The Dow Jones Industrial Average fell on Wednesday, extending losses after a tough session on Tuesday. The 10-year Treasury yield jumped ahead of this afternoon’s release of minutes from the Federal Open Market Committee’s March meeting.
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Just good food (SMPL) announced its quarterly results ahead of Wednesday’s opening. Simply Good shares fell 1% in morning trade.
Among Dow Jones executives Microsoft (MSFT) and salesforce.com (CRM) led the early declines, down around 1.5% each. Apple (AAPL) slipped more than 1% in today’s stock market. rafters (CVX) led industrials up 1% as oil prices soared.
Giant for electric vehicles Tesla (TSLA) slipped nearly 2% early Wednesday to add to Tuesday’s sharp losses.
As the stock market’s uptrend hits increasing turbulence, Dow Jones is the financial leader American Express (AXP) — along with alphabet (GOOGL), Broadcom (AVGO), IBD Leaderboard Stock love ingredients (DAR), Regeneron Pharma (REGN) and sleeve (SHEL) – are Wednesday’s best stocks to buy and watch.
Arista, Microsoft, and Tesla are IBD Leaderboard stocks. Darling Ingredients and Tesla shares were featured in this week’s ‘Stocks near a buy zone’ column.
Dow Jones Today: Treasury Yields, Oil Prices, Fed Minutes
After Wednesday’s open, the Dow Jones Industrial Average was down 0.85% and the S&P 500 was down 1.2%. The tech-heavy Nasdaq lost 2% in morning trade.
Among exchange-traded funds, Nasdaq 100-tracker Invesco QQQ Trust (QQQ) is down 1.3% and SPDR S&P 500 ETF (SPY) is down 1% after Wednesday’s open.
On Tuesday, the US 10-year Treasury yield rose to 2.55%, hitting a new 52-week high. Federal Reserve Governor Lael Brainard, widely seen as one of the more dovish Fed members, said she expects rapid reductions in the Fed’s bloated balance sheet as early as May.
The 10-year yield continued to rise on Wednesday morning, jumping to 2.64%, the highest since March 2019. Meanwhile, U.S. oil prices rose more than 1% on Wednesday morning, with West Texas Intermediate crude back above $103 per barrel rose.
Minutes of the Federal Reserve’s March monetary policy meeting are due Wednesday at 2pm ET. On March 16, the Federal Reserve raised interest rates for the first time since 2018. Policymakers announced their expectation of a total of seven quarter-point rate hikes this year and at least three more in 2023.
Fed Chair Jerome Powell said in his post-meeting press conference that the minutes will include the parameters of the Fed’s balance sheet tightening and unwinding of its $4.5 trillion asset purchases during the pandemic.
stock market rally
On Tuesday, the stock market posted a disappointing performance as the Nasdaq Composite sold off 2.3%.
The Big Picture column commented, “The flagged stock ended firmly in the red on Tuesday as Wall Street was once again reminded that the Federal Reserve intends to aggressively fight inflation with interest rate hikes and balance sheet trimming.”
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Investors can also create watch lists, find companies approaching a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones stocks you should be watching right now
Dow Jones stocks to buy and look at: American Express
Dow Jones financial stock American Express records a mug with a handle with a buy point of 194.45. Shares fell 1.2% on Tuesday, closing just above the 50-day moving average line. AXP shares fell 0.3% on Wednesday morning.
Keep an eye on the stock’s relative strength line. Amid its recent surge, the RS line is nearing its old highs, but still has some way to go before a possible breakout. The RS line measures a stock’s price action against the S&P 500. The RS line should make a new high on or shortly after the breakout day to confirm the strength of the stock’s breakout.
Four top growth stocks to buy and watchRde Stock market rally
Stocks to buy and watch: Alphabet, Broadcom, Darling, Regeneron, Shell
Tuesday’s IBD 50 Stocks To Watch pick, Alphabet is approaching a buy point of 2,875.97 in a mug with a handle, according to IBD MarketSmith chart analysis. GOOGL shares are just 1% from entry despite posting a 1.2% loss on Tuesday. FANG stock fell 1.5% on Wednesday morning.
Broadcom tumbled 3.3% on Tuesday as chip stock continues to hold above an early entry at 614.74. The shares have made a new buy point, a handle entry at 645.41. AVGO shares fell 1.5% on Wednesday morning.
IBD leaderboard stock Darling Ingredients ended Tuesday just below an 80.31 Cup with Henkel buy point. Shares fell 2.5% on Wednesday morning.
Biotech leader Regeneron Pharmaceuticals remains in range above a flat entry at 673.96 after a breakout move from March 16th. REGN shares tested the buy point on March 23 before regaining the buy point on March 24. The 5% buy zone tops out at 707.66. The stock was flat on Wednesday.
Oil & gas producer and IBD stock of the day Friday Shell is within striking distance of the buy point of a flat base of 56.23 despite falling 1.6% on Tuesday. Shares were up 1% on Wednesday morning.
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla stock
Tesla stock slipped more than 2% early Wednesday and threatened to deepen Tuesday’s 4.7% drop. Shares of the EV giant are nearing the buy point from a cup base of 1,208.10, about 10% off the recent entry. Meanwhile, Tuesday’s weakness could be the start of a proper grip that would offer a more risk-optimized entry.
The stock traded as low as 1,243.49 on Nov. 4 and closed about 12% off that all-time high on Tuesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones shares, Apple shares fell 1.9% on Tuesday, falling back below the buy point of a double bottom at 176.75. The 5% buy area goes as far as 185.59. AAPL shares fell more than 1% early Wednesday.
Software leader Microsoft fell 1.3% on Tuesday as shares continue to form the right side of a new base formation. Microsoft shares traded 1.5% lower on Wednesday morning.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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