The Dow Jones Industrial Average erased early gains Wednesday after weaker-than-expected ADP employment and GDP data. Meanwhile, markets kept a close eye on Hurricane Idalia moving onshore in Florida. And Tesla stock slid after Guggenheim reiterated a sell rating on the EV giant.
Idalia was downgraded from a Class 4 to Class 3 hurricane, with maximum sustained winds slowing to 125 mph, as it came ashore in northwest Florida. Authorities issued evacuation orders for more than 30 counties ahead of the storm.
In economic news, ADP's National Employment Report showed that employers added 177,000 workers in August, below the 200,000 estimate and down from 324,000 new hires in July. The ADP report is a precursor to Friday's jobs report from the Labor Department.
Further, the Labor Department's second estimate of second-quarter GDP was revised down to 2.1% vs. 2.4% growth from the first estimate.
Wednesday morning, Ambarella, Box and HP were key earnings movers.
AMBA stock plunged more than 21%, while Box shares dived 10%. HPQ stock tumbled more than 8% in morning trade.
Finally, Dow Jones software giant Salesforce delivers its second-quarter earnings report after the close Wednesday, along with CrowdStrike, Okta and Veeva Systems.
Stock Market Today
Electric-vehicle giant Tesla briefly traded down more than 2% Wednesday morning, as analyst firm Guggenheim kept its sell rating with a 125 price target. Meanwhile, Nvidia fell 0.6%. Dow Jones tech icons Apple and Microsoft were mixed after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock gained 0.1% while Meta shares dropped 0.5% in early action.
Baker Hughes, Cadence Design Systems, Synopsys and Tidewater — as well as Dow Jones stocks IBM, Merck and Visa — are among the best stocks to watch in the ongoing stock market rebound.
Baker Hughes is an IBD Leaderboard watchlist stock. Merck is featured in this Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average erased its early gains, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq composite moved up 0.1% in morning trade.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 0.5%, while the SPDR S&P 500 ETF traded up 0.55% early Wednesday.
The 10-year U.S. Treasury yield dropped to 4.09% after Tuesday's sharp decline to 4.12%.
West Texas Intermediate oil prices extended Tuesday's gain, up less than 1% Wednesday morning. Hurricane Idalia had only a mild impact on prices, with just three Gulf of Mexico production platforms evacuated due to the storm.
WTI futures traded near $82 a barrel. The Energy Information Administration's weekly inventory report is due at 10:30 a.m. ET, after industry numbers released late Tuesday showed a surprise decline in inventories.
Stock Market Trend
On Tuesday, the Dow Jones Industrial Average rallied 0.85%, while the S&P 500 jumped 1.45%. The Nasdaq composite surged 1.7%.
Tuesday's Big Picture column commented, "The Nasdaq composite impressed most out of the major stock market indexes as it shot up 1.7%. This means it has now risen nearly 3% for the week so far. More importantly, the tech-heavy index rallied back above the 50-day moving average. Now it just needs to make the move above the key technical benchmark stick."
Now is an important time to read IBD's The Big Picture column as the stock market tries to extend its recent gains after a sharp pullback from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: IBM, Merck, Visa
Dow Jones leader IBM is trying to break out past a cup-with-handle's 146.50 buy point, with a 0.3% rise Tuesday. IBM stock edged higher Wednesday.
Drug giant Merck fought to stay above its 50-day line with a 1% rise on Tuesday. MRK stock is tracing a flat base with a 119.65 buy point and a 115.61 early entry. Shares rose 0.5% early Wednesday.
And Dow Jones payments leader Visa is breaking out past its latest entry, a 245.37 buy point out of a flat base, according to IBD MarketSmith pattern recognition. V stock gained 0.8% Wednesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Stocks To Watch: Baker, Cadence, Synopsys, Tidewater
Oil field services and equipment leader Baker Hughes has been trading tightly the past five weeks and has a buy point at its 2023 high of 36.48, according to IBD MarketSmith. BKR stock moved up 0.3% in early morning trade.
Cadence Design Systems is in a flat base with a 248.16 buy point. Shares are trying to move above an early entry at 237.91. CDNS was up 0.5% Wednesday.
Tuesday's IBD 50 Stocks To Watch pick, Synopsys, is trading a flat base with a 468.03 entry. Meanwhile, an extra entry at 456.82 is also in play. SNPS stock rose 0.5% Wednesday.
IBD Leaderboard stock Tidewater is rebounding from support around its 10-week line, placing the energy leader in a new buy area. TDW stock was up 0.3% early Wednesday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks In 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 |
|---|---|---|---|
| Oracle | 127.54 | Flat base | |
| Visa | 235.57 | Flat base | |
| SLB | 58.70 | Cup with handle | |
| Synopsys | 468.03 | Flat base |
Source: IBD Data As Of Aug. 30, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied 7.7% Tuesday, extending a win streak to three sessions. Amid their recent rebound, shares are trying to regain their 50-day line. A decisive retake of the moving average would be bullish for the stock's base-building prospects.
Early Wednesday, Tesla stock threatened to snap its three-day win streak, sliding 2% in morning action.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 2.2% Tuesday, its highest close since Aug. 3. The stock remains below the 50-day line, but is set for a test of that resistance level. AAPL stock is building a flat base with a 198.23 buy point. AAPL stock moved up 0.8% early Wednesday.
Microsoft shares also are trying to rebound from their recent lows, but the stock needs more time to consolidate before a new buy point emerges. The stock remains below its 21- and 50-day lines, so there isn't a buy signal yet. And on Wednesday morning, the stock moved down 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
