The Dow Jones Industrial Average rose Wednesday, as President Joe Biden and House Speaker Kevin McCarthy struck optimistic tones on a debt ceiling deal. Big retailer Target dropped on earnings, while Tesla rallied in the wake of the company's shareholder meeting. Finally, Chief Executive Elon Musk said Tesla would start rolling out "production Cybertrucks" later this year.
Biden, McCarthy and other Congressional leaders met Tuesday, moving closer to a deal on the debt ceiling. Amid Tuesday's talks, McCarthy told reporters the two sides remained apart on an agreement to lift the debt ceiling.
But he said, "It is possible to get a deal by the end of the week. It's not that difficult to get to an agreement." Meanwhile, the White House called the talks "productive and direct."
On the economic front, the Commerce Department said housing starts and permits for April came in at 1.401 million and 1.416 million. Starts were expected to fall to 1.405 million, while permits were expected to rise to 1.43 million, according to Econoday estimates.
Target lost nearly 1% after beating earnings and sales targets. The discount giant's current-quarter profit outlook was below forecasts.
Other key earnings reporters include Dynatrace and TJX. Dynatrace slipped 1.5% in morning trade, while TJX edged higher.
Stock Market Today
Electric-vehicle giant Tesla rose 3% Wednesday morning. Dow Jones tech giants Apple and Microsoft were up and down after today's stock market open.
Advanced Micro Devices, Lam Research, IBD SwingTrader idea Netflix and IBD Leaderboard stock Uber Technologies — as well as Dow Jones stocks Salesforce and Visa — are among the best stocks to watch in the stock market uptrend.
Lam Research and Netflix were recent IBD Stock Of The Day topics.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average rose 0.25%, while the S&P 500 climbed 0.3%. The tech-heavy Nasdaq composite followed up with a 0.2% rise in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.2%, while the SPDR S&P 500 ETF traded up 0.3% early Wednesday.
The 10-year U.S. Treasury yield on Wednesday traded down to 3.52%, on pace to snap a three-day win streak that saw it rebound near recent highs.
U.S. oil prices continued to bob between $70 and $72 a barrel. West Texas Intermediate futures were up a fraction Wednesday morning, holding right at $71 a barrel. Weekly oil inventory data from the Energy Information Administration is due out at 10:30 a.m.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average sold off 1% to break below its 50-day line. The S&P 500 lost 0.6%, while the Nasdaq fell 0.2%.
Tuesday's Big Picture column commented, "With the major stock indexes in a confirmed uptrend, it makes sense having some exposure to stocks — but not more than 40% at this point. Market breadth still leaves a lot to be desired as the stock market grapples with the prospect of a sharp slowdown for the U.S. economy."
Now is an important time to read IBD's The Big Picture column after last week's bullish change in the market's outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Salesforce, Visa
IBD Leaderboard stock Salesforce rallied past alternative entries at 194.01 and 200.10 in recent sessions, according to Leaderboard analysis. Meanwhile, the RS line hit a new high last week, a bullish signal. CRM stock rose 0.8% Wednesday morning.
Visa shares remain in buy range above a 230.15 cup-with-handle buy point, after falling 1% Tuesday. The buy range goes up to 241.66. V stock gained 0.8% Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, Lam, Netflix, Uber
Chip leader Advanced Micro Devices is trying to break out past a cup base's 102.53 buy point, according to IBD MarketSmith pattern recognition, with a 4.2% rally Tuesday. Last week's advance saw AMD stock climb above an early trendline entry, using May 4's high of 91.64 as the buy point. AMD shares rose 0.8% Wednesday.
Lam Research stock broke out of a flat base with a buy point of 548.95 Monday and added to those gains Tuesday. Aggressive investors could have used Monday's move above the stock's April 20 high of 536.50 as another entry point, based on IBD analysis. LRCX stock was up 0.6% Wednesday.
Recent IBD Stock Of The Day Netflix popped above its 50-day moving average line last week. That positive action created a buying opportunity for aggressive investors. Further, Netflix shares now are near a buy point of 349.90 out of a cup-with-handle base. NFLX stock fell 0.2% Wednesday morning.
IBD Leaderboard stock Uber Technologies gave up its 37.68 buy point from a cup base, amid a 1.8% drop Tuesday. The stock was up 0.6% Wednesday. Uber is still extended from the 50-day line, though.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best 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 |
|---|---|---|---|
| Lam Research | 548.95 | Flat base | |
| Salesforce | 200.10 | Consolidation | |
| Visa | 230.15 | Cup with handle | |
| Advanced Micro Devices | 102.53 | Cup base |
Source: IBD Data As Of May 17, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock edged higher Tuesday, ending a two-day skid that saw the stock find stout resistance around its key 50-day line. Shares are looking to build a new base. The stock closed Tuesday 47% off its 52-week high.
TSLA stock rallied more than 3% Wednesday morning.
Late Tuesday, Musk hinted during Tuesday's shareholder meeting that new Tesla products are coming. He added he is open to try advertising, confirmed a Cybertruck delivery event will take place this year and also warned the EV giant is not immune to global economic challenges. Finally, Musk said he has no plans to step down as Tesla CEO.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares ended unchanged Tuesday, still holding near their 52-week high, which was set back in mid-August. The stock continues to add to gains above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock was down slightly Wednesday.
Microsoft shares rose 0.7% Tuesday, hitting a new 52-week high at 313.71. MSFT stock continues to add to gains above a 276.86 flat-base buy point. On Wednesday morning, MSFT stock rose 0.3%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
