The Dow Jones Industrial Average rallied 300 points Thursday morning ahead of Fed Chief Jerome Powell’s scheduled speeches, as Tesla stock made a big push after reporting strong earnings late Wednesday.
Alcoa tumbled 7%, while CSX moved up 8%. Lam raised more than 2%. Nucor rose 1.5%. Steel Dynamics was up 3%.
Amid the struggling stock market rally, Dow Jones leaders American Express (AXP) and caterpillar (cat)—along with IBD Leader Board stock Edwards Lifesciences (ew), Murphy Oil (MUR), Raytheon Technologies (RTX) and shell (SHEL) — are among Thursday’s top stocks to buy and watch.
Microsoft and Tesla are IBD Leader Board stocks. Caterpillar and Edwards Lifesciences were featured in this week’s Stocks Near A Buy Zone column. Edwards was also Monday’s IBD Stock Of The Day. And Caterpillar is an IBD Swing Trader stock.
Dow Jones Today: Treasury Yields, Oil Prices, Powell Comments
After Thursday’s open, the Dow Jones Industrial Average rose 0.9%, and the S&P 500 gained 1.2%. The Nasdaq climbed 1.7% in morning trade.
The 10-year Treasury yield ticked up to 2.87% Thursday morning after sliding to 2.84% Wednesday. On Tuesday, the 10-year Treasury yield hit its highest level since December 2018. Meanwhile, US oil prices were up around 1%, as Texas Intermediate crude traded around $103 a barrel.
Fed Chief Powell is scheduled to make two speeches Thursday: the first at 11 am and the next at 1 pm, both eastern time. Investors will be monitoring those comments for indications of the Fed’s upcoming actions at the central bank’s policy decision in early May. the Federal Reserve is likely to raise interest rates next month by a half-percentage point and begin shrinking its $9 trillion asset portfolio.
Stock Market Rally
On Wednesday, the stock market finished sharply mixed, as the tech-heavy Nasdaq composite sold off more than 1.2%. Meanwhile, the Dow Jones industrials closed up 0.7%.
Wednesday’s The Big Picture column commented, “Meanwhile, a key psychological gauge showed that bearish sentiment has overcome bullishness, at least for now. This is often a contrarian indicator that often signals a rally, but caution is advised due to the current uncertain state of the market.”
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Dow Jones Stocks To Buy And Watch: American Express, Caterpillar
Dow Jones financial stock American Express also is tracing a cup-with-handle base, showing a 194.45 buy point. The stock bullishly regained its 50-day line during this week’s solid gain and is about 3% away from the entry. AXP shares were up 1.5% Thursday morning.
Meanwhile, IBD Swing Trader stock Caterpillar is in buy range past a cup-with-handle’s 227.15 buy point following last week’s breakout move. the 5% buy area goes up to 238.51. A bullish indicator — the stock’s RS line is at its highest level since June 2021. Shares were up 1% Thursday.
Stocks To Buy And Watch: Edwards, Murphy, Raytheon, Shell
IBD Leader Board stock Edwards Lifesciences is in buy range above a cup with handle’s 125.21 buy point following Wednesday’s 3% advance, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 131.47. EW shares rose 1% Thursday morning.
Murphy Oil remains just above an ascending base’s 43.30 buy point after Wednesday’s 0.7% gain. MURstock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Shares were up 1.25% early Thursday.
Defense contractor Raytheon Technologies finished just above a flat base’s 104.44 buy point after shares inch higher Wednesday. RTX shares rallied almost 1% Thursday morning.
Oil-and-gas producer Shell, the April 1 IBD Stock Of The Day, is squarely in a buy range above a flat base’s 56.23 buy point after Wednesday’s 0.4% drop. The 5% buy area goes up to 59.04. SHEL shares eased lower Thursday morning.
Tesla earnings beat Wall Street’s estimates late Wednesday. The company’s per-share earnings jumped 246% to $3.22 with sales up 81% to $18.76 billion. Tesla stock leapt more than 11% Thursday morning, following Wednesday’s 5% sell-off.
Shares of Tesla finished Wednesday about 15% away from a cup-with-handle’s 1,152.97 buy point. The stock traded as high as 1,243.49 on Nov. 4. and ended Wednesday about 21% away from that all-time high.
Dow Jones Leaders: Apple, Microsoft
among dow jones stocksApple shares triggered the 7%-8% loss-cutting rule from a 176.75 buy point in a double-bottom base last week. Meanwhile, a handle buy point is the latest entry to watch at 179.71. The stock rose 1.2% Thursday morning.
Software leader Microsoft rose 0.4% Wednesday, but remains sharply below its 50-and 200-day lines. The stock is around 20% off its 52-week high. MSFT shares were up 1.1% 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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