The Dow Jones Industrial Average fell on Wednesday morning as it threatened to extend a three-day losing streak. Tesla shares will be officially split on Wednesday, when the number of shares outstanding increases to 4 billion, but trading at the new 3-for-1 adjusted price will begin on Thursday.
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Advance auto parts (AAP), Dycom (DY), Intuit (INTU), Nordstrom (JWN), Toll Brothers (TOL) and Urban Outfitters (URBN) were key earnings drivers on Wednesday.
AAP shares fell 8%, while Dycom gained about 3%. Intuit jumped 8%, while Nordstrom dived 16%. Toll Brothers fell 3% after beating earnings views but lowering full-year estimates for shipments. And Urban Outfitters fell more than 2% in early trading.
A leader in electric vehicles Tesla (TSLA) traded up 1% on Wednesday. elsewhere Dow Jones Technology Leaders An apple (AAPL) and Microsoft (MSFT) were mixed afterwards today’s stock market open.
With the current stock market pullback, Albemarle (ALB), Arista Networks (NETWORK), Axcelis Technologies (ACLS) and Costco (PRICE) — as well as Dow Jones stocks Amgen (AMGN) and McDonald’s (MCD) — are among the best stocks to buy and watch.
Costco stock was added to IBD ranking as a result of last week’s breakout. Arista and Axelis participated this week the Stocks column near a buy zone.
Dow Jones today: Treasury yields, oil prices, Powell’s speech
Early Wednesday, the Dow Jones Industrial Average was down 0.1 percent, while the S&P 500 was lower. The tech Nasdaq rose 0.1 percent in morning trade.
Between exchange traded fundsthe Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose less than 0.1%, and the SPDR S&P 500 ETF (A SPY) was unchanged in early trading.
The yield on the 10-year Treasury note rose to 3.09 percent early Wednesday, following Tuesday’s rise. This week, the 10-year Treasury yield is above the 3% level for the first time since July 21.
US oil prices kept bouncing West Texas Intermediate futures hit their lowest level since January on Wednesday after last week’s losses. WTI futures rose 1 percent early Wednesday, trading above $94 a barrel.
Federal Reserve board members will be keeping a close eye on July durable goods, which came out from the Commerce Department at 8:30 a.m. ET. New orders were unchanged in July from the previous month, with a 0.3% increase minus transportation orders. Economists had forecast a sharp slowdown from June, a 0.5 percent increase for total orders and a 0.1 percent increase minus transportation orders. Total orders rose 2% in June.
Fed chief Jerome Powell will deliver a speech on the central bank’s economic outlook on Friday from Jackson Hole, Wyo. The Fed has raised interest rates this year in an effort to reduce inflation, but has sent increasingly mixed signals about future hikes.
Minutes from the Fed last week appeared to have pulled back from market expectations for a low pivot after the stock market’s six-week rally followed the June 14-15 meeting. Place of markets a approximately 58% chance of a 75 basis point rate hike on September 21. A week ago there was a 39% chance.
Stock market withdrawal
The stock market turned in another disappointing performance on Tuesday as early gains faded towards the close. The Dow Jones Industrial Average lagged behind, falling 0.5%, while the S&P 500 lost 0.2%.
The Big Picture column on Tuesday commented: “Overhead procurement appears to be an issue as both the Nasdaq and S&P 500 fell after approaching or touching their downtrend 200 day moving averages. In fact, both are now struggling to hold their 21-day lines.”
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Five Dow Jones Stocks to Watch Now
Dow Jones stocks to watch: Amgen, McDonald’s
Dow Jones Amgen shares are forming a flat base that has a buy point at 258.55 amid the biotech’s strong performance so far this year. An early entry at 253.87 is also in play. The stock gave up its 50-day support level during Tuesday’s 1% decline. Shares were trading down 0.5% early Wednesday.
AMGN shares showing a solid 92 out of a perfect 99 IBD Composite Rating, according to IBD Stock Check. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical indicators.
Shares of McDonald’s are still trading below the 265.56 handle cup entry after losing 0.9% on Tuesday, according to IBD MarketSmith graph analysis. MCD shares rose on Wednesday morning.
4 Biggest Growth Stocks to Buy and Watch in the Courserstock market rally
Top stocks to watch: Albemarle, Arista, Axcelis, Costco
Lithium producer Albemarle is right in buy range after Monday’s retake at 273.78 point of purchase in large mug base with handle. The 5% buy zone rises to 287.47. In previous weeks, the stock had broken through a smaller cup with a buy point on the 250.25 handle. Shares were down 0.1% Wednesday morning.
Arista Networks, one of last week’s IBD 50 Stocks to Watch picks, continues to move up the right side of a double bottom base that offers a 143.67 buy point. With shares about 11% away from the current entry, wait for a handle — which is likely forming now — to offer a more risk-optimal buy point. Arista’s RS line is on the rise and approaching a new high. ANET shares were lower early Wednesday.
IBD ranking Costco shares fell further below their 552.81 cup-handled buy point as the stock fell 0.6%. Wait for another bullish takeover of the entry before buying shares. Shares added 0.3% early Wednesday.
Chip equipment maker Axcelis Technologies continues to create a mug with a handle that offers 79.93 points to buy, according to IBD MarketSmith graph analysis. Shares were down 0.5% Wednesday morning.
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Tesla stock
Tesla shares rose 2.3% on Tuesday, snapping a five-day losing streak. Shares of the electric vehicle giant rose 1% on Wednesday morning, trying to add to Tuesday’s gains. Tesla shares will begin trading at the new 3-for-1 split-adjusted price on Thursday.
Tesla shares are struggling to overcome resistance around its 200-day line. Tesla is about 30% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Between Dow Jones StocksApple shares fell 0.2% on Tuesday as shares continue to build the right side of the cup base which has 179.71 buy points. Another interpretation could be a major double bottom extending into January. Either way, the point of purchase is identical. On the upside, the recent losing streak is likely to result in a handle that will offer a lower entry.
On the upside, the relative strength line of stocks is holding at new highs, indicating major stock market outperformance. Shares were up 0.7% Wednesday morning.
Microsoft fell another 0.5% on Tuesday, extending its losing streak to six sessions and moving further away from its long-term 200-day line. Stocks rose early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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