The Dow Jones Industrial Average rose 270 points on Wednesday morning after the stock market fell to its lowest level in more than a year. Technology giants Alphabet (GOOGL) and Microsoft (MSFT) – along with shares of Dow Jones Boeing (BA) and Visa (V) – reported their quarterly profits.
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Google’s parent alphabet fell 4 percent early Wednesday after gains and earnings for March fell short of Wall Street targets. Spotify (SPOT) and Teck Resources (TECK) were also among the main drivers of earnings on Wednesday morning.
Shares of Spotify fell 9% despite better-than-expected results for the first quarter. Teck Resources rose about 8%.
Twitter (TWTR) fell nearly 2% after falling 3.9% on Tuesday. And electric vehicle giant Tesla (TSLA) rose about 4% on Wednesday morning.
Among the leaders of the Dow Jones, Apple (AAPL) was slightly higher, while Microsoft jumped 4% in today’s stock market.
Amid a new stock market adjustment, Dow Jones American Express (AXP) leader – along with Expedia (EXPE), Palo Alto Networks (PANW) and IBD Leaderboard World Wrestling Entertainment (WWE) – are among the best shares to watch on Wednesday.
Microsoft and Tesla are shares of IBD Leaderboard. Expedia and Palo Alto Networks were introduced in the stock column near this week’s buying zone.
Dow Jones today: government bond yields, oil prices
After opening on Wednesday, the Dow Jones Industrial Average rose 0.8%, while the S&P 500 rose 1.1%. Nasdaq rose 1.4% in morning trading.
Among exchange-traded funds, the Nasdaq 100 Invesco QQQ Trust (QQQ) tracker rose 0.8%. The SPDR S&P 500 ETF (SPY) increased by 0.5%.
Yields on 10-year bonds traded close to 2.76% on Wednesday, after ending at 2.77% on Tuesday. Last week, 10-year government bond yields peaked in December 2018. Meanwhile, U.S. oil prices have risen, with Texas Intermediate holding more than $ 102 a barrel.
The stock market adjustment is deteriorating
On Tuesday, major stock indexes sold out sharply. The disappointing action brought the Nasdaq and S&P 500 back to the bottom of Monday. This put an end to a very short rally attempt. It also returned the Nasdaq below its mid-March lows, marking the lowest level of the March 2021 index. The S&P 500 has remained above its low since mid-March.
What happens next is not clear. As the market enters its last few sessions in April, the rebound could mark the beginning of a new rally experience. Against the background of the deepening correction of the stock market, investors must be on the defensive: to make profits and raise cash. Also, maintaining a watch list of stocks that are doing well in a falling market is a good way to prepare for the next uptrend.
Finding the leaders of the next rally while the market is still adjusting is a challenge. One useful method is to use the relative strength of the shares. The RS line measures the performance of the stock price against the S&P 500. If the stock outperforms the wider market, the RS line goes up. If one stock lags behind the rest of the market, the line will point lower.
The Big Picture column on Tuesday commented: “As noted among panelists on IBD Live on Tuesday, many market technicians were waiting to see if key indexes would break their short-term lows in March. In this way, the increasingly weakening action could cause a jump in fear and culminate in a sale, which could lead to a new rebound in stocks. “
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Five shares of Dow Jones to watch now
Dow Jones winnings: Boeing, Visa
Shares of Dow Jones Boeing and Visa reported quarterly results before opening on Wednesday.
Boeing missed estimates for the first quarter, causing a 6% decline at the start of trading. Shares of Boeing ended Tuesday with about 35% of its 52-week high and below its 50- and 200-day lines.
Visa jumped 8% early Wednesday after the company surpassed Wall Street estimates. Visa shares are 20% of their 52-week high.
Dow Jones shares to watch: American Express
Dow Jones American Express’s financial shares ended well below its 50-day line on Tuesday and at about 8% of the point for buying a glass with a handle of 194.45 after a 3% drop on Tuesday. Shares of AXP fell 0.3% on Wednesday morning.
Follow the line of relative strength of stocks. Against the background of its recent rise, the RS line is beginning to approach its old peaks, which means that it is once again surpassing the broad market.
Four stocks with the highest growth to observe in the current stock market adjustment
Shares to watch: Expedia, Palo Alto, WWE
Shares of IBD on the day of Thursday, Expedia, continue to build a cup with a handle with a buying point of 204.08, according to an analysis of the chart of IBD MarketSmith. Shares fell below their 50-day line after falling 4.4% on Tuesday. The availability of EXPE shows 92 of the perfect 99 IBD Composite Rating, according to the IBD inventory check. The shares traded at nearly 3% on Wednesday morning.
Palo Alto Networks’ best cybersecurity stocks are still hovering over much-needed support on the 50-day line after triggering a two-way sell signal from a buy-in of 572.77. Shares fell 3.2% on Tuesday. Shares of PANW rose more than 1% early Wednesday.
Shares of IBD Leaderboard on World Wrestling Entertainment’s watch list also continued to hold above their 50-day moving average, falling just 0.3 percent on Tuesday. Shares are just under 60.94 points for purchase in a glass with a handle. Shares of WWE fell 1.3% on Wednesday morning.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment
Tesla shares
Shares of Tesla rose about 4% on Wednesday morning after shares crashed on their 50- and 200-day lines during a 12.2% drop on Tuesday.
Shares of the EV giant ended on Tuesday at about 24% of the point of purchase of a cup with a handle of 1152.97. The shares traded up to 1243.49 on November 4 and are about 30% of this highest peak of all time.
Leaders of Dow Jones: Apple, Microsoft
Among the shares of Dow Jones, shares of Apple gave up their support in its long-term 200-day line, falling 3.7% on Tuesday. Shares rose on Wednesday morning.
Software leader Microsoft fell 3.7 percent on Tuesday, falling below its 50- and 200-day lines. Shares closed about 23% of their 52-week high.
Late Tuesday, Microsoft exceeded analysts’ expectations for its third fiscal quarter for a strong cloud computing business. It also offers guidelines for online sales for the current quarter. Shares of MSFT jumped 4% at the beginning of trading.
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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