October 4, 2023

Dow Jones Rises on Unemployment Claims, Cool PPI Inflation Data; Cathie Wood sells Tesla stock

The Dow Jones Industrial Average rose Thursday after another round of cool inflation data as producer price increases moderated in June and jobless claims fell unexpectedly. Meanwhile, Cathie Wood’s Ark Invest ETFs sold about $5.7 million worth of Tesla stock on Wednesday.


The Producer Price Index, a measure of prices received for goods and services, showed that total prices, as well as core producer prices, both rose 0.1%, below the 0.2% estimate. Producer prices rose 0.1% year-on-year, lower than the expected 0.5% year-on-year increase, with core inflation at 2.4% year-on-year, below the 2.8% estimate.

Elsewhere, initial jobless claims fell unexpectedly to 237,000 from 248,000 in the previous week. They were expected to rise to 249,000.

Furthermore, electric vehicles giant Tesla (TSLA) climbed 0.8% even after Cathie Wood’s Ark Invest ETFs sold more than 20,000 shares worth about $5.7 million on Wednesday.

In terms of revenue, Delta Airlines (VALLEY), Confirmation (Fast and PepsiCo (PEP) reported early Thursday.

Shares of Delta rose more than 3% after better-than-expected second-quarter results. FAST shares fell 2.5% in the morning action. And PepsiCo shares rose 1.1% after the company beat estimates and raised its outlook.

Earnings reports from major banks mark the official start of the season on Friday JPMorgan Chase (J.P.M.), Citi group (C) and Wells Fargo (WFC) due to report.

Fair today

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were squarely higher after today’s stock market open.

Other stock market leaders include Alphabet (GOOGL) and Meta platforms (META). GOOGL shares gained 1.7%, while Meta shares rose 1.2% in early trading. Meta-stocks were upgraded at TD Cowen from market underperforming to outperforming.

Dynatrace (DT), meta platforms, Monolithic energy systems (MPWR) and Nvidia (NVDA) — as well as Dow Jones stock American Express (AXP), Caterpillar (CAT) and Sales team (CRM) – are among the best stocks to watch in the current stock market downturn.

Tesla is an IBD Leaderboard stock, while American Express was seen in this column Stocks near a buy zone. Dynatrace was a recent choice for IBD Stock Of The Day.

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Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 gained 0.55%. The tech-heavy Nasdaq composite climbed 0.9% in morning action.

Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.8%, while the SPDR S&P 500 ETF (SPY) was up 0.5% early Thursday.

The 10-year US Treasury yield continued to fall to 3.81%, following the PPI inflation data. The return came in at 3.86% on Wednesday.

Oil prices appeared to extend Wednesday’s gains, with West Texas Intermediate slightly higher Thursday morning. WTI futures traded just below $76 a barrel. OPEC expects strong growth in oil demand from Asian economies next year.

Stock market action

On Wednesday, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite climbed 1.15%.

Wednesday’s Big Picture column noted, “Investors on Wednesday not only witnessed more evidence that a follow-up day on March 29 — as highlighted by IBD’s Big Picture column that same day — proved that institutions have put more money into stocks. They also saw rallies in government bonds and commodities as well.”

Now is an important time to read IBD’s The Big Picture column as the stock market is at this year’s highs.

Five best Dow Jones stocks to buy and watch right now

Dow Jones stocks to watch: American Express, Caterpillar, Salesforce

American Express is trying to break out past the 177.04 buy point of a handle cup. Stocks briefly stood above the buy trigger on Wednesday before closing below it. AXP shares rose 0.8% on Thursday morning.

According to IBD MarketSmith pattern recognition, industrial giant Caterpillar is in buy range past a buy point of 250.89 in a handle cup. CAT shares moved up early Thursday.

Salesforce rebounded decisively from its 50-day line on Wednesday and entered new buying territory. Shares then broke out past the 225 buy point from a flat base, according to the IBD Leaderboard’s analysis, during Wednesday’s 2.8% gain. CRM shares added 0.6% Thursday morning.

4 Top Growth Stocks to Buy and Watch in the Stock market rally

Best stocks to buy and watch: Dynatrace, Meta, Monolithic Power, Nvidia

Software maker Dynatrace remains above a three-week tight chart pattern of 52.99 despite Wednesday’s 1.6% drop. Tight action represents a short consolidation in which institutional investors pause their buying. Shares are in the 5% buy territory rising to 55.64, according to IBD MarketSmith chart analysis. DT shares were up 1.3% on Thursday morning.

Facebook parent company Meta Platforms has been solidly consolidating over the past three weeks and has posted a new listing at 298.12. Now that the stock has expanded this far from the previous base, this buy point should be used as an add-on. Meta shares added 1.2% on Thursday.

Chip leader Monolithic Power broke out on Wednesday, rising 3.4% to close above a buy point of 553.64 in a flat base. Shares are in the buy territory going up to 581.32. MPWR shares gained 0.9% on Thursday.

After the May 25 earnings-fueled gap-up, Nvidia shares have moved consistently higher. Amid a pullback since June 20, the stock is once again offering an opportunity to buy shares. It formed a trendline entry at 418 after the stock found support near its 21-day exponential moving average. Nvidia is an IBD Leaderboard stock. Nvidia shares rose 1.9% Thursday morning.

Learn how to time the market with IBD’s ETF market strategy

Best stocks to buy and watch in stock market rally

Here are the top four stocks to buy and watch in the current stock market, including a Dow Jones leader.

Company Name Symbol Correct point of sale Point of sale type
ASML (ASML) 683.18 Cup with handle
Sales team (CRM) 200.00 Consolidation
Cloud Flame (NET) 66.20 Double bottom
Roku (ROKU) 75.45 Cup with handle
Source: IBD data as of July 10, 2023

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

Tesla stock

Tesla’s IBD Leaderboard share added 0.8% on Wednesday. Despite the recent declines, Tesla shares remain well out of the buy range past the double bottom buy point of 207.79 and near their 2023 highs.

TSLA shares appeared to be contributing to Wednesday’s gains, rising 0.8% on Thursday. Tesla plans to release second quarter results on July 19.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock rallied 0.9% on Wednesday, ending a three-day losing streak. AAPL shares remain sharply above a buy point of 157.38. Early Thursday, shares gained 0.2% in the morning action.

Microsoft shares found support at their 50-day line on Wednesday, rising 1.4% to place the stock in new buying territory. And on Thursday morning, Microsoft shares were up 0.9%.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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