The Dow Jones Industrial Average joined a sell-off that scoured global markets Thursday morning, as the world responded to Russia’s invasion of Ukraine. Oil, gold and commodities prices spiked as the attack, what Russian President Vladimir Putin explained as a “special military operation,” unfolded on multiple fronts. Apple and Tesla stock tumbled. Meanwhile, Alibaba, Cheniere, NetApp and Planet Fitness were key earnings movers after Thursday’s open.
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Among the Dow Jones leaders, Apple (AAPL) sold off 4.5% and Microsoft (MSFT) traded down 2.7% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, is back below its buy point amid a losing streak.
On the Nasdaq, utilities American Electric Power (AEP) and Xcel Energy (XEL) maintained narrow gains. EBay (EBAY) and electric-vehicle leader Tesla (TSLA) plunged to the bottom of the index, each down around 8% Thursday. Tesla threatened to add to a four-day losing streak.
Amid an extremely volatile market, Anthem (ANTM), Northern Oil & Gas (NOG), and O’Reilly Automotive (ORLY) are among Thursday’s top stocks to watch. Keep in mind the current stock market condition should keep investors in cash on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. O’Reilly featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Crisis
After the stock market open Thursday, the Dow Jones Industrial Average traded down 2.3%, while the S&P 500 dropped 2.3%. The Nasdaq dived 2.6% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 2.3%, and the SPDR S&P 500 ETF (SPY) moved down 2.5% after Thursday’s open.
The 10-year Treasury yield tumbled to 1.85% Thursday morning. On Wednesday, the 10-year Treasury yield closed just below 1.98%. Meanwhile, U.S. oil prices surged more than 7% Thursday, with West Texas Intermediate crude briefly topping $100 a barrel.
Late Wednesday, Russian President Vladimir Putin announced a special military operation, as armored columns pushed into Ukraine, along with airstrikes against the country’s cities.
“President Putin has chosen a premeditated war that will bring a catastrophic loss of life and human suffering,” U.S. President Joe Biden said in a written statement. The U.S. and its allies are poised to unveil sweeping sanctions against Russia in response to the attack.
The second estimate for fourth-quarter GDP measured 7.0%, meeting economist views and coming in slightly higher than the first estimate’s 6.9% annualized rate.
Meanwhile, the Labor Department said that first-time unemployment claims fell to 232,000 from the prior week’s 248,000, just above Econoday estimates.
Stock Market Sell-Off
The stock market posted more disappointing action Wednesday, as both the Nasdaq Composite and the S&P 500 undercut their late January lows. That increasing weakness makes now an important time to read IBD’s The Big Picture column.
Wednesday’s The Big Picture commented, “The S&P 500 fell deeper into what Wall Street calls correction territory as it slid 1.8%. Meanwhile, the Dow Jones Industrial Average closed at its lowest level of the year so far after it gave up 1.4%.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Stock Market Earnings: Alibaba, Cheniere, NetApp, Planet Fitness
Alibaba (BABA), Cheniere Energy (LNG), NetApp (NTAP) and Planet Fitness (PLNT) reported quarterly earnings results ahead of Thursday’s open.
Chinese retailer Alibaba reported mixed results early Thursday, beating per-share earnings estimates, but falling short on revenue targets. BABA shares declined more than 6% early.
Cheniere jumped more than 9% early Thursday in the wake of the company’s earnings results and soaring oil prices.
Data storage company NetApp reported January-quarter results late Wednesday that beat analyst estimates, but shares tumbled 12% after an outlook that came in below analyst estimates.
Gym operator Planet Fitness reported strong sales results Thursday morning, but the stock fell about 7%. Planet Fitness was a recent IBD Stock Of The Day.
Dow Jones Stocks To Watch: American Express
American Express broke out on Feb. 8 past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13. Shares are still in the 5% buy range that tops out at 198.59 despite three straight days of losses. AXP stock was down 4.5% Thursday.
Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Anthem, Deere, Northern
IBD Leaderboard stock Anthem is about 5% away from a 470.12 flat-base entry following Wednesday’s 0.3% fall. But the stock’s RS line hit a new high. Anthem shares were down 1.4% Thursday.
O’Reilly Automotive continues to build a flat base with a 710.96 buy point, but shares are about 10% away from the new buy point after Wednesday’s 3.1% loss. ORLY stock fell decisively below its key 50-day line Tuesday, a setback for the stock’s basing process. Shares were more than 1% lower early Thursday.
Northern Oil & Gas is about 9% away from a cup with handle‘s 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares were up 3% Thursday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock plunged around 8% Thursday morning, threatening to add to Wednesday’s 7% dive and extend a four-day losing streak. The stock closed further below its long-term 200-day line, another setback for the former stock market leader. There is no proper entry in sight, as the stock continues to consolidate.
The stock traded as high as 1,243.49 on Nov. 4, but ended Wednesday about 39% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 2.5% Wednesday, falling further below the key 50-day line. Despite recent losses, shares continue to build a new base. But a forming cup with handle has broken down and is no longer in play. Apple shares lost 4.5% Thursday.
Software leader Microsoft lost another 2.6% Tuesday, making it five straight down days. Last week, the top Dow Jones stock gave up support around its long-term 200-day line. MSFT stock moved down 2.7% Thursday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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