The Dow Jones Industrial Average rose on Wednesday ahead of economic data and minutes from the Federal Reserve’s latest policy meeting. Meanwhile, software giant Microsoft sold more than 4% on an analyst downgrade as Tesla stock rebounded from hitting a new low on Tuesday.
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Minutes from the Fed’s December meeting are released at 2 p.m. ET. The first of a flood of labor market data is also expected, with the release of November job openings data from the U.S. Bureau of Labor Statistics at 10 a.m. ET. Job vacancies are expected to decrease to 10.1 million from 2020. 10.334 million in October.
Meanwhile, the Institute for Supply Management’s manufacturing index is expected to fall to 48 in December from 49 in November, according to Econoday estimates. Readings below 50 signal a contraction. The ISM reading is also due at 10 a.m. ET.
On the earnings front, companies reporting this week include Bed bath and beyond (BBBY), Conagra (GAC), Constellation Brands (ZST) and Dow Jones stock Walgreens Boot Alliance (WBA).
target (TGT) fell about 2% after a downgrade of Wells Fargo from overweight to equal weight. Leader in electric vehicles You’re here (TSLA) rebounded 2% after paring gains on Wednesday.
among Dow Jones stocks, Apple (AAPL) gained 1.5%, while Microsoft (MSFT) fell more than 4% after UBS downgraded the action from buy to neutral before today’s stock market open.
Cardinal Health (HAC), Deere (OF), Medispace (MEDP) and IBD classification Stock Tenaris (TS) – as well as the Dow Jones names caterpillar (CAT), Chevron (CLC) and walmart (wmt) – are among the most important stocks to consider for investor watchlists. Keep in mind that continued market weakness should keep investors away.
Tenaris is a IBD classification Stock. caterpillar and Medispace were recent IBD stock of the day companies. And cardinal health was Featured in last week’s Stocks Near A Buy Zone column.
Dow Jones Today: Oil Price, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.5%. And the tech-heavy Nasdaq composite was up 0.5% in morning action.
Among us exchange traded fundsthe Nasdaq 100 Invesco QQQ Trust tracker (QQQ(up 0.7% and SPDR S&P 500 ETF)TO SPY) rose 0.5% early Wednesday.
The 10-year Treasury yield fell to 3.68% on Wednesday morning, threatening to add to Tuesday’s drop to 3.79%.
Meanwhile, oil prices continued to slide Wednesday morning, extending Tuesday’s steep losses. West Texas Intermediate futures fell more than 3% to near $74 a barrel.
Stock market correction
On Tuesday, the Nasdaq composite erased an early 1.4% gain and closed down 0.8%. The S&P 500 closed down 0.4%. And the Dow Jones Industrial Average held up much better, down only a fraction. Still, the index continued to struggle with its 21-day and 50-day lines.
Tuesday’s The Big Picture column commented, “Investors couldn’t shake off the lingering stench of 2022 on Tuesday as the new year kicked off on Wall Street with prices reversing lower and the energy sector drilling.”
Five Dow Jones stocks to watch now
Dow Jones stocks to watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar is trading just below a buy point of 239.95 in a flat basis on Tuesday, according to IBD MarketSmith Pattern Recognition. The buy zone rises to 251.95. On the upside, the stock’s relative strength line, a key technical indicator, is just off fresh highs. Shares rose 0.3% on Wednesday.
cat stock shows a strong 98 over a perfect 99 IBD Composite Ratingspeak IBD inventory check. The composite rating is designed to help investors easily find the highest growth stocks.
Energy giant Chevron broke below its 50-day line on Tuesday, falling 3.1%. Despite the losses, the shares are building a cut base that has a buy point of 189.78. Shares of CVX fell another 1.3% on Wednesday morning, trading lower with oil prices.
Discount retailer Walmart builds a mug with handle that has a buy point of 154.74. But stocks are below their 50-day line after steep losses in recent weeks. Walmart shares fell slightly on Wednesday morning.
4 growth stocks to watch in the currentrent Stock market correction
Top stocks to watch: Cardinal Health, Deere, Medpace, Tenaris
Cardinal Health, a recent stock of the day on IBD, extended a losing streak to six sessions on Tuesday and went even lower than his 50-day streak. line. CAH shares fell 0.2% on Wednesday.
IBD stock of the day Friday, Deere, is building a flat base with a buy point of 448.50, as it looks to find support around its 50-day line. DE stock traded down 0.1% on Wednesday morning.
Medspace finally dropped support for its 50-day line on Tuesday, down 1.9%. Tuesday’s weakness indicates the medical leader needs more time to consolidate, which is to be expected with the market trending towards correction. For now, the correct buy point remains at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock rose 1.5% on Wednesday.
IBD classification Tenaris stock fell sharply below the 35.15 entry from its flat base on Tuesday. TS stock fell another 4% on Wednesday morning, triggering the 7%-8% loss rule.
Stocks to watch in the ongoing stock market correction
These are the top six stocks to watch in today’s stock market, including three leaders from the Dow Jones.
| Company Name | Symbol | Correct point of purchase | Basic type |
|---|---|---|---|
| Cardinal Health | (HAC) | 81.67 | flat bottom |
| Tenaris | (TS) | 35.15 | flat bottom |
| Deere | (OF) | 448.50 | flat bottom |
| caterpillar | (CAT) | 239.95 | flat bottom |
| Chevron | (CLC) | 189.78 | cup bottom |
| walmart | (wmt) | 154.74 | Mug with handle |
Source: IBD data as of Jan 4, 2023
Join IBD experts as they analyze the top stocks of the current market correction on IBD Live
Tesla Stock
Tesla Stock plunged on Tuesday, slipping more than 12% to hit a 52-week low at 104.64. Shares of the electric vehicle giant closed at their lowest level since August. 13 2020, about 73% off their 52 week high.
Stocks appeared to be bouncing back, rising about 2% on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares sold 3.7% on Tuesday, hitting a fresh 52-week low of 124.17, which is also their lowest level since June 2021. The stock is more than 30% off its high on 52 weeks. Shares rose 1.5% on Wednesday morning.
Microsoft stock fell 0.1% on Tuesday, still below the 50-day line. The software giant is around 30% off its 52-week high. MSFT stock fell 4.3% early Wednesday after UBS downgraded the stock to buy to neutral, with a price target lowered to 250 from 300.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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