The Dow Jones Industrial Average turned lower on Wednesday morning with minutes from the Federal Reserve’s latest policy meeting later in the day. Chinese internet giant Baidu (BIDU) rose briefly before turning lower, while cybersecurity leader Palo Alto Networks (PANW) rose 10% on earnings. And later on Wednesday, Nvidia (NVDA) revenue is due after the market closes.
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Fat minutes on tap
Minutes of the Federal Open Market Committee’s Jan. 31-Feb. 1 meeting is expected at 2 p.m. ET. The report can provide insight into the central bank’s future interest rate increases and its latest increase of 25 basis points.
Among other companies reporting earnings on Wednesday, Chesapeake Energy (CHK), Diamondback energy (LAP), Exact Sciences (EXAS), Matador resources (MTDR), TJX (TJX) and Toll Brothers (TOL) was on the move.
Chesapeake shares rose 1.6%, while Diamondback shares rose 2%. Exact Sciences rose 1.5%, as MTDR shares fell 10%. TJX fell 2% and homebuilder Toll Brothers rose 3.5% in morning trade.
The stock market today
Head of electric vehicles Tesla ( TSLA ) fell 2.4% Wednesday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) was lower after the exchange opened.
IBD Leaderboard stock Airbnb (ABNB), Dexcom (DXCM), Inspire medical systems (INSP) and Wing stop (WING) — as well as Dow Jones stocks larva (CAT), Cisco Systems (CSCO) and JPMorgan Chase (JPM) — is among the best stocks to watch given the recent weakness in the stock market.
Airbnb is an IBD Leaderboard stock. Inspire and Dexcom were recent IBD Stock Of The Day subjects. Cisco Systems and Wingstop were featured in this week’s Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
After Wednesday’s market open, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq Composite fell 0.25% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) traded down 0.3% and the SPDR S&P 500 ETF ( SPY ) fell 0.2 early Wednesday.
The 10-year US Treasury yield jumped to 3.95% on Tuesday, closing at its highest level since November 9. The 10-year yield then ticked down to 3.91% on Wednesday morning ahead of today’s Fed minutes.
Oil prices threatened to extend a five-day losing streak, with West Texas Intermediate futures down 1% on Wednesday morning. WTI fell below $76 a barrel, nearing its lows in early February.
Stock market rally
On Tuesday, the Dow Jones Industrial Average sold off 2.1%, and the S&P 500 lost 2%. The Nasdaq plunged 2.5 percent.
Tuesday’s Big Picture column warned: “Now is the time to assess your current holdings and start cashing in by cutting your laggards loose. For profitable positions, consider trimming your winners or taking profits outright, depending on how the stock performs in the key. support levels.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Caterpillar, Cisco, JPMorgan
Top Dow Jones stock Caterpillar gave up crucial support at its 50-day line during Tuesday’s 2.9% slide, according to IBD MarketSmith chart analysis. Shares remain above a buy point at 239.95, but previous gains have all but disappeared, triggering the round-trip sell rule. CAT shares traded up 0.1% on Wednesday morning.
Banking giant JPMorgan remains in buy territory 5% above a 138.76 buy point despite a 1.8% loss on Tuesday. The 5% buy zone tops out at 145.70. JPM shares were down 0.5% early Wednesday. JPM stock scores a solid 94 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Shown in this week’s Stocks Near a Buy Zone column, Cisco Systems is trying to break out past a flat base buy point at 50.81. Shares lost 2.1% on Tuesday, ending about 2% below the opening. Cisco shares fell 1.6 percent early Wednesday.
4 top growth stocks to buy and watch Stock market rally
Top stocks to buy and watch: Airbnb, Inspire
New IBD Leaderboard stock Airbnb soared last week, past a 121.50 cup-with-handle buy point. While extended from this entry, the breakout gap places an alternative entry at 135 – and the stock is just below this price after Tuesday’s sharp drop. The ABNB share fell 2.4 percent on Wednesday morning.
Background story: The company operates an online marketplace for accommodation. Its primary offering is vacation rental homestays. While tourism was hit hard by the coronavirus pandemic, it continues to roar back after strict lockdowns.
Recent IBD Stock Of The Day Inspire Medical Systems fell for a third day Tuesday, but remains above a flat base’s 262.64 buy point, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 86 IBD Composite Rating. INSP shares fell 1.1% early Wednesday.
Background story: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves – a process called neurostimulation.
Dexcom, Wingstop Eye Last Purchase Points
Dexcom shares fell 0.65% Tuesday, extending a losing streak to three sessions. The stock added a handle to a cup base, creating a buy point at 121.21. The stock rose 0.3 percent on Wednesday.
Background story: On February 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom’s newest continuous glucose monitor, or CGM, gains momentum in the US and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration approved Dexcom’s new device, the G7, last year.
Wingstop gave up a 169.04 buy point in a cup with handle on Tuesday in the wake of last week’s breakout move. WING stock rose 11% early Wednesday morning after reporting fourth-quarter results.
Background story: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the United Kingdom. The company added a net 40 stores last quarter.
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Shares to buy and watch in a stock market rally
These are six top stocks to buy and watch in today’s stock market, including two Dow Jones leaders.
| company name | Symbol | Right point of purchase | Type of point of purchase |
|---|---|---|---|
| Inspire medical systems | (INSP) | 262.64 | Flat base |
| Visteon | (VC) | 152.20 | Cup base |
| larva | (CAT) | 239.95 | Flat base |
| Airbnb | (ABNB) | 135.00 | Breakaway Gap |
| JPMorgan | (JPM) | 138.76 | Flat base |
| Wing stop | (WING) | 169.04 | Cup with handle |
Source: IBD data as of February 22, 2023
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Tesla shares
Tesla shares fell 5.25% Tuesday mid-market. Despite a strong pullback from Jan. 6, shares remain below the 200-day mark, and that key level looms as a potential resistance area. Shares closed Tuesday about 50% off their 52-week high.
Shares appeared to be recovering from Tuesday’s losses, but reversed 2.4% lower on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones shares, the Apple share lost 2.7 percent on Tuesday. Shares are around 17% off their 52-week high and trying to hold above the 200-day mark. Apple shares fell 0.8 percent on Wednesday.
Microsoft shares extended a losing streak to four sessions, falling 2.1% on Tuesday. The shares closed below the 200-day line and approx. 20% off 52-week highs after recent gains. MSFT shares fell 0.3% on Wednesday morning.
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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