X Key overnight gainers included Casey’s General Stores (CASY), Copart (CPRT) and Dave & Buster’s Entertainment (PLAY). CASY stock fell more than 2% on mixed results. Shares of Copart fell 4%, while Dave & Buster’s fell more than 7%. Advanced Micro Devices ( AMD ) rose after Stifel Nicolaus initiated the stock with a buy rating, while First Solar ( FSLR ) jumped 2% on a Goldman Sachs upgrade to buy. Electric vehicle leader Tesla ( TSLA ) fell more than 1% on Thursday. Among the Dow Jones industrials, tech titans Apple ( AAPL ) and Microsoft ( MSFT ) were both lower after today’s open. In the current market volatility, Arista Networks ( ANET ), Costco ( COST ), Restaurant Brands ( QSR ) and Ulta Beauty ( ULTA ) — as well as Dow Jones stocks Chevron (CVX) — is one of the top topics to buy and watch. Keep in mind that increased market volatility is a good reason for investors to be more defensive. Costco is an IBD Leaderboard stock after a recent rally, while Apple shares and restaurant brands appeared in this week’s Stocks Near Buy Zone column.
Dow Jones Today: Bond yields, oil prices
After Thursday’s open, the Dow Jones Industrial Average fell 0.4%, while the S&P 500 lost 0.3%. The tech-heavy Nasdaq composite was down 0.4% in morning trading. Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 0.55% and the SPDR S&P 500 ETF ( SPY ) fell 0.45% in early trade. The yield on the 10-year note rose to 3.28 percent early Thursday, continuing to slide after Wednesday’s drop to 3.26 percent. Earlier this week, the yield on the 10-year note hit its highest close since June 15. The European Central Bank raised interest rates by 75 basis points on Thursday morning, moving to combat record inflation. An energy crisis has Europe on the brink of recession. US oil prices edged higher on Thursday, recovering a bit from Wednesday’s sharp selloff. West Texas Intermediate futures were trading just above $82 a barrel. Early Thursday, the Labor Department’s first-time jobless claims fell to 222,000, well below an expected rise to 240,000. Jobless claims were 232,000 last week.
Stock market rally under pressure
On Wednesday, the Nasdaq Composite and smaller issues led the rally. The former rallied 2.1%, finally snapping a nasty seven-session selling streak. Wednesday’s The Big Picture column commented: “If the current rally has real legs, expect the major averages to rise above their respective 50-day moving averages. The summer rally above this intermediate technical level was successful. But the benefit of hindsight shows that resistance at the long-term 200-day moving averages has proved too strong so far this year.” If you are new to IBD, consider taking a look at CAN SLIM’s stock trading system and basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide range of growing stock lists, such as Leaderboard and SwingTrader. Investors can also create watch lists, find companies nearing a buy point, or develop custom screens in IBD MarketSmith. Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Chevron
Dow Jones Chevron stock fell 1.3% on Wednesday, halting its slide just above its 50-day baseline. The stock added a handle to a cup base, moving the right buy point to 166.93 — according to IBD MarketSmith chart analysis — amid strong performance by energy stocks so far this year. The stock was up 0.5% early Thursday. CVX stock sports a strong 97 out of a perfect 99 IBD composite score, per IBD Stock Check. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical readings. 4 Top Growth Stocks to Buy and Watch in the Current Stock Market Rally
Top Stocks to Watch: Arista, Costco, Brands Restaurants, Ulta
Arista Networks added a handle in a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is starting to recede as the stock remains below its long-term 200-day line. ANET shares fell 0.6% in the early hours of Thursday. IBD Leaderboard Costco stock retook its 50-day line on Wednesday and is about 4% below a cup-handled 552.81 buy point. The stock came close to triggering the sell rule with losses of 7%-8% earlier this week. Shares fell 0.8% on Thursday. Restaurant Brands rallied 2% on Wednesday, finishing just 2% off a cup-with-handle that has a 61.19 buy point. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants worldwide. The stock was down 0.7% early Thursday. Cosmetics retailer Ulta Beauty broke completely out of range on Wednesday, breaking above the 417.08 buy point on a double-bottom basis. The RS line hit another new high as the stock shows unnatural strength in a weak market environment. Shares of ULTA were down 0.5% Thursday morning. Join IBD’s experts as they analyze top stocks in the current stock market rally on IBD Live
Tesla stock
Tesla stock rallied 3.4% on Wednesday, rebounding from its 50-day line, which continues to be a potential support level to watch. Shares of the electric vehicle giant fell more than 1% on Thursday morning. Tesla stock has found resistance at its 200-day line in recent months and is about 32% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 0.9% on Wednesday as the Dow Jones tech giant unveiled the iPhone 14, but remained below its 50-day line. The stock is about 12% away from a buy point at 176.25 from a cup-with-handle. Despite recent losses, the stock’s relative strength line is holding close to new highs, indicating consistent stock market outperformance. Shares fell 0.8% on Thursday. Microsoft rose 1.9%, snapping a seven-session losing streak. The software giant remains well below its 50- and 200-day lines. Shares are near their 52-week high. The stock was down 0.7% early Thursday. Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average. YOU MIGHT ALSO LIKE: Top Growth Stocks to Buy and Watch Learn how to time the market with IBD’s ETF Market Strategy Find the best long-term investments with IBD’s long-term leaders MarketSmith: Research, Charting, Data and Guidance All in One Place How to research growth stocks: Why this IBD tool simplifies the search for top stocks
