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Dow Jones Futures Rally After Inflation, Jobs Data; Disney soars on profits

The Dow Jones Industrial Average rallied on Thursday after another round of key economic data. Another reading on inflation, from the Labor Department’s Producer Price Index, as well as weekly jobless claims, both came out early. Dow Jones media giant Walt Disney climbed nearly 10% on strong results.


Other earning drivers include Alpha and omega semiconductor (AOSL), Cardinal Health (ACH) and dutch brothers (BROS).

AOSL shares rebounded more than 11%. Cardinal Health was down about 3%. And shares of Dutch Bros rebounded more than 12% in early morning trading.

Home improvement giant Lowe’s (LOW) was down 1% Thursday morning after Citigroup downgraded the stock to neutral long. Leader in electric vehicles You’re here (TSLA) is trading down 1%. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) both rose after the stock market opened today.

In the current healthy market environment, Dow Jones stocks Coke (KO) and UnitedHealth (UNH) — as well as American tower (ATM), Monolithic power systems (MPWR), Ollie’s Bargain Outlet (OLLI) and Vertex Pharmaceuticals (VRTX) – are among the best stocks to buy and watch.

UnitedHealth and Vertex are IBD stocks. Ollie’s and Vertex were featured in this week’s Stocks Near A Buy Zone column. Monolithic Power was the IBD title of the day a week ago. Vertex is also an IBD SwingTrader idea. American Tower was Wednesday’s IBD 50 Stocks To Watch pick.

Dow Jones Today: Treasury Yields, Oil Prices, Inflation Data

The Dow Jones Industrial Average rose 0.8% and the S&P 500 rose 0.75%. The tech-heavy Nasdaq composite climbed 0.8% in morning trading.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.7%. And the SPDR S&P 500 ETF (SPY) also gained 0.7%.

The 10-year Treasury yield fell to 2.74% on Thursday morning, extending Wednesday’s decline to 2.78%. The 10-year Treasury yield struggled to rebound after hitting its lowest level since early April last week.

Meanwhile, US oil prices are also trying to rebound from a recent pullback. West Texas Intermediate futures rose 1% on Thursday, trading around $93 a barrel. Last week, WTI fell below $88 a barrel for the first time since mid-February.

The producer price index, which measures wholesale inflation, was released Thursday morning. Producer prices fell 0.5% in July, well below the expected 0.3% rise and down from June’s 1.1% rise. Year-on-year, prices rose 9.8% against an expected jump of 10.3%. On Wednesday, the CPI inflation rate finally eased from a 40-year high in July as the consumer price index was colder than expected.

Meanwhile, first-time jobless claims rose to 262,000 from 260,000 the previous week. Econoday estimates predicted 260,000 initial jobless claims.

Stock market rally

On Wednesday, the Nasdaq composite – fueled by a calm reading of July price inflation data – rose 2.9%, while the S&P 500 rose 2.1%. The Dow Jones Industrial Average gained 1.6%.

Wednesday’s The Big Picture column commented: “And so, when it comes to the portfolio, you don’t have to dive headfirst into stocks. More economic news, stocks and commentary from Reserve bankers could lead to mini-corrections as part of the big correction. Nonetheless, the air in the stock market is smelling fresher. The noticeable improvements in the technical landscape should not be ignored.”

If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.

Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Coca Cola, UnitedHealth

Dow Jones soda giant Coca Cola builds the right side of a flat base that has a buy point of 67.30. Meanwhile, an early handle entry is also in play at 65.14. Stocks rebound from their 50-day line after two consecutive days of gains. KO stock fell 0.1% on Thursday.

Health insurance giant and IBD Leaderboard UnitedHealth stock remains in the buy range above the 518.80 buy point of its double-bottom base with a handle amid the 0.1% gain from Wednesday, according to IBD MarketSmith’s chart analysis. The 5% pursuit zone rises to 544.74. Shares lost 0.1% on Thursday.

The UNH stock is posting a solid 94 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: American Tower, Monolithic, Ollie’s, Vertex

Wednesday’s IBD 50 Stocks To Watch pick American Tower is in the buy range beyond a cup with the handle’s buy point of 271.19, according to IBD MarketSmith’s chart analysis . Shares rose 0.6% on Wednesday, extending a five-day winning streak. AMT stock traded down 0.1% on Thursday morning.

Thursday IBD Stock of the Day Monolithic Power Systems continues to build the right side of a consolidation with a buy point of 580.10. Meanwhile, stocks recovered an early entry of 514.80 on Wednesday’s 4.1% advance. Keep an eye out for a potential handful that is about to offer another alternate point of purchase. Shares rose 0.2% on Thursday.

Ollie’s Bargain Outlet rebounds from its 10-week line – a critical support level – putting the top discount retailer in a new buy zone. Stocks also carve out a handful after a large cup base, placing the latest buy point at 72.37. The current price action is around 10% of this entry. Shares rose nearly 3% early Thursday.

IBD SwingTrader Vertex Pharmaceuticals stock slid 1% on Wednesday, but is still slightly out of the buy range after a cup with the handle entry at 279.23. The 5% pursuit zone increased to 293.19. The June 23 breakout is back on track after last week’s Q2 results. Vertex stock was down 0.2% on Thursday morning.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rebounded 3.9% on Wednesday, rebounding from Tuesday’s 2.4% decline. Shares were up more than 1% on Thursday morning.

Last week, shares of Tesla hit their highest level since early May, but are now finding firm resistance around their 200-day line, which is a key level to watch. The stock is nearly 30% off its 52-week high. A 3-for-1 stock split will take place on August 24.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 2.6% on Wednesday, closing at their highest level since April 13. The action builds the right side of a cut base that has a buy point of 179.71. Shares rose 0.5% on Thursday morning.

Microsoft rose 2.4% on Wednesday, closing in on the long-term 200-day line, which is a key resistance area to watch. The stock rose 0.3% early Thursday.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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