The Dow Jones Industrial Average rose on Wednesday ahead of minutes from the Federal Reserve’s latest policy meeting. Tesla shares rose after Citigroup upgraded the EV giant.
Prior to the release of the Fed’s minutes at 2:00 PM ET, consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new home sales are due in the morning. The stock market will be closed Thursday for the Thanksgiving holiday, followed by reduced trading on Friday.
Initial jobless claims, released at 8:30 a.m. ET, jumped to 240,000 from 222,000 in the previous week. Meanwhile, durable goods rose 1% in October, more than the Econoday estimate of 0.4%. The services PMI came in at 46.1, below the estimate of 48.0, and the manufacturing PMI came in at 47.6, below the estimate of 50.0.
Autodesk (ADSK), HP (HPQ) and Nordstrom (JWN) reported earnings late Tuesday, doc Deere (DE) earnings came out Wednesday morning.
Autodesk shares fell 9%, while HPQ shares fell 3.5% in early morning trade. Nordstrom shares fell 9.5 percent. Deere shares jumped 3% in morning trade.
The giant of electric vehicles Tesla ( TSLA ) traded up 4% Wednesday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were higher after the stock market opened today.
Stock IBD Leaderboard Arista network (MESH), KLA (KLAC), Shoals Technologies (SHLS) and Ulta beauty (ULTA) — as well as the name Dow Jones Caterpillar (CAT) — are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard Stock and was recently IBD Stock of the Day. Ulta Beauty is featured in this week’s Stocks Near the Buy Zone column. Shoals was an IBD 50 Stocks To Watch pick on Thursday.
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Dow Jones today: oil prices, government bond yields
After the opening bell on Wednesday, the Dow Jones Industrial Average rose 0.4%, while the S&P 500 rose 0.5%. The technology-rich Nasdaq composite rose 0.7% in morning action.
China-linked stocks showed early gains after news reports said the State Council had announced pending stimulus measures, including a cut in reserve requirements for Chinese banks.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.7% early Wednesday and the SPDR S&P 500 ETF ( SPY ) gained 0.5%.
The yield on 10-year government bonds fell to 3.7% on Wednesday morning.
Oil stocks were under some pressure as oil prices retreated after Tuesday’s recovery. West Texas Intermediate futures fell more than 3% to below $79 a barrel, even after industry data showed U.S. crude inventories fell more sharply than expected last week. Official weekly oil inventory data is due from the EIA at 10:30 am ET.
Natural gas stocks got a boost as gas prices continued to rise. U.S. natural gas futures jumped nearly 7% after Russia warned after Russia accused Ukraine of stealing gas from a pipeline and threatened to cut supplies on Russia’s last remaining supply line to Europe.
Gathering of the stock market
On Tuesday, the stock market recorded solid gains. The S&P 500 and the Nasdaq composite each gained 1.4%. The Dow Jones Industrial Average rose 1.2 percent.
Tuesday’s The Big Picture commented, “While it’s okay to put money in the current stock market, keep your exposure on the conservative side with small positions to start. Just because the stock market is in a confirmed uptrend doesn’t mean you have to be 100% invested. And don’t be afraid to get 10% if you have it, given the volatile nature of the market.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Five Dow Jones stocks you can buy and watch right now
Dow Jones stocks to buy and watch: Caterpillar
Caterpillar, a member of the Dow Jones, is close to retrieving a buy point of 238 buys, according to IBD MarketSmith pattern recognition, and is less than 1% below the intake. CAT gained 0.1% on Wednesday, trading higher along with Deere. The stock is still below its buy point.
CAT stock boasts an impressive 95 out of a perfect 99 IBD Composite Rating, according to IBD Stock Checkup.
4 stocks with the highest growth to watch in the exchange raterent Gathering of the stock market
Best stocks to buy and watch: Arista, KLA, Shoals, Ulta
IBD Leaderboard Arista Networks shares moved further above a volatile core buy point of 132.97 after rising 1.1% on Tuesday. ANET shares rose 0.1% on Wednesday.
KLA is closing in on a 392.60 cup-lunch buy point amid Tuesday’s 2.7% rise. Overall, the stock’s relative strength line hit a new high last week, a sign of a big outperformance against the S&P 500. Shares of KLAC fell 0.5% on Wednesday.
Shoals Technologies is still out of buy range above the 28.57 buy point after Tuesday’s third straight decline. The 5% buy zone tops out at 30. Wait for an orderly pullback into the buy range before considering buying the stock. Shares of SHLS rose 1% early Wednesday.
Ulta Beauty broke out of buy range on Tuesday, rising nearly 2%. The 5% buy zone after the 426.99 buy point in the cup with handle goes to 448.34. On December 1, Ulta announced its third quarter results. Shares fell 0.3% on Wednesday.
Join IBD experts as they analyze the leading stocks in the stock market’s current rally on IBD Live
Tesla shares rose 1.2% on Tuesday, snapping a four-day losing streak that saw the stock hit its lowest level since Nov. 23, 2020. The stock hit a new 52-week low of 167.54 on Monday. Tesla shares are about 57% off their 52-week high and sharply below their 50- and 200-day moving averages.
Shares of the EV giant rose 4% on Wednesday morning after Citigroup upgraded the stock from sell to neutral, raising its price target to 176 from 141.33.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares recovered 1.5% on Tuesday and are still holding above their recently recaptured 50-day mark. The stock is about 20% off its 52-week high. Shares rose 0.8% on Wednesday, as Foxconn workers clashed with police. Foxconn is the largest iPhone factory in China.
Microsoft rose 1.2% on Tuesday, adding to Monday’s gains. The stock continues to hold above the 50-day mark. The software giant remains more than 30% off its 52-week high. Microsoft shares rose 0.6% Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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