The Dow Jones Industrial Average rose 250 points on Wednesday after comments by Fed chief Jerome Powell showed that the Federal Reserve was still ready to raise interest rates despite Russia’s invasion of Ukraine. Government bond yields recovered after two days of sharp losses. Energy stocks traded briskly as oil prices sparked by the Russia-Ukraine conflict briefly rose above $ 112 a barrel.
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After the end of Tuesday, Dutch Bros (BROS) and Salesforce (CRM) were among the companies reporting their quarterly results. Shares of BROS fell 3% early on Wednesday, while shares of Salesforce jumped nearly 4% in morning trading. Meanwhile, a chain of discounts Dollar tree (DLTR) reported mixed results early Wednesday as shares fell 4% after opening.
Among the leaders of the Dow Jones, Apple (AAPL) increased by 0.7% and Microsoft (MSFT) traded 0.6% on today’s stock market. UnitedHealth (UNH), a Dow Jones stock you should watch, is approaching a new buying point.
Leader of electric vehicles Tesla (TSLA) rose about 1% on Wednesday, looking to recover from a 0.75% drop on Tuesday.
Against the backdrop of a volatile market driven by titles, Commercial metals (CMC), Northern oil and gas (NOG), Palo Alto nets (PANW) and Specialty Ryan (RYAN) are among the best promotions to watch on Wednesday. Keep in mind that the current conditions of the stock market must keep investors in cash and on the sidelines.
Microsoft and Tesla are shares of IBD Leaderboard. Commercial Metals was introduced in the stock column near the buying area this week. Ryan Specialty is the leader of the IPO.
Dow Jones today: head of the Fed Powell, Russian invasion
Following the opening of the market on Wednesday, the Dow Jones Industrial Average traded up 0.8%, while the S&P 500 rose 0.9%. Nasdaq rose 0.65% in morning trading. Among exchange traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) rose 0.5% and the SPDR S&P 500 ETF (SPY) rose 0.6% after opening Wednesday.
Yields on 10-year bonds rose to 1.78% on Wednesday morning. On Tuesday, the yield on 10-year bonds closed at 1.71% after sinking for a second consecutive session. On February 15, 10-year government bond yields peaked at more than 2.06%, their highest level since August 2019. US oil prices, meanwhile, rose more than 7% on Wednesday in response to reluctance among world oil traders to buy Russian oil. West Texas Intermediate crude traded shortly above $ 112 a barrel.
Federal Reserve Chief Jerome Powell will testify before Congress on Wednesday and Thursday at 10 a.m. ET. As inflation rises and the Federal Reserve is so behind the curve, there are concerns on Wall Street that politicians may not feel a small choice not only to continue tightening rapidly, but also to potentially boost interest rates. The head of the Fed Powell can use his testimony to allay this concern.
In comments, Powell said: “We will use our political instruments as appropriate to prevent higher inflation, while promoting sustainable expansion and a strong labor market. We have gradually discontinued our net asset purchases. With inflation well above 2% and a strong labor market, we expect it to be appropriate to raise the target range for federal interest rates at our meeting later this month. “
In Ukraine, Russian forces continued to bomb the country’s second-largest city, Kharkiv, in a bid to demoralize defenders amid an apparent change in military strategy.
ADP, meanwhile, said companies added 475,000 jobs in February, better than Econoday’s estimate of 320,000 new positions. The ADP employment report is calculated monthly as a precursor to non-agricultural wages by the Ministry of Labor. This report is due out on Friday.
Stock market adjustment
The stock market performed weak on Tuesday as major stock indexes sold out at a big loss. Despite the weakness, Wednesday will be Day 5 of the ongoing rally experience, which means that the next day – a signal for the start of a new uptrend – is possible at any time. Against the background of the current instability, it is important to read and follow the IBD’s Big Picture column.
On Tuesday, The Big Picture commented: “With more stocks falling and rising, being a successful stock picker today probably means you’re laser-focused on a handful of sectors that are actually rising. the broad decline. “
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Four Dow Jones stocks to watch now
Dow Jones Profits: Salesforce
Shares of Salesforce rose nearly 4% early Wednesday after the company surpassed quarterly earnings and sales on Wall Street. The earnings guidelines for the enterprise software maker were above expectations, but estimates of its profits were missed.
Shares of CRM closed on Tuesday with more than 30% of its 52-week high. Stocks are well below their 50- and 200-day moving averages.
Dow Jones shares to monitor: UnitedHealth
UnitedHealth is building a double-bottom base that offers a 501.03 purchase point. Shares ended just below their 50-day moving average on Tuesday after rising 0.1%. UNH shares traded 0.5% higher on Wednesday.
The upward line of the relative strength of the shares is just at new highs, which shows a significant superiority in the stock market.
Four stocks with the highest growth to see this yearrent. Stock market adjustment
Watching Shares: Commercial Metals, Northern Oil, Palo Alto, Ryan Specialty
Texas-based Commercial Metals, a manufacturer of metal products for the construction industry, is trying to surpass the buying point of 38.82 in consolidation. The shares are about 3% below the entrance, after the shares exploded briefly on Tuesday. The purchase area of 5% increases to 40.76. The CMC availability shows 98 of the perfect 99 IBD Composite Rating, to check the IBD Stock. Shares of CMC rose 2.5% on Wednesday morning.
Northern Oil & Gas is breaking above the point of buying a cup with a handle of 25.57, according to an analysis of the chart of IBD MarketSmith. Shares of NOG rose 3% on Wednesday.
Cybersecurity leader Palo Alto Networks is holding on to a consolidation point of 572.77 after a nearly 3% drop on Tuesday. The buying area of 5% reaches 601.41. The RS line reached a new peak on the day of the breakthrough. Last week, the company reported strong profits and sales. Palo Alto shares remained unchanged early Wednesday.
IPO leader Ryan Specialty was trying to surpass the 40.65 buy-in double-bottom handle, but turned sharply lower on Tuesday. Last week, IPO shares found strong support around their 50-day line. Shares of RYAN rose 1% on Wednesday morning.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment
Tesla shares
Shares of Tesla rose about 1% on Wednesday morning, trying to recover from losses on Tuesday. Shares resolutely regained their long-term 200-day line during a jump on Monday. Now look for the shares to continue your upward movement on the right side of a new base. The next key test for stocks could be the 50-day line, which is about 10% above its current price. Re-assuming this line would be upward for the stock-based building process, while strong resistance could signal a long-term period of consolidation.
The shares traded up to 1243.49 on November 4, but ended on Tuesday with about 31% of this highest peak of all time.
Leaders of Dow Jones: Apple, Microsoft
Among the shares of Dow Jones, Apple is building a double-bottom base with 176.75 points to buy, according to an analysis of the chart of IBD MarketSmith. The shares are about 7% away from the new point of purchase. Shares of AAPL found support in their long-term 200-day line last week, but remain below their 50-day moving average. Shares of Apple rose 0.7% on Wednesday.
How Dow Jones shares cope with the potential resistance on the 50-day line will be key to the likelihood of a breakout. If stocks find stable stability, then a longer period of consolidation is likely. However, if the shares resolutely regain this level, then the breakthrough may be on the near horizon. So far, Apple shares are about 5% below the 50-day line, so there is some time before a potential test.
The relative strength of the shares remains close to the last peaks in the face of stock market weakness, which means that institutions are hesitant to sell their shares to Apple.
Software leader Microsoft fell 1.3 percent on Tuesday, breaking a three-day winning streak. The leader of software, Dow Jones, is just below the long-term 200-day line as he continues to build a base. Shares of MSFT rose 0.6% on Wednesday.
Don’t forget to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on the growth stocks and the Dow Jones Industrial Average index.
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