The Dow Jones Industrial Average Opens Lower as Jobless Claims Rise and GDP Data Shows Strong Growth

On Thursday, the Dow Jones Industrial Average opened with a lower value as jobless claims increased and GDP data indicated stronger-than-expected growth. Additionally, Meta Platforms (META) experienced a sell-off despite reporting strong results, while Amazon (AMZN) earnings are set to be announced.

The Labor Department reported that initial unemployment claims rose to 210,000, compared to the previous week’s 198,000. Furthermore, third-quarter GDP data from the Commerce Department showed growth of 4.9%, surpassing the second-quarter growth of 2.1%. The estimated rise was 4.2%.

Meta stock dropped over 5% in Thursday morning trading after the company warned of decreasing advertising demand. The stock initially saw a rise after beating Wall Street’s estimates late Wednesday. Other key movers on the earnings front include Align Technology (ALGN), Baker Hughes (BKR), Bristol-Myers (BMY), IBM (IBM), Mastercard (MA), Merck (MRK), Mobileye (MBLY), Nextracker (NXT), and ServiceNow (NOW). Align shares plummeted 22%, while Baker Hughes stock rose 1%. BMY shares fell nearly 5% and IBM stock increased almost 5%. Mastercard dropped 4%, while MRK stock fell 0.6% in early trading. MBLY rose almost 8%, and Nextracker saw a 5% increase. Finally, ServiceNow shares jumped 7% in morning trade.

Looking ahead, Amazon is expected to report after the market closes.

Dow Jones Today: Oil Prices and Treasury Yields

After Thursday’s opening bell, the Dow Jones Industrial Average dropped less than 0.1%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite declined 0.3% in morning trading. Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) dropped 0.3%, while the SPDR S&P 500 ETF (SPY) fell 0.2% early Thursday. The yield on the 10-year U.S. Treasury bond decreased to 4.93% Thursday morning, compared to the previous day’s settlement at 4.95%. Oil prices were sharply lower, erasing Wednesday’s rebound, with West Texas Intermediate futures trading below $84 a barrel.

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Stock Market Correction

Thursday’s market action was consistent with Wednesday’s, which saw the Dow Jones Industrial Average drop 0.3% and the S&P 500 end the day down 1.4%, while the Nasdaq composite sold off 2.4%. A recent Big Picture column noted that the Nasdaq composite is down for the fourth quarter and approaching a key test of institutional support at the long-term 200-day moving average.

Now is an important time to read IBD’s The Big Picture column, as the current outlook indicates a market correction. Be sure to learn how to handle changing market forces.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) fell 1% early Thursday, while Nvidia (NVDA) lost 0.4%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) also traded lower after the stock market opened. IBD Leaderboard member Arista Networks (ANET), Lululemon Athletica (LULU), Meta Platforms, and Light & Wonder (LNW), as well as Dow Jones stocks Walmart (WMT) and Salesforce (CRM), are among the best stocks to buy and watch in the new stock market correction. Light & Wonder is a recent IBD Stock Of The Day.

Dow Jones Stocks: Walmart, Salesforce

Walmart is currently tracing a cup base with a 165.85 buy point, according to IBD MarketSmith chart analysis. The stock recently regained its key 50-day line and is roughly 2% away from its latest entry. Walmart stock inched higher on Thursday. Software leader Salesforce is currently battling for support around its long-term 200-day line. CRM stock gained 0.7% on Thursday morning.

Top Growth Stocks To Watch In The Stock Market Correction

Arista Networks slipped 2.3% on Wednesday, closing below the 50-day line and roughly 6% away from a 198.70 buy point in a flat base. The company will report third-quarter results on Oct. 30. ANET stock sold off 1.5% early Thursday. Lululemon dropped 1.65% on Wednesday and is still below a flat base’s 406.94 buy point. Wait for another sustained move past that entry as a buy signal. LULU stock was down 1.3% on Thursday morning. Meta Platforms tumbled below its 50-day line during Wednesday’s 4.2% decline and lost another 5% on Thursday. Light & Wonder, a casino games maker, reversed lower on Wednesday, down more than 5%. The stock continues to trace a flat base with a 79.97 buy point, but given the market correction, there is increased risk. LNW stock was slightly higher early Thursday.

Best Stocks In Today’s Stock Market Action

These are the four best stocks to watch in today’s stock market, including a Dow Jones leader:

Company Name	Symbol	Correct Buy Point	Type Of Buy Point
Meta Platforms	META	312.87	Handle entry
Salesforce	CRM	228.79	Double bottom
Lululemon	LULU	406.94	Flat base
Arista Networks	ANET	198.70	Flat base

Source: IBD Data As Of Oct. 24, 2023

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Tesla Stock

Tesla stock skidded 1.9% on Wednesday, finishing below the 200-day line and ending a two-day rally. Shares are trying to find support around that long-term level and are nearly 30% off their 52-week high. Shares moved down 1% early Thursday, threatening to extend losses from Wednesday.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple lost 1.35% on Wednesday but was still above potential support around the 200-day line. Apple is scheduled to release its fiscal fourth-quarter report on Nov. 2. Shares dropped 0.1% early Thursday. Microsoft stock gained 3.1% on Wednesday, moving above two earlier entries, a 336.14 buy point, and a 340.86 buy trigger. On Thursday morning, MSFT stock declined 0.4% in early trading.

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

Dow Jones Drops on GDP and Jobless Claims; Meta Stock Plunges Due to Earnings; Brace for Amazon’s Next Move