The Dow Jones Industrial Average rose as much as 230 points before paring gains Wednesday morning ahead of the Federal Reserve’s interest rate decision set at 2 p.m. ET, to be followed by Federal Reserve Chairman Jerome Powell’s press conference.
general mills (GIS) was a mover on Wednesday, as shares rose more than 6% in morning trading after strong earnings results, although sales came in below estimates. house builder KB Home (KBH) and linar (LEN) will report after closing.
micron technology (MU) was up more than 1% even after Mizuho downgraded the stock to neutral from buy.
Elsewhere, the electric car driver Tesla TSLA stock traded 0.4% lower on Wednesday. Among the Dow Jones industrial companies, technology giants apple (AAPL) and Microsoft (MSFT) was mixed after the stock market opened today.
Includes top stocks to watch amid recent market weakness continental resources (CLR), double check (DV) and Vertex Pharmaceuticals (VRTX) – So are Dow Jones stock chevron (CVX) and merck (MRK). Keep in mind that the new correction in the stock market is a good reason for investors to be often, if not entirely, on the sidelines.
DoubleVerify is the IBD Leaderboard stock, but its position has been scaled back during last week’s losses. Tesla appeared in the stock column near the buy zone for this week.
Dow Jones today: Treasury yields, oil prices, Fed meeting
After the opening bell on Wednesday, the Dow Jones Industrial Average rose 0.6%, while the S&P 500 gained 0.65%. The tech-heavy Nasdaq Composite is up 0.35% in the morning’s move.
Among the exchange-traded funds, the Nasdaq 100 Index tracking the Invesco QQQ Trust (QQQ) is up 0.2%, and the SPDR S&P 500 ETF (SPY) is up 0.5% in early trade.
The 10-year Treasury yield fell to 3.54% on Wednesday, retreating from this week’s high. Meanwhile, oil and natural gas prices in the United States have soared. Oil prices rose more than 2%, bringing West Texas Intermediate crude futures above $86 a barrel.
The Fed’s two-day meeting will end on Wednesday, with a rate decision at 2pm ET and comments from Fed Chair Jerome Powell at 2:30pm, markets show an 82% expectation that the central bank will raise rates by an amount 75 basis points and 18% probability of a 100 basis point rise. Investors will be looking for hints about the pace of future rate hikes, and how far the central bank will eventually rise.
Adding to all that, markets expect the Fed’s key rate to end this year with a target range of either 4%-4.25% or, more likely, 4.25%-4.5%. This may not be all. The odds are down above 50% for an additional quarter-point rise to the 4.5%-4.75% range next March or May, according to the CME Group’s FedWatch page.
stock market correction
On Tuesday, the exchange posted a disappointing performance. The Dow Jones Industrial Average lost 1%, while the S&P 500 fell 1.1%, both trimming Friday’s lows.
Tuesday’s The Big Picture column commented, “Amid expectations for a hawkish statement, the stock market may not like what the Federal Reserve is saying on Wednesday. A tradable rally may eventually take the Nasdaq to the 12,000 level. But it’s still a distributing market, so it could That a trip to June lows is also a possibility.”
To prepare for a new stock market rally, investors should wait for a follow-up day. When the market is in a correction, look for at least one major indicator to try to reach the bottom.
On the first day the indicator closes higher counts as the first day of its upward attempt. The action on day 2 and day 3 is irrelevant as long as the indicator does not reduce its lowest level. If this low is trimmed, the rally will be attempted and the market will need to try again.
On the fourth day and beyond, you were looking forward to the NASDAQ or S&P 500 rising sharply with higher trading volumes than the previous session. This is a follow up day. It gives investors the green light to start buying blue-chip stocks that are above the right buy points. You must keep your portfolio and mindset in sync with the movement of the stock market by gradually committing your capital to leading stocks.
While the stock market is correcting, don’t adjust. Instead, create watchlists to find emerging stock market leadership using the relative strength line. The RS line measures the stock’s price performance against the S&P 500 index. If the stock is outperforming the broader market, the RS line tends to the upside. If the stock lags behind the broad market, the line will be pointing down.
Five Dow Jones stocks to watch right now
Dow Jones stocks to watch: Chevron, Merck
Chevron stock in Dow Jones fell 0.4% on Tuesday, still holding above the critical support level around the 50-day line. The shares are trading 6% away from their last buy point at 166.93 from a cup with a handle – according to IBD MarketSmith chart analysis – amid a solid performance by energy stocks this year so far. The stock jumped 1.4% early Wednesday.
A stock CVX 97 strong IBD 99 rating shows the perfect compound, according to an IBD stock inspection. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Pharmaceutical giant Merck is also trying to fight the stock market’s downtrend. Stocks are building a flat base at 95.82 buy points, but are stuck below the 50-day line and near their recent lows. Merck shares rose 0.3 percent early Wednesday.
Top 3 Growth Stocks to Buy and Watch at Cursstock market correction
Top stocks to watch: Continental, DoubleVerify, Vertex
Oil exploration and production company Continental Resources is building a handle-cup with 72.80 buy points, according to IBD MarketSmith chart analysis. The Relative Strength line touched its most recent high last week, but remained slightly off its 52-week high. CLR shares were trading up 1.7% early Wednesday.
IBD Leaderboard DoubleVerify stock is still below the buy point at 28.07 at a bottom base after Tuesday’s 1.35% loss. DV shares were down 0.4% Wednesday morning.
Vertex Pharmaceuticals remains below the 50-day line despite Tuesday’s 0.6% gain. The stock has held up well during the ongoing market weakness, as evidenced by the RS line approaching new highs. There’s no new rule just yet, but the stock’s flexibility makes it a great idea to keep an eye on. Vertex shares rose 0.1% on Wednesday.
Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live
Tesla stock traded slightly lower on Tuesday, approaching a buy point of 314.74 for a short base. In the meantime, keep an eye out for additional buying points if the stock is able to climb further to the right side of the larger consolidation process, which runs through January. Shares were down 0.4% Wednesday morning.
Up, the stock’s RS line is at its highest level since April. Shares are about 25% off their 52-week high.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares rose 1.6% on Tuesday, adding to Monday’s gains. Last week, the stock closed at its lowest level since July 18. Apple stock was down 0.1% Wednesday morning.
Microsoft lost 0.85% on Tuesday, hitting a 52-week low. The software giant is about 30% from its 52-week high. Microsoft shares rose 0.9 percent early Wednesday.
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