The Dow Jones Industrial Average fell on Wednesday, extending losses after a tough session on Tuesday. The 10-year government bond yield jumped ahead of this afternoon’s release of minutes from the Federal Open Market Committee meeting in March.
Simply good food (SMPL) reported its quarterly results ahead of Wednesday’s opening. Simply Good shares fell 1% in morning trading.
Among the Dow Jones executives, Microsoft (MSFT) and Salesforce.com (CRM) led to the early declines, down about 1.5% apiece. Apple (AAPL) fell more than 1% in today’s stock market. Chevron (CVX) spearheaded the industrial sector, a 1% increase as oil prices rose higher.
Electric car giant Tesla (TSLA) slipped nearly 2% early Wednesday, adding to Tuesday’s heavy losses.
As the stock market’s upward trend runs into increasing turbulence, the Dow Jones is the financial leader American Express (AXP) – together with Alphabet (GOOGL), Broadcom (AVGO), IBD Leaderboard stock Dear ingredients (BUT), Regeneron Pharmaceuticals (RAIN) and Shall (SHEL) – are Wednesday’s best stocks to buy and see.
Arista, Microsoft and Tesla are IBD Leaderboard shares. Darling Ingredients and Tesla shares were shown in this week’s Stocks columns near a buy zone.
Dow Jones today: government interest rates, oil prices, Fed protocols
After Wednesday’s opening, the Dow Jones Industrial Average lost 0.85% and the S&P 500 fell 1.2%. The technology-heavy Nasdaq sold from 2% in morning trading.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) lost 1.3% and the SPDR S&P 500 ETF (SPY) fell 1% after Wednesday’s opening.
On Tuesday, the 10-year US government bond yield rose to 2.55%, reaching a new 52-week high. Federal Reserve Governor Lael Brainard, who is widely considered one of the more dove-like members of the Fed, said she expects rapid reductions in the Fed’s inflated balance sheet starting as early as May.
10-year interest rates continued higher on Wednesday morning, hopping to 2.64%, the highest level since March 2019. Meanwhile, US oil prices rose more than 1% on Wednesday morning, with West Texas Intermediate crude moving back above 103 USD pr. barrel.
The minutes of the Federal Reserve’s political meeting in March will be sent out at 14.00 ET Wednesday. On March 16, the Federal Reserve raised its key interest rate for the first time since 2018. Politicians revealed their expectation of a total of seven quarter-point rate hikes this year and at least three more in 2023.
Fed chief Jerome Powell said at his news conference after the meeting that the minutes will present the parameters of the Fed’s balance sheet tightening, the settlement of its $ 4.5 trillion purchase in assets during the pandemic.
Stock market rally
On Tuesday, the stock market showed a disappointing development when the Nasdaq composite sold 2.3 percent.
The Big Picture column commented: “The stock ended solidly in red on Tuesday when Wall Street received another reminder that the Federal Reserve is keen to fight inflation aggressively with rate hikes and balance sheet reductions.”
If you are new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is a key to investing guidelines. IBD offers a wide range of growth stock lists, such as Leaderboard and SwingTrader.
Investors can also create watchlists, find companies approaching a point of purchase, or develop custom displays at IBD MarketSmith.
Four Dow Jones shares to see now
Dow Jones shares to buy and see: American Express
Dow Jones financial stock American Express tracks a cup with handles with a buy point of 194.45. Shares fell 1.2% on Tuesday, closing just above the 50-day moving average line. AXP shares fell 0.3% on Wednesday morning.
Keep an eye on the stock’s relative strength line. In the midst of its recent ascent, the RS line is approaching its old heights, but there is some work on the way ahead of a potential eruption. The RS line measures a share price development relative to the S&P 500. The RS line should reach a new high on the breakout day or shortly thereafter to confirm the strength of the share breakout.
Four Top Growth Stocks to Buy and View in Currongoing stock market rally
Shares to buy and view: Alphabet, Broadcom, Darling, Regeneron, Shell
Tuesday’s IBD 50 Stocks To Watch range, Alphabet, is approaching a buying point of 2,875.97 in a cup with handles, according to IBD MarketSmith chart analysis. GOOGL shares are just 1% off the entry amid Tuesday’s loss of 1.2%. FANG stock fell 1.5% Wednesday morning.
Broadcom fell 3.3% on Tuesday as the chip stock continues to hold above an early entry of 614.74. Shares have introduced a new buy point, a handle entry of 645.41. AVGO shares fell 1.5% on Wednesday morning.
IBD Leaderboard stock Darling Ingredients ended Tuesday just below a buy point of 80.31 cup-with-handles. The stock fell 2.5% Wednesday morning.
Biotechnology leader Regeneron Pharmaceuticals remains in the buying territory over a 673.96 flat base in the wake of a March 16 breakout move. RAIN stocks tested the buy point on March 23, before regaining the buy point on March 24. The 5% buy zone tops at 707.66. The stock was flat on Wednesday.
Oil and gas producer and Friday’s IBD Stock Of The Day, Shell, are within striking distance of a flat base’s 56.23 buying point despite Tuesday’s drop of 1.6%. The stock rose 1% Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla shares slipped more than 2% early Wednesday, threatening to increase Tuesday’s fall of 4.7%. Shares in the EV giant are approaching a cupbase’s 1,208.10 buy points and are about 10% off the most recent entry. Meanwhile, Tuesday’s weakness could be the start of a proper handle that would offer a more risk-optimal approach.
The stock traded as high as 1,243.49 on November 4 and closed about 12% off the record high on Tuesday.
Dow Jones executives: Apple, Microsoft
Among Dow Jones shares, Apple shares fell 1.9% on Tuesday and fell below a double-bottomed buy point of 176.75. The buying range of 5% goes up to 185.59. AAPL stock fell more than 1% early Wednesday.
Software leader Microsoft fell 1.3% on Tuesday as stocks continue to build the right side of a new base formation. Microsoft shares traded 1.5% lower on Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top growth stocks to buy and see
Learn how to time the market with IBD’s ETF market strategy
Find the best long-term investments with IBD long-term leaders
MarketSmith: Research, charts, data and coaching in one place
How to research growth stocks: Why this IBD tool simplifies the search for top stocks%