The Dow Jones Industrial Average climbed Thursday after the Labor Department’s initial unemployment claims. Meanwhile, artificial intelligence stock C3.ai (AI) took a dive after reporting mixed results. And Google stock surged after the company unveiled its AI model Gemini in some of its products.
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Early Thursday, first-time jobless claims for the week ended Dec. 2 rose to 220,000 vs. 218,000 in the previous week.
C3.ai plunged 10% even though the AI stock posted a smaller-than-expected adjusted loss for its fiscal second quarter. Shares took a hit on revenue growth that missed Wall Street targets and a sales outlook below expectations.
Google-parent Alphabet (GOOGL) surged more than 5% Thursday morning, nearing a 139.42 buy point in a cup with handle. On Wednesday, the tech titan unveiled its Gemini AI model that will arrive in 2024.
JP Morgan analyst Doug Anmuth said in a research note that the Gemini release Wednesday represents “significant innovation for Google.” The firm reiterated the 0verweight rating on Alphabet stock, with a target price of 150.
Other key earnings movers Thursday morning included Chewy (CHWY), Ciena (CIEN), Dollar General (DG), GameStop (GME) and Veeva Systems (VEEV).
Chewy shares tumbled more than 10%, while CIEN stock lost over 2% in early action. DG stock rose more than 4%, as GameStop shares sank 7%. Finally, Veeva Systems declined 3.4% in early action.
Dow Jones Today: Oil Prices, Treasury Yields
After Thursday’s opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 moved up 0.7%. The tech-heavy Nasdaq composite gained 1.1% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1%, while the SPDR S&P 500 ETF (SPY) moved up 0.6% early Thursday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.14% Thursday morning. On Wednesday, the benchmark settled at 4.12%, still at its lowest level since early September.
Oil prices bounced modestly Thursday, looking to snap a five-day losing streak. West Texas Intermediate futures rose nearly 1%, but remain below $70 a barrel, their lowest level since late June.
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Stock Market Rally
On Wednesday, the Dow Jones Industrial Average fell 0.2%, and the S&P 500 moved down 0.4%. The tech-heavy Nasdaq composite declined 0.6%. All three major stock indexes closed at day lows.
Wednesday’s Big Picture column commented, “The Nasdaq, which currently has two mild distribution days on its own count, clearly is experiencing selling resistance near 14,500. That level coincides with a 14,446 peak seen in July. At the same time, as noted by Market School rules, the power trend remains fully in place.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to invest during the ongoing stock market uptrend.
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Stock Market Today: Best Stocks To Watch
Advanced Micro Devices (AMD) and IBD Leaderboard issue Amazon (AMZN), along with IBD SwingTrader player Cloudflare (NET) and Eli Lilly (LLY) — as well as Dow Jones components Boeing (BA), UnitedHealth (UNH) and Visa (V) — are among the best stocks to watch in the current market rally.
Boeing and Cloudflare are featured in this Stocks Near A Buy Zone column.
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Dow Jones Stocks To Watch
Aerospace stock Boeing is rapidly approaching a cup base’s 243.10 buy point. Shares rallied 1.2% Wednesday, just 3% away from the latest buy point. BA stock was up a fraction Thursday.
Health care giant UnitedHealth remains above a handle entry at 546.78 after Wednesday’s slight gain. UNH stock inched higher Thursday.
Payments leader Visa is in buy range above a 250.06 buy point in a cup base, according to IBD MarketSmith pattern recognition. V stock rose 0.1% Thursday.
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IBD Leaderboard stock Amazon continues to bob above and below a cup base’s 145.86 entry. Shares fell back below it Wednesday, with a 1.6% drop. AMZN stock added 1.7% Thursday morning.
Chip leader AMD is trying to break out past a 122.11 buy point in a cup with handle, according to IBD MarketSmith pattern recognition, but moved further below that entry Wednesday. Shares were up almost 6% Thursday after the company announced a new AI chip Wednesday.
IBD SwingTrader stock Cloudflare remains barely above a 76.07 cup-base buy point after last week’s breakout move. NET stock rose less than 0.1% Thursday.
Drug giant Eli Lilly continues to trace a flat base with an official buy point at 629.97. An early entry would be in play if the stock is able to bounce strongly from its 50-day line. LLY stock lost 0.5% Thursday morning.
Best Stocks In Today’s Stock Market 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 |
|---|---|---|---|
| Amazon | (AMZN) | 145.86 | Cup base |
| UnitedHealth | (UNH) | 546.78 | Handle entry |
| Cloudflare | (NET) | 76.07 | Cup base |
| Advanced Micro Devices | (AMD) | 122.11 | Cup with handle |
Source: IBD Data As Of Dec. 6, 2023
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Magnificent Seven Stocks: Nvidia, Tesla
Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) moved up 0.3% early Thursday, while Nvidia (NVDA) climbed 1.7%.
Graphics-chip giant Nvidia slid 2.3% Wednesday, as the stock closed right at its 50-day line, about 4% below a 476.09 double-bottom entry.
Tesla stock rose 0.3% Wednesday, still holding above its 50-day line, which is a key support level to watch. The stock’s big double-bottom pattern has a 278.98 buy point, while an early entry is in play at 252.75.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT), traded mixed after today’s stock market open.
Apple slipped 0.6%, giving up a part of Tuesday’s gains and falling back below a cup-with-handle entry at 192.93. Apple shares rose 1.3% Thursday.
Microsoft stock declined 1% Wednesday, holding a fraction above a cup base’s 366.78 buy point. And MSFT stock was up a fraction 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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Source: investors.com
