Finance
Stock Market Today: Dow Jones Falls on Unemployment Claims; GME shares plummet 18%
Major stock indexes tried to keep rising Thursday following jobless benefits data and a day after the Dow Jones Industrial Average and other major indexes set new records. One of the first winners was the retail giant Walmart (WMT), which rallied on the stock market today after strong earnings results GameStop (GME) extended Wednesday’s losses.
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In the morning action, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 edged higher. The tech-focused Nasdaq composite was hovering around the breakeven point.
Early Thursday, the yield on ten-year government bonds fell to 4.33%. Further, oil prices rose, with West Texas Intermediate futures trading around $78.75 per barrel.
Among US exchange-traded funds, the Nasdaq 100 tracker is Invesco QQQ Trust ETF (QQQ) was flat, as was the SPDR S&P 500 ETF (SPY) centimeter higher.
The meme stock mania faded further on Thursday, when GameStop and AMC Entertainment (AMC) extended Wednesday’s declines. GameStop shares tumbled another 18% in the morning action, while AMC shares lost 10%.
Stock Market Today: Unemployment Claims, Walmart Earnings
Walmart shares rose nearly 7% Thursday morning after the discount retailer reported strong earnings and sales results. Walmart also raised its full-year profit and revenue outlook.
Meanwhile, the Labor Department said claims for initial unemployment benefits fell to 222,000, down from 231,000 the previous week. This number was expected to drop to 220,000, according to Econoday estimates.
In addition, the Commerce Department’s figure for April housing starts and permits was below Econoday estimates. The number of starts rose to 1.36 million in April, compared to 1.321 million in March, while the number of permits fell to 1.44 million in April versus 1.458 million in March. According to Econoday estimates, 1.435 million were needed and 1.48 million permits.
Finally, the Philadelphia Fed manufacturing index fell to 4.5 in May, down from 15.5 in April. According to Econoday, this is expected to drop to 7.8.
Be sure to learn how to adapt to changing market conditions, with IBD’s new exposure levels.
In the markets, these included the top gainers in Thursday’s morning action Baidu (BIDU) And JD.com (J.D).
Baidu shares lost 4.2% in early trading, while JD shares fell almost 2%.
Dow Jones rises
On Wednesday, the Dow Jones Industrial Average rose 0.9% and the S&P 500 gained 1.2%. The tech-heavy Nasdaq composite rose 1.4%. All three major stock indexes recorded all-time highs.
Investor’s Business Daily’s Big Picture column said Wednesday: “The stock market showed the winners outpacing the losers on the NYSE by a margin of about 5-2. Again, this is bullish for the longs. On the Nasdaq, the risers outnumber fallers by almost a 5-2 ratio.”
During Wednesday’s IBD Live showthe IBD Live team discussed current trading conditions, with the Nasdaq and S&P 500 hitting record highs on tame inflation and other economic data.
This is an important time to read The Big Picture column amid the continued action in the stock market. Also learn how to adapt 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: the best stocks to watch
NetApp (NTAP), PDD (PDD), Taiwanese semiconductor production (TSM) And Tradeweb Markets (TW) – plus Dow Jones components JPMorgan Chase (JPM) And Merck (MRK) – are among the best companies to watch in the stock market today.
JPMorgan and Taiwan Semi are listed in this Stocks Near a Buy Zone column.
An essential resource for everyday breakouts is IBD MarketSurges “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks breaking past new buy points. Remarkable, Toll brothers (TOLL) broke past a 130.63 buy point in a Cup base. look at the MarketSurge List ‘Near Pivot Point’ that shows that basic stocks are nearing buy points.
For more stock ideas, check out IBD stock lists such as IBD50, Large hood 20 and stocks near a buy zone. These features identify bullish patterns and buy points and can be checked every day.
Get real-time buy and sell alerts on stock market leaders with the IBD Leaderboards
Dow Jones: JPMorgan, Merck
JPMorgan breaks past the 200.94 position on a flat base, after strong gains in recent weeks. Shares rose 0.3% on the stock market today.
Meanwhile, drug giant Merck is rapidly approaching the 133.10 mark on a flat basis. Merck shares fell 0.2% on Thursday.
4 top growth stocks to watch Fair today
Outside of the Dow Jones Industrial Average, NetApp is trading in a buy range above a 108.82 buy point in a double bottom, according to IBD market wave. Shares of NetApp fell 0.5% after the open on Thursday.
Temu parent PDD is just below the 142.32 buy point for a cup-with-handle, following Wednesday’s 1.9% rally. Shares rose 0.8% on Thursday.
Chipmaker Taiwan Semiconductor is in buy range above a 148.43 buy point in a double-bottom base following strong recent gains. The stock fell 0.9% on Thursday.
Tradeweb is at the top of its buy range past the 108.04 buy point on a flat basis, up 1.3% Wednesday. The stock fell on Thursday.
Find the best stocks to buy and watch with IBD Stock Screener and IBD Screen of the Day
Stock market today: companies to watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct purchase point | Purchase point type |
|---|---|---|---|
| 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 the top stocks in the stock market today on IBD Live
Beautiful seven stocks: Nvidia, Tesla
Among the Magnificent Seven shares, Nvidia (NVDA) climbed 0.8% while Tesla (TSLA) fell 0.8% on Thursday morning.
Nvidia shares rose 3.6% on Wednesday, breaking past a record high of 922.20. The leader in artificial intelligence is an IBD Leaderboard stock.
Tesla shares fell 2% on Wednesday, snapping a two-day winning streak, but still remain above the 50-day mark.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven, Apple (AAPL) And Microsoft (MSFT) traded higher after Thursday’s stock market open.
Apple shares rose 1.2% on Wednesday to close at their highest level since late January. The stock forms a cup base with a buy point of 199.62, but watch for a possible handle to provide a lower entry. The stock gained 0.6% on Thursday morning.
Microsoft shares rose 1.6% on Wednesday, decisively regaining their 50-day line. The software giant is building a flat base with a buy point of 430.82 and is within striking distance of the buying trigger. And shares of Microsoft rose 0.5% on Thursday.
Make sure you follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen to learn more about growth stocks, the Dow Jones Industrial Average, and the current stock market.
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