The Dow Jones Industrial Average briefly dipped 750 points on Thursday after strong gains followed the Federal Reserve’s Wednesday announcement of a 75 basis point rate hike for the first time since 1994. You’re here (TSLA) The stock slipped 4% after the electric carmaker raised most of its prices in the United States, with some models reaching as high as $6,000.
Afterwards, Chief Executive Elon Musk will hold a town hall meeting with Twitter (TWTR), addressing the staff for the first time. Twitter shares gained more than 1% on Thursday morning.
Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) were both down about 2.5% after the stock market opened today.
Amid a stock market correction, Dow Jones leaders Chevron (CLC), as well as Diamondback Energy (CROC), EquityHealth (HQY), Northrop Grumman (NOC), Quantum Services (REP) and World fight Entertainment (WWE), are among the stocks that are holding up the best despite the weakness of the market.
Quanta is an IBD Leaderboard watchlist stock. And WWE was featured in this week’s Stocks Near A Buy Zone column. HealthEquity was Tuesday’s IBD stock of the day.
Dow Jones Today: Treasury Yields, Oil Prices, Unemployment Insurance Claims
After Thursday’s open, the Dow Jones Industrial Average fell 2.2%, while the S&P 500 was down 2.7%. The tech-heavy Nasdaq composite plunged 3.15% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 3%. The SPDR S&P 500 ETF (SPY) lost 2.8% in early trading.
The 10-year Treasury yield rose to 3.43% on Thursday morning after Wednesday’s fall to 3.39%. The 10-year Treasury yield remains near its highest level since April 2011. Meanwhile, US oil prices extended their recent losses, with the West Texas Intermediate trading just above $113 a barrel. In early March, WTI briefly rose above $130.
The Labor Department said first-time jobless claims were flat at 229,000, unchanged from the previous week. Initial jobless claims were expected to fall to 220,000 according to Econoday estimates.
Stock market correction
The stock market ended with strong gains on Thursday, with the Nasdaq leading the way with a 2.5% rise.
Wednesday’s The Big Picture column commented: “A press conference with Fed Chairman Jerome Powell also indicated that the bank would do the same at its next interest rate policy meeting on May 26 and July 27. This would mean that short-term interest rates could be at 2.5% by the end of the summer. This would reach the highest level since 3% in January 2008.”
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Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones stocks to watch now
Dow Jones Stocks to Watch: Chevron
Dow Jones leader and energy giant Chevron fell even lower than the 174.86 buying point of its flat base, according to IBD MarketSmith’s chart analysis, after Wednesday’s 2% decline. . The stock is about to trigger the 7% to 8% loss reduction rule, which would indicate a failed breakout. CVX shares are already below their main 50-day benchmark, another indicator of weakness. Shares of Chevron slid nearly 3% on Thursday morning.
The CVX stock boasts a solid 98 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Scorecard. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
Two growth stocks to watch in the currentrent Stock market correction
Stocks to watch: Diamondback, HealthEquity, Northrop, Quanta, WWE
Energy leader Diamondback Energy is below the buy point of 148.09 on a consolidation basis, as the stock fell 1.9% on Wednesday. Shares were down nearly 3% on Thursday morning.
Tuesday’s IBD stock HealthEquity rose above the 66.23 cup-with-handle buy point on Tuesday. The stock remains in the 5% buy zone which rises to 69.54, as the stock fell 0.3% on Wednesday. Keep in mind that the weak market environment should hold you back. Shares were down 2% on Thursday morning.
Northrop Grumman is trying to halt its recent slide around its 50-day moving average and is about 4% below the 477.36 buy point of its tumbler with handle. CNP shares fell 0.4% on Thursday.
Stock Big Cap 20 Quanta Services charts a mug with handle that has a buy point of 138.56. Stocks are at their 50-day line, which is a key support level to watch. Quanta shares traded down 2% early Thursday.
According to IBD MarketSmith’s chart analysis, WWE shares jumped almost 5% on Wednesday. The 5% buy zone peaked at 67. WWE shares were down 0.5% early Thursday.
According to the ranking commentary, the relative strength line of WWE stocks has been at all-time highs and gaining momentum since January. The base is first floor, a bonus for the map.
Join IBD experts as they analyze the top stocks of the current market correction on IBD Live
Tesla stock rose 5.5% on Wednesday, rising for a second straight day. The shares threatened to give up those gains, trading down 4% on Thursday morning after the company raised most of its U.S. auto prices. The base price for a Model 3 remains $46,990.
The stock is still well below its 50 and 200 day moving averages. Tesla stock traded as high as 1,243.49 on November 4. The shares are about 44% off that record.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 2% on Wednesday but still remain near their lowest level since June 2021. The stock is well below its long-term 200-day line and is around 25% from its 52-week high. AAPL stock traded down around 2% on Thursday.
Software leader Microsoft gained 3% on Wednesday, but remains well below its 50- and 200-day lines. The stock hit a 52-week low on Tuesday and is about 30% off its 52-week high. MSFT shares fell more than 2% on 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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