The Dow Jones Industrial Average and other major indexes traded lower Wednesday after critical employment reports, with minutes from the latest Federal Reserve meeting due later in the day. Nvidia bounced from a key level in morning trading following Tuesday's plunge.
After the opening bell, the Dow Jones Industrial Average fell 0.4%, as the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite moved down 0.1% in morning trades.
Early Wednesday, the 10-year Treasury yield ticked higher to 4.71%. Oil prices continue to hold at their highest levels since mid-October, with West Texas Intermediate futures trading around $74.80 per barrel.
Among exchange traded funds, the Invesco QQQ Trust fell 0.1%, as the SPDR S&P 500 ETF fell 0.2% after the open.
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Nvidia briefly touched record highs Tuesday before reversing lower and plunging more than 6%. Shares gave up a 146.54 buy point out of a double-bottom base.
The artificial intelligence chip leader bounced 1.8% Wednesday morning, looking to find support at the 50-day moving average, a key level to watch.
Labor-market data was mixed early Wednesday.
ADP's employment report showed that private payrolls increased by 122,000 in December, below estimates. They were expected to rise by 134,000 in December, down slightly from November's 146,000 gain, according to Econoday estimates.
The Labor Department's weekly unemployment claims unexpectedly fell to 201,000. They were expected to rise to 216,000 vs. 211,000 in the previous week, per Econoday.
Later in the session, Fed minutes from the latest policy meeting are expected at 2 p.m. ET. The minutes are expected to provide insight into Fed Chair Jerome Powell's thinking, as well as that of other Fed policymakers, on the path of future interest rates.
Also, the stock market will be closed Thursday in honor of former President Jimmy Carter.
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Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average declined 0.4%, while the S&P 500 lost 1.1% and the Nasdaq sold off 1.9%.
Among the best companies to watch in the current stock market are Boston Scientific, Fortinet, Interactive Brokers Intuitive Surgical and Netflix.
Dow Jones components making notable moves were Amazon.com, Apple, American Express and Microsoft.
American Express is featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: American Express Nears Buy Point
Dow Jones component American Express is building a flat base that offers a 307.82 buy point, according to MarketSurge pattern recognition. Shares edged down Wednesday.
Outside the Dow Jones index, Boston Scientific is breaking out past a flat base's 91.93 entry. Shares moved up 3.9% Wednesday.
Cybersecurity leader Fortinet is trying to break out past a flat base's 100.59 buy point. Shares were down 0.8% Wednesday morning.
Interactive Brokers is just below a flat base's 193.42 entry. The stock edged lower Wednesday.
Intuitive Surgical reversed down 1.9% Tuesday, snapping a three-day win streak. Intuitive stock rose 0.1% Wednesday.
Streaming giant Netflix edged lower Tuesday, holding above its key 50-day line. It was Tuesday's IBD Stock Of The Day. Netflix stock moved down 0.1% in early action Wednesday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Interactive Brokers | 193.42 | Flat base | |
| Disney | 118.63 | Cup with handle | |
| TSMC | 205.63 | Cup with handle | |
| Fortinet | 100.59 | Flat base |
Source: IBD Data as of Jan. 7
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Tesla Stock
Tesla stock skidded 4.1% Tuesday, still holding above last week's lows. Shares are more than 19% off their all-time high, which was set on Dec. 18.
The electric-vehicle giant looked to bounce back from those losses Wednesday, as it rose 0.7% in morning trading.
Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which fell 2.4% Tuesday. Amid its recent move into new highs in mid-December, the e-commerce giant is sharply extended above a 201.20 buy point. It rose 0.2% Wednesday.
Shares of Apple tumbled back into buy range above a flat base's 237.49 entry during recent losses. They sold off 1.1% Tuesday and fell another 0.5% early Wednesday.
Microsoft shares climbed 0.7% Wednesday morning, but still closed squarely below their 50-day and 200-day lines Tuesday. The software giant is building a cup with handle that has a 456.16 buy point.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
