The Dow Jones Industrial Average fell Wednesday morning, as the major stock indexes paused after Tuesday's stock market rally.
Investors will get a host of views Wednesday on the Federal Reserve's strategy and outlook. Federal Reserve Board governors Lisa Cook and Chris Waller, as well as New York Federal Reserve Bank President John Williams, President Raphael Bostic of the Atlanta Federal Reserve and the Minneapolis Federal Reserve's Neel Kashkari are all due to speak during the session.
Meanwhile, corporate earnings results continue, with reports from Chipotle Mexican Grill, Fortinet, New Relic, Paycom Software, Uber Technologies and Vertex Pharmaceuticals.
CMG shares sank more than 5% after the burrito maker missed earnings and sales targets. New Relic reported quarterly results that soundly beat estimates on the top and bottom lines and shares soared 20%.
Fortinet shares surged 12% after the cybersecurity leader topped earnings estimates. The firm's 2023 revenue and billings guidance also beat expectations. And Paycom stock dropped more than 2% despite beating top- and bottom-line estimates.
Uber shares jumped more than 7% after delivering an upbeat outlook for the current quarter. Finally, Vertex shares dropped 2% after the biotech offered an upbeat outlook Tuesday for its bread-and-butter cystic fibrosis medicines, but sales just met forecasts.
Disney earnings are due out after the close Wednesday.
Stock Market Today
Electric-vehicle leader Tesla traded up 2% Wednesday morning, while Dow Jones tech giants Apple and Microsoft were up and down after today's stock market open.
IBD Leaderboard stock Visteon, Etsy and Wingstop — as well as Dow Jones stocks Caterpillar and JPMorgan Chase — are among the top stocks to buy and watch, with the ongoing strength of the market rally.
Visteon is an IBD Leaderboard stock. Etsy was a recent IBD Stock Of The Day. Caterpillar was featured in this week's Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday's opening bell, the Dow Jones Industrial Average lost 0.1%, and the S&P 500 moved down 0.3%. The tech-heavy Nasdaq composite fell 0.5% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 0.4% and the SPDR S&P 500 ETF fell 0.5% early Wednesday.
The 10-year U.S. treasury yield extended a win streak to three sessions Tuesday, settling at 3.67% after Fed Chair Jerome Powell's interview with Carlyle Group Co-Chairman David Rubenstein. The 10-year yield ticked lower to 3.66% Wednesday morning.
Oil prices further rebounded Wednesday morning after a second-straight gain Tuesday. West Texas Intermediate futures trade just below near $78 a barrel, right above their 50-day line. The Energy Information Administration's weekly oil inventories are due out at 10:30 a.m. ET.
Stock Market Rally
On Tuesday, the Dow Jones Industrial Average climbed 0.8%, and the S&P 500 rallied 1.3%. Meanwhile, the Nasdaq composite advanced 1.9%, finishing at session highs.
Tuesday's The Big Picture column commented, "Stock market indexes ignored cautionary comments on rate hikes from Fed Chair Jerome Powell on Tuesday, after Friday's blowout labor report, and raced back toward weekly highs. Visions of former Chair Alan Greenspan's 'irrational exuberance' comment came to mind as market players bought tech stocks aggressively into the closing bell."
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: JPMorgan
Top Dow Jones stock Caterpillar is back in buy range above a 239.85 flat-base entry, as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. Shares were down 0.7% Tuesday. CAT stock dropped 0.9%Wednesday morning.
Banking giant JPMorgan is in the 5% buy range above a 138.76 flat-base buy point after a 1.2% gain Tuesday. The 5% buy zone tops out at 145.70. JPM shares traded down 0.9% early Wednesday.
JPM stock shows a strong 95 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Visteon, Etsy, Wingstop
IBD Leaderboard stock Visteon rallied 1.2% Tuesday, still in buy range above a 152.20 cup buy point. VC stock boasts a perfect 99 IBD Composite Rating. Visteon shares were off 1.1% Wednesday.
Backstory: The Detroit firm is a leading supplier of automotive parts for vehicle manufacturers. It specializes in ride performance and clean air products and systems. Ford and General Motors are major customers. Earnings are due out Feb. 16.
Etsy continues to hang just out of buy range past a 137.01 buy point in a cup with handle amid a 0,3% rise Tuesday. The 5% buy area topped out at 143.86. Etsy stock was down 0.6% early Wednesday.
Backstory: The company is a provider of an online e-commerce platform where creators of arts and crafts, vintage items and other unique goods go to sell their products. It has a unique business model that, in the last few years, has gone from a niche e-commerce marketplace to a top-of-mind shopping destination across numerous categories.
Wingstop is approaching a 170.97 buy point in a lopsided cup base, rising 0.9% Tuesday. Keep an eye out for a potential handle to offer a lower entry. WING stock was down 2.4% Wednesday morning, even after Wedbush reiterated an outperform rating, with an unchanged price target of 177.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the U.S. and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Columbia, Panama, Singapore and the U.K. The company added a net 40 stores in the prior quarter. Earnings are due out Feb. 22.
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Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Monster | 104.75 | Flat base | |
| Visteon | 152.20 | Cup base | |
| Caterpillar | 239.95 | Flat base | |
| Etsy | 137.01 | Cup with handle | |
| JPMorgan | 138.76 | Flat base | |
| Wingstop | 170.97 | Cup base |
Source: IBD Data As Of Feb. 8, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock climbed another 1.05% Tuesday, extending a win streak to six sessions and closing at its highest level since Nov. 7. Despite their strong rebound since Jan. 6, shares are still below the 200-day line. And Tesla stock closed Tuesday about 49% off its 52-week high.
Shares looked to add to Tuesday's gains, climbing 2% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rallied 1.9% Tuesday, snapping back from Monday's sharp decline. Shares remain around 14% off their 52-week high and are moving up the right side of a new base. Apple stock traded down 0.4% Wednesday.
Microsoft stock jumped 4.2% Tuesday, ending a two-day slide. Shares are rebounding from their 200-day line and are about 15% off the 52-week high. Microsoft shares were up 2.4% early Wednesday after a number of analyst price-target hikes. JP Morgan upped its price target from 265 to 305, while Oppenheimer raised its price target from 265 to 280.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
