The Dow Jones industrial average fell on Wednesday after two days of progress after government bond yields rose. Following constructive stocks on Tuesday, the best buying and viewing stocks include cosmetics leader Ulta Beauty (ULTA) and Vertex Pharmaceuticals (VRTX).
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Prior to Wednesday’s opening, key earnings reports include Lovesac (LOVE), Ollie’s deal Output (OLLI) and tor Industry (THO). Lovesac shares fell 20%. Shares of Ollie rose 1%, while shares of Thor rose 2%. late wednesday five Below (PET) will report its revenue results.
Hard drive maker Western Digital (WDC) has risen about 4% after news that the company has reached an agreement with activist investor Elliott Management. The deal reportedly requires Western Digital to consider strategic alternatives, including a possible business split.
Electric vehicle giant Tesla (TSLA) traded up 3% on Wednesday. Elsewhere, technology leaders Dow Jones Apple (AAPL) and Microsoft (MSFT) were slightly lower in today’s stock market.
Against the background of the ongoing stock market rally, the leaders of Dow Jones Chevron (CVX), Merck (MRK) and Travelers (TRV) – along with Vertex, Albemarle (ALB), Eli Lilly (LLY), Northrop Grumman (NOC), Ulta Beauty (ULTA)) and Zim Integrated Shipping (ZIM) are among the best IBD stocks to watch on Wednesday.
Albemarle is a stock of IBD Leaderboard. Vertex was introduced in the stock column near the buying area this week. Zim was introduced as the leader of the IPO.
Dow Jones today: government bond yields, oil prices
After opening on Wednesday, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 fell 0.15%. The Nasdaq technology composite increased 0.3%.
Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker rose 0.3%, while the SPDR S&P 500 ETF (SPY) fell 0.15% at the start of trading.
Yields on 10-year government bonds seemed to recover from losses on Tuesday, rising to 3.02% on Wednesday morning. Oil stocks, meanwhile, topped the S&P 500 at the start of trading as U.S. oil prices rose about 1 percent, with West Texas Intermediate trading above $ 120 a barrel.
Stock market rally
Major stock indexes were positive on Tuesday after the Nasdaq composite and S&P 500 rose about 0.9% each. The Dow Jones industrial indices followed with 0.8% growth.
The Big Picture column on Tuesday commented: “There was more to cheer than positive feedback. The Nasdaq, S&P and Dow fell below the 21-day exponential moving average early Tuesday. But the indices returned above these lines. Thus support 21-day lines are provided after the detention on May 26.
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Five shares of Dow Jones to watch now
Dow Jones surveillance stocks: Chevron, Merck, Travelers
Dow Jones leader and energy giant Chevron made more than 174.86 points on a flat-buy basis, according to an analysis of IBD MarketSmith’s chart, after gaining 1.9% on Tuesday. The 5% buying area reaches 183.60. Shares of CVX traded 0.1% higher on Wednesday.
The availability of the CVX boasts 98 of the perfect 99 IBD Composite Rating, according to an IBD Stock check. Investors can use the IBD Composite Rating to easily assess the quality of the main and technical indicators of the shares.
Merck, shares of Dow Jones and IBD Big Cap 20 are still in the buying range of more than 89.58 points for the purchase of a glass with a handle, after breaking a five-day winning streak on Tuesday after shares rose 0.7% . The buying area of 5% increases to 94.06. Shares of MRK rose on Wednesday morning.
The line of relative strength of the shares reached a new peak in mid-May, but is now retreating sharply.
Insurance giant Travelers is building a flat base with a buying point of 188.08. Shares returned above their 50-day line after gaining 0.9% on Tuesday. Shares of Travelers lost 0.7% early on Wednesday.
Five stocks with the highest growth to watch in the current stock market rally
Shares to buy and watch: Albemarle, Eli Lilly, Northrop, Ulta, Vertex, Zim
Shares of IBD Leaderboard Albemarle are about 6% of the point of purchase of a cup with a handle at 273.78, according to an analysis of the chart of IBD MarketSmith. In recent weeks, Albemarle has crossed an early buying point near 248. Shares of ALB fell 0.8% on Wednesday morning.
Pharmaceutical giant Eli Lilly jumped 2.9 percent on Tuesday and almost returned above the flat-point buying point of 314.10 after a May 27 breakout. LLY shares traded up 0.5% on Wednesday.
Northrop Grumman exploded last week over the point of buying a glass with a handle of 477.36 and moved even above the entrance on Tuesday. Shares of NOC showed a loss of 0.7% on Wednesday morning.
Ulta Beauty finished on Tuesday just 1% off the cup with a handle buying point of 426.93. ULTA shares fell nearly 1% on Wednesday morning.
Vertex Pharmaceuticals tracks a cup with a handle with a buying point 276.10. For now, the shares see some support around their 50-day line. A strong rebound from this area is likely to lead to a breakthrough. Conversely, abruptly breaking the 50-day line would mean that the basing process takes longer. Shares of Vertex rose 0.1% on Wednesday after the company announced new drug approvals from US and European agencies.
IPO leader Zim Integrated is tracking a cup with a handle that has 68.80 points to buy. Shares are a staggering distance from the right point to buy after rising 1.9% on Tuesday. Shares of ZIM fell 8% early Wednesday.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market rally
Tesla shares
Shares of Tesla rose 0.25% on Tuesday, adding up 1% on Monday. Shares were looking to extend their recovery, rising 3% on Wednesday morning, following the news of a battery supply deal with Warren Buffett-based BYD (BYDDF).
Stocks are still sharply below their 50- and 200-day moving averages. Shares of Tesla traded up at 1243.49 on November 4. Shares are about 43% lower than this record high.
Leaders of Dow Jones: Apple, Microsoft
Among Dow Jones shares, Apple shares rose 1.8 percent on Tuesday. The shares remain well below their long-term 200-day line. Shares of AAPL traded down 0.1% on Wednesday.
Software leader Microsoft gained 1.4 percent on Tuesday and remains sharply below its 50- and 200-day lines. Shares closed more than 20% of their 52-week high. Shares of MSFT fell 0.5% on Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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