The Dow Jones Industrial Average rallied 190 points Wednesday during the first trading session of November, ahead of the Federal Reserve's interest rate decision and Fed Chairman Jerome Powell's subsequent comments. Meanwhile, Paycom stock crashed after its quarterly earnings report.
Early Wednesday, ADP's employment report showed the U.S. economy added 113,000 jobs in October, below estimates for a 150,000 increase and up from September's 89,000 rise. ADP's report is a precursor to Friday's jobs report from the Labor Department.
CME's FedWatch survey on Tuesday showed zero chance of any rate hike when the Fed concludes its two-day meeting on Wednesday. In fact, the survey of fed funds interest rate speculators went so far as to show a 3% probability that the central bank will trim short-term rates — currently in a 5.25%-5.5% target range — by a quarter point.
The Fed decision is out at 2 p.m. ET.
On the earnings front, Wednesday's movers included Advanced Micro Devices, CVS Health, First Solar, Paycom Software, Wingstop and Yum Brands.
AMD stock rose nearly 2% in morning trade, while CVS shares fell 5%. First Solar shares rallied more than 5%, as PAYC stock plunged 37%. Finally, WING stock rose 2.1%, as Yum Brands inched higher in early action.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average rose 0.55%, while the S&P 500 moved up 0.75%. The tech-heavy Nasdaq composite gained 0.9% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust rose 0.9%, while the SPDR S&P 500 ETF moved up 0.7% early Wednesday.
The yield on the 10-year U.S. Treasury bond ticked lower to 4.78% Wednesday. On Tuesday, the benchmark settled at 4.87%.
Oil prices rebounded Tuesday morning, as West Texas Intermediate futures rose almost 3%, trading above $83 a barrel.
Stock Market Correction
On Tuesday, the Dow Jones Industrial Average moved up 0.4%, while the S&P 500 climbed 0.65%. The tech-heavy Nasdaq composite gained 0.5%, extending a win streak to three sessions.
Tuesday's Big Picture column commented, "The Nasdaq composite suffered its third straight monthly decline (for October). A 2.8% drop this past month to 12,851 sent the premier index for growth stocks 21% below its all-time high 16,212."
Now is an important time to read IBD's The Big Picture column, with the current outlook still in market correction status. Be sure to read how to handle a weak market environment.
Learn How To Time The Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
International Seaways, Lululemon Athletica, Arista Networks and Tradeweb Markets — as well as Dow Jones stocks Walmart and UnitedHealth — are among the best stocks to watch in the ongoing stock market correction.
International Seaways and LNW stock are recent IBD Stocks Of The Day. Lululemon and Walmart both featured in this Stocks Near A Buy Zone column.
Dow Jones Stocks To Watch
Dow Jones retail titan Walmart is tracing a cup-with-handle base with a 164.33 buy point, according to IBD MarketSmith chart analysis. WMT stock found support at its key 50-day line this week. WMT stock inched higher Wednesday.
Healthcare giant UnitedHealth is adding a handle to a massive consolidation, and showing a new buy point at 546.78. UNH stock dropped 0.8% Wednesday morning.
4 Top Growth Stocks To Watch In The Stock Market Correction
Stocks To Buy And Watch: Arista Breaks Out
International Seaways is trying to break out past a cup-with-handle's 48.40 entry, but gave up the buy point during Monday's sharp drop. INSW stock was unchanged Wednesday morning.
Lululemon climbed 0.4% Tuesday, still below a flat base's 406.94 buy point, according to IBD MarketSmith pattern recognition. Wait for another sustained move past that entry as a buy signal. LULU stock was down 0.6% Wednesday morning.
Arista Networks surged 14% Tuesday, breaking out past a consolidation's 198.70 buy point. Shares closed just above the entry. Keep in mind the market correction should keep you from buying breakout stocks. ANET stock traded slightly higher Wednesday morning.
Tradeweb broke out of a flat base's 87.53 buy point Thursday after the company's third-quarter earnings. TW stock added 1.45% Tuesday and is showing unusual strength in a weak environment. TW stock was up 0.5% in early trades Wednesday.
Best Stocks In Today's Stock Market Action
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| International Seaways | 48.40 | Cup with handle | |
| UnitedHealth | 546.78 | Handle entry | |
| Arista Networks | 198.70 | Consolidation | |
| Tradeweb Markets | 87.53 | Flat base |
Source: IBD Data As Of Oct. 31, 2023
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Magnificent Seven Stocks: Amazon, Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla traded down 0.8% Wednesday, while Amazon and Nvidia gained 1.8% and 1.9%, respectively. Meanwhile, Dow Jones tech icons Apple and Microsoft traded higher after today's stock market open.
Amazon made a bullish move back above its 50-day line this week. Shares are approaching an early entry at 134.48.
Graphics-chip giant Nvidia slashed losses to 0.9% Tuesday, ending a two-day rally. On Tuesday, shares hit their lowest level since mid-June before rebounding.
Tesla stock bounced 1.8% Tuesday, recovering a part of Monday's dive. Shares remain below their 200-day line after giving up that key level in recent sessions. Shares are more than 30% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple added 0.3% Tuesday, extending a win streak to three sessions. Shares are stemming their recent slide around the 200-day line, but are still below that level. Apple delivers its fiscal fourth-quarter report late Thursday. AAPL stock rose 0.6% Wednesday morning.
Microsoft stock tacked on 0.2% Tuesday, adding to Monday's gains. Shares are finding support around their 50-day line and moving closer to an early buy trigger at 346.20. MSFT stock gained 2.2% early Wednesday.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
