The Dow Jones Industrial Average fell Wednesday morning after stronger than expected retail sales data from the Commerce Department. Investors also digested a series of early earnings reports from retailers. Target plunged more than 16% on weak results, while Nvidia’s earnings are expected to be released after the close.
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Among the best stocks to buy and watch is the IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader Stocks General Engines (GM), GlobalFoundries (GFS), mobileye (MBLY) and Phillips 66 (PSX) — as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was Monday’s IBD stock of the day. GlobalFoundries was featured in this week’s Stocks Near A Buy Zone column. And Mobileye was the leader in last week’s IPO.
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Dow Jones Today: Oil Price, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average fell less than 0.1%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite traded down 1.1% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1.3% early Wednesday, and the SPDR S&P 500 ETF (SPY) fell 0.6%.
The 10-year Treasury yield fell to 3.71%, threatening to extend Tuesday’s slide. Meanwhile, US oil prices have erased early losses, as oil continues to hover in its recent trading range. West Texas Intermediate futures were holding just below $87 a barrel.
Stock market rally
On Tuesday, the main stock indexes ended well off their peaks. The Nasdaq composite led the way, up 1.45%, while the Dow Jones industrials and S&P 500 followed with gains of 0.1% and 0.9%, respectively.
The Big Picture on Tuesday commented: “The stock market rally continued on Tuesday as Wall Street received more good news on the inflation front. missiles landing in Poland.”
Now is an important time to read IBD’s The Big Picture column.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar
Dow Jones Member Caterpillar Tries to Break Above 238 Cup Base Buy Point, according to IBD MarketSmith pattern recognition. CAT shares fell 0.7% on Wednesday.
The CAT stock boasts an impressive 97 out of a perfect IBD composite score of 99, according to the IBD stock balance sheet.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, PSX
IBD Leaderboard Arista Networks stock tried to break above the buy point of 132.97 from a choppy base amid Tuesday’s 1.1% rise. Stocks again moved above the entry before closing just below. ANET stock traded down 1.4% on Wednesday.
Automaker and IBD SwingTrader stock General Motors is back above the 40.20 buy point of its tumbler with handle. The buy zone peaks at 42.21. GM stock fell 1.5% on Wednesday.
Chip foundry GlobalFoundries is trading in a buy range above a buy point of 66.06 in a cut basis after Tuesday’s 2.4% rise. GFS shares lost 3.6% on Wednesday morning.
IPO leader Mobileye continues to try to break decisively above the 29.96 buy point of an IPO base, according to IBD MarketSmith pattern recognition. The 5% pursuit zone peaks at 31.46. MBLY shares were down 0.3% on Wednesday morning.
Monday’s IBD 50 Stocks To Watch pick, Phillips 66, exceeds the 110.08 buy point of a cup base with handle. The stock is in the 5% buy zone, which rises to 115.58. PSX stock was down 0.9% in morning trading.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla Stock
Tesla stock rose 1.8% on Tuesday, continuing to rebound from last week’s 52-week low at 177.12. Still, the stock is more than 50% off its 52-week high and significantly below its 50- and 200-day moving averages.
Shares of the electric vehicle giant traded down 3% on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.2% on Tuesday, still topping their 50-day line after last week’s gains. The stock traded down 0.5% on Wednesday.
Microsoft rose slightly on Tuesday, still holding above its recently recovered 50-day line. The software giant remains around 30% off its 52-week high. Microsoft shares rose 0.1% on Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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