The Dow Jones Industrial Average briefly sold off more than 400 points Wednesday, as Wall Street awaited the Federal Reserve's Beige Book on economic conditions. Artificial intelligence giant Nvidia fell from record highs Wednesday, while Robinhood Markets jumped on the stock market today after the company announced a stock buyback.
After the opening bell, the Dow Jones Industrial Average lost 0.9%, while the S&P 500 fell 0.7%. The tech-focused Nasdaq composite dropped 0.5% in morning action.
Early Wednesday, the 10-year Treasury yield ticked higher to 4.57%. Oil prices climbed as West Texas Intermediate futures traded above $80 a barrel.
Among U.S. exchange traded funds, the Invesco QQQ Trust lost 0.5% and the SPDR S&P 500 ETF dropped 0.7%.
Robinhood stock rose nearly 1% after the trading platform unveiled a $1 billion share repurchase program. Shares closed Tuesday just below a 20.55 cup-base entry.
Stock Market Today: Fed Report Due
Due out at 2 p.m. ET, the Federal Reserve's Beige Book compiles evidence on economic conditions from the 12 Federal Reserve districts. This report on economic conditions is used at Fed meetings in which it sets interest rate policy.
Key earnings movers Wednesday include Abercrombie & Fitch, Cava, Chewy and Dick's Sporting Goods.
Abercrombie shares surged more than 18%, but Cava stock tumbled more than 8%. Chewy soared 21%, and Dick's stock advanced 15% in early trading.
Meanwhile, American Airlines dived more than 12% after the carrier cut its profit forecast for the current quarter, citing weakening pricing power despite expectations for record travel demand in the summer season. The stock is sinking further below its 200-day moving average.
ConocoPhillips will buy Marathon Oil in a $22.5 billion all-stock deal. Conoco shares fell 2% while Marathon jumped 10%.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Dow Jones Falls Tuesday
On Tuesday, the Dow Jones industrials dropped nearly 0.6%, while the S&P 500 inched higher. The Nasdaq composite gained 0.6%.
Investor's Business Daily's Big Picture column on Tuesday commented, "The (Nasdaq) showed bullish price action with another all-time high and a close above Thursday's high. But the invested percentage in the accompanying Market Pulse stays at 60%-80%. With most growth stocks still acting quite well, favoring the 80% side makes sense. Just keep in mind that there's a large number of extended stocks out there. Avoid the pitfall of chasing the strongest performers that are well past proper entries."
During Tuesday's IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market rally.
Now is an important time to read The Big Picture column amid the ongoing stock 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
Monday.com, Netflix and Crocs — plus Dow Jones components Apple, Merck and Microsoft — are among the best companies to watch on the stock market today.
Microsoft was featured in IBD's Stocks Near A Buy Zone column as it trades just below a 430.82 buy point.
In IBD MarketSurge's "Breaking Out Today" list, Apollo Global Management is trying to break out a 117.15 buy point. Check out the MarketSurge "Near Pivot" list for 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 Component Merck
Drug giant Merck is building a flat base that has a 133.10 entry, but shares took a tumble below their 50-day line Tuesday. The stock was slightly lower on the stock market today.
Recent IBD Stock Of The Day Crocs is moving further past a 146.79 buy point in a cup base, as shares rallied more than 4% Tuesday. Crocs stock dropped 1.2% Wednesday.
Outside the Dow Jones index, Monday.com is holding above a cup base's 239 buy point, despite recent losses, according to IBD MarketSurge. Shares fell 0.3% Wednesday morning.
Streaming giant Netflix edged higher Tuesday, further above the 639 cup entry but still in buy range. Netflix stock rallied more than 1% Wednesday.
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 |
|---|---|---|---|
| Microsoft | 430.82 | Flat base | |
| Netflix | 639 | Cup base | |
| Crocs | 146.79 | Cup base | |
| Taiwan Semiconductor | 148.43 | Double bottom |
Source: IBD Data As Of May 28, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Among Magnificent Seven stocks, Nvidia lost 1.4%, and Tesla moved down 0.1% on the stock market today.
Nvidia stock extended its recent gains, with a 7% surge Tuesday and shares were set to hit more record highs Wednesday morning. The company is an IBD Leaderboard stock. Last week, Nvidia stock topped a secondary buy point at 974, gapping up to new highs.
Tesla stock dropped 1.2% Tuesday, still holding above its 50-day line. Shares remains about 40% off their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple and Microsoft traded mixed after Wednesday's stock market open.
Apple stock edged up Tuesday, still forming a cup base that has a 199.62 buy point. Shares climbed 1% Wednesday.
Microsoft shares moved up a fraction Tuesday, to just below a flat base's 430.82 buy point, after a brief breakout attempt last week. Early Wednesday, Microsoft stock fell 0.2%.
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.
