The Dow Jones Industrial Average turned higher on Wednesday morning as Apple shares rose ahead of the “Far Out” iPhone 14 launch event.
Important results reports on Wednesday came from Academy sports and outdoor life (ASO) and Tesla rival Nine (NIO).
Academy rose more than 7% after mixed results, while Nio stock reversed early losses to soar more than 7% higher in early trade after reporting a bigger-than-expected second-quarter loss and weak earnings outlook.
Head of electric vehicles Tesla ( TSLA ) rose 1.3% on Wednesday. Among the Dow Jones industrials, tech titans apple (AAPL) and Microsoft (MSFT) both rose 0.8% after today’s market opening.
In the current market volatility, Arista Networks (A WEB), Costco (COST), Restaurant brands (QSR) and Ulta beauty (ULTA) — as well as the Dow Jones stock Chevron (CVX) – is among the most popular editions to buy and watch. Remember that the market’s increased volatility is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of a recent breakout, while Apple shares and restaurant brands were featured in this week’s Stocks Near a Buy Zone column.
Dow Jones today: Treasury yields, oil prices
After opening Wednesday, the Dow Jones Industrial Average rose 0.4%, while the S&P 500 rose 0.5%. The tech-heavy Nasdaq composite rose 0.8% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) and SPDR S&P 500 ETF (SPY) were both clearly higher in early trading.
The 10-year Treasury yield ticked down to 3.30% early Wednesday, falling after Tuesday’s jump. On Tuesday, the 10-year government yield reached its highest closing level since 15 June.
US oil prices hit a new low on Wednesday morning, as West Texas Intermediate futures fell more than 3%. WTI futures traded below $84 a barrel.
Stock market rally under pressure
On Tuesday, the Nasdaq composite suffered the biggest margin loss of the major indexes. It extended its losing streak to seven trading days as it fell 0.7%. It is the Nasdaq’s longest losing streak since November 2016, according to Dow Jones Market Data.
Tuesday’s The Big Picture column commented: “It was a bad day for retail, with jewellers, auto, home furnishing and consumer electronics retailers among the worst. Generic drug makers also struggled.”
If you are new to IBD, consider taking a look at the stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investment guidelines. IBD offers a wide variety of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Chevron
The Dow Jones share Chevron fell 0.5 percent on Tuesday. The stock added a handle to a cup base, moving the right buy point to 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The stock fell 2.5% early Wednesday, as oil prices fell.
CVX stock scores a strong 97 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.
4 top growth stocks to buy and watch nowra stock market rally
Top Stocks to Watch: Arista, Costco, Restaurant Brands, Ulta
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is starting to gain ground, as the stock remains below its long-term 200-day line. ANET shares rose 0.5% early Wednesday.
IBD Leaderboard stock Costco fell further below its 50-day line on Tuesday and is about 6% below a 552.81 buy point from a cup with handle. The stock is close to triggering the selling rule of 7%-8% loss reduction. The shares rose 0.5 percent on Wednesday.
Restaurant Brands fell 1.1% on Tuesday, falling for the second day in a row. Shares are building a cup with handle that has a buy point of 61.19. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants globally. The share rose 0.4 percent early Wednesday.
Cosmetics retailer Ulta Beauty is holding modestly above a 417.08 buy point in a double-bottom base after Tuesday’s 1.1% gain. The RS line hit a new high on Tuesday, as the stock shows abnormal strength in a weak market environment. ULTA stock traded up 0.4% Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares rose 1.6% on Tuesday, closing just above the 50-day line, which is a potential support level to watch. Shares in the electric car giant rose 1.3 percent on Wednesday morning.
Tesla stock found resistance at its 200-day line in recent months and is about 34% lower than its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple fell 0.8% on Tuesday, closing further below support at its 50-day line. The stock is about 13% away from a cup-with-handle buy point of 176.25. Despite the recent losses, the stock’s relative strength line remains close to new highs, indicating a stable excess return on the stock market.
Shares rose 0.8% on Wednesday morning ahead of the company’s “Far Out” product launch event at 1pm ET. Apple is ready to unveil the iPhone 14 line, a fresh range of smartwatches and new AirPods.
Microsoft fell 1.1% on Tuesday, extending a losing streak to seven sessions and falling further below its 50-day mark. Shares remain sharply below their long-term 200-day line and approx. 28% of 52-week high. The share rose 0.8 percent 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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