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

The Dow Jones Industrial Average rallied Thursday morning after key economic data, as Meta Platforms (META) crashed 24% and Align Technology (ALGN) swooned 15% on earnings results. Apple earnings are due out after the market closes.

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Meta reported third-quarter results late Wednesday that missed earnings estimates but slightly beat on revenue. The company reported adjusted earnings of $1.64 a share on revenue of $27.7 billion. Analysts expected Meta to report earnings of $1.90 a share on revenue of $27.4 billion, according to FactSet. Shares traded below 99, their lowest level since February 2016.

Align, maker of Invisalign dental braces, reported steep misses on both its revenue and earnings lines late Wednesday.

Meanwhile, U.S. GDP, or gross domestic product, rose 2.6% in the third quarter, topping the 2.3% estimate and up from a 0.6% decline in the second quarter. First-time jobless claims also were released. Claims rose to 217,000 vs. 214,000 in the previous week, slightly below estimates.

Stock Market Today: Caterpillar, McDonald’s, Merck Earnings

Other key earnings coming out Thursday were Dow Jones stocks Caterpillar (CAT), McDonald’s (MCD) and Merck (MRK), along with Ford Motor (F), Mastercard (MA), O’Reilly Automotive (ORLY), ServiceNow (NOW), Shopify (SHOP) and Wolfspeed (WOLF).

CAT stock jumped 5%, while McDonald’s rallied almost 3% and Merck climbed 2.1% in morning trade. Ford shares skidded nearly 2% as Mastercard fell 1%. O’Reilly shares moved up around 2%, and ServiceNow stock surged 14%. Shopify popped 3%, while WOLF stock plunged 25% in early trade.

Electric-vehicle giant Tesla (TSLA) traded up more than 1% Thursday morning, while Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.

AutoZone (AZO), Cardinal Health (CAH), Eli Lilly (LLY) and Texas Roadhouse (TXRH) — as well as Dow Jones stock UnitedHealth Group (UNH) — are among the top stocks to buy and watch. Keep in mind that the new stock market rally is the perfect time for investors to put their watchlists into action, and to hone their pyramiding technique.

Young rallies, particularly those fighting bear markets, often fail. Pyramiding provides a method of moving into new stock positions incrementally, in order to minimize risk to capital.

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 top 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 moved 0.3% higher. The tech-heavy Nasdaq composite lost 0.4% in morning action, with Align and Meta trading at the bottom of the list.

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

The 10-year Treasury yield ticked lower to 3.97% Thursday morning, adding to this week’s losses. On Monday, the 10-year Treasury yield closed at 4.23%, settling at its highest level since June 2008 before falling the following two sessions.

Meanwhile, U.S. oil prices inched higher Thursday, on pace to add to Wednesday’s gains. West Texas Intermediate futures traded above $88 a barrel.

Stock Market Rally Continues

On Wednesday, the Dow Jones Industrial Average crept higher and the S&P 500 declined 0.7%. The Nasdaq composite sold off more than 2%, as Alphabet (GOOGL) and Microsoft weighed on the tech-heavy index.

Wednesday’s The Big Picture commented, “With just one such session of pronounced institutional selling on the books, growth investors may proceed with buying excellent breakouts. However, given the shaky action seen in a number of follow-through days throughout the year, it makes sense to limit long exposure in both the general stock market and in top stocks to a range of 20% to 40% of a portfolio.”

Now is an important time to read IBD’s The Big Picture column. Following Friday’s gains, investors want to put their curated watchlists to work, in order to jump on future breakouts. But not all follow-throughs work, so it’s important to raise exposure slowly and methodically, as the new uptrend proves itself.

Check out 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

Health care giant UnitedHealth is approaching a cup-with-handle’s 553.23 buy point, according to IBD MarketSmith pattern recognition. Shares rose 0.55% Wednesday, just shy of the stock’s latest entry.

UNH stock inched lower Thursday morning.

4 Top Growth Stocks To Watch In The Current 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 past a cup base’s 2,362.34 buy point, despite falling 0.7% Wednesday. The 5% chase zone goes up to 2,480.46….