Dow Jones slips ahead of Fed minutes; BBBY shares skyrocket by 45%
The Dow Jones Industrial Average fell sharply on Wednesday ahead of the much-anticipated Fed minutes from the central bank’s latest policy meeting, while US retail sales were weaker than expected. Bed Bath & Beyond (BBBY) rose again on Wednesday morning.
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BBBY stock was set to continue its streak of blistering gains Wednesday amid revived interest in the meme stock, as shares soared as much as 45% before paring gains to 20% in morning trading. Bed Bath & Beyond, a retailer struggling with heavy losses, is up 355% from its July 27 low of 4.54 through Tuesday’s close.
Key earnings moves on Wednesday include Analog devices (ADI), Lowes (LOW), Goal (TGT) and TJX (TJX). Meanwhile, the Dow Jones stock Cisco Systems (CSCO) will report after the close.
Analog Devices shares fell more than 4%. Lowe’s stock fell nearly 1%. Target shares fell 4%, while TJX shares traded 1% lower.
Head of electric vehicles Tesla ( TSLA ) traded down 1% Wednesday morning. Elsewhere, Dow Jones tech leaders apple (AAPL) and Microsoft (MSFT) was mixed after today’s stock market opening.
In today’s healthy stock market environment, Dow Jones stocks Cola (KO) and Merck (MRK) — as well as Albemarle (ALB), Costco (COST), Monolithic power systems (MPWR) and Ollie’s Bargain Outlet (OLLI) — is among the best stocks to buy and watch.
Albemarle and Costco were featured in this week’s Stocks near a Buy Zone column. Costco stock was added to the IBD Leaderboard and SwingTrader in the wake of Tuesday’s breakout move.
Dow Jones today: Treasury yields, oil prices
Early Wednesday, the Dow Jones Industrial Average lost 0.55%, snapping a five-day winning streak. The S&P 500 fell 0.7 percent. And the tech-heavy Nasdaq composite traded down 1.1% in morning trading.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) fell 1%, and the SPDR S&P 500 ETF ( SPY ) lost 0.8% in early trade.
The 10-year government yield ticked up to 2.88% early Wednesday, after Tuesday’s close of 2.79%. The 10-year government yield is on the rise after reaching its lowest level since early April in recent weeks.
Meanwhile, US oil prices fell, threatening to extend a four-session losing streak that has sent futures down more than 8%. West Texas Intermediate futures traded just above $87 a barrel, at their lowest level since January.
America’s retail sales miss, Fed Minutes
US retail sales came out at 8:30 a.m. ET. July sales were flat compared with the previous month, missing Econoday estimates that called for a 0.1% increase. Excluding cars, retail sales rose 0.4% in July. Excluding cars and petrol, sales rose by 0.7%.
The Federal Reserve releases minutes from its latest meeting at 2pm ET. The minutes are expected to reveal clues on the minds of members of the Federal Open Market Committee regarding potential rate hikes at the upcoming September meeting.
At the last Fed meeting, the central bank delivered a 75 basis point interest rate hike for the second meeting in a row, and Fed Chairman Jerome Powell indicated a third such increase “may be appropriate” in September.
Stock market rally
On Tuesday, the Nasdaq Composite fell 1.1% intraday, but pared losses to 0.2% at the closing bell. The S&P 500 was up 0.2 percent, while the Dow Jones index rose 0.7 percent.
Tuesday’s The Big Picture column commented: “Another resilient performance was good news for the bulls, but the stock market is starting to look overbought by at least one indicator. The short-term overbought/oversold oscillator (found in MarketSmith by accessing the NASDQ) is approaching quickly. its peak in early June. That’s the last time the Nasdaq showed overbought conditions. The index fell sharply in three straight sessions from June 9 to 13. For the month, the Nasdaq fell 9.7%.”
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.
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Dow Jones Earnings: Cisco Systems
Networking giant Cisco Systems will report its results for the second quarter after last Wednesday. The Dow Jones stock is expected to earn 82 cents a share on sales of $12.7 billion.
Cisco stock ended Tuesday about 27% off its 52-week high.
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Coca-Cola, Merck
Dow Jones soft drink giant Coca-Cola is building a flat base that has a buy point of 67.30. A handle entry of 65.14 is also in play. Shares are pulling back from their 50-day line and trying to top the handle during Tuesday’s 0.8% gain. The stock fell early Wednesday.
Merck is also building a flat base, a pattern showing a buy point of 95.82. Shares are trying to hold above the 50-day line, according to IBD MarketSmith chart analysis. The Merck share rose 0.3 percent on Wednesday.
The MRK share shows a solid 94 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: Albemarle, Costco, Monolithic, Ollie’s
Lithium producer Albemarle remains in buy territory after Friday’s breakout past a large cup-handled 273.78 buy point. The 5% buy zone goes up to 287.47. Earlier last week, shares topped a minor cup handle with a buy point of 250.25. Shares were down 1.15% on Tuesday, snapping a four-day winning streak. The stock fell about 0.4 percent on Wednesday morning. The lithium giant Chemical and Mining Society of Chile (SQM) will report after completion.
IBD Leaderboard stock Costco breaks out past a cup with handle with a buy point of 552.81. The stock rose 1.3% on Tuesday, closing just above its last entry. The share fell 0.6 percent early Wednesday.
Recently IBD Stock Of The Day Monolithic Power Systems added a handle to a cup base last week, moving the correct buy point from 580.10 to 541.49. Meanwhile, shares remain above a 514.80 entry. The share fell 1.6 percent on Wednesday.
Ollie’s Bargain Outlet is back from its 10-week line – a critical support level – placing the top discount retailer in a new buying zone. Shares are also cutting a handle after a major cup base, setting the latest buy point at 72.37. Current price action is about 9% away from this entry. Shares were 2.8% lower on Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares lost 0.9% on Tuesday, ending a two-day winning streak. Shares in the EV giant fell 1% on Wednesday morning.
This week, shares closed at their highest level since May 4. Shares are once again trying to rise decisively above resistance around their 200-day line, which is a key level to watch. The stock is about 25% off its 52-week high. The 3-to-1 share split will take place on 24 August.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares were 0.1% lower 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. Keep an eye out for a potential handle that could form and provide a lower entry.
Bullishly, the stock’s relative strength line is already at new highs, indicating big stock market returns. Shares rose 0.5% on Wednesday morning after a couple of price increases.
Microsoft fell 0.3% on Tuesday, finishing just shy of the long-term 200-day line, which is a key resistance area to watch. The share fell 0.4 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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