The Dow Jones Industrial Average slid 225 points Wednesday after Fitch downgraded the U.S.'s debt rating. Meanwhile, ADP's monthly payrolls report topped estimates early, with important oil inventories data due later in the morning. And Advanced Micro Devices reversed sharply lower despite strong earnings results.
Late Tuesday, Fitch downgraded the U.S.'s long-term foreign currency issuer default rating from AAA to AA+, saying it "expected fiscal deterioration over the next three years."
Early Wednesday, key employment data was reported, with the release of ADP's National Employment Report. July's private payrolls came in at 324,000, higher than the expected 185,000 estimate, and down from June's 497,000 number.
ADP's employment report is a precursor to Friday's July payrolls report from the Labor Department. Economists forecast a steady 3.6% unemployment rate for July and see employers adding 190,000 jobs, down from June, with a moderate gain in average hourly wages.
Early Wednesday, AMD, Dynatrace, ELF Beauty, Ferrari, Generac and MicroStrategy — along with Mosaic, Paycom Software, Pinterest, Starbucks, Vertex Pharmaceuticals — were key earnings movers.
AMD stock slid 3.3% in morning trade, while Dynatrace tumbled 10%. ELF stock rocketed 17%, as Ferrari shares dropped 1%. Generac dived 15% early Wednesday, as MicroStrategy shares edged lower.
Mosaic shares cut loses to less than 1%, as Paycom slid 16% and Pinterest dropped around 4.5%. Lastly, Starbucks rose 1.4%, while Vertex inched higher in early morning action.
Stock Market Today
Electric-vehicle giant Tesla traded down 0.7% early Wednesday. Dow Jones tech giants Apple and Microsoft were lower after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock and Meta shares both fell more than 1% each in early action.
Broadcom, Skechers, Splunk and UiPath — as well as Dow Jones stocks Boeing, Intel and Salesforce — are among the best stocks to watch in the current stock market rally.
Tesla is an IBD Leaderboard stock, while Boeing and Skechers were recent IBD Stocks Of The Day. And Skechers was featured recently in the Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average dropped 0.65%, while the S&P 500 lost 1%. The tech-heavy Nasdaq composite sold off 1.7% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was down 1.7%, while the SPDR S&P 500 ETF fell 1% early Wednesday.
The 10-year U.S. Treasury yield ticked higher to 4.09% Wednesday morning. On Tuesday, the 10-year yield closed at its highest level since early March, settling at 4.05%.
West Texas Intermediate oil prices remain near their highest points since mid-April after the American Petroleum Institute on Tuesday reported a 15-million-barrel decline in U.S. oil inventories last week. It was the largest weekly drawdown of oil inventories on record.
An official tally of inventories is due out at 10:30 a.m. ET from the Energy Information Administration. WTI futures traded up nearly 1% Wednesday morning, to around $82 a barrel.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 dropped 0.3%. The tech-heavy Nasdaq composite finished down 0.4%.
Tuesday's Big Picture column commented, "Market breadth has improved dramatically in recent weeks, leaving stock market bulls feeling pretty good about the uptrend. The uptrend was confirmed all the way back on March 29 with follow-through days for the Nasdaq composite and S&P 500."
Now is an important time to read IBD's The Big Picture column as the stock market is at this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Boeing, Intel, Salesforce
Aerospace giant Boeing broke out last week, topping a 223.91 flat-base entry. Shares are just out of the 5% buy area that went up to 235.11. BA stock fell 0.9% Wednesday morning.
Chip giant Intel is trying to break out past a 37.11 cup-base buy point, according to IBD MarketSmith pattern recognition. But shares are about 4% away from their latest entry. INTC stock moved down 1.9% Wednesday morning.
Salesforce's recent breakout continues to struggle, with the stock holding just above the flat base's 225.00 entry, according to IBD Leaderboard analysis. Shares dropped below that entry Tuesday. CRM stock lost 1.1% Wednesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Buy And Watch: Broadcom, Skechers, Splunk, UiPath
Chip giant Broadcom is eyeing a 921.78 buy point in a consolidation, according to IBD MarketSmith pattern recognition. Shares are just 3% away from their latest entry. AVGO stock fell 1.2% Wednesday morning.
Skechers broke out Friday, surging above a 54.77 buy point after the company's strong quarterly earnings results. Shares are in the buy area that runs up to 57.51. SKX stock was off 1.3% early Wednesday.
Splunk is near a 111.72 buy point in a cup with handle as it rebounds from support at the 50-day line. SPLK moved down 2.6% Wednesday morning.
UiPath is also building a cup with handle. Shares are about 7% away from their 19.03 buy point. PATH stock sold off 3.6% early Wednesday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
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 |
|---|---|---|---|
| UiPath | 19.03 | Cup with handle | |
| Salesforce | 225.00 | Flat base | |
| Broadcom | 921.78 | Consolidation | |
| Skechers | 54.77 | Flat base |
Source: IBD Data As Of Aug. 1, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla skidded 2.4% Tuesday, ending a two-day advance. Amid the recent pullback, Tesla shares are trying to find support around their key 50-day line. A decisive rebound would place the electric-vehicle leader in a new buy area.
TSLA stock threatened to add to Tuesday's losses, trading down around 1% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock dropped 0.4% Tuesday, still holding near its recent highs and holding sharply above a 157.38 buy point. Apple will report fiscal third-quarter results late Thursday. Early Wednesday, shares fell 0.5% in morning action.
Microsoft shares closed Tuesday right at their 50-day line. Look for a strong rebound to place the stock in a new buy area. And on Wednesday morning, Microsoft shares were down 1.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
