Dow Jones falls ahead of Fed minutes; Meta plans to launch “Twitter Killer”| Investor’s Business Daily
The Dow Jones Industrial Average fell on Wednesday ahead of the minutes from the Federal Reserve’s recent policy meeting. Meta platforms (META) is preparing its Twitter rival, called Threads, for its debut on Thursday.
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On Wednesday, the Fed minutes will be posted at 2:00 PM ET. They could shed light on why decision-makers’ forecasts provided for two more interest rate hikes.
Later this week, the Ministry of Labour’s job announcement on Friday will take the spotlight. Economists predict an increase of around 200,000 jobs and a drop in the unemployment rate to 3.6%.
The stock market today
The Meta share rose 0.5% in morning trading. The Threads website, which has been referred to as a “Twitter killer”, will be launched under the umbrella of social media Instagram. Although its debut isn’t until Thursday, the web interface is available now for exploration.
Electric vehicle giant Tesla ( TSLA ) rose 1% Wednesday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was steadily lower after today’s market opening.
Other leaders in the stock market rally include Google parent Alphabet (GOOGL). Alphabet shares rose higher.
Chipotle Mexican Grill (CMG), Dynatrace (DT), MongoDB (MDB), Lamb Research (LRCX) and Nvidia (NVDA) – as well as Dow Jones stocks JPMorgan Chase (JPM), Visa (V) and Salesforce (CRM) – are among the best stocks to watch in the ongoing stock market rally.
Tesla is an IBD Leaderboard stock, Lam Research remains an IBD SwingTrader stock, while Nvidia was featured this week in the Stocks Near a Buy Zone column. Dynatrace was a recent IBD Stock Of The Day.
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Dow Jones today: Oil prices, Treasury yields
After Wednesday’s opening bell, the Dow Jones Industrial Average fell 0.35%, while the S&P 500 fell 0.2%. The technology-heavy Nasdaq composite was down 0.1% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) traded down 0.4%, while the SPDR S&P 500 ETF ( SPY ) lost 0.45% early Wednesday.
The 10-year US Treasury yield ticked up to 3.86%. The 10-year yield has tested its recent highs, established at the end of May. The yield settled on Monday at 3.85%.
Oil prices rallied on Wednesday morning, after a mild decline on Monday. West Texas Intermediate futures traded up about 2%, to above $71 a barrel.
On Monday, oil prices fell, despite news that Saudi Arabia said it would extend output cuts into August and Russia announced a 500,000 bpd reduction in production next month. OPEC’s meeting starts on Wednesday.
Stock market action
On Monday, the S&P 500 rose 0.1 percent, while the Nasdaq index increased by 0.2 percent. Both achieved their highest close since April 2022. The Dow Jones Industrial Average was nearly flat but still posted its highest close since December 2.
Monday’s Big Picture column commented: “The (Nasdaq) composite’s 31.7% six-month gain was the best first half of a year since 1983, according to Dow Jones Market Data. The big-cap-focused Nasdaq 100 rose 38.8%, for his best first half in history.”
Now is an important time to read IBD’s The Big Picture column as the stock market remains near this year’s highs.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to watch: JPMorgan, Salesforce, Visa
Dow Jones bank leader JPMorgan moved further above a 143.37 flat-base buy point during Monday’s rally. The 5% buy zone goes up to 150.54. The JPM share fell 0.5 percent on Wednesday morning.
Salesforce managed to stabilize after post-earnings decline. It is now testing support at the 50-day line. The megacap tech earlier edged past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
Over the past few weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM shares fell 0.3% on Wednesday morning.
Payments leader Visa traded above a flat-base buy point of 235.57 on Monday, with a gain of 0.2%. The buy range tops out at 247.35. The V share lost 1.2% early Wednesday.
4 top growth stocks to buy and watch Stock market rally
Best stocks to buy and watch: Chipotle, Dynatrace, MongoDB, Lam Research
IBD Leaderboard Watchlist stock Chipotle is trying to break out past flat base’s 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 was also available due to a trend line. Chipotle was a recent IBD Stock Of The Day. The CMG share fell 0.6 percent on Wednesday morning.
Software maker Dynatrace has formed a three-week tight chart pattern, representing a brief consolidation where institutional investors are stopping their buying. Shares are about 3% off their last entry of 52.99. DT shares fell 0.8% on Wednesday morning.
IBD SwingTrader stock Lam Research moved above an early buy point at 615.80 and a three-week tight pattern with an entry at 630.72 during last week’s rally. LRCX stock was down 0.8% early Wednesday.
MongoDB traded closely following its recent earnings-driven jump, which produced a new entry. Shares are above the three-week tight formation that showed a buy point at 398.89, while aggressive investors could have used a trendline entry around 386. MDB stock was down 1.2% on Wednesday morning.
Learn how to time the market with IBD’s ETF Market Strategy
Best shares to buy and watch in stock market rally
These are the four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| ASML | (ASML) | 683.18 | Cup with handle |
| Salesforce | (CRM) | 200.00 | Consolidation |
| Cloudflare | (NET) | 66.20 | Double bottom |
| Year | (YEAR) | 75.45 | Cup with handle |
Source: IBD data as of July 5, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
IBD Leaderboard stock Tesla extended a winning streak to five sessions Monday after the company said it delivered more than 466,000 vehicles to customers worldwide in the April to June period, a record quarter for sales. Price cuts and discounts drove demand far above Wall Street’s forecasts.
Amid the recent rally, Tesla shares remain well outside buy territory beyond a double-bottom buy point at 207.79.
TSLA stock looked to extend Monday’s gains, rising 1% on Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell from Friday’s record high of 194.48, and fell 0.8% on Monday. Shares continue to hold sharply above a buy point of 157.38. Early Wednesday, the shares lost 0.2% in morning action.
Microsoft shares lost 0.75% on Monday, giving back some of Friday’s gains. Still, the stock is just 4% off its June 16 record high of 351.47.
In recent weeks, the stock reached the 20% to 25% profit zone from a buy point of 276.76, so investors could have taken at least some profit there. And on Wednesday morning, Microsoft shares were down 0.3%.
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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