The Dow Jones Industrial Average reversed lower Wednesday morning with minutes from the Federal Reserve's latest policy meeting due later in the day. Chinese internet giant Baidu briefly surged before turning lower, while cybersecurity leader Palo Alto Networks soared 10% on earnings. And later Wednesday, Nvidia earnings are due out after the market close.
Fed Minutes On Tap
Minutes from the Federal Open Market Committee's Jan. 31-Feb. 1 meeting are due out at 2 p.m. ET. The minutes could provide insight into the central bank's future rate hikes and its recent 25-basis-point increase.
Among other companies reporting earnings Wednesday, Chesapeake Energy, Diamondback Energy, Exact Sciences, Matador Resources, TJX and Toll Brothers were on the move.
Chesapeake shares climbed 1.6%, while Diamondback stock rose 2%. Exact Sciences gained 1.5%, as MTDR stock declined 10%. TJX fell 2%, and homebuilder Toll Brothers rose 3.5% in morning trade.
Stock Market Today
Electric-vehicle leader Tesla fell 2.4% Wednesday morning. Dow Jones tech giants Apple and Microsoft were lower after the stock market open.
IBD Leaderboard stock Airbnb, Dexcom, Inspire Medical Systems and Wingstop — as well as Dow Jones stocks Caterpillar, Cisco Systems and JPMorgan Chase — are among the top stocks to watch, with the recent stock market weakness.
Airbnb is an IBD Leaderboard stock. Inspire and Dexcom were recent IBD Stock Of The Day subjects. Cisco Systems and Wingstop were featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's market open, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite fell 0.25% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 0.3% and the SPDR S&P 500 ETF fell 0.2 early Wednesday.
The 10-year U.S. treasury yield jumped to 3.95% Tuesday, closing at its highest level since Nov. 9. Then, the 10-year yield ticked lower to 3.91% Wednesday morning ahead of the day's Fed minutes.
Oil prices threatened to extend a five-day losing streak, with West Texas Intermediate futures down 1% Wednesday morning. WTI slumped below $76 a barrel, nearing early February's lows.
Stock Market Rally
On Tuesday, the Dow Jones Industrial Average sold off 2.1%, and the S&P 500 lost 2%. The Nasdaq dived 2.5%.
Tuesday's Big Picture column cautioned, "Now's the time to assess your current holdings and start raising cash by cutting your laggards loose. When it comes to profitable positions, consider trimming your winners or taking profits outright, depending on how the stock is acting at key support levels."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Cisco, JPMorgan
Top Dow Jones stock Caterpillar gave up crucial support at the 50-day line during Tuesday's 2.9% slide, according to IBD MarketSmith chart analysis. Shares remain above a 239.95 buy point, but earlier gains have all but disappeared, which triggers the round-trip sell rule. CAT stock traded up 0.1% Wednesday morning.
Banking giant JPMorgan remains in the 5% buy range above a 138.76 flat-base buy point despite a 1.8% loss Tuesday. The 5% buy zone tops out at 145.70. JPM shares moved down 0.5% early Wednesday. JPM stock shows a solid 94 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Featured in this week's Stocks Near A Buy Zone column, Cisco Systems is trying to break out past a flat base's 50.81 buy point. Shares lost 2.1% Tuesday, ending about 2% below the entry. Cisco stock fell 1.6% early Wednesday.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Airbnb, Inspire
New IBD Leaderboard stock Airbnb soared last week, surging past a 121.50 buy point out of a cup with handle. While it's extended from this entry, the breakaway gap places an alternative entry at 135 — and the stock is squarely below that price following Tuesday's sharp fall. ABNB stock fell 2.4% Wednesday morning.
Backstory: The firm operates an online marketplace for lodging. Its primary offerings are homestays for vacation rentals. While tourism was badly hit by the coronavirus pandemic, it continues to roar back following strict lockdowns.
Recent IBD Stock Of The Day Inspire Medical Systems fell for a third day Tuesday, but still holds above a flat base's 262.64 buy point, according to IBD MarketSmith pattern recognition. The buy zone tops out at 275.77. INSP stock shows a modest 86 IBD Composite Rating. INSP stock was down 1.1% early Wednesday.
Backstory: The company sells an implantable device to treat sleep apnea through electrical stimulation of the nerves — a process called neurostimulation.
Dexcom, Wingstop Eye Latest Buy Points
Dexcom shares dropped 0.65% Tuesday, extending a losing streak to three sessions. The stock added a handle to a cup base, creating a 121.21 buy point. The stock rose 0.3% Wednesday.
Backstory: On Feb. 9, Dexcom reported stronger-than-expected quarterly results. The beat comes as Dexcom's newest continuous glucose monitor, or CGM, gains steam in the U.S. and Europe. These body-worn devices keep track of blood sugar in real time. The Food and Drug Administration cleared Dexcom's new device, G7, last year.
Wingstop gave up a 169.04 buy point in a cup with handle Tuesday in the wake of last week's breakout move. WING stock soared 11% early Wednesday morning after reporting fourth-quarter earnings results.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter.
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Stocks To Buy And Watch In Stock Market Rally
These are six top stocks to buy and watch in today's stock market, including two Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Inspire Medical Systems | 262.64 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Airbnb | 135.00 | Breakaway Gap | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 169.04 | Cup with handle |
Source: IBD Data As Of Feb. 22, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded 5.25% Tuesday amid the market selloff. Despite a strong rebound starting Jan. 6, shares are still below the 200-day line and that key level looms as a potential resistance area. Shares closed Tuesday around 50% off their 52-week high.
Shares looked to bounce back after Tuesday's losses, but reversed 2.4% lower Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares lost 2.7% Tuesday. Shares are around 17% off their 52-week high and trying to hold above their 200-day line. Apple stock fell 0.8% Wednesday.
Microsoft shares extended a losing streak to four sessions, falling 2.1% Tuesday. Shares closed below their 200-day line and about 20% off their 52-week high after recent gains. MSFT stock was down 0.3% Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
