, as WTI moved below $73 a barrel. Last week, WTI hit its lowest level since late June before bouncing.
GDP, Jobless Claims
Early Thursday, the Commerce Department’s third estimate of third-quarter GDP slowed to 4.9%. It was expected to remain unrevised at 5.2% growth.
Meanwhile, the Labor Department said that first-time jobless claims rose to 205,000 from 202,000 the week before, below Econoday estimates for 210,000 new claims.
Cathie Wood’s Ark Innovation ETF (ARKK) bought 93,965 shares of Tesla (TSLA) stock Wednesday, valued around $23 million using Wednesday’s closing price, according to daily trade disclosures. The purchases take Tesla stock back to a No. 2 holding in the portfolio, with a 7.6% weighting.
Further, Wood’s Ark Next Generation Internet ETF (ARKW) bought more than 17,000 shares of Tesla stock.
Memory-chip maker Micron Technology (MU) beat expectations for its fiscal first quarter and came in ahead of views with its outlook for the current period. MU stock jumped more than 5% in premarket trading.
Other key earnings movers include CarMax (KMX), Carnival (CCL) and Paychex (PAYX). CarMax stock surged 6%, while Carnival shares rose more than 1% in premarket trading. PAYX stock dropped around 2%.
Finally, late Thursday, Dow Jones stock Nike (NKE) is set to report its quarterly earnings results.
Dow Jones, Nasdaq Sell Off
On Wednesday, the S&P 500 wasted an early 0.2% gain and fell 1.5%, matching the Nasdaq composite’s decline. The Dow Jones Industrial Average sold off 1.3%.
Wednesday’s Big Picture column commented, “Certainly, technical reasons for the sell-off seem to be the chief reason for Wednesday’s move. As noted during Tuesday’s IBD Live show, the S&P 500 on Tuesday had gotten more than 7% above its 50-day moving average. Even during a strong uptrend, a substantial rise above this key intermediate-term technical level has shown to presage a pullback at the minimum.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market gains. Be sure to read how to invest during the ongoing uptrend.
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Best Stocks To Buy And Watch
IBD Leaderboard stock Datadog (DDOG), Monday.com (MNDY), IBD SwingTrader issue Netflix (NFLX) and Snowflake (SNOW) — along with Dow Jones stocks American Express (AXP), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.
Datadog and ELF Beauty are featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: CAT Eyes Buy Point
Financial leader American Express is back in buy range past a 175.31 buy point in a cup with handle, after a 2.75% decline Wednesday. AXP stock rose 0.8% early Thursday.
Heavy machinery giant Caterpillar is trying to break out past a 293.88 buy trigger, but closed below the entry during a 1.1% drop Wednesday. CAT stock moved up 0.8% Thursday morning.
Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock added 0.4% Thursday.
4 Top Growth Stocks To Watch In The Stock Market Rally
NFLX Extends Gains
IBD SwingTrader stock Netflix now ranks among the best stocks to buy and watch even though it dropped 1.2% Wednesday. The streaming giant broke out past a 482.70 buy point in a cup with handle on Monday. NFLX stock added 0.8% Thursday morning.
IBD Leaderboard stock Datadog is breaking out past an alternate handle buy trigger at 120.26 after big gains in recent weeks. DDOG stock climbed 1.5% Thursday.
Monday.com is holding just above a 185.81 buy point in a cup with handle in the wake of the Dec. 14 breakout, according to IBD MarketSmith. MNDY stock gained nearly 2% Thursday.
Artificial intelligence leader Snowflake is in buy range past a cup-with-handle’s 192.66 buy point. SNOW stock rose 1.5% Thursday, about 2% above the buy trigger.
Best Bets In Today’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Applied Materials | (AMAT) | 145.86 | Alternate entry |
| Caterpillar | (CAT) | 293.88 | Cup base |
| Netflix | (NFLX) | 482.70 | Cup with handle |
| Snowflake | (SNOW) | 192.66 | Cup with handle |
Source: IBD Data As Of Dec. 20, 2023
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Magnificent Seven: Nvidia, Tesla
Among the so-called “Magnificent Seven” stocks, Tesla bounced 1.8% early Thursday, while Nvidia (NVDA) rose 1.6%.
Graphics-chip giant Nvidia lost 3% Wednesday, falling for a second-straight session. NVDA stock is still in a buy zone above a 476.09 double-bottom entry.
Tesla stock skidded 3.9% Wednesday, closing back below an early entry at 252.75. The stock’s big double-bottom pattern has a 278.98 buy point.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT), traded higher ahead of today’s stock market open.
Apple stock moved down 1.1% Wednesday, as its breakout move continued to falter. Shares are barely above a cup-with-handle entry at 192.93. Apple shares were up 0.7% Thursday.
Microsoft stock dropped 0.7% to snap a three-day win streak Wednesday. Shares remain above a 366.78 cup-base buy point. And the software giant was up 0.6% Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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