The Dow Jones Industrial Average fell on Thursday after a sharp rise in weekly initial jobless claims from the Labor Department. Now a manufacturer of chips for artificial intelligence Arm stocks (POOR), Airbnb (ABNB) and Roblox (RBLX) plunged after the stock market reported earnings today.
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In morning trading, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 was slightly lower. The technology-focused Nasdaq Composite was barely lower after the opening bell.
Early Thursday, the 10-year Treasury yield rose to 4.5%. Additionally, oil prices rebounded as West Texas Intermediate futures traded at around $79.40 per barrel.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) rose 0.1%, while the SPDR S&P 500 ETF (SPY) gained 0.1%.
Stock market today: unemployment claims
Before Thursday’s market open, the Labor Department’s initial jobless claims rose to 231,000 from 208,000 the previous week, the highest level since August 2023. They were expected to rise slightly to 212,000, according to Econoday.
Early Thursday, AI chip stock Arm fell 6% after the company beat analysts’ estimates for its fiscal fourth quarter and its forecast for the current period. However, the sales prospects for the coming year fell short of expectations.
Meanwhile, Roblox plunged 25% after reporting first-quarter results early Thursday. The company said it expects second-quarter bookings of $870 million to $900 million, below estimates of $902.5 million.
Other important earnings drivers are Airbnb, AppLovin (APP), Duolingo (DUOL) and HubSpot (HUBS), together with Instacart (DARE), Robinhood Markets (HOOD) and Trading desk (TTD).
Airbnb shares fell more than 7%, while AppLovin shares rose 14%. Duolingo shares fell nearly 14%, while HubSpot rose nearly 7% in early trading. Instacart shares gained 0.5%, while Robinhood gained 7%. Finally, Trade Desk rose about 2.5% after the market opened.
Be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
Dow Jones extends winning streak
On Wednesday, the Dow Jones Industrial Average rose 0.4%, extending its winning streak to six sessions. The S&P 500 fell slightly, while the tech-heavy Nasdaq composite fell 0.2%.
Wednesday’s “The Big Picture” column said: “For stock market investors, Wednesday’s action reaffirmed that stock pickers can feel like they’re discovering either a landmine or a gold mine.”
On Wednesday’s IBD Live show, the IBD Live team discussed current trading conditions. Mark Minervini, a two-time winner of the US Investing Championships, returned to the show for the second time this year. He shared decades of experience and anecdotes about trading, stock analysis, chart reading, and the William O’Neil concept of studying historical precedents to make money
Now is an important time to read Investor’s Business Daily’s “The Big Picture” column amid the ongoing stock market moves. Be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
Learn how to time the stock market with IBD’s ETF market strategy
Stock Market Today: The Best Stocks to Watch
Chipotle Mexican Grill (CMG), NXP Semiconductor (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) – plus Dow Jones components American Express (AXP) and Merck (MRK) – are one of the best companies to keep an eye on on the stock market today.
Chipotle and Merck are featured in this “Stocks Near a Buy Zone” column.
An essential resource for daily breakouts is IBD MarketSurge’s Breaking Out Today list. It shows MarketSurge Growth 250 stocks breaking out past new buy points. Above all, NetApp (NTAP) broke out above the 108.82 buy point of a double bottom on Wednesday.
Additionally, the MarketSurge Near Pivot list displays stocks that are near buy points in the bases.
For more stock ideas, check out IBD stock lists like IBD 50, Big Cap 20, and Stocks Near a Buy Zone. These features identify bullish patterns and buy points and can be checked daily.
Get real-time buy and sell alerts on stock market leaders with IBD Leaderboard
Dow Jones: American Express above buy point
American Express is rebounding from support around its 50-day moving average with heavy volume. The bullish rebound has pushed the payments leader into new buy territory while shares are in a short consolidation just above a 231.69 entry. Shares on the stock market rose slightly today.
Meanwhile, pharmaceutical giant Merck is building a flat base with an entry of 133.10. Merck shares fell 0.1% on Thursday.
The 4 top growth stocks to keep an eye on Stock market today
Outside the Dow Jones Index, Chipotle fell 0.3% on Wednesday and was at the top of the buying range above a 3,023.98 entry point in a short consolidation, according to IBD MarketSurge. Chipotle shares rose 0.4% after Thursday’s open.
NXP Semiconductors is in buy territory after a double bottom entry at 251.96. Shares fell 0.3% on Thursday.
Despite a 0.3% decline on Wednesday, Texas Roadhouse remains extended above its flat base buy point of 157.12. Shares fell 0.1% on Thursday morning.
Tradeweb is breaking out above the 108.04 flat base buy point. This puts the stock in a new buy zone. The stock gained 0.3% on Thursday.
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Stock market today: Companies to watch
These are four stocks in or near the buy zone of today’s stock market.
| Company Name | symbol | Right buy point | Type of buy point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD data as of May 6, 2024
Join IBD experts as they analyze the stock market’s leading stocks today on IBD Live
The seven great stocks: Nvidia
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) rose 0.2% and 0.5%, respectively, in Thursday’s premarket action.
Nvidia shares fell 0.2% on Wednesday, still above their 50-day line. Shares continue to form a base with a buy point of 974. Meanwhile, an early buy trigger is in play at 888.19, the April 30 high. The artificial intelligence giant is an IBD Leaderboard stock.
Tesla shares fell 1.8% on Wednesday, finding support at the 50-day line. Still, Tesla shares are more than 40% away from their 52-week high.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven are Apple (AAPL) and Microsoft (MSFT) traded mixed after the market open on Thursday.
Apple shares rose 0.3% on Wednesday, still above their 200-day line and forming the right side of a new base. The shares fell slightly on Thursday morning.
Microsoft shares rose 0.4% on Wednesday and are still below the 50-day line, a key hurdle to watch. The software giant is building a new flat base with a 430.82 buy point. And Microsoft shares rose slightly on Thursday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen Learn more about growth stocks, the Dow Jones Industrial Average, and the stock market today.
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