The Dow Jones Industrial Average rose more than 250 points Wednesday morning, as the stock market rebounded from Tuesday's mild losses. Meanwhile, Lululemon Athletica surged 14% after reporting strong earnings.
Lululemon Earnings
The yoga-gear retailer earned $4.40 a share on sales of $2.8 billion. Wall Street expected Lululemon earnings to rise 27% to $4.26 per share. Revenue was seen climbing nearly 27% to $2.701 billion. Finally, Lululemon provided first-quarter and fiscal 2023 earnings and revenue outlooks above Wall Street forecasts.
Among other companies reporting earnings, Jefferies and Micron Technology were on the move Wednesday morning.
Jefferies shares fell 1.3% after topping earnings and sales estimates late Tuesday.
And Micron missed Wall Street's low expectations for its fiscal second quarter as it struggles through a cyclical industry downturn in demand. However, MU stock climbed more than 4% in morning trading on comments that the worst might be over for Micron.
Stock Market Today
Foot Locker dropped 0.7% after UBS downgraded the stock from neutral to sell. Electric-vehicle giant Tesla rose 2.3% early Wednesday. Dow Jones tech giants Apple and Microsoft were higher after today's stock market open.
PagerDuty, IBD SwingTrader stock Meta Platforms and IBD Leaderboard member Palo Alto Networks — as well as Dow Jones stocks Cisco Systems and Nike — are among the top stocks to watch.
Cisco was featured in this week's Stocks Near A Buy Zone column. Palo Alto, PagerDuty, Microsoft and Meta were all recent IBD Stock Of The Day subjects.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average rallied 0.8%, and the S&P 500 gained 1%. The tech-heavy Nasdaq composite climbed 1.4% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 1.2%, while the SPDR S&P 500 ETF climbed 1% early Wednesday.
The 10-year U.S. Treasury yield on Tuesday climbed to 3.56%, adding to Monday's rise. Last week, the 10-year yield briefly touched its lowest level since mid-September. On Wednesday, the 10-year ticked higher to 3.59%.
U.S. oil prices continued higher Wednesday, on pace to extend a win streak to three sessions, as West Texas Intermediate futures traded near $74 a barrel.
Stock Market Correction
On Tuesday, the Dow Jones Industrial Average inched lower, while the S&P 500 moved down 0.2%. And the Nasdaq composite lagged with a 0.5% drop.
Tuesday's Big Picture column commented, "After getting turned away at the 12,000 mark last week, the Nasdaq composite pared losses into the close, ending with a loss of just over 0.4%. The index closed above its 50-day moving average on the 12th day of its rally attempt. The Nasdaq has been consolidating in constructive fashion, pulling back in light volume."
Now is an important time to read IBD's The Big Picture column amid the ongoing stock market correction.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Cisco Systems, Nike
Cisco Systems is approaching a flat base's 51.84 buy point, according to IBD MarketSmith pattern recognition. Bullishly, the stock's relative strength line hit a new high last week, a sign of stock market outperformance. CSCO stock rose 0.9% Wednesday morning.
Nike shares continue to trace a flat base that has a 131.41 buy point. The stock failed to hold above its 50-day line last week, meeting resistance. NKE stock moved up 0.8% Wednesday.
3 Top Growth Stocks To Watch In The Stock Market Correction
Top Stocks To Watch: PagerDuty, Meta, Palo Alto
Recent IBD Stock Of The Day and IBD Leaderboard watchlist stock PagerDuty is building a large cup with handle that stretches back to March 2022. The correct buy point is 33.87, and shares are about 6% away from that entry after Tuesday's 1.8% fall. PD stock climbed 0.8% Wednesday morning.
Backstory: PagerDuty uses a form of artificial intelligence known as machine learning to automate its cloud platform. But it's not part of a new wave of software companies using content-creating "generative AI" technology.
On the company's recent fourth-quarter earnings call, the company "noted the typical style of AI utilized by the PagerDuty platform is called analytical AI," RBC Capital analyst Matthew Hedberg said in a note to clients.
Backstory: Like social media rivals, Meta is struggling due to a sharp reduction in advertising revenue as clients squirm over macroeconomic concerns, recession fears and higher interest rates. This is happening as it spends billions of dollars on a risky bet to build the "metaverse," a virtual reality world that has yet to take hold.
IBD Leaderboard stock Palo Alto Networks continues to trade above and below its 192.94 buy point out of a cup with handle amid Tuesday's 0.9% move lower. The buy area will run up to 202.59 if the stock retakes the entry. PANW stock was up 0.1% Wednesday.
Backstory: Through acquisitions, Palo Alto Networks has expanded into endpoint security and vulnerability management. Endpoint tools detect malware on laptops, mobile phones and other devices that access corporate networks.
Learn How To Time The Market With IBD's ETF Market Strategy
Stocks To Watch In Stock Market Correction
These are four top stocks to watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 197.26 | Flat base | |
| Nike | 131.41 | Flat base | |
| Palo Alto Networks | 192.94 | Cup with handle | |
| Cisco Systems | 51.84 | Flat base |
Source: IBD Data As Of March 28, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock dropped 1.4% Tuesday, closing at its lowest level since March 20. Shares continue to trade above their 50-day line, but are again pulling back to that key level. The stock closed Tuesday around 50% off its 52-week high.
TSLA stock moved up 2.3% Wednesday morning, looking to rebound from Tuesday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 0.4% Tuesday, adding to Monday's drop. Shares remain near their recent highs after solid gains in recent weeks. AAPL stock moved up 1.3% early Wednesday.
Microsoft shares are again trying to capture a flat base's 276.86 buy point, but closed further below the entry during Tuesday's 0.4% loss. The stock is just below the 5% buy area, which goes from the buy point to 290.70. And shares rose 1.4% early Wednesday.
Microsoft shares surged earlier this month after the company announced that it is adding artificial intelligence tools to its popular Office productivity applications. That follows the company's investments in AI startup OpenAI, the firm behind the buzz-worthy ChatGPT application.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
