The Dow Jones Industrial Average moved higher Wednesday morning, looking to rebound from Tuesday's stock market sell-off. The 10-year Treasury yield pared this week's gains. And Dow Jones stock UnitedHealth — along with ASML, Bank of America and Morgan Stanley — reported earnings ahead of the market open.
Among the Dow Jones leaders, Apple rose 0.5% Wednesday, while Microsoft was up 1.1% in today's stock market. Also among the Dow 30, Cisco Systems is back in buy range above a recent entry.
Electric-vehicle leader Tesla traded up 1% Wednesday. Lucid Group rallied around 2%. And Chinese EV leaders Li Auto and Xpeng Motors were mixed.
Among Wednesday's top stocks to watch, Ameriprise Financial, Applied Materials, Mosaic and Taiwan Semiconductor Manufacturing are in or near new buy zones. Keep in mind the current health of the stock market should keep investors on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Mosaic is an IBD SwingTrader stock. Ameriprise featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields
After the stock market open Wednesday, the Dow Jones Industrial Average moved up 0.3%. The S&P 500 rose 0.5%. And the Nasdaq climbed 0.6%. Among exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust gained 0.5%, and the SPDR S&P 500 ETF moved up 0.5%.
The 10-year Treasury yield briefly ticked above 1.88% Wednesday morning before falling below 1.86%. On Tuesday, the 10-year Treasury yield hit a two-year high, closing above 1.86%. Crude oil prices also pressed higher, with West Texas Intermediate above $86 a barrel in early trade.
Stock Market Sell-Off
The stock market sold off sharply Tuesday, as the Nasdaq broke down below its long-term 200-day moving average. Meanwhile, the S&P 500 closed at its lowest level since Dec. 20.
Tuesday's The Big Picture commented: "The Nasdaq, to this day, remains the superlative index for high-octane growth companies. But Tuesday's 2.6% slide yanked the composite index below its long-term 200-day moving average for the first time in more than 21 months. The drop follows a small series of big sell-offs since the start of 2022."
Following Tuesday's weakness, now is an important time to check out IBD's The Big Picture. Instead of buying stocks, investors should keep leading stocks that are showing relative strength on their watchlist. These could be some of the market leaders during the next decisive uptrend.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Earnings: UnitedHealth
Dow Jones stock UnitedHealth topped quarterly estimates and reaffirmed 2022 guidance. The medical managed care giant rose 1.5% Wednesday. UNH stock closed Tuesday below its 50-day line following a 1.6% decline.
Stock Market Earnings: ASML, Bank Of America, Morgan Stanley
Netherlands-based chip equipment maker ASML reported mixed quarterly results, sparking a 2% rise after the market open. ASML stock closed Tuesday about 20% off its 52-week high and below the 200-day line.
Bank of America reported mixed results, missing revenue targets, as shares climbed about 4% in early morning trade. BAC stock is close to triggering the 7%-8% loss-cutting sell rule below a 48.79 cup-base buy point.
Morgan Stanley jumped 3% Wednesday morning after beating earnings estimates. The company missed revenue targets. On Friday, MS shares hit the 7%-8% sell trigger from a 106.05 flat-base entry.
Dow Jones Stocks To Watch: Cisco Systems
Cisco Systems, another Dow Jones stock, closed Tuesday in the 5% buy zone past a 58.73 double-bottom entry, according to IBD MarketSmith chart analysis. Shares fell 3% Wednesday after Goldman Sachs downgraded the stock from buy to neutral.
Positively, the stock's relative strength line made a new high in recent weeks, confirming the Dow Jones stock as a market leader.
Three Top Growth Stocks To Watch In The Current Stock Market Weakness
Stocks To Watch: Ameriprise, Applied Materials, Mosaic, Taiwan Semi
IBD Leaderboard stock Ameriprise Financial slid 2.85% Tuesday, but remains in buy range past a 312.25 buy point in a flat base. The 5% buy zone runs up to 327.86. Positively, the stock's RS line made a new high on the Jan. 4 breakout day. AMP shares were up 0.7% Wednesday morning.
Applied Materials dived 8.8% Tuesday, once again giving up the 159.10 flat-base buy point, according to IBD MarketSmith chart analysis. AMAT shares rose 1% Wednesday.
IBD SwingTrader stock Mosaic added to last week's breakout move above a 41.25 entry on a cup-with-handle base, advancing 0.9% Tuesday. The stock is now trying to move decisively above a 43.34 cup-base entry. MOS stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The stock was up 0.2% Wednesday.
Taiwan Semiconductor gave up its 135.60 buy point in a cup-with-handle base, tumbling nearly 5% Tuesday. TSM stock moved up 1% Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
EV Stocks: Li Auto, Xpeng, Lucid Motors
Li Auto stock snapped a four-day win streak Tuesday, dropping more than 2%. The stock is moving up the right side of a consolidation with a 37.55 entry while an early entry at 33.86 is also in play. Shares inched higher Wednesday.
Xpeng Motors, Tuesday's IBD 50 Stocks To Watch pick, skidded 4.8% Tuesday, closing just above the 50-day line. Shares started to make a handle, but that formation is gone now. The stock continues to build a consolidation with a 56.55 entry. Aggressive investors could use 51.60 as an earlier entry. Shares edged higher Wednesday.
Among U.S.-based EV stocks, Lucid Motors shares rose around 2% Wednesday. LCID stock remains extended past a 28.49 buy point in a cup-with-handle base. Meanwhile, the stock's basing process ran into more trouble during Tuesday's 7.1% slide and the stock is sharply below the key 50-day line.
Tesla Stock
Tesla stock traded up 1% Wednesday, looking to rebound from Tuesday's 1.8% loss. Shares remain below their 50-day line following Thursday's tumble. A new handle entry at 1,208.10 is available.
Shares traded as high as 1,243.49 on Nov. 4, but the stock ended Tuesday about 17% off that 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock declined 1.9% Tuesday and is approaching its key 50-day line. Shares are about 11% past a 153.27 buy point out of a cup-with-handle base, according to IBD MarketSmith chart analysis. Shares rose 0.5% Wednesday.
Software leader Microsoft dropped 2.4% Tuesday, as the top Dow Jones stock continues to etch a flat base with a 349.77 buy point. With the stock below its 50-day line, it clearly has more work to do before a potential breakout. Shares were up 1.1% Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
