Dow Jones futures and other major stock indexes fell on Thursday after a big jump in the Labor Department's weekly initial jobless claims. Meanwhile, the artificial intelligence chip maker Arm Holdings (ARM), Airbnb (ABNB) and Roblox (RBLX) plunged in the stock market today after reporting earnings.
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In premarket action, Dow Jones futures fell 0.2% versus fair value while S&P 500 futures fell 0.1%. Tech-focused Nasdaq 100 futures were slightly lower before the opening bell.
Early Thursday, the yield on the 10-year Treasury rose to 4.52 percent. Further, oil prices rose as West Texas Intermediate futures traded around $79.55 a barrel.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF ( QQQ ) sank 0.2%, as the SPDR S&P 500 ETF ( SPY ) fell 0.1%.
Stock Market Today: Unemployment Claims
Before the stock market opened on Thursday, the Labor Department's first-time jobless claims rose to 231,000 versus 208,000 in the previous week, their highest level since August 2023. Per Econoday, they were expected to increase slightly to 212,000.
Earlier on Thursday, the AI chip stock arm fell more than 8% after the company beat analysts' estimates for the fiscal fourth quarter and its forecast for the current period. However, its sales outlook for next year missed the mark.
Meanwhile, Roblox fell nearly 28 percent after reporting Q1 results early Thursday. The company said its second-quarter bookings were $870-$900 million, below estimates of $902.5 million.
Other major earners include Airbnb, AppLovin (app) Duolingo (DUOL) and HubSpot (Hubs) with Instacart (cart), Robin Hood Markets (HOOD) And Trade Desk (TTD).
Shares of Airbnb fell 9%, while shares of AppLovin rose more than 14%. Duolingo stock sank nearly 14%, as HubSpot jumped nearly 9% in early trading. Instacart stock lost 2%, while Robinhood rose more than 5%. Finally, the trade desk moved about 1% ahead of the market open.
Be sure to read how to adjust to changing market conditions, along with IBD's new exposure levels.
The Dow Jones extended its winning streak.
On Wednesday, the Dow Jones Industrial Average climbed 0.4%, extending its winning streak to six sessions. The S&P 500 edged lower, while the tech-heavy Nasdaq Composite fell 0.2%.
Wednesday's The Big Picture column commented, “For stock market investors, Wednesday's action confirmed that stock pickers may feel like they are discovering either a land mine or a gold mine. “
On Wednesday's IBD Live show, the IBD Live team discussed current trading conditions. Mark Munrovini, two-time winner of the US Investing Championship, returns to the show for the second time already this year. He shares decades of experience and anecdotes about William O'Neill's concept of trading, stock research, chart reading and studying historical precedents for making money.
Now is an important time for investors to read Business Daily's The Big Picture column amid ongoing stock market action. Be sure to read how to adjust to changing market conditions, along with IBD's new exposure levels.
Learn how to time the stock market with IBD's ETF Market Strategy.
Stock Market Today: Best Stocks to Watch
Chipotle Mexican Grill (CMG) NXP Semiconductors (NXPI), Texas Roadhouse (TXRH) and Trade Web Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch in the stock market today.
Chipotle and Merck are the stocks featured in the near-buy zone column.
An essential resource for daily breakouts is IBD MarketSurge's “Breaking Out Today” list. This MarketSurge Growth shows 250 stocks that are breaking new past buy points. Especially, NetApp ( NTAP ) broke above a double-bottom 108.82 buy point on Wednesday.
Also, the MarketSurge “Near Pivot” list shows stocks near buy points in bases.
To find more stock ideas, check out IBD stock lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get real-time buy and sell alerts on stock market leaders with the IBD Leaderboard.
Dow Jones: American Express above buy point
American Express is bouncing back in heavy volume from support around its 50-day moving average. A bullish recovery has put the software leader in new buy territory, with shares just above the 231.69 entry in a brief consolidation. Share prices rose 0.6 percent in the stock market today.
Meanwhile, drug giant Merck is building a flat base with a 133.10 entry. Merck stock fell 1.1% on Thursday.
4 Top Growth Stocks to Watch Stock market today
Outside the Dow Jones index, Chipotle fell 0.3% on Wednesday, passing the 3,023.98 entry point in a brief consolidation, at the top of buy range, according to IBD MarketSurge. Shares of Chipotle fell before the open on Thursday.
NXP Semiconductors is in buy range after a double-bottom entry at 251.96. Shares were flat on Thursday.
Texas Roadhouse extended above its flat base of 157.12 buy point despite Wednesday's 0.3% decline. Shares were unchanged Thursday morning.
The trade web is moving beyond the flat base's 108.04 buy point. This puts the stock in a new buy territory. The stock was inactive on Thursday.
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Stock Market Today: Companies to Watch
These are four stocks in or near the buy zone in today's stock market.
| Company Name | symbol | Correct the purchase point. | Type of purchase point |
|---|---|---|---|
| American Express … is the name of a newspaper | (AXP) | 231.69 | Aggregation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Aggregation |
| Trade Web Markets | (TW) | 108.04 | Flat base |
Source: IBD data as of May 6, 2024
Join IBD experts as they analyze the top stocks in the stock market today on IBD Live.
Spectacular Seven Stocks: Nvidia
Magnificent Seven Stocks Nvidia (NVDA) and Tesla ( TSLA ) fell 0.4% and 0.6%, respectively, in Thursday's premarket action.
Nvidia stock fell 0.2% on Wednesday, still above its 50-day line. Shares continue to form a base with a 974 buy point. Meanwhile, the initial buying trigger is running at 888.19, the highest on April 30. The artificial intelligence giant is an IBD leaderboard stock.
Tesla stock fell 1.8 percent on Wednesday, finding support at the 50-day line. Still, Tesla shares are more than 40 percent off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
In the brilliant seven, Dow Jones stocks, apple (AAPL) and Microsoft ( MSFT ) traded lower before the stock market opened on Thursday.
Apple stock rose 0.3 percent on Wednesday, still above its 200-day line and to the right of a new base. The stock was down 0.2 percent Thursday morning.
Shares of Microsoft edged 0.4 percent below the 50-day line on Wednesday, a key barrier to watch. The software giant is making a new flat base with a buy point of 430.82. And Microsoft stock fell 0.1 percent on Thursday.
Be sure to follow Scott Leihtnen on X, formerly known as Twitter. @IBD_SLehtonen For more information on growth stocks, Dow Jones Industrial Average and Stock Market Today.
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