Dow Jones Futures Rise As Stock Market Sell-Off Worsens; Netflix

Dow Jones futures moved higher Thursday morning after the stock market sell-off accelerated on Wednesday. China-based stocks surged after central bank stimulus measures triggered a rally in Hong Kong. Apple stock is testing a key level, while Netflix earnings are due after the close. And Intuitive Surgical (ISRG) will also report late Thursday.

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Among the Dow Jones leaders, Apple (AAPL) rose 0.6% premarket Thursday, while Microsoft (MSFT) was up 1.3% in today’s stock market. Also among the Dow 30, Cisco Systems (CSCO) is just above a recent buy point, as it battles for support at the 50-day line.

Electric-vehicle leader Tesla (TSLA) traded up 1.5% premarket Thursday. Lucid Group (LCID) rallied around 3%. And Chinese EV leaders Li Auto (LI) and Xpeng Motors (XPEV) were squarely higher.

Among Thursday’s top stocks to watch, Ameriprise Financial (AMP), Mosaic (MOS) and Taiwan Semiconductor Manufacturing (TSM) are in or near new buy zones. Keep in mind the current stock market health should have investors on the sidelines.

Microsoft and Tesla are IBD Leaderboard stocks. Mosaic is an IBD SwingTrader stock. Ameriprise featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Today: Treasury Yields

Ahead of the stock market open Thursday, Dow Jones futures moved up 0.3% vs. fair value. S&P 500 futures rose 0.35%. Meanwhile, Nasdaq 100 futures climbed 0.6% as Trip.com (TCOM), JD.com (JD) and other China-based names dominated the top of the Nasdaq 100 in premarket trade.

Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 0.7% in premarket trade, and the SPDR S&P 500 ETF (SPY) moved up 0.3%. The Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) swung 1.4% higher, and the iShares MSCI China ETF (MCHI) popped 3.6%.

The 10-year Treasury yield ticked above 1.83% Thursday morning. On Wednesday, the 10-year Treasury yield dropped from two-year highs, closing below 1.83%.

The Labor Department will report initial jobless claims at 8:30 a.m. ET. First-time unemployment claims are expected to fall to 207,000 vs. the prior week’s 230,000, per Econoday estimates.

Stock Market Sell-Off Worsens

The stock market posted another disappointing performance Wednesday, ending with heavy losses after reversing from early gains. The Nasdaq tumbled further below its long-term 200-day moving average. Meanwhile, the S&P 500 closed at its lowest level since Dec. 1.

Wednesday’s The Big Picture commented: “The Nasdaq composite was up 1% and fluctuated the rest of the session. It closed 1.1% lower, spending a second consecutive day below the 200-day moving average. The Nasdaq’s drop of more than 10% is what most of Wall Street would consider a correction, which concurs with IBD’s new market outlook.”

Amid this recent weakness, now is an important time to check out IBD’s The Big Picture. Instead of buying stocks, investors should keep leading stocks that are showing relative strength on their watchlist. These could be some of…