The Dow Jones Industrial Average sold off on Thursday after a key inflation read, threatening to extend this week’s already sharp losses. were important profit drivers Acuity Brands (AYI), constellation marks (STZ) and Dow Jones shares Walgreen’s Boots Alliance (WBA). In the meantime, Micron technology (MU) earnings are due after the close of trading.
Acuity shares gained about 1% after the company reported strong earnings and sales results. Constellation shares traded 3% lower even after beating earnings and revenue estimates.
Tesla (TSLA) slipped 2% early Thursday. Elsewhere, the technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) both fell more than 2% after the market open today.
In a volatile stock market environment, Dow Jones is the leader Johnson&Johnson (JNJ) and note (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilli (LLY) and Quanta Services (PWR), are among the stocks to watch out for. Keep in mind that continued volatility in stock markets is one reason to remain defensive.
Quanta is an IBD Leaderboard Watchlist stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was the IBD stock of the day on June 22nd. AutoZone was featured in this week’s ‘Stocks Near a Buy Zone’ column.
Dow Jones Today: Treasury Yields, Oil Prices, Inflation Report
After Thursday’s open, the Dow Jones Industrial Average lost 1.8% and the S&P 500 fell 1.9%. The Nasdaq fell 2.4% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 2.3%. The SPDR S&P 500 ETF (SPY) lost 1.9% in early trade.
The 10-year Treasury yield fell to 3.02% on Thursday after falling to 3.09% on Wednesday. The 10-year Treasury yield is attempting to recover after a sharp pullback. In mid-June it reached 3.48%, its highest level since April 2011.
Meanwhile, US oil prices fell 2% with West Texas Intermediate trading below $108 a barrel. In early March, WTI briefly peaked above $130.
The Federal Reserve’s preferred measure of inflation came out Thursday morning, with the personal consumption price index rising 0.6% in May, up 6.3% from a year earlier. Both numbers were slightly below Econoday consensus estimates. Personal income rose 0.5% in May, according to estimates.
The PCE Price Index is a measure of US inflation and tracks changes in the prices of goods and services purchased by consumers across the economy.
Meanwhile, initial jobless claims fell to 231,000 from a revised 233,000 the previous week, according to the Labor Department.
stock market volatility
The stock market saw mixed action on Wednesday as the Dow Jones Industrials posted a modest gain. Nasdaq and S&P 500 posted slight losses.
Wednesday’s The Big Picture column commented, “The S&P 500, down 2% on Tuesday, is down 2 points. In contrast, gains of 2 points or more from at least eight of the 30 components of the Dow Jones Industrial Average – including leaderboard position UnitedHealth (UNH) and IBD Long Term Leader Microsoft – helped lift the blue-chip average to a nearly 0.3% gain.”
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Dow Jones Profit: Walgreens
Walgreen Boots Alliance reported better-than-expected quarterly results early Thursday, but shares fell more than 5% in early morning trade.
WBA shares closed about 26% below their 52-week high and well below their 200-day moving average on Wednesday
Four Dow Jones stocks you should be watching right now
Eyes on Dow Jones stocks: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is about 3% below the buy point of a double bottom of 181.84 after Wednesday’s slight decline, according to chart analysis by IBD MarketSmith. JNJ shares inched up Thursday morning.
JNJ stocks show 94 out of 99 perfect IBD Composite Ratings according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Drug giant Merck gave up the buy point of its 95.02 flat base on Tuesday and is still about 3% off entry after gaining 0.7% on Wednesday. The stock was down early Thursday.
4 Top Growth Stocks to Watchrightde Stock market rally
Top stocks to watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone shares regained their cup with a buy point of 2,130.60 on Wednesday amid a 0.7% gain. Shares fell 0.4% on Thursday.
Bristol Myers ended just below the buy point of a flat base at 78.72 after shedding 0.5% on Wednesday. The 5% pursuit zone runs up to 82.66. Shares fell on Thursday.
SwingTrader stock Eli Lilly rose 1.7% on Wednesday, recovering from Tuesday’s sharp drop. The shares are in the 5% buy zone rising to 329.81. Shares of Eli Lilly fell 0.2% early Thursday.
Leaderboard Watchlist Quanta Services is tracking a messy mug with a handle that has a buy point of 138.56, according to IBD MarketSmith chart analysis. Stocks are back at their 50-day moving average, which is an important level to watch. Quanta stock fell nearly 1% Thursday morning.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla shares slipped 1.8% on Wednesday, extending a losing streak to three sessions. Shares threatened to add to those losses on Thursday morning, falling 2%. The stock is well below its 50-day and 200-day moving averages.
Tesla is expected to announce second-quarter sales later this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with a range of 249,000 to 323,000. Tesla delivered 310,048 vehicles in the first quarter.
Tesla shares traded as low as 1,243.49 on Nov. 4. Shares are about 45% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.3% on Wednesday, posting a three-day winning streak. The stock is well below its 200-day long-term moving average and about 25% below its 52-week high. Apple shares fell 2.9% Thursday morning.
Software-leader Microsoft gained 1.5% on Wednesday as it remains lower after finding strong resistance around its key 50-day moving average. The stock closed about 27% below its 52-week high. Microsoft shares fell 2.1% early Thursday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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