The Dow Jones Industrial Average lost 100 points Thursday, despite a third straight decline in weekly jobless claims. Apple and Tesla stock raced higher in midday trade, while Chinese rival Nio slid on earnings.
Tesla (TSLA) looked to snap a two-day losing streak, rallying 2% Thursday midday. The EV giant continues to hold above a new buy point.
Nvidia, Microsoft and Tesla are IBD Leaderboard stocks. Snap is an IBD SwingTrader stock, while Square was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Jobless Claims
The Dow Jones Industrial Average lost 0.2% Thursday, while the S&P 500 traded slightly higher. The tech-heavy Nasdaq composite reversed from early losses to gain 0.1% in midday trade.
U.S. Stock Market Today Overview
Last Update: 11:18 AM ET 8/12/2021
Initial jobless claims fell to a seasonally adjusted 375,000 in the week ended Aug. 7, the Labor Department said Thursday, from a revised 387,000 in the prior week. It was the third straight decline in weekly jobless claims.
Stock Market Rally
The Dow Jones industrials and the S&P 500 are at all-time highs, while the Nasdaq looked to extend a losing streak to three sessions Thursday.
Wednesday’s Big Picture commented on the ongoing stock market rotation, “The rotation trade was on display for the second straight day in the stock market Wednesday. Several top-rated growth stocks fell hard as industrial, financial and materials stocks outperformed. But the weakness in growth stocks didn’t find its way into the Nasdaq composite, which closed modestly lower and off session lows.”
For more stock market commentary, check out IBD’s The Big Picture.
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Dow Jones Stocks To Buy And Watch: Home Depot
Dow Jones leader Home Depot is in buy range past a cup with handle’s 333.55 buy point, according to IBD MarketSmith chart analysis. The 5% buy area goes up to 350.23.
Shares lost 0.7% Thursday midday.
Stocks To Buy And Watch: Nvidia, Snap, Square
IBD Leaderboard stock Nvidia is tracing a flat base with a 208.85 buy point, according to IBD MarketSmith chart analysis. Per Leaderboard analysis, “Unlike the previous base that failed, the prior base spent more time above the 50-day line. Because the previous base undercut a prior pattern, the base count has reset. So, the latest pattern was first stage. These are more likely to succeed.” Nvidia stock moved up 1.1% Thursday.
IBD SwingTrader stock Snap is trading in the 5% buy zone above a 73.69 buy point in a consolidation. The 5% buy area tops out at 77.37. Shares lost 1% Thursday midday.
On July 23, Snap surged almost 24% following a second-quarter earnings report that toppled estimates with revenue more than doubling, and an outlook that also beat views.
Square is trying to hold above a 267.87 buy point in a cup-with-handle base amid Thursday’s slight gain. The 5% buy zone goes up to 281.26.
According to the IBD Stock Checkup, SQ stock shows a 95 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Stock Market Earnings: Nio, Palantir
Tesla rival Nio reported better-than-expected second-quarter earnings late Wednesday and gave upbeat revenue guidance. Nio lost 3 cents a share as revenue soared 145% to $1.31 billion. In Q2, Nio delivered 21,896 luxury electric SUVs, a 112% increase year over year and near the top end of its 21,000-22,000 guidance. Nio stock slid almost 2% in midday trade, and is more than 30% off its 52-week high.
Palantir reported second-quarter adjusted earnings that met expectations, while revenue growth came in above Wall Street targets. Palantir earned 4 cents per adjusted share, while revenue jumped 49% to $375.6 million. Shares surged 11.5% and are trying to regain their 50-day moving average.
Tesla stock reversed up, racing 2% higher Thursday, on pace to snap a two-day losing streak. Shares are still above a 700.10 aggressive buy point deep inside a correction. Meanwhile, a deep, large base continues to take shape.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Stock Flashes Buy Late As 5 IPOs Report; New Entries For Apple, Tesla
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple moved up 1.4% Thursday, looking to add to Wednesday’s slight gain. The stock hit an all-time high on July 15 at 150. Apple stock remains out of the 5% buy zone from a 137.17 entry in a cup base. On a weekly chart, IBD MarketSmith chart analysis also places a buy point at 145.19 in a consolidation, which would put Apple in a buy range through 152.45.
Software giant Microsoft rose 0.7% early Thursday, but remains just off Monday’s record highs. Microsoft continues to trade solidly above a cup base’s 263.29 buy point. The stock is extended above the 5% buy zone, which goes up to 276.45.
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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