Dow Jones futures rise 900 points on cold inflation data.  Treasury Yields Dive

Dow Jones futures rise 900 points on cold inflation data. Treasury Yields Dive

Dow Jones futures briefly rose 900 points Thursday morning after the consumer price index, or CPI, the closely watched measure of inflation, came in lower than expected. Stocks of electric vehicles Neo (NIO) and Rivian Automotive (RIVN) rose after their quarterly earnings results.


The Labor Department’s consumer price index showed prices rose 0.4 percent in October, below estimates of a 0.7 percent rise from the previous month. Consumer inflation rose 7.7% year-on-year, lower than the forecast increase of 8.0%.

Meanwhile, first-time jobless claims showed initial claims rose to 225,000 from 217,000 the previous week.

Key factors driving gains on Thursday were AstraZeneca (AZN), Dutch Bros (AFOI), Neo, Ralph Lauren (RL), Rivian Automotive and Unity software (U).

AstraZeneca shares rose 5%, while BROS stock rallied 3% in morning trading. NIO stock rose 5%. Shares of Ralph Lauren pared early losses to rise 0.4%, as Rivian shares rose 8%. Unity shares rose more than 1%.

Electric vehicle giant Tesla ( TSLA ) traded up about 3% Thursday morning. The Dow Jones Technology Leaders apple (AAPL) and Microsoft (MSFT) was sharply higher ahead of today’s market open.

Among the top stocks to buy and watch, Albemarle (ALB), IBD Leaderboard Watch List Stock Arista Networks (A NET), CF Industries (CF) and GlobalFoundries (GFS) — as well as Dow Jones names Merck (MRK) and UnitedHealth Group (UNH) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard Watch List stock. Albemarle was featured in this week’s Stocks Near a Buy Zone column, along with three other top stock ideas. GlobalFoundries was a recent IBD Stock Of The Day.

IBD’s newest newsletter, MarketDiem, brings you actionable stock, options and crypto ideas straight to your inbox.

Dow Jones Today: Bond yields, oil prices

Ahead of Thursday’s open, Dow Jones futures rose 2.5%, while S&P 500 futures rose 3.2% versus fair value. Nasdaq 100 futures rose 4.2% in morning action.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) traded up 4.2% early Thursday and the SPDR S&P 500 ETF ( SPY ) rose 3.2%.

The 10-year Treasury yield fell to 3.91% on Thursday after a cooler-than-expected CPI reading.

Meanwhile, U.S. oil prices traded up more than 1 percent, with West Texas Intermediate futures above $87 a barrel and seeking to end a three-day losing streak. Last week, WTI futures hit their highest since mid-October, but have since retreated.

Stock Market Rally Races

On Wednesday, the Dow Jones Industrial Average sold off 1.95%, while the S&P 500 lost 2.1%. The tech-heavy Nasdaq composite fell 2.5%.

Wednesday’s The Big Picture commented: “Nasdaq volume fell. However, as the accompanying Market Pulse chart shows, many top stocks suffered heavy institutional selling. This is not what you typically see in a healthy stock market. Higher turnover on the NYSE labeled the S&P 500 with a third distribution day from the day after October 21.”

Now is an important time to read IBD’s The Big Picture column. After the recent selloff, investors should be more focused on playing defense than buying breakouts.

Five Dow Jones Stocks to Buy and Watch Now

Dow Jones Stocks To Buy and Watch: Merck, UnitedHealth

Dow Jones member and IBD 50 stock Merck remains out of range beyond the 93.12 buy point of the double bottom base, according to IBD MarketSmith standard recognition. Shares of Merck were lower on Thursday.

Healthcare giant UnitedHealth is trying to recapture a cup with the handle’s 553.23 buy point. Shares lost 2.2% on Wednesday, ending about 2% below their last entry. UNH stock added 0.2% Thursday morning.

4 Top Growth Stocks to Watch at Current Stock Market Rally

Top stocks to buy and watch: Albemarle, Arista, CF, GlobalFoundries

Lithium producer Albemarle is trying to break the 308.34 buy point of a cup base. Shares fell 1.9% on Wednesday, giving up some of Tuesday’s rally and falling further below a recent buy point. ALB stock was flat early Thursday.

IBD Leaderboard Watchlist Arista Networks stock is well below the unwavering base’s 132.97 buy point after three days of losses. ONENET stock traded 0.6% higher on Thursday morning.

CF Industries is holding above its 50-day mark despite Wednesday’s 3.7% drop. Shares are building a cup base that has a buy point of 119.70, according to IBD MarketSmith standard recognition. CF stock rose more than 1% on Thursday.

Tuesday’s IBD Stock Of The Day GlobalFoundries is trading about 8% off a 66.06 buy point in a cup base after this week’s rally. Shares could also form a grip after the recent price rally. GFS stock traded flat on Thursday.

Join IBD’s experts as they analyze top stocks in the current stock market rally on IBD Live

Tesla stock

Tesla stock fell another 7.2% on Wednesday, extending its losing streak to four sessions. Shares hit another new 52-week low and hit their lowest level since November 2020. The stock is over 55% from its 52-week high and sharply below the 50- and 200-day moving average lines.

Shares of the EV giant moved about 3% higher Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares sold off 3.3% on Wednesday, snapping a two-day losing streak and returning to recent lows. The stock rose 2.2% on Thursday.

Microsoft fell 1.9% on Wednesday, ending a three-day losing streak. The software giant remains about 35% off its 52-week high. Microsoft shares rose 2% 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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