The Dow Jones Industrial Average fell Wednesday morning as it threatened to extend a three-day loss streak. Tesla shares will officially split on Wednesday when the number of shares outstanding increases to 4 billion, but trading at the new 3-for-1 adjusted price will begin Thursday.
Advanced Auto Parts (MONKEY), Dycom (DJ), intuitive (INTU), Nordstrom (JWN), Toll Brothers (To land Urban Outfitters (URBN) are the top revenue movers Wednesday.
AAP shares were up 8%, while Dycom was up about 3%. Intuit jumped 8% while Nordstrom plunged 16%. Toll Brothers fell 3% after beating earnings expectations, but lowered its full-year delivery outlook. And Urban Outfitters fell more than 2% in early trading.
Electric driving leader Tesla (TSLA) was up 1% on Wednesday. Elsewhere, Dow Jones Tech Leaders Apple (AAPL) and Microsoft (MSFT) were mixed after today’s stock market open.
In the current downturn in the stock market, Albemarle (ALB), Arista Networks (A NET), Axcelis Technologies (ACLS) and Costco (COST) — as well as Dow Jones stock Amgen (AMGN) and McDonald’s (MCD) — are among the top stocks to buy and watch.
Costco stock was added to the IBD standings in the wake of last week’s breakout. Arista and Axcelis were featured in the Stocks near a buy zone column this week.
Dow Jones Today: Treasury Yields, Oil Prices, Powell Speech
On Wednesday early Wednesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 came in slightly lower. The tech-heavy Nasdaq rose 0.1% in morning trading.
Among exchange-traded funds, the Nasdaq 100-tracker Invesco QQQ Trust (QQQ) was up less than 0.1%, and the SPDR S&P 500 ETF (SPY) was flat in early trading.
Yields on 10-year Treasuries rose to 3.09% early Wednesday, following Tuesday’s gains. This week, 10-year government bond yields are above 3% for the first time since July 21.
US oil prices continued to recover on Wednesday after last week’s losses caused West Texas Intermediate futures to hit their lowest level since January. WTI futures were up 1% early Wednesday, trading above $94 a barrel.
Members of the Federal Reserve’s board of directors will be closely watching July’s durable goods, which came out of the Commerce Department at 8:30 a.m. ET. New orders in July were flat compared to the previous month, with an increase of 0.3% minus transport orders. Economists predicted a sharp slowdown from June: a 0.5% increase in total orders and a 0.1% increase minus freight orders. Total orders rose 2% in June.
Fed chief Jerome Powell will give a talk on the central bank’s economic outlook Friday from Jackson Hole, Wyo. The Fed has raised interest rates this year in an effort to curb inflation, but has been sending increasingly mixed signals about impending hikes.
Last week’s Fed minutes seemed to push back against market expectations for a smooth pivot after a six-week stock rally following the June 14-15 meeting. Markets are giving about a 58% chance of a 75 basis point rate hike on September 21. A week ago there was a 39% chance.
Relapse in the stock market
On Tuesday, the stock market posted another disappointing performance as early gains faded to the close. The Dow Jones Industrial Average lagged, falling 0.5%, while the S&P 500 lost 0.2%.
Tuesday’s The Big Picture column read: “Overhead supply appears to be an issue as both the Nasdaq and S&P 500 have slipped after approaching or hitting their downward-sloping 200-day moving averages. Indeed, both are now struggling to recover. their 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 with a buy point of 258.55 amid strong performance from biotechs so far this year. An early entry at 253.87 is also in play. Shares gave up their 50-day support level during Tuesday’s 1% decline. The stock was down 0.5% on Wednesday.
AMGN stocks show a solid 92 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily measure the quality of a stock’s fundamental and technical statistics.
According to the IBD MarketSmith chart analysis, McDonald’s stock continues to trade below 265.56 cup-with-handle entry after Tuesday’s 0.9% loss. MCD shares rose higher Wednesday morning.
4 top growth stocks to buy and watchrent Stock Market Rally
Top Stocks to Watch: Albemarle, Arista, Axcelis, Costco
Lithium producer Albemarle is fully in the buying range after Monday’s recapture with a buy point of 273.78 in a large cup with handle. The 5% buy zone goes up to 287.47. In previous weeks, stocks topped a smaller cup with the handle’s buy point of 250.25. The stock lost 0.1% on Wednesday morning.
Arista Networks, one of last week’s IBD 50 Stocks To Watch picks, continues to slog up the right side of a double bottom base offering a buy point of 143.67. With the stock about 11% away from current entries, you’re waiting for a handle – which is likely to form now – to provide a more risk-optimized buying point. Arista’s RS line is trending higher and approaching a new high. ANET shares rose lower early Wednesday.
IBD Leaderboard share Costco fell further below its 552.81 buy point of a handle cup, while shares fell 0.6%. Wait for a bullish revival in the entry before buying stocks. Shares added 0.3% early Wednesday.
Chip equipment maker Axcelis Technologies continues to build a handle cup that offers a buy point of 79.93, according to IBD MarketSmith chart analysis. The stock fell 0.5% on Wednesday morning.
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Tesla shares rose 2.3% on Tuesday, breaking a five-day loss streak. Shares of the electric-vehicle giant rose 1% Wednesday morning, looking to contribute to Tuesday’s gains. Tesla stock will begin trading Thursday at the new 3-for-1 split-adjusted price.
Tesla stocks have struggled to overcome resistance around the 200-day line. Tesla is about 30% lower than its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Of the Dow Jones stock, Apple shares fell 0.2% on Tuesday as the stock continues to build up the good side of a cup base with a buy point of 179.71. Another interpretation could be a large double bottom dating back to January. Anyway, the point of sale is identical. On the upside, the recent losing streak is likely to result in a handle, which would offer a lower entry.
Bullish, the stock’s relative strength is holding new highs, indicating a major stock market outperformance. The stock rose 0.7% on Wednesday morning.
Microsoft fell another 0.5% on Tuesday, extending the losing streak to six sessions and further straying from its long-term 200-day line. The stock moved slightly higher on Wednesday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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