The Dow Jones Industrial Average fell on Wednesday morning as it threatened to extend a three-day losing streak. Tesla stock will officially split on Wednesday when the number of outstanding shares increases to 4 billion, but trading at the new 3-for-1 adjusted price will start on Thursday.
Advanced Auto Parts (AAP), Dycom (DY), Intuit (INTU), Nordstrom (JWN), Toll Brothers (To land Urban Outfitters (URBN) are important income factors on Wednesday.
AAP shares fell 8% while Dycom rose around 3%. Intuit jumped 8% as Nordstrom plunged 16%. Toll Brothers fell 3% after it topped earnings views but lowered its full-year guidance for deliveries. And Urban Outfitters fell more than 2% in early trading.
Head of electric vehicles Tesla (TSLA) traded up 1% on Wednesday. Elsewhere, Dow Jones tech leaders apple (AAPL) and Microsoft (MSFT) was mixed after today’s stock market opening.
In the current downturn in the stock market, Albemarle (ALB), Arista Networks (A WEB), Axcelis Technologies (ACLS) and Costco (COST) – as well as Dow Jones shares Amgen (AMGN) and McDonald’s (MCD) — is among the best stocks to buy and watch.
Costco stock was added to the IBD Leaderboard in the wake of last week’s breakout move. Arista and Axcelis were featured in this week’s Stocks Near a Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices, Powell Speech
By early Wednesday, the Dow Jones Industrial Average was down 0.1%, while the S&P 500 was down. The technology-heavy Nasdaq rose 0.1% in morning trading.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose less than 0.1%, and the SPDR S&P 500 ETF (SPY) was unchanged in early trade.
The 10-year government yield ticked up to 3.09% early Wednesday, following Tuesday’s rise. This week, the 10-year government yield is above the 3% level for the first time since July 21.
US oil prices continued to rally on Wednesday after last week’s losses sent West Texas Intermediate futures to their lowest level since January. WTI futures rose 1% early Wednesday, trading above $94 a barrel.
Federal Reserve board members will be closely watching July durable goods, which came out from the Commerce Department at 8:30 a.m. ET. New orders were flat in July compared to the previous month, up 0.3% minus transportation orders. Economists forecast a sharp decline from June – a 0.5% gain for total orders, and a 0.1% increase minus transportation orders. Total orders increased by 2% in June.
Fed Chairman Jerome Powell will deliver a speech Friday on the central bank’s economic outlook from Jackson Hole, Wyo. The Fed has raised interest rates this year in an effort to bring down inflation, but has sent increasingly mixed signals about upcoming hikes.
Last week’s Fed minutes appeared to push back against market expectations of a dovish pivot, after a six-week rally followed the 14-15 meeting. June. Markets have about a 58% chance of a rate hike of 75 basis points on September 21. A week ago there was a 39% chance.
Withdrawal from the stock market
On Tuesday, the stock market posted another disappointing development as early gains faded into the end. The Dow Jones Industrial Average lagged behind, falling 0.5%, while the S&P 500 lost 0.2%.
Tuesday’s The Big Picture column commented: “Overhead supply appears to be an issue as both the Nasdaq and S&P 500 have fallen away after approaching or touching their bearish 200-day moving averages. In fact, both are now struggling to hold its 21-day lines.”
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Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Amgen, McDonald’s
Dow Jones stock Amgen is building a flat base that has a buy point of 258.55, amid a strong performance from biotech so far this year. An early entry of 253.87 is also in play. Shares gave up their 50-day support level during Tuesday’s 1% decline. The stock fell 0.5 percent early Wednesday.
AMGN stock scores a solid 92 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical metrics.
McDonald’s shares are trading below a 265.56 cup-with-handle entry after Tuesday’s 0.9% loss, according to IBD MarketSmith chart analysis. MCD shares rose on Wednesday morning.
4 top growth stocks to buy and watch nowra stock market rally
Top stocks to watch: Albemarle, Arista, Axcelis, Costco
Lithium producer Albemarle is firmly in buy territory after Monday’s repeat of a 273.78 buy point in a large cup with handles. The 5% buy zone goes up to 287.47. In the previous weeks, shares topped a minor cup with the handle’s buy point of 250.25. The stock fell 0.1 percent on Wednesday morning.
Arista Networks, one of last week’s IBD 50 Stocks To Watch picks, continues to churn up on the right side of a double-bottom base that offers a buy point at 143.67. With the stock around 11% away from the current entry, wait for a handle – likely forming now – to offer a more risk-optimal buy point. Arista’s RS line has trended higher and is nearing a new high. The ANET share fell early on Wednesday.
IBD Leaderboard stock Costco fell further below its 552.81 buy point from a cup with handle, as shares fell 0.6%. Wait for a bullish repeat of the entry before buying stocks. Shares were up 0.3% early Wednesday.
Chip equipment maker Axcelis Technologies continues to build a cup-with-handle offering a buy point of 79.93, according to IBD MarketSmith chart analysis. The share fell 0.5 percent on Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 2.3% on Tuesday, snapping a five-day losing streak. Shares of the electric car giant rose 1% on Wednesday morning, looking to add to Tuesday’s gains. Tesla stock will begin trading at the new 3-for-1 split-adjusted price on Thursday.
Tesla stock has struggled to overcome resistance around its 200-day line. Tesla is about 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple fell 0.2% on Tuesday as the stock continues to build to the right of a cup base that has a buy point at 179.71. Another interpretation could be a major double bottom extending back to January. Regardless, the point of purchase is identical. On the upside, the latest losing streak is likely to result in a hold, which would result in a lower entry.
Bullishly, the stock’s relative strength line is holding new highs, which suggests big stock market returns. The share rose 0.7 percent on Wednesday morning.
Microsoft fell another 0.5% on Tuesday, extending a losing streak to six sessions and drifting further away from its long-term 200-day line. The stock rose early Wednesday.
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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