The Dow Jones Industrial Average rallied Wednesday morning amid new economic data, while AMD stock tumbled 6% on a weak sales outlook.
Key earnings movers Wednesday include Advanced Micro Devices, Airbnb, CVS Health, Evolent Health, PayPal, SolarEdge Technologies and Starbucks.
ABNB stock tumbled 7% on weaker-than-expected revenue. CVS rallied 3% after beating second-quarter estimates and raising its full-year outlook. Evolent jumped 10% on strong earnings and sales. PayPal surged 13% after topping views and adding $15 billion to its stock repurchase program. SolarEdge dived 13% after missing revenue targets. And Starbucks rose around 2% in morning trade.
Tesla traded up about 1% early Wednesday. Elsewhere, Dow Jones tech leaders Apple and Microsoft were squarely higher before today's stock market open.
In the strengthening stock market environment, Dow Jones stocks Chevron and UnitedHealth — as well as Cheniere Energy, Exxon Mobil, Quanta Services, Ulta Beauty and Vertex Pharmaceuticals — are among the stocks to watch. Keep in mind that ongoing stock market volatility is a reason to stay more conservative despite recent signs of strength.
Quanta, UnitedHealth and Vertex are IBD Leaderboard stocks. Chevron and Exxon were featured in this week's Stocks Near A Buy Zone column. Exxon Mobil was Friday's IBD Stock Of The Day.
Dow Jones Today: Treasury Yields, Oil Prices, Economic Data
After Wednesday's open, the Dow Jones Industrial Average gained 0.7% and the S&P 500 rose 0.75%. The tech-heavy Nasdaq composite climbed 1.2% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.7%. And the SPDR S&P 500 ETF gained 0.6%.
The 10-year Treasury yield ticked higher to 2.78% Wednesday morning, adding to Tuesday's surge to 2.74%. The 10-year Treasury yield is rebounding after hitting its lowest level since early April. Meanwhile, U.S. oil prices climbed, as West Texas Intermediate futures rose about 2% to above $96 a barrel. Early Wednesday, OPEC+ agreed to a small increase in oil production, which is expected to have minimal impact on prices.
The final services purchasing managers index for July from researcher Markit came out at 9:45 a.m. ET, coming in at 47.3, slightly higher than estimates. Next, the Institute for Supply Management's July services index, and June factory orders data from the Commerce Department, are due at 10 a.m. ET. These data points are important for investors as they monitor the status of the U.S. economy.
Stock Market Rally
On Tuesday, pockets of strength in software, chip, biotech, solar and internet stocks helped the Nasdaq limit its loss to 0.2%, while the Dow Jones industrials lagged with a 1.2% drop.
Tuesday's The Big Picture column commented, "After a July rally that lifted the S&P 500 and Dow to their best monthly performance since November 2020, the stock market seems due for a rest. That scenario is playing out so far this week, with minor damage as we head to midweek."
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 also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron, UnitedHealth
Dow Jones energy giant Chevron is building the right side of a cup base that has a 182.50 buy point. Be on the lookout for a potential handle to offer a lower entry. Chevron stock traded up a fraction Wednesday.
Health insurance giant and IBD Leaderboard stock UnitedHealth remains in buy range above its double-bottom-with-handle base's 518.80 buy point despite Tuesday's slight gain, according to IBD MarketSmith chart analysis. Shares gained 0.4% Wednesday.
UNH stock shows a solid 94 out of 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.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Cheniere, Exxon, Quanta, Ulta, Vertex
Cheniere Energy is in a buy zone after crossing a trendline entry around 140. Now the stock is trying to break out past a double-bottom's 146.45 buy point. The relative strength line just hit fresh highs, a positive sign. Shares edged lower Wednesday.
Friday's IBD Stock Of The Day Exxon Mobil reclaimed the 50-day line last week and topped an aggressive early entry around 93.24. But the energy giant gave up more ground Tuesday, falling 0.4%. Meanwhile, a cup-base entry at 105.67 is also in play. XOM stock lost 0.1% Wednesday morning.
IBD Leaderboard stock Quanta Services is back at a cup-with-handle base's 138.56 buy point amid a three-day losing streak, according to IBD MarketSmith chart analysis. Quanta earnings are due out Thursday. The stock was up 0.6% Wednesday.
Ulta Beauty is building a flat base with a 429.58 buy point but is finding it hard to decisively retake its 50-day line amid Tuesday's 0.35% fall. The base comes in the wake of a failed breakout past a cup with handle's 426.93 entry in June. ULTA shares lost 4% early Wednesday.
Vertex Pharmaceuticals continues to trade under its cup-with-handle's 279.23 buy point and 50-day line within a recent losing streak. The company will report earnings on Thursday. Vertex shares rose 0.5% Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose another 1.1% Tuesday, extending a win streak to five sessions. Shares are at their highest level since early May but are still finding resistance around their 200-day line, which is a key level to watch.
Shares gained around 1% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.9% Monday, but are still holding above its recently reclaimed 200-day line. Apple shares rose 0.9% Wednesday morning.
Microsoft dropped 1.15% Tuesday, as the stock continues to digest last week's big gains. The software giant is still ranging below its long-term 200-day line. The stock closed about 20% off its 52-week high. Microsoft moved up 0.9% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
