The Dow Jones Industrial Average rose Wednesday morning after key economic data. Meanwhile, Tesla stock reversed higher after a report said the company's German plant lowered its production target. And Nvidia earnings are due out after the close.
Key economic data out Wednesday morning includes the S&P Global's Purchasing Managers' Index, or PMI, for the manufacturing and services indexes. The manufacturing index dipped to 47.0 in August, below the 48.8 estimate and down from July's 49.0 reading. Further, the services index dropped to 51.0 in August vs. 52.3 in July.
Finally, new home sales rose to 714,000 in July, above the 705,000 estimate, vs. June's 697,000.
Early Wednesday, Abercrombie & Fitch, Advance Auto Parts, Analog Devices and Foot Locker — along with Kohl's, Peloton Interactive Toll Brothers and Urban Outfitters — were key earnings movers.
ANF stock surged 19% in morning trade, while AAP climbed almost 1%. Analog Devices slipped nearly 4%, as Foot Locker plunged 32%. Kohl's advanced more than 4%, while Peloton stock crumbled 26% in early action.
Finally, Toll Brothers shares rose 2.5%, while URBN stock jumped nearly 3%.
Stock Market Today: Nvidia Earnings
Graphics-chip maker Nvidia rose 1.8% Wednesday morning ahead of the chip designer's earnings report late. After four straight quarters of declining earnings, adjusted profit is expected to jump to $3.04 a share, with revenue up 65% to $11.04 billion. There's no doubt it's an earnings report that could move the Nasdaq hard, one way or the other.
Electric-vehicle giant Tesla traded up 0.7% Wednesday. Dow Jones tech icons Apple and Microsoft were higher after today's stock market open.
Other stock market leaders include Alphabet and Meta Platforms. GOOGL stock rose 1.5%, while Meta shares gained 0.7% in early action.
Costco Wholesale, Lululemon, Arista Networks and Oracle — as well as Dow Jones stocks Boeing and Visa — are among the best stocks to watch in the ongoing stock market correction.
Tesla and Costco are IBD Leaderboard stocks, while Boeing was a recent IBD Stock Of The Day pick. Arista was 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 rose 0.2%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite added 1.2% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust was up 1.1%, while the SPDR S&P 500 ETF rose 0.7% early Wednesday.
Also on Wednesday, the 10-year U.S. Treasury yield ticked lower to 4.24%, after settling at 4.32% Tuesday, just off the highest level since 2007.
West Texas Intermediate oil prices threatened to extend a losing streak to three sessions, sliding 1.5% Wednesday. WTI futures held just below $78.50 a barrel in morning trade ahead of the Energy Information Administration's weekly inventory report at 10:30 a.m. ET.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average fell 0.5%, while the S&P 500 dipped 0.3%. The tech-heavy Nasdaq composite finished up 0.1%.
Tuesday's Big Picture column commented, "The Nasdaq tried to extend gains after Monday's lower-volume bounce from oversold conditions. The index popped above its 10-day moving average early Tuesday, rising more than 0.7%, but sellers knocked the index down to session lows by the close. The Nasdaq remains mired below its 10-, 21- and 50-day moving averages, which are potential resistance levels to watch."
Now is an important time to read IBD's The Big Picture column as the stock market tries to stabilize after a sharp pullback from this year's highs.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks: Boeing, Visa
Aerospace giant Boeing broke out in recent weeks, topping a 223.91 flat-base entry. Shares are testing their buy point and 50-day line, as they added 0.1% Tuesday. BA stock dipped 0.2% Wednesday morning.
And Dow Jones payments leader Visa continues to hold in a buy range past a 235.57 flat-base buy point, according to IBD MarketSmith pattern recognition. Meanwhile, another entry is available, with the stock forming another flat base that has a 245.37 entry. Shares are rebounding from support around their 50-day line. V stock gained0.4% Wednesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Arista, Lululemon, Costco, Oracle
AI stock leader Arista Networks is trying to move out of buy range beyond its 178.36 buy point in a consolidation, with a 1.5% rise Tuesday. Its RS line is at its highest level since late March, which is a sign of big outperformance in recent weeks. ANET stock rose 0.1% Wednesday morning.
Lululemon is once again testing its key 50-day line as shares dropped 1.4% Tuesday. LULU's RS line is at its highest level since May, according to IBD MarketSmith. LULU shares dropped 1.8% in morning trade. The company reports second-quarter results on Aug. 31.
On the IBD Leaderboard, Costco was added as a half-size position in recent weeks. The megacap retailer is threatening to decisively close below its 50-day support level. Meanwhile, a handle entry looms at 571.16. COST stock edged a fraction lower early Wednesday.
Oracle continues to trace a flat base with a 127.54 buy point. An early entry at 118.06 is also in play, as the software leader tries to maintain support around the 50-day line. ORCL stock rose 0.3% in premarket trade.
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 | |
| Costco | 571.16 | Cup with handle |
Source: IBD Data As Of Aug. 22, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla rose 0.8% Tuesday, adding to Monday's sharp gains. Still, shares are well below their 50-day line. Amid the recent spate of selling, it's clear that the stock requires more time to consolidate before a new entry emerges. Wait for a decisive move back above the 21- and 50-day moving averages before considering a new purchase of TSLA stock.
Early Wednesday, Tesla stock threatened to give up Tuesday's gains, but reversed 0.7% higher.
According to a Business Insider report, Tesla lowered the production target of its German plant to 4,350 a week in July and August after hitting 5,000 a week in March, and plans to reduce it further.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock climbed 0.8% Tuesday, extending a win streak to three sessions. The stock remains squarely below the 50-day line following sharp losses in recent weeks. AAPL stock tacked on 1.6% early Wednesday.
Microsoft shares also trade near their recent lows, a sign the stock needs more time to consolidate before a new buy point emerges. While recent gains are bullish, the stock remains below its 21- and 50-day lines, so there isn't a buy signal yet. And on Wednesday morning, the stock added 1.3%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
