Dow Jones Futures Sell 375 Points on Key Economic Data; Nvidia Falls on Miss Earnings

Dow Jones futures fell 375 points Thursday morning after early releases of initial jobless claims, housing data and the Philadelphia Fed manufacturing index. Nvidia’s earnings missed estimates, as NVDA shares fell about 2%.


The Labor Department’s initial jobless claims fell to 222,000 vs. 225,000 the previous week, in line with estimates. Housing starts and preliminary building permit figures for October were above estimates, but still slowed compared to September. Meanwhile, the Philadelphia Fed manufacturing index missed estimates by a large margin, with a reading of -19.4, below expectations for a reading of -7.0 for November.

Thursday morning’s earnings move included Alibaba (BABA), Wholesale BJ (BJ), Cisco Systems (CSCO), Helmerich & Payne (HP), Kohl on (KSS), Macy’s (M) and Nvidia.

Alibaba shares fell 2% in premarket trading, while BJ’s stock rose 4%. Cisco shares rose more than 4%. HP shares moved down 4%. Kohl’s stock fell 4%, while Macy’s jumped 6%.

Nvidia missed Wall Street’s earnings target on higher-than-expected sales in its fiscal third quarter. And the stock lost more than 2% Thursday morning.

Electric vehicle giant Tesla (TSLA) traded down 1.8% Thursday morning. Dow Jones technology leaders Apple (AAPL) and Microsoft (MSFT) was also slightly lower ahead of today’s stock market open.

IBD Stock Leaderboard Arista Networks (ANET), General Motors (GM), GlobalFoundries (GFS), Mobile (MBLY) and Phillips 66 (PSX)— also known as Dow Jones Caterpillar (CAT) — are among the best stocks to buy and watch.

Arista Networks is an IBD Leaders List stock and was the IBD Stock of the Day on Monday. GlobalFoundries was featured in this week’s Stocks Near A Buy Zone column. General Motors was IBD’s Stock of the Day on November 10, and Mobileye was the top IPO leader last week.

IBD’s latest MarketDiem newsletter brings you actionable ideas for stocks, options and crypto straight to your inbox.

Dow Jones Today: Oil Prices, Treasury Yield

Before the opening bell on Thursday, Dow Jones futures fell 1.1% vs. fair value, while S&P 500 futures lost 1.3%. Tech-heavy Nasdaq 100 futures traded down 1.5% in morning action.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1.5% early Thursday, while the SPDR S&P 500 ETF (SPY) fell 1.3%.

The 10-year Treasury yield ticked up to 3.76%, clawing back some of this week’s early losses. Meanwhile, US oil prices fell more than 2%, as West Texas Intermediate futures shifted toward the lower end of their recent trading range. WTI futures traded below $84 a barrel.

Stock Market Rally

On Wednesday, the major stock indexes ended with sharply mixed action. The Nasdaq composite sold off 1.5%, while the S&P 500 lost 0.8%. The Dow Jones industrials inched lower.

The Big Picture said on Wednesday, “A 1.5% decline in the composite index on Wednesday could deter those who went long just before the market open. Heavyweight data stores Micron Technology (MU) set the bearish tone early in the session. The Boise, Idaho-based leader in DRAM and NAND memory products has warned that its core markets will shrink in 2023.”

Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks To Buy And Watch: Caterpillar

Dow Jones member Caterpillar is looking to break out above the 238 cup base buy point, according to MarketSmith’s IBD pattern recognition. CAT shares fell 1.6% on Thursday.

The CAT 97 stock boasts a perfect 99 IBD Composite Rating, per IBD StockCheck.

4 Top Growth Stocks To Watch In The Currrent Stock Market Rally

Best Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, PSX

IBD Leaderboard Stock Arista Networks remains below a chopped base buy point of 132.97 amid Wednesday’s 1.5% loss. ANET stock traded up 0.3% on Thursday.

Automaker General Motors fell well below its 40.20 cup-to-handle buy point during a 4.4% slide on Wednesday. The buy zone tops out at 42.21. GM stock inched lower early Thursday.

Chip foundry GlobalFoundries is back below a 66.06 buy point in cup base. GFS shares lost a fraction on Thursday morning.

IPO leader Mobileye fell on Wednesday, falling 3.7% to finish squarely below the 29.96 IPO base buy point, according to MarketSmith’s IBD pattern recognition. The 5% chase zone tops out at 31.46. MBLY shares were slightly lower early Thursday.

IBD’s 50 Stocks To Watch Monday pick, Phillips 66, is trying to break out above a 110.08 cup-to-handle buy point, but the breakout ran into trouble with a 3.1% loss on Wednesday. PSX the stock was down 0.5% in premarket trading.

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

Tesla stock

Tesla stock sold off 3.9% on Wednesday, giving back much of its recent gains. The stock is still above last week’s 52-week low at 177.12. Tesla shares are more than 50% off their 52-week high and well below their 50- and 200-day moving average lines.

Shares of the EV giant traded down 0.6% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares lost 0.8% on Wednesday, clinging to support around its 50-day line. The stock traded down 0.8% on Thursday.

Microsoft edged lower on Wednesday, still above its recently recaptured 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares fell 0.5% on Thursday morning.

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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