Dow Jones Rallies After Key Economic Data; Meta Crashes 24% On Earnings; Apple Earnings Next

Dow Jones Industrial Average rose on Thursday morning after the main economic data, such as Meta Platforms (META) fell by 24% Align Technology (ALGN) was down 15% on revenue results. Apple’s earnings are revealed after the market closes.


Meta reported third-quarter results late Wednesday that missed revenue estimates but slightly beat revenue. The company reported earnings of $1.64 on revenue of $27.7 billion. Analysts had expected Meta to post earnings of $1.90 a share on revenue of $27.4 billion, according to FactSet. Shares have been trading below 99 since February 2016.

Align, the maker of Invisalign dental braces, reported a delay in both its revenue and earnings lines late Wednesday.

Meanwhile, US GDP, or gross domestic product, rose 2.6% in the third quarter, beating estimates of 2.3% and up from a 0.6% decline in the second quarter. Unemployment claims were also released for the first time. The trial rose to 217,000 against 214,000 last week, slightly below estimates.

Today’s market: Caterpillar, McDonald’s, Merck Earnings

The other top gainers on Thursday were Dow Jones stocks Mashot (CAT), McDonald’s (MCD) and Merck (MRK), along with Ford Motor (F), Mastercard (MA), O’Reilly Automotive (ORLY), ServiceNow (RIGHT NOW), Shopify (SHOP) and Wolfspeed (GUR).

CAT stock rose 5%, while McDonald’s rose almost 3% and Merck rose 2.1% in morning trading. Ford shares fell 2% as Mastercard fell 1%. Shares of O’Reilly rose around 2%, and ServiceNow stock rose 14%. Shopify rose 3%, while WOLF stock fell 25% in early trading.

Giant electric vehicle Tesla ( TSLA ) traded up more than 1% Thursday morning, while the Dow Jones technology leader The night (AAPL) and Microsoft (MSFT) were lower after the stock market opened today.

AutoZone (AZO), Cardinal Health (CAH), Eli Lili (LLY) and Texas Roadhouse (TXRH) – as well as Dow Jones stocks United Health Group (UNH) – are among the top stocks to buy and watch. Remember that the new stock market rally is the perfect time for investors to put their watch lists into action, and refine their pyramid technique.

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Youth rallies, especially those fighting against bear markets, often fail. Pyramiding provides a way to move incrementally into new stock positions to reduce capital risk.

Cardinal and Texas Roadhouse are IBD Leaderboard stocks. UnitedHealth was featured in this week’s Stocks Near A Buy Zone column, along with three other online stock ideas.

Dow Jones Today: Treasury Yields, Oil Prices

After Thursday’s opening bell, the Dow Jones Industrial Average rose 1.3%, while the S&P 500 rose 0.3%. Tech heavyweight Nasdaq lost 0.4% in morning action, with Align and Meta trading lower.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.4%, and the SPDR S&P 500 ETF (SPY) rose 0.4%.

The 10-year Treasury yield was down 3.97 percent Thursday morning, adding to this week’s losses. On Monday, the 10-year Treasury yield closed at 4.23%, sitting at its highest level since June 2008 before falling two sessions below.

Meanwhile, US oil prices rose on Thursday, on pace to add to Wednesday’s gains. West Texas Intermediate futures traded at $88.

The Stock Market Rally Continues

On Wednesday, the Dow Jones Industrial Average rose and the S&P 500 fell 0.7%. The Nasdaq composite fell more than 2% Alphabet (GOOGL) and Microsoft weighed heavily on the tech-heavy index.

The Big Picture commented on Wednesday, “With only one such session of overt institutional selling on the books, growth investors may be able to go ahead with buying the excellent breakouts. However, due to the lackluster activity that followed during the year , it makes sense to limit long exposure in both the general and top stocks to a range of 20% to 40% of a portfolio.”

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Now is a great time to read IBD’s Big Picture column. Following Friday’s gains, investors will want to run their preferred watchlists in order to stay ahead of future breakouts. But not all tracking works, so it is important to gradually and regularly increase the exposure, because the new trend proves itself.

Check out the IBD Stock Lists, like the IBD 50 and Stocks Near a Buy Zone, for stock ideas.

Five Dow Jones Stocks to Watch Now

Dow Jones Stocks to Buy and Watch: UnitedHealth

Healthcare giant UnitedHealth is nearing a 553.23 buy point on the stock-in-hand, according to IBD MarketSmith sample identification. Shares rose 0.55% on Wednesday, just shy of the stock market’s latest plunge.

UNH stock was lower Thursday morning.

Top 4 Growth Stocks to Watch in Typepent Stock Market Rally

Top Stocks to Buy and Watch: AutoZone, Cardinal, Eli Lilly, Texas Roadhouse

Auto parts leader and recent IBD Stock Of The Day AutoZone is still in buy range above the 2,362.34 buy point on a cash basis, despite falling 0.7% on Wednesday. The 5% trace area goes to 2,480.46. Shares of AutoZone traded up 1.3% on Thursday.

According to IBD MarketSmith chart analysis, Leaderboard IBD Cardinal Health stock just crossed the buy line at 71.22 entry from a short cup with handle. Shares are also at a buy point of 72.38 on a flat basis. The winnings are set for November 4th. CAH stock rose 0.6% on Thursday.

IBD SwingTrader Eli Lilly stock broke through its buy line above a flat-based 335.43 buy point, climbing 1.9% on Wednesday. Shares rose 0.2% Thursday morning, ahead of Tuesday’s earnings report.

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Texas Roadhouse moved higher on a flat-based 95.52 buy point while gaining 0.7% on Wednesday. The stock lost 1.3 percent ahead of the company’s earnings results late Thursday.

Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live

Stock Tesla

Tesla stock advanced 1% on Wednesday, rising for a second straight session after hitting a 52-week low on Monday. Despite its recent gains, the stock is about 46% off its 52-week high.

Shares of the EV giant rose more than 1% on Thursday morning.

Dow Jones Leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares fell 2% on Wednesday, snapping a three-day winning streak. Shares are in resistance around their 50-day line, which is a key level to watch. Apple stock fell 1.1% ahead of the company’s earnings late Thursday.

The consumer tech titan is expected to earn $1.27 per share on revenue of $88.7 billion.

Microsoft fell 7.7% on Wednesday after the company’s earnings results. The stock is still holding on to its recent 52-week low, but has hit clear resistance at its 50-day line. The software giant is down about 34% from its 52-week high. Microsoft shares were down 1% on Thursday morning.

Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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