The Dow Jones Industrial Average sold 600 points on Thursday after another inflation report was released before the market opened. The main profit generators were the banking giants JPMorgan Chase (JPM) and Morgan Stanley (MS), along with Taiwan Semiconductor Manufacturing (TSM).
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Shares of JPMorgan and Morgan Stanley fell at the start of trading after weaker-than-expected results. Shares of chip maker TSMC rose after surpassing second-quarter estimates and offering a better-than-expected forecast for the current period.
Chip giant Advanced Micro Devices (AMD) rose 0.1% after BMO Capital improved its market performance shares to surpass it with an increased price target of 115. Tesla (TSLA) fell around of 2% Thursday early.
Elsewhere, Dow Jones technology leaders Apple (AAPL) and Microsoft (MSFT) fell about 1% each after today’s stock market opening. Shares of Dow Jones Cisco Systems (CSCO) fell more than 2% after a drop in analysts.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), Merck (MRK) and UnitedHealth (UNH), as well as BJ’s Wholesale Club (BJ), Dollar Tree (DLTR), Northrop Grumman (NOC) and Quanta Services (PWR): are among the actions to see. Keep in mind that the constant volatility of the stock market is a reason to stay defensive.
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Northrop and UnitedHealth are shares of the IBD classification. BJ’s is an IBD 50 value. How much was an IBD Day stock last week. Northrop appeared in the Stocks column near a shopping area this week.
Dow Jones today: Treasury yields, oil prices, inflation report
After Thursday’s opening, the Dow Jones Industrial Average was up 2% and the S&P 500 was down 1.9%. The Nasdaq technology compound lost 1.7% in morning trading.
Among publicly traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker fell 1.7%. The SPDR S&P 500 ETF (SPY) fell 1.9%.
The 10-year Treasury yield rose to 2.99% on Thursday morning, with the intention of stopping a three-day skid. Meanwhile, U.S. oil prices widened this week’s losses and fell more than 2% in early stocks. West Texas Intermediate was trading at about $ 94 a barrel, its lowest level since April 11.
The Department of Labor’s producer price index showed that prices rose 1.1% in June, more than estimates called for a 0.8% increase. Producer inflation rose 11.3% year-on-year, much higher than the 10.4% estimate and higher than the 10.8% rise in May. The producer price index is a measure of price strength based on the selling prices received by domestic producers for their production.
Meanwhile, first-time unemployment claims rose to 244,000 from 235,000 the previous week.
Stock market meeting
On Wednesday, the Dow Jones Industrial Average fell 0.7%, while the S&P 500 was down 0.45%. The technology-heavy Nasdaq compound reduced large losses by up to 0.15%.
Wednesday’s The Big Picture column commented: “The S&P 500 marked its fourth consecutive fall. It eliminated almost all of the 3% good gains made during a four-day rise. Meanwhile, the volume of the NYSE went “This is a third day since the market outlook changed to a confirmed uptrend on June 24.”
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Dow Jones earnings: JPMorgan
Dow Jones banking giant JPMorgan reported weaker-than-expected second-quarter earnings early on Thursday, causing stocks to fall nearly 4% at the start of trading.
Shares of JPM ended Wednesday with a 35% discount in its 52-week high.
Four Dow Jones stocks to see now
Dow Jones shares to see: Johnson & Johnson, Merck, UnitedHealth
Dow Jones leader Johnson & Johnson remains approximately 4% below the 181.84 buying points of a dual-fund base, according to analysis by the IBD MarketSmith chart. The company reports earnings on July 19. Shares of JNJ fell more than 1% Thursday morning.
Drug giant Merck rose 0.2% on Wednesday and is just below 95.02 points of purchase from its flat base. Medical stocks in general, and biotechnologies in particular, have shown growing strength in recent stock market action. Shares of Merck fell 1% early Thursday.
The health insurance giant and shares of the IBD UnitedHealth rating yielded 507.36 buy points from its double fund during the 2.6% drop on Wednesday. UNH reports second quarter results Friday morning. Shares were down 1.3% Thursday morning.
The existence of the UNH shows a strong 96 out of a perfect 99 IBD composite rating, according to the IBD stock review. Investors can use the IBD composite rating to easily measure the quality of the fundamental and technical metrics of a stock.
The 3 most important growth stocks to see in the current stock market rebound
Main actions to see: BJs, Dollar Tree, Northrop, Quanta
BJ’s wholesale of IBD 50 shares is still in the 5% buy range above the 67 buy points from a cup base with handle after the 0.2% increase on Wednesday. The relative strength line of stocks is at new highs, which is a sign of high stock market performance. Shares were down 0.4% early Thursday.
Dollar Tree is still below 166.45 points of purchase of its cup with handle on Wednesday, despite rising 1.1%. On a positive note, the RS line of the discount retailer is at a new high. Dollar Tree shares show a strong 97 on the best possible 99 IBD composite score, according to the IBD stock check. Shares of Dollar Tree lost 0.8% Thursday morning.
Northrop Grumman is building a new flat base that has a purchase point of 492.40. NOC shares are now trying to find support around their 50-day key line. Shares were down 1% on Thursday.
Quanta Services is giving the final touches to a cup base with a handle that has a point of purchase of 138.56, according to the analysis of the IBD MarketSmith chart. Shares are about 5% away from the last entry after Wednesday’s 0.1% rise. Shares fell 1.5% in the morning.
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Tesla stock
Shares of Tesla rebounded 1.7% on Wednesday, ending a two-day loss streak. The shares threatened to give up all of those gains, slipping 2% in Thursday morning trading.
The shares are below their 50-day line and even further below their 200-day line before the company’s earnings report date of July 20th. Shares of Tesla traded up 1,243.49 on Nov. 4. Shares are around 44% of this all-time high.
Dow Jones leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares fell 0.25% on Wednesday, but still remain above the 50-day line after last week’s bullish gains. The shares remain well below their 200-day long-term line and have approximately a 20% discount on their 52-week maximum. Apple’s earnings are due to be released on July 28th. Shares of Apple fell 0.9% on Thursday.
Microsoft lost 0.4% on Wednesday, falling further below the 50-day line. Shares closed around 28% of their 52-week high. The software giant will report quarterly results on July 26th. Shares of Microsoft lost 1.3% early Thursday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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