Dow Jones Surges 900 Points On Cool Inflation Data; Treasury Yields Dive

The Dow Jones Industrial Average briefly surged 900 points Thursday after the closely watched consumer price index, or CPI, inflation gauge came in cooler than expected. The 10-year Treasury yield diverged to 3.87% Thursday after the cooler-than-expected CPI reading.

Meanwhile, electric-vehicle stocks Nio (NIO) and Rivian Automotive (RIVN) raced higher after their quarterly earnings results.


The Labor Department’s consumer price index showed prices rose 0.4% in October, cooler than estimates that expected a 0.7% rise vs. the previous month. Consumer inflation rose 7.7% year over year, lower than the projected 8.0% increase.

Meanwhile, first-time unemployment claims revealed initial claims rose to 225,000 vs. 217,000 in the previous week.

Key earnings movers Thursday were Astra Zeneca (AZN), Dutch Bros. (BROS), Nio, Ralph Lauren (RL), Rivian Automotive and UnitySoftware (U).

AstraZeneca shares jumped 6%, while BROS stock rallied 10% in morning trade. NIO stock raced 11% higher. Ralph Lauren shares rose 4%, as Rivian stock surged 17%. Unity stock climbed more than 16%.

Electric-vehicle giant You’re here (TSLA) traded up around 5% Thursday morning. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were sharply higher after today’s stock market open.

Among the top stocks to buy and watch, Albemarle (ALB), IBD Leaderboard watchlist stock Arista Networks (ANET), 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 watchlist 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 latest MarketDiem newsletter gives you actionable ideas for stocks, options and crypto right in your inbox.

Dow Jones Today: Oil Prices

After Thursday’s opening bell, the Dow Jones Industrial Average rose 2.5%, while the S&P 500 moved up 3.9%. The tech-heavy Nasdaq composite surged 5.4% in morning action.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded up 5.3% early Thursday, and the SPDR S&P 500 ETF (SPY) rose 3.9%.

Meanwhile, US oil prices traded up more than 1%, with West Texas Intermediate futures rising above $87 a barrel and looking to end a three-day losing streak. Last week, WTI futures hit their highest point since mid-October, but have since retired.

Stock Market Rally Struggles

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

Wednesday’s The Big Picture commented, “Nasdaq volume edged lower. Yet as the accompanying Market Pulse table indicates, many leading stocks suffered a bout of heavy institutional selling. That’s not what you normally see in a healthy stock market. Higher turnover on the NYSE tagged the S&P 500 with a third distribution day since the Oct. 21 follow-through day.”

Now is an important time to read IBD’s The Big Picture column. Following recent selling, 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 buy range past a double-bottom base’s 93.12 buy point, according to IBD MarketSmith pattern recognition. Merck shares rose 0.8% Thursday.

Health care giant UnitedHealth is trying to retake a cup with handle’s 553.23 buy point. Shares lost 2.2% Wednesday, ending about 2% below their latest entry. UNH stock added 1.4% Thursday morning.

4 Top Growth Stocks To Watch In The Current Stock Market Rally

Top Stocks To Buy And Watch: Albemarle, Arista, CF, GlobalFoundries

Lithium producer Albemarle is trying to break out past a cup base’s 308.34 buy point. Shares eased 1.9% Wednesday, giving up a part of Tuesday’s surge and falling further below its latest buy point. ALB stock was up 3% early Thursday.

IBD Leaderboard watchlist stock Arista Networks is squarely below a choppy base’s 132.97 buy point following three days of losses. HASNET stock traded 4.7% higher Thursday morning.

CF Industries is holding above its 50-day line despite Wednesday’s 3.7% decline. Shares are building a cup base that has a 119.70 buy point, according to IBD MarketSmith pattern recognition. CF stock climbed more than 1% Thursday.

Tuesday’s IBD Stock Of The Day, GlobalFoundries is trading about 8% away from a 66.06 buy point in a cup base following this week’s rally. Shares could also be forming a handle after the recent jump in price. GFS stock traded up 2% on Thursday.

Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live

Tesla Stock

Tesla stock skidded another 7.2% Wednesday, extending a losing streak to four sessions. Shares hit another new 52-week low and reached their lowest level since November 2020. The stock is more than 55% off its 52-week high and sharply below its 50- and 200-day moving average lines.

Shares of the EV giant moved about 5% higher Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares sold off 3.3% Wednesday, snapping a two-day win streak and heading back to recent lows. The stock traded up 5.1% Thursday.

Microsoft dropped 1.9% Wednesday, ending a three-day win streak. The software giant remains about 35% off its 52-week high. Microsoft shares rose 4.9% 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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