Dow Jones futures and the other major stock indexes dropped Thursday after a big jump in the Labor Department’s weekly initial unemployment claims. Meanwhile, artificial intelligence chip maker Arm Holdings (ARM), Airbnb (ABNB) and Roblox (RBLX) plunged after reporting earnings on the stock market today.
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In premarket action, Dow Jones futures dropped 0.2% vs. fair value while S&P 500 futures fell 0.1%. Tech-focused Nasdaq 100 futures were slightly lower ahead of the opening bell.
Early Thursday, the 10-year Treasury yield ticked higher to 4.52%. Further, oil prices bounced 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: Jobless Claims
Prior to Thursday’s stock market open, the Labor Department’s first-time jobless claims jumped to 231,000 vs. 208,000 in the previous week, their highest level since August 2023. They were expected to rise modestly to 212,000, per Econoday.
Early Thursday, AI chip stock Arm plunged nearly 7% after the company surpassed analyst estimates for its fiscal fourth quarter and with its forecast for the current period. However, its sales outlook for the year ahead missed the mark.
Meanwhile, Roblox plummeted almost 27% after reporting Q1 results early Thursday. The company said it sees second-quarter bookings at $870-$900 million, below estimates for $902.5 million.
Other key earnings movers include Airbnb, AppLovin (APP), Duolingo (DUOL) and HubSpot (HUBS), along with Instacart (CART), Robinhood Markets (HOOD) and Trade Desk (TTD).
Airbnb shares tumbled 8%, while AppLovin shares jumped more than 14%. Duolingo stock plunged 12.5%, as HubSpot rallied nearly 9% in early trading. Instacart stock inched higher, while Robinhood advanced more than 6%. Finally, Trade Desk moved up about 2.5% ahead of market open.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Dow Jones Extends Win Streak
On Wednesday, the Dow Jones Industrial Average climbed 0.4% to extend a win 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 reaffirmed that stock pickers can feel like they’re discovering either a land mine or a gold mine.”
On Wednesday’s IBD Live show, the IBD Live team discussed the current trading conditions. Mark Minervini, two-time winner of the U.S. Investing Championships, returned to the show for the second time already this year. He shared decades of experience and anecdotes regarding trading, stock research, chart reading and the William O’Neil concept of studying money-making historical precedents
Now is an important time to read Investor’s Business Daily’s The Big Picture column amid the ongoing stock market action. Be sure to read how to adjust to changing market conditions, 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 Semiconductor (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch on the stock market today.
Chipotle and Merck featured in this Stocks Near A Buy Zone column.
An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. Notably, NetApp (NTAP) broke out past a double bottom’s 108.82 buy point on Wednesday.
Also, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like 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 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. The bullish rebound has placed the software leader in a new buy area, while shares are just above a 231.69 entry in a short consolidation. Shares gained 0.6% on the stock market today.
Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock dropped 1.1% Thursday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Chipotle fell 0.3% Wednesday, at the top of the buy range past a 3,023.98 entry point in a short consolidation, according to IBD MarketSurge. Chipotle shares edged down ahead of the open on Thursday.
NXP Semiconductors is in buy range past a double-bottom entry at 251.96. Shares were flat Thursday.
Texas Roadhouse remains extended above its flat base’s 157.12 buy point, despite a 0.3% fall Wednesday. Shares were unchanged Thursday morning.
Tradeweb is breaking out past a flat base’s 108.04 buy point. That places the stock in a new buy area. The stock was inactive Thursday.
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) rose 0.2% and 0.5%, respectively, in Thursday’s premarket action.
Nvidia stock declined 0.2% Wednesday, still holding above its 50-day line. Shares continue to build a base that has a 974 buy point. Meanwhile, an early buy trigger is in play at 888.19, which was the high on April 30. The artificial intelligence giant is an IBD Leaderboard stock.
Tesla stock dropped 1.8% Wednesday, finding support at the 50-day line. Still, Tesla shares are more than 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Thursday’s stock market open.
Apple stock rose 0.3% Wednesday, still above its 200-day line and forming the right side of a new base. The stock dipped 0.2% Thursday morning.
Microsoft shares gained 0.4% Wednesday still below the 50-day line, a key hurdle to watch. The software giant is building a new flat base that has a 430.82 buy point. And Microsoft stock inched higher Thursday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
