The Dow Jones Industrial Average and other major stock indexes rallied Wednesday, as Wall Street continues to rebound following big market losses. Nvidia partner Super Micro Computer plunged on the stock market today following the company's earnings report.
After the opening bell, the Dow Jones Industrial Average rallied 0.7%, or 300 points, while the S&P 500 rose 1.4%. The tech-focused Nasdaq composite moved up 1.9% in morning action. Helping the stock market Wednesday morning were comments from Bank of Japan Deputy Gov. Shinichi Uchida.
Uchida said overnight that the Bank of Japan won't raise rates further when markets are unstable. That sent the yen solidly lower vs. the dollar. A rising yen following last week's BoJ rate hike helped trigger the recent global sell-off.
Early Wednesday, the 10-year Treasury yield rose to 3.94%. Oil prices climbed, with West Texas Intermediate futures trading around $74.70 a barrel.
Among exchange traded funds, the Invesco QQQ Trust gained 1.9%, while the SPDR S&P 500 ETF rose 1.4% after the open.
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: Super Micro Dives
Nvidia partner Super Micro missed analyst estimates for its fiscal fourth quarter and offered a mixed forecast for the current period. Further, it announced a 10-for-1 stock split. Super Micro stock plummeted nearly 15% in morning trading.
Other key earnings movers Wednesday morning included Airbnb, CVS Health, Disney, Instacart, Lyft, Rivian Automotive, Shopify and Toast.
Airbnb plunged more than 14%, while CVS stock dipped 0.5%. Disney shares sold off 3%, as Instacart stock moved up around 2%. Lyft shares crumbled 18%, as Rivian tumbled 10%. Finally, Shopify soared more than 18%, while Toast stock lost 1%.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Dow Jones Rebounds
On Tuesday, the Dow Jones Industrial Average climbed 0.8%. The S&P 500 and tech-heavy Nasdaq composite both bounced 1%.
During Tuesday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Nvidia Cracks Deepen. Don't Ignore Earlier Wake-Up Calls.
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Ferrari, MercadoLibre, ServiceNow and Shake Shack.
Also on the list are Dow Jones components Amazon, Amgen, Apple, IBM and Microsoft.
There were no new stocks on IBD MarketSurge's Breaking Out Today list Tuesday. Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: Amgen, IBM
Among Dow Jones components, biotech giant Amgen is in buy range above a cup-with-handle base's 322.60 entry, according to MarketSurge pattern recognition. But shares declined 3% Wednesday after the company's earnings report, falling below their buy trigger.
Meanwhile, IBM staged a breakout in recent weeks following the company's earnings report. Shares are just below a 189.47 cup-with-handle entry despite Tuesday's gain. IBM stock bounced 0.3% higher Wednesday.
Outside the Dow Jones index, automaker Ferrari shares were trying to find support around their 50-day line, as they hold about 5% away from a 442.80 buy point in a flat base. Shares rose 2.2% Wednesday morning.
MercadoLibre broke out Tuesday, moving past a 1,792.05 buy point in a cup with handle. Shares climbed 1.1% early Wednesday.
ServiceNow continues to hold below a 806.52 handle entry, as it finds support at the 50-day line. ServiceNow added 1.7% early Wednesday.
Shake Shack jumped Tuesday, snapping a two-day losing streak. Shares are building the right side of a cup base that has a 111.29 buy point. Shares gained another 0.8% Wednesday morning.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| MercadoLibre | 1,792.05 | Cup with handle | |
| Shake Shack | 111.29 | Cup base | |
| ServiceNow | 806.52 | Handle entry | |
| Spotify | 331.08 | Flat base |
Source: IBD Data as of Aug. 5
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia climbed 3.2% while Tesla shares added 0.2% in morning trading.
Nvidia stock rebounded 3.8% Tuesday, recovering a part of Monday's drop. This week, shares hit their lowest level since mid-May before bouncing.
Tesla stock climbed 0.9% Tuesday, still below the 50- and 200-day lines.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded higher after Wednesday's stock market open.
Amazon shares gained 0.6%, still below their long-term 200-day line after recent losses. The stock rose 2.5% Wednesday morning.
On Tuesday, Apple stock dropped another 1%, extending Monday's losses that saw it trigger the round-trip sell rule from a 199.62 buy point. Shares closed below their 50-day line. Apple gained 2.1% Wednesday.
Microsoft shares rose 1.1% Tuesday, still below their 200-day line. And on Wednesday morning, the stock rose another 2%.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
