The Dow Jones Industrial Average surged Wednesday ahead of the Federal Reserve’s latest policy meeting minutes. Shares of Tesla surged after Citigroup upgraded the EV giant.
Before the Fed minutes are released at 2 PM ET, consumer sentiment, durable goods orders, first-time jobless claims, Purchasing Managers Index readings and new home sales are expected to come out tomorrow morning. The stock market will be closed on Thursday for the Thanksgiving holiday, followed by a shortened trading session on Friday.
Initial jobless claims, posted at 8:30 a.m. ET, jumped to 240,000 from 222,000 the previous week. Meanwhile, durable goods climbed 1% in October, topping the Econoday estimate of 0.4%. The services PMI measured 46.1, below the 48.0 estimate, and the manufacturing PMI came in at 47.6, below the 50.0 estimate.
Autodesk (ADSK), hp (HPQ) e Nordstrom (JWN) reported earnings late Tuesday, while Deere (DE) earnings were released on Wednesday morning.
Autodesk shares tumbled 9%, while HPQ shares fell 3.5% in morning trade. Nordstrom shares tumbled 9.5%. And Deere shares were up 3% in morning trading.
The electric vehicle giant Tesla (TSLA) was up 4% Wednesday morning. Dow Jones technology leaders Apple (AAPL) e Microsoft (MSFT) were higher after today’s stock market open.
IBD leaderboard stock Arista Networks (A NETWORK), KLA extension (KLAC), Shoals Technologies (SHLS) e Ulta Beauty (ULTA) — as well as the Dow Jones name caterpillar (CAT) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was a recent IBD Stock of the Day. Ulta Beauty was featured in this week’s Stocks Near A Buy Zone column. Shoals was Thursday’s IBD 50 Stocks To Watch pick.
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Dow Jones today: oil prices, treasury yields
After Wednesday’s opening bell, the Dow Jones Industrial Average was up 0.4%, while the S&P 500 was up 0.5%. The tech-heavy Nasdaq Composite traded 0.7% higher in the morning action.
China-related stocks showed initial strength after reports said the State Council had announced pending stimulus measures, including a cut in the reserve requirement ratio for Chinese banks.
Among exchange-traded funds, Invesco Nasdaq 100 tracker QQQ Trust (QQQ) was up 0.7% early Wednesday and SPDR S&P 500 ETF (SPY) gained 0.5%.
The 10-year Treasury yield fell to 3.7% on Wednesday morning.
Oil inventories have come under some pressure as oil prices rebounded after a rebound on Tuesday. West Texas Intermediate futures fell more than 3 percent to below $79 a barrel, even after industry data showed U.S. crude inventories fell more sharply than expected last week. Official weekly oil inventory data is expected out of the EIA at 10:30 AM ET.
Natural gas inventories have received a boost as gas prices have continued to rise. US natural gas futures jumped nearly 7% after Russia warned after Russia accused Ukraine of stealing gas from a pipeline and threatened to cut deliveries on last supply line remained from Russia to Europe.
Stock market rebound
The stock market posted solid gains on Tuesday. The S&P 500 and the Nasdaq Composite each gained 1.4%. The Dow Jones Industrial Average rose 1.2%.
The Big Picture on Tuesday commented: “While it’s fine to put money to work in the current stock market, keep your exposure on the conservative side with small positions to start with. Just because the stock market is in a confirmed uptrend doesn’t it means you need to be 100% invested, and don’t be afraid to make a 10% return if you have it, given the volatile nature of the market.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Five Dow Jones stocks to buy and watch now
Dow Jones Stocks to Buy and Watch: Caterpillar
Dow Jones member Caterpillar is close to regaining the 238 buy points of its cup base, according to IBD MarketSmith pattern recognition, and is less than 1% below the heading. CAT gained 0.1% on Wednesday, trading higher along with Deere. The shares are still below their buy point.
CAT stock boasts an impressive 95 out of a perfect 99 IBD Composite Rating, according to IBD Stock Control.
4 growing stocks to watch in the current stock market rally
Top Stocks to Buy and Watch: Arista, KLA, Shoals, Ulta
IBD chart stock Arista Networks moved further above the 132.97 buy point of a choppy base following Tuesday’s 1.1% gain. ANET stock rose 0.1% on Wednesday.
KLA is approaching the 392.60 buy point of a cup with handle during Tuesday’s 2.7% climb. Bullishly, the stock’s relative strength line made a new high last week, a sign of a large outperformance versus the S&P 500. KLAC stock fell 0.5% on Wednesday.
Shoals Technologies is still out of the buy range following a 28.57 point buy following its third consecutive drop on Tuesday. The 5% buy zone tops out at 30. Wait for an orderly pullback in the buy range before considering a stock buy. SHLS shares were up 1% early Wednesday.
Ulta Beauty exited the buy range on Tuesday, up nearly 2%. The 5% buy zone beyond a 426.99 buy point in a cup with handle goes all the way up to 448.34. Ulta reports third quarter results on December 1. The stock fell 0.3% on Wednesday.
Join IBD experts as they analyze the major stocks in the current stock market rally on IBD Live
Tesla stock rose 1.2% on Tuesday, breaking a four-day losing streak that saw the stock hit its lowest level since November 23, 2020. The stock hit a new 52-week low price on Monday at 167 ,54. Tesla shares are about 57% below their 52-week high and sharply below the 50- and 200-day moving average lines.
Shares of the EV giant rose 4% Wednesday morning after Citigroup upgraded the stock from short to neutral, raising its price target from 141.33 to 176.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rebounded 1.5% on Tuesday and continue to hold above their recently recaptured 50-day line. The stock is roughly 20% off its 52-week high. Shares rose 0.8% on Wednesday as Foxconn workers clashed with police officers. Foxconn is the largest iPhone assembly plant in China.
Microsoft rose 1.2% on Tuesday, adding to Monday’s gains. The shares continue to hold above the 50 day line. The software giant remains more than 30% off its 52-week high. Microsoft shares rose 0.6% Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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