Dow Jones futures rallied Thursday morning after key economic data. Nasdaq 100 futures moved lower as Meta Platforms (META) crashed 23% and Align Technology (ALGN) swooned 19% on earnings results. Apple earnings are due out after the market closes.
Meta reported third-quarter results late Wednesday that missed earnings estimates but slightly beat on revenue. The company reported adjusted earnings of $1.64 a share on revenue of $27.7 billion. Analysts expected Meta to report earnings of $1.90 a share on revenue of $27.4 billion, according to FactSet. Shares are set to open around 100, which would be their lowest level since February 2016.
Align, maker of Invisalign dental braces, reported steep misses on both its revenue and earnings lines late Wednesday.
Meanwhile, U.S. GDP, or gross domestic product, rose 2.6% in the third quarter, topping the 2.3% estimate and up from a 0.6% decline in the second quarter. First-time jobless claims also were released. Claims rose to 217,000 vs. 214,000 in the previous week, slightly below estimates.
Stock Market Today: Caterpillar, McDonald’s, Merck Earnings
Other key earnings coming out Thursday were Dow Jones stocks Caterpillar (CAT), McDonald’s (MCD) and Merck (MRK), along with Ford Motor (F), Mastercard (MA), O’Reilly Automotive (ORLY), ServiceNow (NOW), Shopify (SHOP), Twitter (TWTR) and Wolfspeed (WOLF).
CAT stock jumped 5%, McDonald’s rallied almost 3% and Merck climbed 2.1% in morning trade. Ford shares skidded nearly 2%. Mastercard and Twitter were mixed immediately after releasing results. O’Reilly shares moved up around 2%. ServiceNow stock surged 14%. Shopify popped 3%, while WOLF stock plunged 25% in early trade.
Electric-vehicle giant Tesla (TSLA) traded up more than 1% Thursday morning, while Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were both lower ahead of today’s stock market open.
AutoZone (AZO), Cardinal Health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) — as well as Dow Jones stock UnitedHealth Group (UNH) — are among the top stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watchlists into action, and to hone their pyramiding technique.
Young rallies, particularly those fighting bear markets, often fail. Pyramiding provides a method of moving into new stock positions incrementally, in order to minimize risk to capital.
Cardinal and Texas Roadhouse are IBD Leaderboard stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column, along with three other top stock ideas.
Dow Jones Today: Treasury Yields, Oil Prices
Ahead of Thursday’s opening bell, the Dow Jones futures rose 1%, while S&P 500 futures moved 0.3% higher. Nasdaq 100 futures lost 0.2% in morning action, with Align and Meta trading at the bottom of the list.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.2%, and the SPDR S&P 500 ETF (SPY) rose a fraction.
The 10-year Treasury yield ticked higher to 4.07% Thursday morning, cutting into this week’s losses. On Monday, the 10-year Treasury yield closed at 4.23%, settling at its highest level since June 2008 before falling the following two sessions.
Meanwhile, U.S. oil prices inched higher Thursday, on pace to add to Wednesday’s gains. West Texas Intermediate futures traded above $88 a barrel.
Stock Market Rally Continues
On Wednesday, the Dow Jones Industrial Average crept higher and the S&P 500 declined 0.7%. The Nasdaq composite sold off more than 2%, as Alphabet (GOOGL) and Microsoft weighed on the tech-heavy index.
Wednesday’s The Big Picture commented, “With just one such session of pronounced institutional selling on the books, growth investors may proceed with buying excellent breakouts. However, given the shaky action seen in a number of follow-through days throughout the year, it makes sense to limit long exposure in both the general stock market and in top stocks to a range of 20% to 40% of a portfolio.”
Now is an important time to read IBD’s The Big Picture column. Following Friday’s gains, investors want to put their curated watchlists to work, in order to jump on future breakouts. But not all follow-throughs work, so it’s important to raise exposure slowly and methodically, as the new uptrend proves itself.
Check out IBD Stock Lists, like the IBD 50 and Stocks Near A Buy Zone, for stock ideas.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: UnitedHealth
Health care giant UnitedHealth is approaching a cup-with-handle’s 553.23 buy point, according to IBD MarketSmith pattern recognition. Shares rose 0.55% Wednesday, just shy of the stock’s latest entry.
UNH stock inched lower Thursday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Buy And Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse
Auto parts leader and recent IBD Stock Of The Day AutoZone is still in buy range past a cup base’s 2,362.34 buy point, despite falling 0.7% Wednesday. The 5% chase zone goes up to 2,480.46. AutoZone shares traded up a fraction Thursday.
IBD Leaderboard stock Cardinal Health is just out of buy range past a 71.22 entry out of a short cup with handle, according to IBD MarketSmith chart analysis. Shares are also above a flat base’s 72.38 buy point. Earnings are set for Nov. 4. CAH stock dipped 0.2% early Thursday.
IBD SwingTrader stock Eli Lilly closed past its buy range above a flat base’s 335.43 buy point, climbing 1.9% Wednesday. Shares were up 0.6% Thursday morning, ahead of Tuesday’s earnings report.
Texas Roadhouse moved further above a flat base’s 95.52 buy point during Wednesday’s 0.7% gain. The stock climbed 1.8% in premarket trade, ahead of the company’s earnings results late Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock advanced 1% Wednesday, rising for a second straight session after hitting a 52-week low Monday. Despite its recent gains, the stock closed about 46% off its 52-week high.
Shares of the EV giant moved up more than 1% Thursday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 2% Wednesday, snapping a three-day win streak. Shares are running into resistance around their 50-day line, which is a key level to watch. Apple stock moved down 0.8% ahead of the company’s earnings late Thursday.
The consumer tech titan is expected to earn $1.27 per share on revenue of $88.7 billion.
Microsoft dived 7.7% Wednesday after the company’s earnings results. Shares are still holding above their recent 52-week low, but ran into clear resistance at their 50-day line. The software giant is about 34% off its 52-week high. Microsoft shares lost 0.5% 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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