Dow Jones Sells Off 300 Points On Key Economic Data; Nvidia Drops On Earnings Miss

Leandro Mortenegro

The Dow Jones Industrial Average briefly dropped 300 points Thursday morning after early releases of first-time jobless claims, housing data and the Philadelphia Fed manufacturing index. Nvidia earnings missed estimates, as NVDA shares fell around 2%.


The Labor Department’s initial unemployment claims fell to 222,000 vs. 225,000 in the previous week, meeting estimates. Housing starts and preliminary building permit figures for October came in above estimates, but still slowed compared to September. Meanwhile, the Philadelphia Fed manufacturing index sharply missed estimates, with a reading of -19.4, below expectations for a -7.0 reading for November.

Earnings movers to watch for Thursday morning included Alibaba (BABA), BJ’s Wholesale (BJ), Cisco Systems (CSCO), Helmerich & Payne (HP), Kohl’s (KSS), Macy’s (M) and Nvidia.

Alibaba shares dropped 2.8% in morning trade, while BJ stock dived 8%. Cisco shares rose more than 4%. HP shares moved down 3%. Kohl’s stock tumbled 3%, as Macy’s jumped 7%.

Nvidia missed Wall Street’s earnings target on higher-than-expected sales in its fiscal third quarter. And the stock lost more than 2% Thursday morning.

Electric-vehicle giant Tesla (TSLA) traded down 1.1% Thursday morning. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were also squarely lower after today’s stock market open.

IBD Leaderboard stock Arista Networks (ANET), General Motors (GM), GlobalFoundries (GFS), Mobileye (MBLY) and Phillips 66 (PSX)— as well as Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard stock and was Monday’s IBD Stock Of The Day. GlobalFoundries was featured in this week’s Stocks Near A Buy Zone column. General Motors was IBD’s Stock Of The Day on Nov. 10, and Mobileye was last week’s featured IPO Leader.

IBD’s latest newsletter MarketDiem gives you actionable ideas for stocks, options and crypto right in your inbox.

Dow Jones Today: Oil Prices, Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.7%, while the S&P 500 lost 1%. The tech-heavy Nasdaq composite sold off 1.1% in morning action.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1.5% early Thursday, and the SPDR S&P 500 ETF (SPY) fell 1.3%.

The 10-year Treasury yield ticked jumped to 3.78%, taking back a chunk of this week’s early losses. Meanwhile, U.S. oil prices dropped nearly 2%, as West Texas Intermediate futures shifted toward the lower end of their recent trading range. WTI futures traded below $84 a barrel.

Stock Market Rally

On Wednesday, the major stock indexes finished with sharply mixed action. The Nasdaq composite sold off 1.5%, while the S&P 500 lost 0.8%. The Dow Jones industrials inched lower.

Wednesday’s The Big Picture commented, “A 1.5% decline by the composite index on Wednesday may sting those who went long right before the market open. Data storage heavyweight Micron Technology (MU) set the bearish tone early in the session. The Boise, Idaho-based leader in DRAM and NAND-type memory products warned that its key markets would shrink in 2023.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing stock market volatility.

Five Dow Jones Stocks To Buy And Watch Now

Dow Jones Stocks To Buy And Watch: Caterpillar

Dow Jones member Caterpillar is trying to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares fell 2% Thursday.

CAT stock boasts an impressive 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.

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

Top Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, PSX

IBD Leaderboard stock Arista Networks remains below a choppy base’s 132.97 buy point amid Wednesday’s 1.5% loss. ANET stock traded down 1% Thursday.

Automaker General Motors fell sharply below its cup-with-handle’s 40.20 buy point during Wednesday’s 4.4% skid. The buy area tops out at 42.21. GM stock fell 1.5% early Thursday.

Chip foundry GlobalFoundries is back below a 66.06 buy point in a cup base. GFS shares lost 4% Thursday morning.

IPO Leader Mobileye faltered Wednesday, falling 3.7% to end squarely under an IPO base’s 29.96 buy point, according to IBD MarketSmith pattern recognition. The 5% chase zone tops out at 31.46. MBLY shares were down 1.1% early Thursday.

Monday’s IBD 50 Stocks To Watch pick, Phillips 66, is trying to break out past a cup-with-handle base’s 110.08 buy point, but the breakout ran into trouble with a 3.1% loss Wednesday. PSX stock was down 1.1% in morning trade.

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

Tesla Stock

Tesla stock sold off 3.9% Wednesday, giving back a large part of recent gains. The stock is still holding above last week’s 52-week low price at 177.12. Tesla shares are more than 50% off their 52-week high and sharply below their 50- and 200-day moving average lines.

Shares of the EV giant traded down more than 1% Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares lost 0.8% Wednesday, clinging to support around their 50-day line. The stock traded down 0.9% Thursday.

Microsoft edged lower Wednesday, still holding above its recently reclaimed 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares dropped 1.5% Thursday morning.

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


Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place

How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks

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