Dow Jones futures rose Wednesday morning ahead of ADP’s private payrolls data. The stock market looked to end a three-day losing streak ahead of the final August session.
Key Drivers of Earnings Wednesday Included Ambarella (AMBA), Soft (CHWY), and resume (HPQ).
Ambarella shares fell 6.5%. Shares of Chewy plunged 11%. And HP shares sold 6.75% in morning trading. Security software manager CrowdStrike Holding (CRWD) edged higher after reporting a second-quarter profit win.
Social media platform Instantaneous (SNAP) fell 7% after the company reportedly laid off 20% of its workforce. Tesla stock, the leader in electric vehicles, rose 0.5% on Wednesday. Among the industrialists of the Dow Jones, the titans of tech Apple (AAPL) and Microsoft (MSFT) rose about 0.5% each, ahead of today’s stock market open.
In the current stock market volatility, Arista Networks (A NET), Costco (COST), GlobalFoundries (GFS) and Ultimate beauty (ULTA) – as well as Dow Jones stocks Chevron (CLC) and McDonald’s (MCD) – are among the best stocks to buy and watch. Keep in mind that increased market volatility is a good reason for investors to be more defensive.
Costco is an IBD ranking stock following a recent breakout, while Chevron and Ulta Beauty were featured in this week’s Stocks Near A Buy Zone column. Arista was the IBD stock of the day on Friday.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Data
Early Wednesday, Dow Jones futures were up less than 0.1% from fair value, while S&P 500 futures traded up 0.2%. Nasdaq 100 futures advanced 0.5% in morning trading. Remember that overnight action on futures contracts on Dow Jones and elsewhere does not necessarily translate into actual trading in the next regular trading session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.6% and the SPDR S&P 500 ETF (SPY) rose 0.25% in early trading.
The 10-year Treasury yield rose to 3.13% early Wednesday. This week, the 10-year Treasury yield closed at its highest level since June 28.
U.S. oil prices continued to slide on Wednesday, heading for a third straight monthly decline – the longest decline for the commodity since the start of 2020. West Texas Intermediate futures fell nearly 3% for s trading just above $89 a barrel.
ADP’s private payroll report is due out Wednesday morning at 8:15 a.m. ET. Payrolls are expected to increase by 225,000 in August.
The stock market drops its key level
On Tuesday, the stock market posted another disappointing performance, with major equity indices closing sharply lower. The Nasdaq composite fell below its 50-day moving average and the 12,000 level, ending with a loss of 1.1%.
Tuesday’s The Big Picture column commented: “Weak action in indices and major stocks means investors should be playing defense at this point. Rather than looking for compelling technical setups or stocks finding support at key levels , focus on your current holdings and get rid of stocks that aren’t working. If you still hold some nice winners, consider taking partial or full profits. There’s nothing wrong with straying from the market amid clear signs of distribution.
If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one of the keys to investing guidelines. IBD offers a wide range of growth stock listings, such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies close to a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones stocks to watch now
Dow Jones Stocks to Watch: Chevron
Dow Jones Chevron stock is up about 20% from a low in mid-July. It is methodically building a cut base with a buy point of 182.50 – according to IBD MarketSmith’s chart analysis – amid strong performance by energy stocks so far this year. An early entry at 164.76 is also in play. The stock fell around 2% on Wednesday morning as oil prices extended their decline.
The CVX stock is posting a solid 97 out of a perfect IBD Composite Rating of 99, according to the IBD Stocks Balance Sheet. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
4 most important growth stocks to buy and watch in the currentrStock market rally
Top stocks to watch: Arista, Costco, GlobalFoundries, Ulta
Arista Networks added a handle to a double bottom base, placing the correct entry at 132.97, according to IBD MarketSmith’s chart analysis. Arista’s relative strength line holds near recent highs despite recent market weakness, a bullish sign. ANET shares remained unchanged on Wednesday morning.
IBD Leaderboard Costco stock fell further below its buy point of 552.81 from a cup with handle, as the shares fell 1.3% on Tuesday. Wait for a bullish resumption of the entry before buying stocks. Shares traded flat early Wednesday.
GlobalFoundries remains below the 61.98 double bottom buy point despite Tuesday’s 3.5% rise. An alternative entry, from a handful, is in play at 66.06. GFS stock was flat on Wednesday.
Cosmetics leader Ulta Beauty is just below the 417.08 double bottom buy point after Tuesday’s 0.2% loss. ULTA shares were unchanged Wednesday morning.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock slipped another 2.5% on Tuesday, extending a losing streak to four sessions. Shares of the electric vehicle giant rose 0.5% on Wednesday morning.
Tesla stock continues to struggle against resistance around its 200-day line and is now approaching its 50-day line, which is a potential support level to watch. Tesla is about 33% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell another 1.5% on Tuesday as they shed their 200-day line. The stock is around 11% off the buy point for a mug with handle at 176.25. On the upside, the stock’s relative strength line holds near new highs, indicating continued stock market outperformance. Shares rose 0.55% on Wednesday morning.
Microsoft was down 0.85% on Tuesday, still closing below its 50-day line. Stocks remain well below their long-term 200-day line and about 25% off their 52-week high. The stock gained 0.8% early Wednesday.
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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