Dow Jones Rises as Tesla Dips into Weak Sales; Musk predicts an ‘epic’ fourth quarter

The Dow Jones Industrial Average rose Thursday morning as jobless claims fell for the first time. Tesla shares fell more than 8% on weak earnings results, even as Chief Executive Elon Musk predicted an “epic” fourth quarter.


First-time jobless claims unexpectedly fell to 214,000, much lower than the expected rise to 235,000 from 228,000 in the previous week, according to Econoday estimates.

Stock Market Today: Earnings Season Continues

Momentum from third-quarter earnings reports accelerated, with results of alcoa (AA), AT&T (T), member of the Dow Jones IBM (IBM), lam research (LRCX) Y Tesla (TSLA).

Alcoa shares lost 4%. AT&T shares rose 5%. lam research it beat Wall Street’s targets for the September quarter and led higher for the current period. But he warned that US export restrictions to China will affect its sales next year. Lam’s shares rose more than 2% in morning trading.

Airline stocks rose after gains from american airlines (ALA) Y Alaska Air Group (ALK). American rose 1%. Alaska decreased 2%.

Among the Dow Jones earnings, IBM rose 3%with Verizon (VZ) Y American Express (AXP) due to the report on Friday morning. Elsewhere, tech titans Apple (AAPL) Y Microsoft (MSFT) were mixed after stock market today open.

auto zone (AZO), double check (YOU), Molina Health (medical officer) Y Vertex Pharmaceuticals (VRTX), as well as Dow Jones stocks Chevron (CLC) Y Merck (MRK), are among the main actions to take into account. Keep in mind that the ongoing stock market rally attempt is the perfect time for investors to build and hone their watch lists of the fastest growing stocks.

DoubleVerify and Vertex are IBD classification table stocks. Merck and Molina Healthcare were featured in the Stocks column near a buy zone this week, along with two other top stock ideas. AutoZone was the IBD Day Stock Thursday. DoubleVerify was IBD day stock for Tuesday.

Dow Jones Today: Treasury Yields, Oil Prices

After the opening bell on Thursday, the Dow Jones industrial average was up 0.6%. The S&P 500 was up 0.3%, while the Nasdaq was up 0.45% in morning trading.

Among exchange traded fundsNasdaq 100 follower Invesco QQQ Trust (QQQ) rose 0.4%, and the SPDR S&P 500 ETF (TO SPY) gained 0.3%.

The 10-year Treasury yield rose to 4.17% on Thursday morning, following Wednesday’s jump to 4.12%. The 10-year Treasury yield settled Wednesday at its highest level since July 23, 2008, according to Dow Jones Market Data.

US oil prices rose more than 2% on Thursday, looking to add to Wednesday’s rally as Chinese authorities showed the first signs of easing the country’s strict covid rules. West Texas Intermediate futures moved above $87 a barrel. Last week, WTI futures topped $93 a barrel.

Stock market rally attempt continues

On Wednesday, the Dow Jones Industrial Average fell 0.3%, while the Nasdaq Composite and the S&P 500 fell 0.7% and 0.85%, respectively.

Wednesday’s Big Picture commented“The market is still working on a rally attempt, despite high volatility and multiple swings in the last week. Investors should watch patiently, from the sidelines if possible, waiting for a decisive sell-off or the elusive track rally day.”

Psychologically, watching the market perform through repeated rally attempts can be a challenging process. Investors want to have watch lists on hand to take advantage of day-of-watch breakouts. But not all follow-ups work, so buying too early or with too much conviction can lead to frustration.

This is why it is important to increase exposure slowly and methodically, as the uptrend proves itself.

Verify IBD Stock ListsAs the IBD 50 Y Stocks near a buy zonefor common ideas.

Five Dow Jones Stocks to Watch Now

Dow Stocks to Watch: Chevron, Merck

Energy giant Chevron continues to hold above support at its 50-day line and is consolidating below a buy point of 182.50 ahead of the company’s earnings release on Oct. 28. An early entry at 166.93 is also up for grabs. Chevron shares rose 1.2% on Thursday morning, rising on higher oil prices.

CLC actions boast a strong 98 from a perfect 99 IBD Composite Classification, for him IBD stock check. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.

Dow Jones member and Stock of IBD 50 Merck remains in the buying range beyond a false bottom93.12 point of purchase, according to IBD MarketSmith Pattern Recognition. Note that the ongoing market correction should keep you on the sidelines. the actions relative strength line reached a new high last week. Third quarter earnings results are due Oct. 27 before the opening bell.

Merck shares lost 0.65% on Thursday morning.

4 top growth stocks to watch in the CurrCurrent Stock Market Correction

Top Stocks to Watch: AutoZone, DoubleVerify, Molina, Vertex

leader in auto parts and Recent stock of IBD of the day AutoZone is about 3% from the purchase point of 2,362.34 of a cup basis. Keep an eye out for a potential handle to offer a lower entry. Shares of AutoZone rose nearly 1% early Thursday as Raymond James maintained his overweight rating and raised his price target to 2,500.

IBD classification table stocks and DoubleVerify is just shy of the 30.02 buy point of a flat basis, according to IBD MarketSmith chart analysis. DoubleVerify provides digital media measurement and data analysis. The company designs verification technology to help reduce ad fraud. It also promises to ensure ad placement in safe and brand-friendly environments. Shares rose 1.3% on Thursday.

Molina Healthcare ended Wednesday within 2% of the buy point of 361.35 from a flat base. The stock’s RS line hit a new high last week, confirming that the healthcare stock is a leader to watch. Molina’s winnings are due on October 26. Shares of the Ministry of Health rose 0.5% early Thursday.

Biotech leader Vertex Pharmaceuticals is retesting its 50-day line amid Wednesday’s 2.7% drop. Stocks are still building a flat base that has a buy point of 306.05 and an early entry at 296.90. Its RS line hit a new high in recent sessions, a sign of strong outperformance in the stock market. Winnings are due October 27. Stocks rose Thursday morning.

Tesla Earnings

tesla gains it beat expectations on Wednesday night, though earnings were weak. Although CEO Musk predicted an “epic” fourth quarter, he seemed to shift the targets a bit on Tesla’s full-year delivery target.

Musk also said a “significant buyback” was likely in 2023, casting a figure of $5 billion to $10 billion as realistic even in a tough year.

Earnings beat estimates by 5 cents a share, rising 69% from a year earlier to $1.05 a share. Revenue of $21.454 billion, up 56% from a year ago, missed estimates of $22.3 billion.

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

Tesla Stock

tesla shares rose 0.8% on Wednesday, rising for the third day in a row. Last week, the stock closed at its lowest level since June 2021. Despite a two-day winning streak, the stock remains about 47% below its 52-week high. Shares of Tesla slid more than 8% Thursday morning on the back of the company’s earnings results.

Dow Jones Leaders: Apple, Microsoft

Among dow jones stocksApple shares rose 0.1% on Wednesday but are still 21% below their 52-week high and below their 50- and 200-day lines. AAPL shares were down a fraction on Thursday morning.

Microsoft fell 0.85% on Wednesday, ending a two-day winning streak. The stock is still trying to recover from last week’s 52-week low price. The software giant is down 32% from its 52-week high. The shares rose 0.2% on Thursday morning.

Apple’s earnings are due on October 27, while Microsoft’s are due on October 25.

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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