The Dow Jones Industrial Average reversed lower Wednesday ahead of Federal Reserve Chair Jerome Powell's afternoon speech. Meanwhile, Microsoft jumped on strong earnings, as Alphabet stock dived on mixed results. And Meta earnings are due late Wednesday.
Early Wednesday, the Commerce Department said that new home sales rose to an annual rate of 759,000 in September, up from August's 675,000.
After the stock market close, Fed chief Powell is scheduled to make introductory remarks ahead of the 2023 Moynihan Lecture in Social Science and Public Policy in Washington D.C. The event is sponsored by the American Academy of Political and Social Science.
On the earnings front, Boeing, Paccar, Texas Instruments, Snap and Visa were key movers Wednesday.
Dow Jones aerospace giant Boeing declined 1%. Paccar rose less than 1% in morning trade, while TXN stock tumbled 3.6%. Snap shares rallied 1%, as Visa stock rose nearly 1%.
Dow Jones software giant Microsoft jumped nearly 4% after crushing Wall Street's targets for its fiscal first quarter thanks to its strong cloud-computing business. It also raised its outlook for the current quarter.
Alphabet reported third-quarter earnings that topped analyst estimates while revenue edged by views. But shares of the Google parent tumbled more than 9% as cloud-computing sales growth missed. YouTube, however, turned in a strong quarter.
Looking ahead, Meta Platforms will report after the market close.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average dropped 0.4%, while the S&P 500 lost 1%. The tech-heavy Nasdaq composite moved down 1.6% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust dropped 1.6%, while the SPDR S&P 500 ETF moved down 1% early Wednesday.
The yield on the 10-year U.S. Treasury bond ticked higher to 4.89% Wednesday morning. On Tuesday, the benchmark settled at 4.84%.
Oil prices were slightly higher Wednesday, pausing after a three-day losing streak. West Texas Intermediate futures traded below $84 a barrel.
Stock Market Correction
On Tuesday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 gained 0.7%. The tech-heavy Nasdaq composite popped 0.9%.
Tuesday's Big Picture column commented, "The Nasdaq composite fared best out of the major indexes as it popped 0.9%. It continues to make a stand at the 13,000 level. The tech-heavy index pulled further away from its 200-day moving average but remains firmly below its 50-day moving average. The Nasdaq is now up 1.2% for the week and nearly 27% for the year."
Now is an important time to read IBD's The Big Picture column, with the current outlook back in market correction status. Be sure to read how to handle changing market forces.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today
Electric-vehicle giant Tesla moved down 0.4% early Wednesday, as Nvidia lost 0.7%. Meanwhile, Dow Jones tech icons Apple and Microsoft traded mixed after today's stock market open.
IBD Leaderboard member Arista Networks, Lululemon Athletica, Meta Platforms and Light & Wonder — as well as Dow Jones stocks Walmart and Salesforce — are among the best stocks to buy and watch in the new stock market correction.
Light & Wonder is a recent IBD Stock Of The Day.
Dow Jones Stocks: Walmart, Salesforce
Dow Jones retail giant Walmart is tracing a flat base with a 165.85 buy point, according to IBD MarketSmith chart analysis. This week, shares regained their key 50-day line and are about 2% away from their latest entry. WMT stock inched lower Wednesday.
Software leader Salesforce is battling resistance around its key 50-day line. If the stock retakes that key level, then it would move closer to a 228.79 buy point in a double-bottom base. CRM stock dropped 0.4% Wednesday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Light & Wonder Eyes Buy Point
Arista added 2.1% Tuesday, closing above the 50-day line and about 4% away from a 198.70 buy point in a flat base. The company reports third-quarter results Oct. 30. ANET stock inched lower early Wednesday.
Lululemon tacked on 0.2% Tuesday, still just below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was down 0.4% Wednesday morning.
Facebook-parent Meta Platforms gave up a 312.87 buy point during the stock's 0.5% drop Tuesday. Meanwhile, Meta stock is still below a cup base's official buy point at 326.20. The social media giant reports third-quarter results late Wednesday. Meta shares lost 1.6% Wednesday.
Casino games maker Light & Wonder is rapidly approaching a flat base's 79.97 buy point in a flat base. Aggressive investors could use the recent high of 77.25 as a buy trigger. But the market is in a correction, increasing risk. LNW stock was up almost 1% early Wednesday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Meta Platforms | 312.87 | Handle entry | |
| Salesforce | 228.79 | Double bottom | |
| Lululemon | 406.94 | Flat base | |
| Arista Networks | 198.70 | Flat base |
Source: IBD Data As Of Oct. 24, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied 2.1% Tuesday, finishing right at the 200-day line. Shares are trying to find support around that long-term level, and are nearly 30% off their 52-week high.
Shares moved down modestly early Wednesday, threatening to give up a part of Tuesday's gains.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple inched higher Tuesday, continuing to find support around the 200-day line. Apple delivers its fiscal fourth-quarter report on Nov. 2. Shares dropped 1.2% early Wednesday.
Microsoft stock gained 0.4% Tuesday, as shares continue to hold to find support around their 50-day line. A new base is forming. The base shows an early entry at 340.86. Another early entry, at the Oct. 16 high of 336.14, is also in play. But on Wednesday morning, MSFT stock opened above both early entries with its 4% gain.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
