The Dow Jones Industrial Average fell Wednesday morning after weaker-than-expected private payroll data from ADP. The stock market looked to halt a three-day losing streak, heading into the final session of August.
Key earnings movers Wednesday included Ambarella, Chewy and HP.
Ambarella shares dropped 8.7% while Chewy stock plunged 9%. And HP shares sold off 5% in early morning trade. Security software leader CrowdStrike Holdings rose 2% after reporting a second-quarter earnings win.
Social media platform Snap jumped 9% after the company reportedly laid off 20% of its workforce. Electric-vehicle leader Tesla stock climbed 0.5% Wednesday. Among the Dow Jones industrials, tech titans Apple and Microsoft rose around 0.5% each, ahead of today's stock market open.
In the stock market's current volatility, Arista Networks, Costco, GlobalFoundries and Ulta Beauty — as well as Dow Jones stocks Chevron and McDonald's — are among the top stocks to buy and watch. Keep in mind the market's increased volatility is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of a recent breakout, while Chevron and Ulta Beauty were featured in this week's Stocks Near A Buy Zone column. Arista was the IBD Stock Of The Day on Friday.
Dow Jones Today: Treasury Yields, Oil Prices, Jobs Data
Early Wednesday, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 traded up 0.2%. The tech-heavy Nasdaq composite climbed 0.6% in morning trade. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 1.1%, and the SPDR S&P 500 ETF was up 0.7% in early trade.
The 10-year Treasury yield ticked higher to 3.12% early Wednesday. This week, the 10-year Treasury yield closed at its highest level since June 28.
U.S. oil prices continued to retreat Wednesday, tacking toward a third-straight monthly decline — the commodity's longest drop since early 2020. West Texas Intermediate futures declined nearly 3% to trade just above $89 a barrel.
ADP's private payrolls report came out Wednesday morning at 8:15 a.m. ET. Payrolls added 132,000 positions in August, missing estimates that called for growth of 225,000.
Stock Market Gives Up Key Level
On Tuesday, the stock market posted another disappointing performance, as the major stock indexes closed sharply lower. The Nasdaq composite fell below its 50-day moving average and the 12,000 level, ending with a loss of 1.1%.
Tuesday's The Big Picture column commented, "The weak action in indexes and leading stocks means that investors should be playing defense at this point. Rather than look for compelling technical setups, or stocks finding support at key levels, focus on your current holdings and get rid of stocks that aren't working. If you're still holding some nice winners, consider taking partial or full profits. There's nothing wrong with getting out of the market's way amid clear-cut signs of distribution."
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron is up about 20% from a mid-July low. It is methodically building a cup base with a 182.50 buy point — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. An early entry at 164.76 is also in play. The stock dropped around 2.3% early Wednesday, as oil prices extended their decline.
CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock's fundamental and technical metrics.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, GlobalFoundries, Ulta
Arista Networks added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista's relative strength line is holding near recent highs despite the recent market weakness, a bullish sign. ANET shares were up 0.8% early Wednesday.
IBD Leaderboard stock Costco fell further below its 552.81 buy point from a cup with handle, as shares declined 1.3% Tuesday. Wait for a bullish retake of the entry before buying shares. Shares inched lower early Wednesday.
GlobalFoundries remains below a double bottom's 61.98 buy point despite Tuesday's 3.5% rise. An alternative entry, from a handle, is in play at 66.06. GFS stock was down 0.2% Wednesday.
Cosmetics leader Ulta Beauty is just below a double bottom's 417.08 buy point following Tuesday's 0.2% loss. ULTA shares were up 1.1% Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock skidded another 2.5% Tuesday, extending a losing streak to four sessions. Shares of the electric-vehicle giant rose 0.5% Wednesday morning.
Tesla stock continues to grapple with resistance around its 200-day line, and is now approaching its 50-day line, which is a potential support level to watch. Tesla is about 33% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares dropped another 1.5% Tuesday, as they gave up their 200-day line. The stock is about 11% away from a buy point at 176.25 off a cup with handle. Bullishly, the stock's relative strength line is holding near new highs, indicating steady stock market outperformance. Shares rose 0.5% Wednesday morning.
Microsoft declined 0.85% Tuesday, closing further below its 50-day line. Shares remain sharply below their long-term 200-day line and about 25% off their 52-week high. The stock gained 0.5% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
