Dow Jones falls as ECB raises rates; Tesla jumps on strong earnings

The Dow Jones Industrial Average briefly fell 150 points following the European Central Bank’s rate hike – the bank’s first increase in more than a decade. Tesla stock surged on strong second-quarter results.


Alcoa (AA), AT&T (T), CSX (CSX), Discover Financial (DFS), Las Vegas Sands (LVS), steel dynamics (STLD), Travelers (TRV) and United Airlines (UAL) were other key earnings drivers after Thursday’s open.

Shares of Alcoa and Steel Dynamics climbed 4% and 1%, respectively, in early trading. AT&T stock plunged 7%. CSX stock gained 3%. Discover Financial fell 7%. Las Vegas Sands jumped 1.6%. Travelers fell slightly. And United Airlines slipped 7%.

Chevron (CVX) led the declines among Dow Jones stocks, falling more than 2% as oil prices fell sharply on news from stocks.

You’re here (TSLA) rebounded around 6% early Thursday. Elsewhere, technology leaders from Dow Jones Apple (AAPL) increased by 0.6% and Microsoft (MSFT) was trading down 1% after the stock market opened today.

In a volatile stock market uptrend, Dow Jones leaders Merck (MRK) and UnitedHealth (UNH) — as well as dollar tree (DLTR), Lanthee (LNT), Quantum Services (REP) and Mobility will see (VRRM) – are among the stocks to watch. Keep in mind that while the market has shown signs of strength on the upside, continued volatility is a reason to remain cautious.

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Lantheus and UnitedHealth are IBD ranked stocks. Dollar Tree is an IBD SwingTrader stock. Verra was in this week’s Stocks Near A Buy Zone column and was IBD’s Stock of the Day on Monday.

Dow Jones Today: Treasury Yields, Oil Prices, Unemployment Insurance Claims

After Thursday’s open, the Dow Jones Industrial Average fell 0.25%, while the S&P 500 was down 0.1%. The tech-heavy Nasdaq composite rose 0.2% in morning trade.

Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) added 0.2%. And the SPDR S&P 500 ETF (SPY) fell 0.1%.

European markets fell after the European Central Bank raised rates by 50 basis points. Expectations were for a 25 to 50 basis point hike, although bankers would have considered a hike of more than 50 basis points. The increase is the bank’s first in 11 years. The ECB’s target deposit rate had been in negative territory since 2014.

The 10-year US Treasury yield rose to 3.07% on Thursday morning, looking to add to a three-day winning streak that saw the 10-year yield close at 3.03% on Wednesday. Meanwhile, US oil prices fell sharply, slipping more than 4% in early action. West Texas Intermediate futures fell to around $95 a barrel after data on Wednesday showed U.S. gasoline inventories were rising, suggesting consumers were tired of high prices.

Early Thursday, the Labor Department said first-time jobless claims rose to 251,000 from 244,000 the previous week. Econoday estimates expected initial jobless claims to fall to 240,000.

Stock market rally

On Wednesday, the stock market showed strong action, with the Nasdaq the best performer rising 1.6%.

Wednesday’s The Big Picture column commented: “Major indexes all closed higher on Wednesday as the current stock market rally maintained momentum. Meanwhile, bulls finally caught up with bears in a key sentiment gauge. investors.”

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Dow Jones Earnings: Travelers

Dow Jones insurance giant Travelers initially jumped more than 4% but then faded down 0.4% after reporting better-than-expected earnings and sales results on Thursday.

Shares ended Wednesday about 15% off their 52-week high.

Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Merck, UnitedHealth

Merck drug stock fell nearly 3% on Wednesday, dropping support around its 50-day line. Stocks are approaching the trigger of the 7%-8% loss cut rule from a buy point of 95.02 on a flat basis, according to chart analysis from IBD MarketSmith. Merck shares traded down nearly 1% early Thursday.

Health insurance giant and IBD Leaderboard stock UnitedHealth is just above the 518.80 buy point of its double-bottom with handle base after Wednesday’s 2.6% decline. Shares fell 0.8% on Thursday.

The UNH stock is posting a solid 96 out of a perfect IBD composite rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: Dollar Tree, Lantheus, Quanta, Verra

IBD SwingTrader Dollar Tree stock is gaining ground above the 166.45 buy point of its cup with handle and is at the top of the buy range. Another positive note is the discount retailer’s RS line, which hit a new high last week. Dollar Tree stock is posting a solid 97 out of an IBD Composite Best Rating of 99, according to the IBD Stocks Balance Sheet. Dollar Tree shares fell 0.8% on Thursday.

IBD Leaderboard Lantheus stock breaks above the buy point of 73.88 as it bounces off support around its 50-day line. According to ranking commentary, Lantheus has proven to be one of the strongest stocks in the market today after emerging from a double-bottom base in February. Lantheus shares were down 0.7% early Thursday.

Quanta Services is putting the finishing touches on a mug base with handle that has a buy point of 138.56, according to IBD MarketSmith’s chart analysis. Shares are about 5% off last entry after Wednesday’s 0.9% rise. The shares fell slightly in morning trading.

Verra Mobility is trying to top a cup with the 16.83 buy point of the handle, but closed below the buy point on Wednesday amid a 2.65% decline. The title’s RS line continues to show tremendous strength as it hit a new high this week. Verra shares were down 0.1% on Thursday morning.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rose 0.8% on Wednesday, extending a winning streak to six sessions. Shares rebounded more than 6% on Thursday morning after the company announced better-than-expected second-quarter results on Wednesday night.

Tesla said adjusted earnings climbed 57% to $2.27 per share. Revenue climbed 42% year-over-year to $16.934 billion. The company’s presentation platform pointed to a depreciation of Bitcoin, but did not elaborate. He said that by the end of the second quarter, he had converted about 75% of his Bitcoin purchases into fiat currency, adding $936 million of cash to his balance sheet.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares added 1.35% on Wednesday and are closing in on their long-term 200-day lines. Stocks have recovered their 50-day line after bullish action in recent weeks. Apple’s results are due July 28. The stock traded down 0.6% on Thursday morning.

Microsoft rose 1.1% on Wednesday, trying to break above resistance around its 50-day line. The stock closed around 26% off its 52-week high. The software giant will release its quarterly results on July 26. Microsoft shares fell 1% early Thursday after Bloomberg reported the company was cutting open jobs, including at its Azure cloud business, due to a weakening economy.

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


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