The Dow Jones Industrial Average dropped, while the other major stock indexes advanced Wednesday, as Wall Street braced for a Federal Reserve interest-rate decision and Fed Chairman Jerome Powell's comments. Three of the early movers on the stock market today were software giant Microsoft, chip leader Advanced Micro Devices and artificial intelligence giant Nvidia.
After the opening bell, the Dow Jones Industrial Average lost 0.1%, while the S&P 500 rallied 1.2%. The tech-focused Nasdaq composite jumped 1.9% in morning action.
Early Wednesday, the 10-year Treasury yield edged lower to 4.1%. Oil prices jumped, with West Texas Intermediate futures trading around $77.15 a barrel.
Among exchange traded funds, the Invesco QQQ Trust was up 1.9%, while the SPDR S&P 500 ETF gained 1.2% after the open.
On Wednesday morning, Nvidia stock, an IBD Leaderboard name, surged 9% after Morgan Stanley moved the AI stock back to "Top Pick" status, keeping an overweight rating with a 144 price target. Morgan Stanley said the recent sell-off presents a good entry point, with strong data points in both the short term and long term, along with overblown competitive concerns.
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: Rate Decision, Powell
The Fed's highly anticipated interest-rate decision is due at 2 p.m. ET Wednesday, followed by Fed Chief Powell's comments. Markets see just a 4.1% chance of a rate cut on Wednesday, according to CME Group's FedWatch tool.
But first, the employment report from ADP said that the U.S. economy added 122,000 jobs in July, down from June's 150,000 addition and below estimates that called for 154,000 jobs.
Microsoft edged above Wall Street's targets for the fiscal fourth quarter. But Microsoft stock sold off nearly 1% in morning trading as Azure cloud-computing growth disappointed.
AMD stock jumped 8.9% Wednesday after the chip leader beat analyst estimates for the second quarter thanks to record sales of processors for data centers. It also predicted sales above views for the current quarter.
Other key earnings movers Wednesday include Arista Networks, Boeing, Pinterest, Stryker
Arista shares rallied more than 8% in early trading, while Boeing gained more than 0.3%. Pinterest stock plunged more than 7%, as Stryker lost more than 2% in early action.
Adjust To Changing Market Conditions, With IBD's New Exposure Levels
Dow Jones Rebounds
On Tuesday, the Dow Jones Industrial Average moved up 0.5%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite sold off 1.3%.
During Tuesday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Badger Meter, GE Aerospace, ServiceNow and Spotify.
Also on the list are Dow Jones components Amazon, American Express, Apple, IBM and Microsoft.
IBD MarketSurge's Breaking Out Today list included Howmet Aerospace, which topped a 85.52 cup-base buy point. Shares added 1.1% Wednesday morning.
Check out the MarketSurge "Near Pivot" list for more stocks nearing buy points in bases. To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express, IBM
Among Dow components, payments giant American Express moved further above a flat base's 244.41 entry following Tuesday's gains, according to MarketSurge pattern recognition. Shares ticked up 0.4% Wednesday.
Meanwhile, IBM staged a breakout last week following the company's earnings report and shares are above a 189.47 cup-with-handle entry. IBM stock was down 0.4% early Wednesday.
Outside the Dow Jones index, Badger Meter fell below a 202.81 entry in a flat base on Tuesday. Shares were up 1.4% Wednesday morning.
GE stock's recent breakout past a 170.80 buy point remains under pressure and is below the entry. Shares rose 2.3% early Wednesday.
ServiceNow surged last week on second-quarter earnings results, topping a 806.52 handle entry but is back under that buy trigger. ServiceNow rebounded 2% early Wednesday.
Finally, music streaming platform Spotify closed just below a flat base's 331.08 buy point following a recent breakout move. And on Wednesday morning, Spotify stock moved up 1.6%.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today's stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Tenet Healthcare | 142.35 | Flat base | |
| KB Home | 74.66 | Flat base | |
| ServiceNow | 806.52 | Handle entry | |
| Newmont | 44.59 | Flat base |
Source: IBD Data as of July 25
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Tesla
Magnificent Seven stock Tesla rose 2.8% in morning trading.
Tesla stock skidded 4.1% Tuesday, giving up most of Monday's rally.
Dow Jones Leaders: Amazon, Apple
Among Dow Jones components in the Magnificent Seven, Amazon and Apple traded higher after Wednesday's stock market open.
Amazon triggered the 7% loss rule last week after falling well below a 191.70 buy point in a flat base. Shares are also below their 50-day line. Amazon stock added 1.9% Wednesday.
Apple stock inched higher Tuesday, but still it remains squarely off its record high, which was set on July 15. Shares gained 1.4% Wednesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
