Dow Jones Futures fall ahead of House debt ceiling vote; plunges ahead of earnings

Dow Jones futures fell Wednesday morning ahead of Wednesday night’s House vote on the debt ceiling agreement. Meanwhile, the hot artificial intelligence stock (AI) fell ahead of its results, which are expected after the close.


Late Tuesday, the debt ceiling bill was approved by the House Rules Committee, paving the way for a final vote in the House, expected as early as Wednesday evening. The bill appears on track to garner enough Republican and Democratic votes to pass the House and then the Senate before the June 5 deadline.

On the economic front, the Institute for Supply Management’s Chicago PMI is expected to fall to 47 in May from 48.6 in April. Additionally, Wall Street expects the Labor Department’s job openings and turnover survey report to fall to 9.35 million in April from 9.59 million in March. Both reports will be released at 10 a.m. ET.

Major profit drivers include Advanced auto parts (PAA), Ambarella (AMBA) and resume (HPQ).

AAP stock tumbled 27% after missing earnings estimates, while slashing its full-year outlook and slashing its dividend.

Computer vision chipmaker Ambarella slightly beat Wall Street targets for its first fiscal quarter, but was disappointed by its outlook. AMBA stock fell 18% in early morning trading.

Personal computer and printer maker HP beat profit estimates but missed sales sights. Its earnings outlook for the current quarter and full year was above estimates. HPQ shares sold 5.4% in premarket trading.

Meanwhile, plunged almost 8% on Wednesday morning, with its highly anticipated results on deck after the close. Since May 3, the stock of AI has increased by more than 150%.

stock market today

Electric vehicle giant Tesla was trading down 1% on Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.

Arista Networks (ANET), IBD classification stock ASML (ASML) and Taiwan semiconductor (TSM) – as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Selling power (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.

Arista was a recent IBD stock of the day, while ASML and Salesforce are IBD Leaderboard stocks. And Cisco was featured in this week’s Stocks Near A Buy Zone column.

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Dow Jones Today: Oil Price, Treasury Yields

Before Wednesday’s opening bell, Dow Jones futures lost 0.4% to fair value, while S&P 500 futures fell 0.5%. Tech-heavy Nasdaq 100 futures fell 0.5% in morning action.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.4%, while the SPDR S&P 500 ETF (SPY) also fell 0.4% early Wednesday. .

The 10-year US Treasury yield traded at 3.64% on Wednesday. On Tuesday, the 10-year yield fell after the weekend debt ceiling agreement.

US oil prices fell Wednesday morning, extending Tuesday’s losses. West Texas Intermediate futures fell 3% on Wednesday, pushing WTI futures below $68 a barrel.

Market share

On Tuesday, the Dow Jones Industrial Average lost 0.15%, while the S&P 500 erased gains to end unchanged. The Nasdaq composite climbed 0.3% to a new high in 2023.

Tuesday’s Big Picture column commented: “The stock market remains in a confirmed uptrend, but new buys are getting harder to come by. Don’t force the issue by buying second and third tier stocks in a bunch. It’s good to be patient and let the setups come to you.”

Now is an important time to read IBD’s The Big Picture column after the recent bullish shift in market outlook.

Five Best Dow Jones Stocks to Buy and Watch Now

Dow Jones stocks to buy and watch: Cisco, Boeing, Salesforce

Dow Jones networking giant Cisco Systems is building a cup base with a buy point of 52.66. Keep an eye out for a potential handle, which would show an earlier entry. CSCO stock rebounded 0.6% on Tuesday, extending a three-session winning streak. CSCO stock fell 1% on Wednesday before market.

Aerospace giant Dow Jones, Boeing, climbed 0.5% on Tuesday, closing just below its 50-day line. The stock is still forming a flat base with a buy point of 221.43, according to IBD MarketSmith pattern recognition. BA stock rose 0.8% early Wednesday.

Salesforce has topped alternate entries at 194.01 and 200.10 in recent weeks, according to ranking analysis. Meanwhile, its relative strength line hit a new high on Tuesday, a bullish signal. Shares hit the 20% profit zone from an entry of 178.94 cup with handle, so investors would be justified in taking profits ahead of the company’s first quarter results after the market close. Wednesday.

CRM stock rose another 0.8% on Wednesday morning.

4 growth stocks to watch in the Stock market rally

Best stocks to buy and watch: Arista, ASML, TSMC

Networking giant Arista Networks broke above a buy point of 171.54 on Tuesday, according to pattern recognition IBD MarketSmith. ANET shares fell 1.4% on Wednesday morning.

IBD Leaderboard ASML stock remains out of the buy range past a buy point of 683.28 in a cup with handle despite Tuesday’s 1% decline. The ASML was down slightly on Wednesday morning.

Chip foundry Taiwan Semiconductor fell 1.2% on Tuesday, giving back some of Friday’s gains. Stocks are still extended beyond the 95.92 double bottom buy point after Friday’s breakout. The 5% buy zone reached 100.72, so the stock is slightly extended. TSM stock fell 2.3% on Wednesday morning.

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Best stocks to buy and watch during the stock market rally

These are the four best stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.

Company Name Symbol Correct point of purchase Point of purchase type
ASML (ASML) 683.28 Mug with handle
Selling power (RCMP) 200.10 Consolidation
Boeing (BA) 221.43 Flat bottom
Arista Networks (A NET) 171.54 cup bottom
Source: IBD data as of May 30, 2023

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rose 4.1% on Tuesday, rallying further on the right side of a cut base that has a buy point of 207.89. More aggressive investors could have taken advantage of an early entry at 193.06. The stock closed above its long-term 200-day line for the first time since Sept. 21. Shares closed Tuesday 36% off their 52-week high.

TSLA stock threatened to give up some of Tuesday’s gains, falling more than 1% on Wednesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares climbed 1.1% on Tuesday, rising for a fourth straight day and hitting a new 52-week high at 178.99. The stock continues to hold well above a buy point of 157.48 and is outside the buy range that hit 165.35. AAPL stock fell slightly in premarket trading on Wednesday.

Microsoft shares reversed from new highs on Tuesday, closing down 0.5% after trading at 335.74. Shares have reached the 20%-25% profit zone from a fixed base buy point of 276.86, so investors could take at least some profit here. On Wednesday morning, MSFT stock was up 0.5%.

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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