The Dow Jones Industrial Average and other major indexes traded higher in premarket action Thursday, as stocks looked to bounce back from Wednesday’s sell-off. Markets also digested stronger-than-expected GDP and weekly unemployment numbers. And artificial intelligence chip giant Micron Technology (MU) was an early earnings loser, while Nvidia (NVDA) looked to rebound.
Ahead of the opening bell, Dow Jones futures rose 0.7% vs. fair value, as S&P 500 futures gained 0.6%. Tech-heavy Nasdaq 100 futures moved up 0.5% in morning trades.
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Early Thursday, the 10-year Treasury yield ticked higher to 4.53%. Oil prices edged lower, as West Texas Intermediate futures traded around $70.55 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) climbed 0.5%, as the SPDR S&P 500 ETF (SPY) moved up 0.6% ahead of the open.
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Nvidia stock sold off another 1.1% Wednesday, extending a losing streak to five sessions. Shares also closed further below their 50-day moving average, a sign of mounting weakness. Nvidia stock tried to rebound with a 2.2% gain in premarket trading Thursday.
Early Thursday, the Commerce Department’s third-quarter GDP increased at an annual rate of 3.1%, above the 2.8% Econoday estimate.
Also out Thursday, the Labor Department’s weekly jobless claims fell to 220,000. They were expected to fall to 230,000 vs. 242,000 in the previous week, per Econoday projections.
Elsewhere, Micron Technology roughly matched analyst estimates for its fiscal first quarter but badly missed with its outlook for the current quarter. Micron stock plunged more than 11% in premarket trading.
Other key earnings movers Thursday include Darden Restaurants (DRI) and Lennar (LEN). Darden stock jumped 9%, while Lennar shares tumbled nearly 8% in premarket trading.
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Dow Jones Extends Losing Streak
On Wednesday, the Dow Jones Industrial Average sold off 2.6%, while the S&P 500 dived 3% and the Nasdaq tumbled 3.6% after the Federal Reserve cut its key interest rate for a third-straight meeting and penciled in two more rate cuts for 2025. The Fed had indicated four rate cuts for 2025 back in September, but markets were expecting only two with both inflation and the economy stronger than expected.
The Fed projections would see the federal funds rate cut to just below 4% next year, implying moderate additional relief from high rates for borrowers. But markets slid as Fed Chairman Jerome Powell spoke, citing uncertainty over the direction the Trump administration would take. The Fed also raised inflation targets and cited possible increased growth as a reason for trimming the number of rate cuts.
Among the best companies to watch on the stock market today are BlackRock (BLK), Burlington Stores (BURL) and Taiwan Semiconductor Manufacturing (TSM).
Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), Walt Disney (DIS), Microsoft (MSFT) and Nvidia.
Taiwan Semi is featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge‘s “Breaking Out Today” list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the “Near Pivot” list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: Disney Nears Buy Point
Dow Jones component Disney is approaching a 118.63 buy point in a cup with handle, according to MarketSurge pattern recognition. Shares rose 0.7% Thursday.
Outside the Dow Jones index, BlackRock is under a 1,068.34 buy point in a four-weeks-tight pattern as it pulls back to its 50-day moving average. BlackRock stock added 1.1% in premarket trading Thursday.
Burlington Stores is falling back to its 279.51 buy point in a cup with handle during Wednesday’s 3.1% drop. Shares rallied 1.5% Thursday morning.
Nvidia chipmaker Taiwan Semiconductor closed Wednesday within striking distance of a 205.63 cup-with-handle buy point as it tests support at the 50-day line. Shares rose 1.3% early Thursday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| BlackRock | (BLK) | 1,068.34 | Tight area |
| IBM | (IBM) | 237.37 | Cup base |
| Broadcom | (AVGO) | 185.05 | Double bottom |
| Manhattan Associates | (MANH) | 306.63 | Handle entry |
Source: IBD Data as of Dec. 16
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Tesla Stock Dives
Electric-vehicle giant Tesla (TSLA) plunged 8.3% Wednesday, reversing from new highs and snapping a three-day win streak. At their peak Wednesday, shares rallied as much as 84% above a 264.86 buy point in a cup with handle.
Tesla stock bounced 2.7% higher in premarket action Thursday.
Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which tumbled 4.6% Wednesday. Despite that sharp loss, the e-commerce giant is still extended above a 201.20 buy point after hitting new highs earlier in the week. It rose 1.1% in premarket trading Thursday.
Shares of Apple reversed from new highs to sell off 2.1% Wednesday, falling back into buy range above a flat base’s 237.49 entry. The stock was up a fraction Thursday morning.
Microsoft shares bounced 0.7% Thursday morning following Wednesday’s decline. Last week, the stock reached its highest level since mid July.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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