The Dow Jones Industrial Average reversed lower Wednesday after key economic data beat forecasts. Meanwhile, retail giant Costco shrugged off early losses and rallied after its quarterly earnings report.
Early Wednesday, new durable goods orders from the Commerce Department rose 0.2% in August following July's sharp 5.2% drop. Orders were expected to fall 0.3%. Excluding volatile transportation, orders rose 0.4%, more than expected.
Costco was among those reporting earnings overnight. COST stock rallied 1.5% in morning trade after the retail giant's better-than-expected earnings and sales results.
Paychex also reported results overnight and rose modestly in early trading.
Stock Market Today
Electric-vehicle giant Tesla traded down 0.3% Wednesday, while Nvidia rose 0.8%. Dow Jones tech icons Apple and Microsoft turned mixed, after today's stock market open.
Airbnb, DraftKings, IBD Leaderboard stock Meta Platforms and Uber Technologies — as well as Dow Jones stocks Amgen and Caterpillar — are among the stocks to watch in the ongoing stock market correction.
Meta is an IBD Leaderboard stock, and featured in this Stocks Near A Buy Zone column. Airbnb was a recent IBD Stock of the Day.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.2%. The tech-heavy Nasdaq composite moved up 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.5%, while the SPDR S&P 500 ETF climbed 0.3% early Wednesday.
Early action Wednesday also showed the 10-year U.S. Treasury yield falling to 4.51%, retreating slightly from new long-term highs set on Tuesday.
Oil prices rebounded more than 2% Wednesday morning, back at their 2023 highs. West Texas Intermediate futures traded above $92 a barrel.
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Stock Market Correction
On Tuesday, the Dow Jones Industrial Average sold off 1.1%, while the S&P 500 declined 1.5%. The tech-heavy Nasdaq composite dived 1.6%. All three major stock indexes hit new correction lows.
Tuesday's Big Picture column commented, "Wall Street is worried about a lot these days, including the fact that interest rates could stay higher for longer. Fears of a recession have abated, but a stronger-than-expected economic recovery — along with higher oil prices — could fuel sticky inflation."
Now is an important time to read IBD's The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.
Dow Jones Stocks: Amgen, Caterpillar
Drug giant Amgen finished Tuesday back above a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition, with a 0.8% gain. Shares rose 1.5% Wednesday morning.
Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock slid 1.7% Tuesday, closing further below the 50-day line. Shares gained 0.7% Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Correction
Stocks To Watch: Airbnb, DraftKings, Meta, Uber
Recent IBD Stock Of The Day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock remains below its 50-day line amid Tuesday's 1.4% fall. Airbnb shares rose 1.7% Wednesday morning.
DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch. DKNG stock was up 2.1% early Wednesday.
IBD Leaderboard stock and social media giant Meta Platforms is tracing a cup with handle that has a 312.87 buy point. META stock rose 0.4% early Wednesday. Meta's two-day Connect virtual conference kicks off today. The company plans to unveil the third generation version of its virtual-reality headset.
Uber Technologies continues to consolidate below its key 50-day line, falling 1.4% Tuesday. UBER is forming a flat base with a 49.49 entry. Shares ticked up 1.1% Wednesday.
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Best Stocks In Today's 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 |
|---|---|---|---|
| Uber Technologies | 143.63 | Flat base | |
| Caterpillar | 293.88 | Flat base | |
| Airbnb | 154.95 | Cup base | |
| DraftKings | 32.65 | Cup with handle |
Source: IBD Data As Of Sept. 25, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock moved down 1.2% Tuesday, still significantly below its 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 11% away from that entry.
With Tesla likely to report its third-quarter deliveries on Monday, Wall Street is now predicting the number will undercut the EV giant's record-setting 466,140 vehicles in the second quarter. Until recently, analysts had forecast Tesla's third-quarter deliveries would outpace the second quarter.
On Wednesday morning, TSLA stock fell 0.3%, still looking to bounce back from Tuesday's losses.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock sold off 2.3% Tuesday, hitting a new recent low. Shares are well below their 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares lost 0.4% Wednesday morning.
Microsoft shares hit their lowest level since mid-May, sliding 1.7% Tuesday. And on Wednesday morning, the stock edged higher in early trades.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
