Dow Jones futures fell Wednesday morning ahead of the minutes from the Federal Reserve’s latest policy meeting. Retailer Kohl’s (KSS) surged after reporting a surprise profit in the first quarter.
The Fed minutes are due out at 2 p.m. ET. Earlier this month, Fed officials voted unanimously to raise interest rates by a quarter-point to a level of 5%-5.25%. Wednesday’s minutes could offer clues into the committee’s discussions on holding interest rates steady amid the recent series of bank failures.
Meanwhile, investors are closely watching the ongoing debt-ceiling negotiations, which continue to show no progress. Reuters reported that White House and GOP negotiators were expected to resume debt talks Wednesday morning.
Kohl’s surged more than 11% after the retailer reported a 13 cent-per-share profit in the first quarter. FactSet estimates expected the company to lose 43 cents per share. Quarterly sales missed estimates, with revenue of $3.36 billion. Wall Street was expecting sales of $3.42 billion.
Other key earnings movers include Intuit (INTU), New Relic (NEWR), Palo Alto Networks (PANW), Toll Brothers (TOL), Urban Outfitters (URBN).
Intuit shares dropped 5% in premarket trade, while New Relic dipped 3.3%. Cybersecurity giant Palo Alto jumped 5%, as Toll Brothers shares rallied nearly 3%.
Finally, URBN stock leapt 13% in morning action.
Stock Market Today
Electric-vehicle giant Tesla (TSLA) traded 1.5% lower Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were lower ahead of today’s stock market open.
Advanced Micro Devices (AMD), IBD Leaderboard stock ASML (ASML), Cadence Design Systems (CDNS) and IBD SwingTrader idea Shopify (SHOP) — as well as Dow Jones stocks Boeing (BA), Salesforce (CRM) and Visa (V) — are among the best stocks to buy and watch in the stock market uptrend.
ASML and Salesforce are IBD Leaderboard stocks, Shopify a new IBD SwingTrader idea, while Boeing was featured in this week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday opening bell, Dow Jones futures fell 0.4% vs. fair value. S&P 500 futures lost 0.5%, while tech-heavy Nasdaq 100 futures moved down 0.6% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.45%, while the SPDR S&P 500 ETF (SPY) fell 0.4% early Wednesday.
The 10-year U.S. Treasury yield on Wednesday traded down to 3.67% after Tuesday’s drop snapped a seven-day win streak. The 10-year Treasury yield remains near its highest level since mid-March.
U.S. oil prices broke out of their recent trading range, touching their highest level since early May as Saudi Arabia’s energy minister traded jabs with short sellers betting on oil price declines. West Texas Intermediate futures rose nearly 2% Wednesday morning. WTI futures traded above $74 a barrel ahead of the Energy Information Administration’s weekly oil inventories.
Stock Market Action
On Tuesday, the Dow Jones Industrial Average fell 0.7%. The S&P 500 declined 1.1%, while the tech-heavy Nasdaq composite dropped 1.3%.
Tuesday’s Big Picture column commented, “Sellers came into the stock market Tuesday as debt-ceiling talks continued on Capitol Hill. Several bank-related industry groups outperformed, but a large number of growth stocks fell sharply as Wall Street continued to fret about a big jump in the 10-year Treasury yield in recent days.”
Now is an important time to read IBD’s The Big Picture column after the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Boeing, Salesforce, Visa
Dow Jones aerospace giant Boeing dropped 1.6% Tuesday, giving up its 50-day line. Shares are still forming a flat base with a 221.43 buy point, according to IBD MarketSmith pattern recognition. BA stock moved down 0.55% early Wednesday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, the RS line hit a new high last week, a bullish signal. Salesforce reports first-quarter results after the market close on May 31. CRM stock lost 0.5% Wednesday morning, threatening to extend a losing streak to four sessions.
Visa shares gave up their 230.15 cup-with-handle buy point, with a 2.9% slide Tuesday. V stock was down 0.3% Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: AMD, ASML, Cadence, Shopify
Chip leader Advanced Micro Devices moved further out of buy range above a cup base’s 102.53 buy point, according to IBD MarketSmith pattern recognition, with a slight rise Tuesday. The 5% buy area went up to 107.66. AMD shares lost 1.2% premarket Wednesday.
IBD Leaderboard stock ASML gave up its 683.28 buy point in a cup with handle during Tuesday’s 2.5% drop. ASML moved down another 1.6% Wednesday morning.
Cadence Design Systems’ recent breakout continue to falter Tuesday, as shares skidded another 2.8%. CDNS stock is now about 5% below a 217.77 buy point in a flat base. The stock inched lower early Wednesday.
Shopify joined IBD Leaderboard Monday, as it made a bullish move above a trendline entry near 62. Shares were hard Tuesday, as they faltered 6%. SHOP stock was down another 1.8% 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 two Dow Jones leaders.
|Company Name||Symbol||Correct Buy Point||Type Of Buy Point|
|ASML||(ASML)||683.28||Cup with handle|
|Visa||(V)||230.15||Cup with handle|
|Advanced Micro Devices||(AMD)||102.53||Cup base|
Source: IBD Data As Of May 23, 2023
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Tesla stock snapped a five-day win streak Tuesday, as it skidded 1.6%. Shares remain above their 50-day line, as they build a cup base with a 207.89 buy point for now. Keep an eye out for a handle to offer a lower entry. Shares closed Tuesday 41% off their 52-week high.
TSLA stock threatened to add to Tuesday’s losses, moving down 1.5% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.5% Tuesday, falling for a second day and further from Friday’s 52-week high at 176.39. The stock continues to hold sharply above a 157.48 buy point and is out of the buy range that ran up to 165.35. AAPL stock fell 0.5% in premarket trade Wednesday.
Microsoft shares fell 1.8% Tuesday, reversing lower after hitting a new 52-week high at 322.72. Shares are significantly above a 276.86 flat-base buy point. On Wednesday morning, MSFT stock was down 0.3%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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