Dow Jones futures were still sharply lower Thursday morning after a key inflation reading, threatening to extend this week’s already-sharp losses. Key earnings movers are Acuity Brands (AYI), Constellation Brands (STZ) and Dow Jones stock Walgreens Boots Alliance (WBA). Meanwhile, Micron Technology (MU) earnings are due out after the close.
Acuity Brands shares rallied around 5% after the company reported strong earnings and sales results. Constellation Brands stock traded slightly lower even after topping earnings and sales estimates.
Tesla (TSLA) skidded more than 2% early Thursday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) both lost nearly 2% ahead of today’s stock market open.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ) and Merck (MRK), as well as AutoZone (AZO), Bristol Myers Squibb (BMY), Eli Lilly (LLY) and Quanta Services (PWR), are among the stocks to watch. Keep in mind that the ongoing stock market volatility is a reason to stay defensive.
Quanta is an IBD Leaderboard watchlist stock. Eli Lilly is an IBD SwingTrader stock. And Bristol was IBD Stock Of The Day on June 22. AutoZone featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Inflation Report
Ahead of Thursday’s open, Dow Jones futures pared losses, but still sold off 1.1% vs. fair value, and S&P 500 futures moved down 1.15%. Nasdaq 100 futures dived 1.2% in morning trade. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 1.2%. The SPDR S&P 500 ETF (SPY) lost 1.1% in early trade.
The 10-year Treasury yield retreated to 3.01% Thursday following Wednesday’s slide to 3.09%. The 10-year Treasury yield is trying to rebound after a sharp pullback. In mid-June, it hit its highest level since April 2011 at 3.48%.
Meanwhile, U.S. oil prices fell 1%, with West Texas Intermediate trading below $109 a barrel. In early March, WTI briefly topped out above $130.
The Federal Reserve’s preferred measure of inflation came out Thursday morning, with the personal consumption expenditure price index rising 0.6% for the month of May, with a year-over-year increase of 6.3%. Both numbers came in slightly lower than consensus Econoday estimates. Personal income rose 0.5% in May, in line with estimates.
The PCE price index is one measure of U.S. inflation, tracking the change in prices of goods and services purchased by consumers throughout the economy.
Meanwhile, first-time unemployment claims fell to 231,000, down from a revised 233,000 in the prior week, per the Labor Department.
Stock Market Volatility
The stock market posted mixed action Wednesday, as the Dow Jones industrials held a modest gain. The Nasdaq and S&P 500 notched slight losses.
Wednesday’s The Big Picture column commented, “The S&P 500, down 2% on Tuesday, edged 2 points lower. In contrast, gains of 2 points or more by at least eight of the Dow Jones Industrial Average’s 30 components — including Leaderboard position UnitedHealth (UNH) and IBD Long Term Leader Microsoft — helped hoist the blue-chip average to a nearly 0.3% gain.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Dow Jones Earnings: Walgreens
Walgreen Boots Alliance reported better-than-expected quarterly results early Thursday, but shares fell more than 1% in early morning trade.
WBA shares finished Wednesday about 26% off their 52-week high and sharply below their 200-day lines
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Johnson & Johnson, Merck
Dow Jones leader Johnson & Johnson is about 3% below a double bottom’s 181.84 buy point following Wednesday’s modest decline, according to IBD MarketSmith chart analysis. JNJ shares were flat Thursday morning.
JNJ stock shows a 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Drug giant Merck gave up its flat base’s 95.02 buy point Tuesday, and is still about 3% below the entry after a 0.7% gain Wednesday. Early Thursday, the stock fell 0.5%.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: AutoZone, Bristol, Eli Lilly, Quanta
AutoZone shares regained their cup with handle’s 2,130.60 buy point Wednesday amid a 0.7% rise. Shares were unchanged Thursday.
Bristol Myers finished just below a flat base’s 78.72 buy point after Wednesday’s 0.5% loss. The 5% chase zone runs up to 82.66. Shares inched lower Thursday.
SwingTrader stock Eli Lilly rose 1.7% Wednesday, rebounding from Tuesday’s sharp decline. Shares are in the 5% buy area that goes up to 329.81. Eli Lilly shares were down 0.7% early Thursday.
Leaderboard watchlist stock Quanta Services is tracing a messy cup with handle that has a 138.56 buy point, according to IBD MarketSmith chart analysis. Shares are back at their 50-day line, which is a key level to watch. Quanta stock edged lower Thursday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock skidded 1.8% on Wednesday, extending a losing streak to three sessions. Shares threatened to add to those losses Thursday morning, falling more than 2%. The stock is sharply below its 50- and 200-day moving averages.
Tesla is likely to announce Q2 sales late this week. Analysts polled by FactSet expect Tesla to have delivered 273,000 vehicles in the second quarter, with the range between 249,000 and 323,000. Tesla delivered 310,048 vehicles in Q1.
Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 45% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.3% Wednesday, snapping a three-day win streak. The stock is far below its long-term 200-day line and is about 25% off its 52-week high. Apple shares moved down 1.8% Thursday morning.
Software leader Microsoft gained 1.5% Wednesday, as it continues lower after finding stout resistance around its key 50-day line. The stock closed about 27% off its 52-week high. Microsoft shares declined nearly 2% early Thursday.
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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