The Dow Jones Industrial Average dropped 150 points Wednesday after key housing data came in below forecasts. Meanwhile, Netflix and Tesla are set to report their quarterly earnings results after the close.
The Commerce Department's housing starts and building permits report came out early Wednesday. Housing starts in September rebounded to an annualized rate of 1.358 million, up from 1.283 million in August but below the 1.394 million estimate. Building permits, which provide a rough gauge to future building activity, dropped to a rate of 1.473 million in September.
On the earnings front, ASML, Interactive Brokers, Morgan Stanley, Procter & Gamble, Travelers and United Airlines were key earnings movers Wednesday morning.
ASML stock declined nearly 5% in morning trade, while Interactive Brokers lost 4.8%. Morgan Stanley shares dropped 4.6%, as PG stock rallied 2.5% early. Travelers moved up almost 1%. And United Airlines tumbled nearly 4% in early trading.
Dow Jones Today: Oil Prices, Treasury Yields
After Tuesday's opening bell, the Dow Jones Industrial Average dropped 0.45%, while the S&P 500 lost 0.7%. The tech-heavy Nasdaq composite moved down 0.8% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust fell 0.8%, while the SPDR S&P 500 ETF moved down 0.7% early Tuesday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.88% Wednesday morning, higher after hefty gains Monday and Tuesday. The 10-year Treasury yield is close to setting a new long-term high.
Oil prices were up nearly 2% Wednesday morning, as uncertainty over Iran increased in the wake of overnight violence in Gaza. West Texas Intermediate futures touched a high just below $90 a barrel. Stronger-than-expected GDP data out of China for the second quarter may also have had an impact. Weekly inventory data from the Energy Information Administration is out at 10:30 a.m. ET.
Struggling Stock Market Rally
On Tuesday, the Nasdaq composite cut losses to 0.25%, while the S&P 500 inched lower. Finally, the Dow Jones Industrial Average inched higher, just above the 200-day moving average.
Tuesday's Big Picture column commented, "But the Nasdaq's 50-day moving average remains a resistance level to watch. For the index to fully break out of its current downtrend, it'll need to reclaim its 50-day average and also move above last week's high of 13,714. It's not far from doing that."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook showing signs of an uptrend under pressure. Be sure to read how to handle the changing stock market outlook.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Electric-vehicle giant Tesla dropped 2.4% early Wednesday, while Nvidia lost 3.1%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded mixed ahead of today's stock market open.
Arista Networks, Lululemon Athletica, Meta Platforms, IBD Leaderboard member Nvidia and Regeneron Pharmaceuticals — as well as Dow Jones stocks JPMorgan Chase and Salesforce — are among the best stocks to buy and watch in the now-struggling stock market uptrend.
Meta is an IBD SwingTrader stock, while Nvidia is featured in this Stocks Near A Buy Zone column. Regeneron was IBD's Stock Of The Day on Friday.
Dow Jones Stocks: JPMorgan, Salesforce
Dow Jones banking giant JPMorgan inched lower for a second straight session Tuesday. Shares are trying to decisively regain their 50-day line, as they build a flat base with a 159.38 buy point, according to IBD MarketSmith chart analysis. An early entry looms at 153.11, using Friday's high as the buy trigger. JPM stock dropped 0.6% Wednesday.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock traded down 0.4% Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Nvidia Tests Key Level
Arista dropped 0.7% Tuesday, just shy of a 198.70 buy point in a flat base. A recent bullish rebound from the 50-day line in recent sessions placed the stock in a new buy area. The company reports third-quarter results Oct. 30. ANET stock rose 0.1% early Wednesday.
Lululemon surged past a flat base's 406.94 buy point Monday, with a 10.3% advance. Despite Tuesday's 0.9% drop, shares remain in the 5% buy area that goes up to 427.29. LULU stock was up 0.1% Wednesday morning.
Social media giant Meta Platforms is finding support around a 312.87 buy point following Tuesday's 0.9% rise. Meanwhile, Meta stock is still below a cup base's official buy point at 326.20. The company reports third-quarter results Oct. 25. Meta shares dropped 0.4% Wednesday.
IBD Leaderboard stock Nvidia dived 4.7% Tuesday, breaking support at its key 50-day line. Shares are building a cup base with a 502.66 buy point, and a potential handle is forming now with an early entry at 476.09. Nvidia stock fell more than 3% Wednesday morning.
Biotech leader Regeneron is trying to break out past a flat base's 847.50 buy point, according to IBD MarketSmith pattern recognition. Earnings are due out Nov. 2. REGN stock was off 0.9% Wednesday.
Best Stocks In Today's Stock Market Action
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Nvidia | 502.66 | Cup base | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 18, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock Awaits Earnings
Tesla stock rose modestly Tuesday, as shares continue to see some support around their 50-day line, an important level to watch. TSLA stock has an official cup-with-handle base with a buy point at 278.98, and shares are about 9% away from that entry.
Tesla reports quarterly results after the market closes. Analysts expect Tesla to earn 73 cents a share on sales of $24.25 billion, per FactSet estimates.
Shares moved down 2.4% early Wednesday in morning trade.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple extended a losing streak to three sessions Tuesday, declining 0.9%. Shares are trying to bounce back from their recent lows. If AAPL stock can continue its rebound, then it's likely to form a double-bottom base with a 189.98 buy point. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares lost 0.4% early Wednesday.
Microsoft shares dipped 0.2% Tuesday, as shares hold above their 50-day line. A new base is forming, with an early entry at 340.86. An early entry at Monday's high of 336.14 is also in play. Earnings results are due Oct. 24. And on Wednesday morning, MSFT stock was up 0.3%.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
