The Dow Jones Industrial Average fell Wednesday, as Fed Chair Jerome Powell warned of two more rate hikes this year at a European Central Bank forum in Portugal. Chip giant Advanced Micro Devices and Nvidia sold off after the Wall Street Journal reported the Biden administration is considering new restrictions on exports of artificial intelligence chips to China.
Powell joined in a European Central Bank discussion expected to focus on managing inflation where he reiterated that most policymakers expects two more rate hikes this year. Later Wednesday, he holds a public chat with the governor of the Bank of Spain.
Two weeks ago, the Federal Reserve skipped a rate hike but signaled that its key interest rate will likely rise in July and again after that. As such, investors expect an more-than-74% chance of a rate hike in the upcoming July meeting.
Early Wednesday, AeroVironment, General Mills and Jefferies were key earnings movers.
AVAV stock jumped more than 6%, while General Mills shares declined 4.4% in morning trade. Jefferies stock moved up 1% in morning action.
Stock Market Today
AMD stock slid more than 2%, while Nvidia shares dropped 2.1% in early trade. Electric-vehicle giant Tesla added 2.1% Wednesday morning following Tuesday's rebound.
Dow Jones tech giants Apple and Microsoft were mixed after today's stock market open.
Other stock market leaders in the stock market rally include Alphabet and Meta Platforms. Google stock fell 0.9%, while Meta shares lost 0.6% in morning trade.
Chipotle Mexican Grill, McKesson, MongoDB and Lam Research — as well as Dow Jones stocks JPMorgan Chase, Merck and Salesforce — are among the best stocks to watch in the ongoing stock market pullback.
Tesla is an IBD Leaderboard stock, Floor & Decor remains an IBD SwingTrader stock, while MongoDB is 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 fell 0.4%, while the S&P 500 lost 0.35%. The tech-heavy Nasdaq composite dropped 0.2% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust traded down 0.5%, while the SPDR S&P 500 ETF moved down 0.3% early Wednesday.
The 10-year U.S. Treasury yield ticked lower to 3.74%. The yield recently has bobbed in a range between 3.57% and 3.85%. It settled higher Tuesday at 3.76%.
Oil prices rebounded modestly Wednesday morning, still holding near their recent lows after Tuesday's losses. West Texas Intermediate futures gained 0.5%, to around $68 a barrel.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average climbed 0.6%, while the S&P 500 gained 1.15%. The tech-heavy Nasdaq composite advanced 1.65%.
Tuesday's Big Picture column commented, "The show of strength after the recent pullback was encouraging. The Nasdaq composite ended the day with a meaty 1.7% gain. The tech-heavy index powered up from its 21-day exponential moving average and closed just shy of the 10-day line."
Now is an important time to read IBD's The Big Picture column as the stock market remains in an uptrend but is pulling back.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: JPMorgan, Merck, Salesforce
Dow Jones banking leader JPMorgan is about 3% below a 143.37 flat-base buy point after Tuesday's slight rise. Shares are right at their 50-day line, as they inched higher Wednesday.
Drug giant Merck is forming a flat base with a 119.65 buy point, as the stock rose 0.2% Tuesday, still under the 50-day line. MRK stock dipped 0.1% Wednesday.
Salesforce managed to steady itself after slumping following earnings. It is now testing support at the 50-day line. The megacap tech previously moved past a pair of alternative entries at 194.01 and at 200.10, according to IBD Leaderboard analysis.
In recent weeks, shares reached the 20% profit zone from a 178.94 cup-with-handle entry. CRM stock fell 0.5% Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Chipotle, McKesson, MongoDB, Lam Research
IBD Leaderboard watchlist stock Chipotle is testing support at its 10-week line and building a flat base with a 2,139.88 buy point, according to IBD MarketSmith pattern recognition. An early entry at 2,092.51 is also in play due to a trendline. Chipotle was a recent IBD Stock Of The Day. CMG stock rose a fraction Wednesday morning.
IBD SwingTrader stock McKesson is in buy range past a 401.53 cup-with-handle entry. The 5% buy zone goes up to 421.61. Shares were slightly lower Wednesday.
MongoDB is trading tightly after its recent earnings-fueled gap up, offering a new entry. The three-weeks-tight formation shows a buy point at 398.89, while aggressive investors could use a trendline entry around 386. MDB stock rose 0.2% Wednesday morning.
Lam Research moved above a 615.80 early buy point Monday after a 1.9% rally. And shares topped a three-weeks-tight pattern with a 630.72 entry during Tuesday's advance. LRCX stock lost 1.5% Wednesday.
Learn How To Time The Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Rally
These are four best stocks to buy and watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| ASML | 683.18 | Cup with handle | |
| Salesforce | 200.00 | Consolidation | |
| Cloudflare | 66.20 | Double bottom | |
| Roku | 75.45 | Cup with handle |
Source: IBD Data As Of June 28, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
IBD Leaderboard stock Tesla raced 3.8% higher Tuesday, bouncing back after two straight days of losses. Despite recent losses, Tesla shares remain sharply out of buy range beyond a double-bottom's 207.79 buy point.
TSLA stock looked to add to Tuesday's gains, rising 2.1% Wednesday.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock hit another record high Tuesday, trading as high as 188.39. Shares continue to hold sharply above a 157.38 buy point. Early Wednesday, AAPL stock was down 0.1%.
Microsoft shares rebounded 1.8% Tuesday, recovering from Monday's drop. On June 16, MSFT stock hit an all-time high at 351.47. In recent weeks, the stock reached the 20% to 25% profit zone from a 276.76 flat-base buy point, so investors could have taken at least some profits there. And on Wednesday morning, Microsoft shares were up 0.2%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
