The Dow Jones Industrial Average reversed higher Thursday, as Wall Street digested the early release of a stronger-than-expected GDP reading, along with hotter-than-anticipated inflation. Magnificent Seven player Nvidia (NVDA) extended its losses on the stock market today, a day after it plunged below a key level.
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Techs Lead Market Sell-Off; Tenet Healthcare, Fiserv, Microsoft In Focus
After the opening bell, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 was down a fraction. The tech-focused Nasdaq composite fell 0.2% in morning action. The moves came in the wake of a sharp downturn for all three indexes Wednesday.
Early Thursday, the 10-year Treasury yield ticked lower to 4.21%. Oil prices dropped, with West Texas Intermediate futures trading around $76.10 a barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) was down 0.1%, while the SPDR S&P 500 ETF (SPY) gained a fraction after the open.
Nvidia stock fell another 1.4% on the stock market today. Shares of the artificial intelligence titan plunged 6.8% Wednesday, closing below its 50-day line for the first time since early May. Nvidia stock remains sharply above a split-adjusted alternative buy point at 97.40. The AI stock is an IBD Leaderboard name.
Stock Market Today: GDP, Inflation Data
The second-quarter GDP estimate from the Labor Department showed annual growth at 2.8%, higher than the 2% estimate and up from the first quarter’s sluggish 1.4%. Meanwhile, the core Personal Consumption Expenditures price index rose at a 2.9% annualized rate in the second quarter, down from 3.7% in both the prior quarter and the year-ago quarter. The PCE price index came in hotter than expected.
Further, the Labor Department’s initial unemployment claims fell to 235,000. Claims were seen falling to 238,000 vs. 243,000 in the previous week.
ServiceNow (NOW) jumped 11% early Thursday after the enterprise software maker delivered a strong second-quarter earnings report, beating on adjusted profit, revenue and a key growth metric.
Other key earnings movers include Dow Jones giant IBM (IBM), Chipotle Mexican Grill (CMG), KLA (KLAC), United Rentals (URI), Royal Caribbean Cruises (RCL) and Tradeweb Markets (TW).
IBM stock rallied 2.3% in early morning trade, while Chipotle lost 2.3%. KLA stock climbed 2.1%, as United Rentals moved up 1%. Royal Caribbean was down 1.7% in early action. And Tradeweb tumbled 3% in morning action.
Adjust To Changing Market Conditions, With IBD’s New Exposure Levels
Dow Jones Slides
On Wednesday, the Dow Jones Industrial Average moved down 1.3% and the S&P 500 fell 2.3%. The tech-heavy Nasdaq composite crumbled 3.6% to close below its 50-day line.
Investor’s Business Daily’s Big Picture column commented, “Active traders and investors would benefit from quickly taking gains in some existing positions, cutting losing stocks, and sitting on one’s hands for the most part. In the increasingly rocky environment, playing more defense and keeping one’s guard up is key. It will likely take time and patience before the high-probability trade on new breakouts works out well.”
During Wednesday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, 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
Among the best companies to watch on the stock market today are Badger Meter (BMI), GE Aerospace (GE), Palantir Technologies (PLTR) and Tenet Healthcare (THC).
Also on the list are Dow Jones components Amazon (AMZN), American Express (AXP), Apple (AAPL), Goldman Sachs (GS) and Microsoft (MSFT).
New names on IBD MarketSurge’s “Breaking Out Today” list include Fiserv (FI). The stock broke out past a 159.99 buy point in a flat base on Wednesday. Shares ticked higher Thursday.
Check out the MarketSurge “Near Pivot” list for 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.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express, Goldman Sachs
Among Dow components, payments giant American Express is back below a flat base’s 244.41 entry, according to MarketSurge pattern recognition, following Wednesday’s losses. And Goldman is in buy range on the stock market today above a 471.48 flat-base entry.
Outside the Dow Jones index, Badger Meter is trying to break out past a 202.81 entry in a flat base, but it dropped 1.6% Wednesday. Shares were a fraction lower Thursday morning.
GE stock’s recent breakout past a 170.80 buy point came under pressure Wednesday, as it fell 5.6%. Shares rose 1% early Thursday.
Palantir Technologies tumbled 7.7% Wednesday, falling below a 27.50 entry and closing just above a handle buy trigger at 26.57. Palantir dropped 2.9% early Thursday.
And Tenet Healthcare jumped nearly 5% Wednesday, in buy range above a flat base’s 142.35 entry. Shares tacked on another 0.1% 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 Buy Point | Type Of Buy Point |
|---|---|---|---|
| Tenet Healthcare | (THC) | 142.35 | Flat base |
| KB Home | (KBH) | 74.66 | Flat base |
| Palantir | (PLTR) | 26.57 | Handle entry |
| Newmont | (NEM) | 44.59 | Flat base |
Source: IBD Data as of July 24
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla (TSLA) rose 2.9% on the stock market today in morning trade.
Tesla stock plunged more than 13% Wednesday following the company’s second-quarter earnings results. Shares closed at their lowest level since July 1.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded mixed after Thursday’s stock market open.
Amazon gave up its 191.70 buy point in a flat base amid recent losses and is facing resistance at its 50-day line. Amazon stock rose 0.5% Thursday.
Apple stock sold off 2.9% Wednesday, falling below its 21-day exponential moving average, a short-term support level. The stock is still extended past a 199.62 cup-base entry. Apple shares dipped 0.1% early Thursday.
Microsoft shares slipped 3.6% Wednesday, giving up its flat base’s 430.82 buy point as it gives up support around the 50-day line. And early Thursday the stock was down 0.5%.
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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