The Dow Jones Industrial Average turned around after early losses on Wednesday after a hotter-than-expected inflation report – the CPI. Energy stocks rallied as oil prices rebounded from a two-session decline. Former stock market leaders Coinbase, Roblox, Trade Desk and Unity Software all crashed after releasing their quarterly results.
X
coin base (COIN), Western Petroleum (OXY), Roblox (RBLX), trading desk (TTD) and Unit software (U) reported their earnings results late Tuesday. In the meantime, Wendy’s (WHO) and yeti (YETI) reported results early Wednesday.
COIN shares plunged 27% while Occidental gained 1.4%. Roblox turned 3% higher while Trade Desk declined 4%. Unity plummeted 36% while Wendy’s plummeted more than 8%. And Yeti is up about 3%.
Giant of electric vehicles Tesla (TSLA) erased early losses on Wednesday morning. Dow Jones Leader Apple (AAPL) and Microsoft (MSFT) were trading about 1% lower in today’s stock market.
As stock market correction feels like a bottom, Dow Jones leads rafters (CVX) and note (MRK) — along with Chen energy (LNG), Exxon Mobile (XOM) and Northrop Grumman (NOC) – are among the top IBD stocks to keep an eye on on Wednesday.
Cheniere Energy, Microsoft and Tesla are IBD Leaderboard stocks. Exxon and Merck were featured in this week’s “Stocks Near a Buy Zone” column.
Dow Jones Today: Treasury Yields, Oil Prices, CPI
After Wednesday’s open, the Dow Jones Industrial Average was up 0.7%, while the S&P 500 was up 0.8%. The Nasdaq was also up 0.6% in morning trade.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was up 0.6%. The SPDR S&P 500 ETF (SPY) gained 0.8%.
The 10-year Treasury yield jumped to 3.01% Wednesday morning after closing just below 3% on Tuesday. On Monday, the 10-year Treasury yield hit its highest level since November 2018. Meanwhile, US oil prices traded 4% higher with Texas Intermediate crude hovering around $104 a barrel.
Consumer prices rose 0.3% in April, ahead of Econoday’s estimate of a 0.2% rise. Meanwhile, April inflation rose 8.3% yoy, hotter than the 8.2% estimate.
Stock market correction deepens
On Tuesday, the Nasdaq Composite was up 1%, recovering less than a quarter of Monday’s 4.3% drop. The S&P 500 edged up while the Dow Jones Industrials fell. The Nasdaq and S&P 500 are each heading for their sixth straight weekly decline. The Dow Industrial Index braces itself for its seventh week of decline.
Tuesday’s The Big Picture column commented: “Add these factors to the reality that pure growth stocks are far from the right buying points, and the regular reader of this column might conclude that it remains a smart move sitting on a big wad of money.”
If you are new to IBD, you should take a look at the CAN SLIM stock trading system and basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch right now
Keep an Eye on Dow Jones Stocks: Chevron, Merck
Dow Jones leader and energy giant Chevron is on flat base with a buy point of 174.86, according to chart analysis by IBD MarketSmith. CVX shares are up 1% on Tuesday but are still below resistance at their 50-day moving average. Chevron shares were up 1.8% on Wednesday morning.
CVX stock has a perfect IBD Composite Rating of 99 according to the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Drug leader Merck is just below a buy point of 89.58 after a brief attempt to break out last week. Shares were up 0.1% early Wednesday.
On the positive side of the stock, its relative strength line is at new highs, suggesting a major stock market outperformance during the current stock market correction.
Three top growth stocks to watchrightent stock market correction
Stocks to watch: Cheniere, Exxon
IBD leaderboard stock Cheniere Energy is one of the top stocks to watch, despite shedding another 2.4% on Tuesday. Stocks continue to fall below their 50-day moving average, although they continue to form a flat base that features a buy point of 149.52, according to IBD MarketSmith chart analysis. LNG shares rose 0.2% on Wednesday.
Energy giant Exxon Mobil broke above the cup handle buy point of 89.90 last week. But stocks gave up entry and are about 5% below the buy point. That stops just before the auto sell rule triggers. But the faltering breakout highlights the danger of owning any stocks in the current market environment. XOM shares rose 1.9% on Wednesday.
Defense contractor Northrop Grumman continues to etch a mug with a handle at a buy point of 477.36. Shares are just below their 50-day moving average after shedding 0.9% on Tuesday. Northrop shares edged higher on Wednesday.
Join IBD experts as they analyze leading stocks in the latest stock market correction on IBD Live
Tesla stock
Tesla stock recouped early losses Wednesday morning and is still trying to add to Tuesday’s 1.6% gain. Stocks remain well below their 50- and 200-day moving averages amid their recent weakness.
The stock traded as low as 1,243.49 on Nov. 4, about 36% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.6% on Tuesday but remain below its 200-day moving average. Apple shares fell 0.7% on Wednesday.
Software leader Microsoft gained almost 2% on Tuesday, ending a three-day losing streak. The stock closed about 24% below its 52-week high. MSFT shares fell 0.8% on Wednesday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top growth stocks to buy and watch
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with IBD Long-Term Leaders
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool makes finding top stocks easy