After a slew of economic data, Dow Jones futures dropped while Nasdaq futures rallied Thursday amid positive signs for two key chip makers. Chip giant Taiwan Semiconductor (TSM) surged in premarket action on earnings news, while Nvidia stock looked to hit more record highs.
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Before the opening bell, Dow Jones futures fell 0.2%, while S&P 500 futures gained 0.3%. Tech-heavy Nasdaq 100 futures advanced 0.7% in premarket action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.9%, while the SPDR S&P 500 ETF (SPY) rose 0.4%.
Further, oil prices added to Wednesday’s gains, as West Texas Intermediate futures crept higher. WTI futures traded around $72.70 a barrel.
The 10-year Treasury yield ticked up to 4.12% Thursday morning. The 10-year had climbed to 4.1% Wednesday, extending a win streak to three sessions.
Jobless Claims, More Earnings
A trio of economic announcements came out Thursday morning. First was the Labor Department’s first-time jobless claims. Claims surprisingly dropped to 187,000. They were expected to rise to 206,000 vs. 202,000 in the previous week.
Housing starts and permits from the Commerce Department came out next. Starts in December fell less than expected to 1.46 million, above the 1.425 million estimate, vs. 1.56 million in November. And permits in December rose more than expected to 1.495 million vs. the 1.478 million estimate compared to 1.46 million in November.
Also, the Philadelphia Fed manufacturing index fell to -10.6 in January. The reading was seen improving slightly to -6.7 vs. December’s -10.5 reading.
Key earnings movers Thursday morning came via results from Alcoa (AA), Fastenal (FAST), KeyCorp (KEY), M&T Bank (MTB) and Taiwan Semiconductor.
Alcoa stock dipped 0.1%, while FAST stock rallied 4.4% in early trading. KeyCorp shares dropped 3.1%, and MTB stock climbed 1.8% in premarket action.
Taiwan Semiconductor surged more than 7% after beating earnings estimates and saying it expects to return to sales growth in the first quarter. For the first quarter, TSMC expects revenue of $18 billion to $18.8 billion. The midpoint of $18.4 billion topped Wall Street’s target of $18.27 billion. In the first quarter last year, TSMC generated revenue of $16.62 billion.
Dow Jones Falls
On Wednesday, the Dow Jones Industrial Average dropped 0.25%, while the S&P 500 moved down 0.6%. The tech-heavy Nasdaq composite fell 0.6% to extend Tuesday’s losses.
Wednesday’s Big Picture column commented, “The Nasdaq, however, also revealed a resilient character. Down as much as 1.6% at around 10 a.m. ET, the composite index battled its way back throughout the remainder of the session to cut that loss to just under 0.6%. The Nasdaq also closed at the high of its intraday range. Meanwhile, the S&P 500 squeezed an early 1.1% loss to less than 0.6% by day’s end.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
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Best Stocks To Buy And Watch
Magnificent Seven player Amazon (AMZN), along with MercadoLibre (MELI), Netflix (NFLX), Novo Nordisk (NVO) and Spotify (SPOT) — plus Dow Jones components American Express (AXP), Amgen (AMGN) and Merck (MRK) — are among the best stocks to buy and watch in the current market rally.
MercadoLibre and Spotify were featured in this Stocks Near A Buy Zone column.
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Dow Jones: American Express In Buy Range
Credit card leader American Express is falling back into buy range past a 175.31 buy point in a cup with handle. AXP stock fell 0.3% Thursday morning.
Biotech leader Amgen rose 0.2% Wednesday, holding out of the 5% buy range past a 288.46 official buy point in a flat base. The 5% buy area went up to 302.88. AMGN stock was down 0.5% early Thursday.
Drug maker Merck is trying to break out past a cup base’s 119.65 buy point, according to IBD MarketSmith pattern recognition. MRK stock dipped 0.2% Thursday.
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Spotify Breaks Out
IBD Leaderboard stock Amazon is back in buy range beyond a cup base’s 145.86 buy point, with a 0.95% drop Wednesday, according to IBD MarketSmith. AMZN stock rallied 0.9% Thursday morning.
MercadoLibre is trying to break out past a flat base’s 1,660 buy point, but the breakout faltered Wednesday, falling 2.2%. MELI stock gained 1.4% early Thursday.
Netflix inched lower Wednesday, just below a 482.70 buy point in a cup with handle. NFLX stock rose 0.2% Thursday.
Weight-loss drug maker Novo Nordisk ended Wednesday up %, still holding above a 105.69 flat-base buy point. NVO stock slipped 0.5% early Thursday.
IBD SwingTrader stock Spotify closed Wednesday below a 202.88 buy trigger in a flat base, with a 2.3% loss. SPOT stock rose 1% Thursday morning.
Best Bets In Today’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| American Express | (AXP) | 175.31 | Cup with handle |
| Netflix | (NFLX) | 482.70 | Cup with handle |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Jan. 18, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) traded up 2.3% and 1.4%, respectively, in premarket action Thursday.
Nvidia dropped 0.6% Wednesday, easing from Tuesday’s record highs. But shares were set to hit more record highs Thursday morning. The stock is already extended past a flat base’s 505.48 buy point. Nvidia is also an IBD Leaderboard stock
Tesla stock skidded 2% Wednesday, closing at its lowest level since Nov. 10. Tesla stock sits sharply below its 50- and 200-day moving averages.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Thursday’s stock market open.
Apple stock dropped 0.5% Wednesday, still holding support around its 200-day line. Still, AAPL is sharply below a 192.93 buy point and the 50-day line. Shares rallied 2.1% early Thursday.
Microsoft stock moved down 0.2% Wednesday, snapping a six-day win streak. Shares are in buy range past a flat base’s 384.30 buy point. MSFT was a recent IBD Stock Of The Day. And the software giant was up 0.6% Thursday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
