The Dow Jones Industrial Average rose Wednesday morning ahead of the Federal Reserve’s upcoming decision on interest rate hikes. The 10-year Treasury yield slid following big gains so far this week.
Bitcoin and cryptocurrency stocks were sharply lower again. The price of Bitcoin tumbled around 3%, bobbing just above the $ 21,000 mark, according to CoinDesk. Coinbase (COIN) fell nearly 1%, while MicroStrategy (MSTR) rose 2%.
China-based search engine giant Baidu (BIDU) rallied almost 2% after the open, after Reuters reported the company was in talks to sell its stake in video platform iQiyi (IQ). Baidu holds a 53% stake and more than 90% of the company’s shareholder voting rights. The deal could be valued at around $ 7 billion, Reuters said. Shares of iQiyi dipped 1%.
Electric-vehicle giant Tesla (TSLA) traded nearly 2% higher Wednesday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were up 1% and 1.4%, respectively, after today’s stock market open.
Amid a stock market correction, Dow Jones leaders Chevron (CVX), as well as Diamondback Energy (FANG), HealthEquity (HQY), Northrop Grumman (NOC), Quanta Services (PWR) and World Wrestling Entertainment (WWE), are among the stocks holding up the best despite market weakness.
Quanta is an IBD Leaderboard watchlist stock. And WWE was featured in this week’s Stocks Near A Buy Zone column. HealthEquity was Tuesday’s IBD Stock Of The Day.
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Dow Jones Today: Treasury Yields, Oil Prices, Fed Decision
After Wednesday’s open, the Dow Jones Industrial Average rose 1.2%, with JPMorgan (JPM) leading the early advance. The S&P 500 gained 1.4% and the tech-heavy Nasdaq composite advanced 1.7%.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up 1.7%. The SPDR S&P 500 ETF (SPY) rose 1.4% in early trade.
The 10-year Treasury yield ticked lower to 3.37% Wednesday morning following Tuesday’s jump to 3.48%, its highest level since April 2011. Meanwhile, US oil prices remain near recent highs, with West Texas Intermediate trading around $ 118 a barrel. In early March, WTI briefly topped out above $ 130 a barrel.
The Fed will conclude its latest two-day policy meeting Wednesday, with an interest rate decision due at 2 pm ET. Federal Reserve chief Jerome Powell’s post-meeting news conference will occur at 2:30 pm Financial markets are pricing at 95% odds of a 0.75-point rate hike, according to CME Group’s FedWatch page.
In other economic data, US retail sales fell 0.3% in May, worse than the expected 0.1% rise, according to Econoday estimates. Meanwhile, the Empire State manufacturing index missed estimates, coming in at -1.2, vs. the expected 5.5 reading.
Stock Market Correction
The stock market finished with mixed action Tuesday, as the Dow Jones Industrial Average declined 0.5%, while the Nasdaq rose 0.2%.
Tuesday’s The Big Picture column commented, “After plunging 10.6% in the prior three sessions, the Nasdaq composite eked out a 0.2% gain in the stock market today. The Nasdaq on Monday undercut its May 20 low, paving the way for a potential test or its September 2020 low of 10,519. “
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones leader and energy giant Chevron gave up its flat base’s 174.86 buy point, according to IBD MarketSmith chart analysis, following Tuesday’s 0.1% rise. CVX shares inched lower Wednesday morning.
CVX stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Two Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Diamondback, HealthEquity, Northrop, Quanta, WWE
Energy leader Diamondback Energy is in buy range above a consolidation base’s 148.09 buy point, as the stock rose 1.2% Tuesday to find support around its 50-day line. Keep in mind the weak market environment should keep you on the sidelines. FANG shares dropped 1% Wednesday morning.
Tuesday’s IBD Stock Of The Day, HealthEquity, broke out past a cup with handle’s 66.23 buy point, as shares jumped 5.9% Tuesday. Shares were up 0.5% Wednesday morning.
Northrop Grumman is trying to find much-needed support at its 50-day moving average, and is about 5% below its cup-with-handle’s 477.36 buy point. NOC shares were up 1% Wednesday.
Big Cap 20 stock Quanta Services is tracing a cup with handle’s 138.56 buy point. Shares are at their 50-day line, which is a key support level to watch. Quanta shares were up 0.5% early Wednesday.
IBD Leaderboard stock World Wrestling Entertainment is holding just above a flat base’s 63.81 buy point, according to IBD MarketSmith chart analysis, as WWE shares edged higher Tuesday. On May 25, the stock staged a strong breakout past the entry. But shares are just above the latest entry in the new wave of market selling. WWE shares rose almost 1% early Wednesday after Morgan Stanley raised its price target from 60 to 75.
Per Leaderboard commentary, the relative strength line for WWE stock is at highs and has been gaining ground since January. The base is first stage, a bonus for the chart.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock gained 2.4% Tuesday, snapping a three-day losing streak. Shares looked to add to those gains, trading up almost 2% Wednesday morning.
The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 48% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.7% Tuesday, but still remain at their lowest level since June 2021. The stock is far below its long-term 200-day line and is about 28% off its 52-week high. AAPL stock traded up 1% Wednesday.
Software leader Microsoft gained 0.9% Tuesday, but remains sharply below its 50- and 200-day lines. The stock hit a 52-week low Tuesday and is about 30% off its 52-week high. MSFT shares rose 1.4% Wednesday.
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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