The Dow Jones Industrial Average fell on Wednesday ahead of the minutes of the Federal Reserve’s latest policy meeting. Tesla stock rose after Citigroup upgraded the electric vehicle giant.
Ahead of the Fed minutes release at 2 p.m. ET, consumer sentiment, durable goods orders, early jobless claims, purchasing manager index readings and new home sales are all expected to be published in the morning. The stock market will be closed Thursday for the Thanksgiving holiday, followed by a shortened trading session on Friday.
Initial jobless claims, released at 8:30 a.m. ET, jumped to 240,000 from 222,000 the previous week. Meanwhile, durable goods climbed 1% in October, above Econoday’s estimate of 0.4%.
Autodesk (ADSK), HP (HPQ) and Nordström (JWN) announced its results on Tuesday evening, while Deere (DE) the results came out on Wednesday morning.
Autodesk shares plunged 9%, while HPQ shares fell 3.5% in early morning trading. Nordstrom shares fell 9.5%. And Deere stock jumped 3% in morning trading.
Electric vehicle giant You’re here (TSLA) was trading down 2% on Wednesday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were lower after today’s stock market open.
IBD Ranking Stock Arista Networks (A NET), KLA (KLAC), Shoal technologies (SHLS) and Ultimate Beauty (ULTA) – as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard Stock and was recently an IBD Stock of the Day. Ulta Beauty was featured in this week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.
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Dow Jones Today: Oil Price, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 fell 0.1%. The tech-heavy Nasdaq composite was up less than 0.1% in morning action.
China-related stocks showed early strength after news emerged that the State Council had announced pending stimulus measures, including a reduction in the reserve requirement ratio for Chinese banks.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1% early Wednesday, and the SPDR S&P 500 ETF (SPY) fell 0.1%.
The 10-year Treasury yield fell to 3.73% on Wednesday morning.
Oil stocks were under pressure as oil prices retreated after a rebound on Tuesday. West Texas Intermediate futures fell more than 3% to under $79 a barrel, even after industry data showed U.S. crude inventories fell more sharply than expected last week. Official weekly oil inventory data is due out from the EIA at 10:30 a.m. ET.
Natural gas inventories received a boost as gas prices continued to climb. U.S. natural gas futures jumped nearly 7% after Russia warned after Russia accused Ukraine of stealing gas from a pipeline and threatened to cut deliveries on Russia’s last line of supply to Europe.
Stock market rally
On Tuesday, the stock market posted strong gains. The S&P 500 and the Nasdaq composite each rose 1.4%. The Dow Jones Industrial Average climbed 1.2%.
Tuesday’s The Big Picture commented: “While it’s good to put money to work in today’s stock market, keep your exposure on the conservative side with small positions to start with. It’s not because the The stock market is in a confirmed uptrend that you need to be 100% invested in, and don’t be afraid to take a 10% gain if you have it, given the choppy nature of the market.”
Now is an important time to read IBD’s The Big Picture column amid current stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar
Caterpillar, a member of the Dow Jones, is about to take over the 238 point of purchase from its cutter base, according to IBD MarketSmith pattern recognition, and is less than 1% lower at entry. CAT gained 0.1% on Wednesday, trading higher with Deere. Stocks are still below their buy point.
The CAT stock boasts an impressive 95 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Arista, KLA, Shoals, Ulta
IBD Leaderboard Arista Networks stock rose again above the buy point of 132.97 from a choppy base after Tuesday’s 1.1% gain. ANET shares rose 0.1% on Wednesday.
The KLA is approaching the buying point of 392.60 from a cup with handle amid Tuesday’s 2.7% rise. On the upside, the stock’s relative strength line hit a new high last week, signaling a strong outperformance against the S&P 500. KLAC stock was down 0.5% on Wednesday.
Shoals Technologies is still out of the buy range past a buy point of 28.57 after a third straight decline on Tuesday. The 5% buy zone peaks at 30. Wait for an orderly move back into the buy range before considering a stock purchase. SHLS stock rose 1% on Wednesday morning.
Ulta Beauty broke out of the buy range on Tuesday, up nearly 2%. The 5% buy zone beyond a buy point of 426.99 in a cup with handle goes up to 448.34. Ulta releases its third quarter results on December 1. The stock traded down 0.3% on Wednesday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock soared 1.2% on Tuesday, ending a four-day losing streak that saw the stock hit its lowest level since Nov. 23, 2020. The stock hit a new low 52 week Monday at 167.54. Tesla shares are about 57% off their 52-week high and significantly below their 50- and 200-day moving averages.
Shares of the electric vehicle giant traded down 2.1% on Wednesday morning after Citigroup moved the stock to neutral from short, pushing the price target from 141.33 to 176.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 1.5% on Tuesday and still hold above their recently recovered 50-day line. The stock is around 20% off its 52-week high. The stock traded down 0.3% on Wednesday as Foxconn workers clashed with police. Foxconn is the largest iPhone assembly plant in China.
Microsoft rose 1.2% on Tuesday, adding to Monday’s gains. Stocks continue to hold above the 50-day line. The software giant remains more than 30% off its 52-week high. Microsoft shares fell 0.1% on Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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