Dow Jones futures fall as Powell expects further rate hikes; Tesla stock downgraded

Dow Jones futures fell Wednesday morning as investors awaited Fed Chairman Jerome Powell’s report on monetary policy before the House Financial Services Committee. Tesla stock has been downgraded by Barclays.


In prepared remarks on Wednesday, Powell reiterated that further interest rate hikes are likely to lower inflation, saying “almost all FOMC participants expect it to be appropriate to raise a little plus interest rates by the end of the year”.

Powell is due to speak in the House at 10 a.m. ET. Powell makes a similar appearance the following day at the Senate Banking Committee. Investors could potentially update their rate hike expectations amid upcoming comments.

Investor expectations are calling for a nearly 77% chance of a quarter-point hike at the Fed’s July meeting, according to the CME FedWatch Tool. That’s up from 60% a week ago.

On the earnings side, fedex (FDX) reported after the close on Tuesday. The shipping giant on Tuesday released mixed results for its latest fourth-quarter report to wrap up its 2023 fiscal year. The company said its profits fell 28% in the fourth quarter, from an average of 27% in the three previous quarters. The company’s sales decline accelerated for a third straight quarter and, for a third straight period, missed Wall Street views.

FDX stock slipped nearly 3% in premarket trading. Prior to its results, the stock attempted to break above the buy point of 235.81 on a flat basis.

stock market today

VE Giant You’re here (TSLA) rose more than 1% on Wednesday morning despite analysts’ rating downgrading. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were down ahead of today’s stock market open.

Dexcom (DXCM), Chipotle Mexican Grill (GCM), McKesson (MCK) and Roku (ROKU) – as well as Dow Jones stocks Boeing (BA), JPMorgan Chase (JPM) and Selling power (CRM) – are among the best stocks to buy or watch in the uptrend of the stock market.

Tesla is an IBD stock. Dow Jones giant Boeing is an IBD SwingTrader stock and is listed in this week’s Stocks Near A Buy Zone column.

IBD’s latest newsletter, MarketDiem, brings you practical insights for stocks, options and crypto straight to your inbox

Dow Jones Today: Oil Price, Treasury Yields

Before Wednesday’s opening bell, Dow Jones futures fell 0.2% from fair value. S&P 500 futures lost 0.25%. And Nasdaq 100 futures fell 0.3% 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) fell 0.25% early Wednesday.

On Wednesday, the 10-year US Treasury yield rose to 3.75%. The yield has recently been hovering in a range between 3.57% and 3.85%, settling slightly lower on Tuesday at 3.72%.

Oil prices remained fairly flat Wednesday morning, near recent lows. West Texas Intermediate futures edged higher at $71 a barrel ahead of the weekly oil inventories report released by the Energy Information Administration on Thursday.

Market share

On Tuesday, the Nasdaq composite fell less than 0.2% – a positive result after falling 0.9% at the start of the day. The S&P 500 trimmed its loss to 0.5%. The Dow Jones Industrial Average lagged with a 0.7% decline.

Tuesday’s Big Picture column warned: “After rallying 5.8% in May and nearly 6% so far in June, the Nasdaq looks stretched. The index is more than 9% higher at the 50-day moving average and on Thursday the gap exceeded 10%. This is the longest since the index peaked in early February.”

Now is an important time to read IBD’s The Big Picture column amid the ongoing uptrend in the stock market.

Five Best Dow Jones Stocks to Buy and Watch Now

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

Aerospace giant Dow Jones and IBD SwingTrader Boeing stock saw their breakout attempt fail on Tuesday, falling 3.5%. BA stock rose 0.4% before market on Wednesday.

Dow Jones banking leader JPMorgan is just below a fixed base buy point of 143.37 after Tuesday’s 0.5% decline. JPM stock rose 0.2% on Wednesday morning.

Salesforce managed to stabilize after falling after earnings. It is now testing support at the 21-day exponential moving average. Tech megacap previously topped a pair of alternative new entries at 194.01 and 200.10, according to IBD rankings analysis.

Over the past few weeks, stocks have reached the 20% profit zone from an entry of 178.94 cup with handle, and are now trying to rebound from the support at the 10-week line. CRM stock fell 0.2% on Wednesday morning.

4 best growth stocks to buy and watch in the market Stock market rally

Best stocks to buy and watch: Dexcom, Chipotle, McKesson, Roku

Dexcom remains in the buy range past the buy point of 126.44 on a flat basis, despite falling 0.1% on Tuesday, according to IBD MarketSmith Model Recognition. The 5% buy zone rises to 132.76. DXCM stock rose slightly ahead of trade on Wednesday.

Watchlist IBD Leaderboard Chipotle stock is trading tight after a big lead, creating another entry at 2,139.88. Meanwhile, the stock is also returning to its 10-week line. A decisive rebound from this level would also create a buying opportunity. CMG stock rose 0.3% on Wednesday morning.

IBD SwingTrader McKesson stock is in the buy range after entering 401.53 cup with a handle amid a three-day winning streak. Shares rose 0.2% on Wednesday morning.

Streaming giant Roku is building a cup base with a buy point of 76.62. The title likely adds a handle, which will show an entry below 75.45. Roku stock gained 0.8% early Wednesday.

Learn to Time the Market with IBD’s ETF Market Strategy

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 a leader in the Dow Jones.

Company Name Symbol Correct point of purchase Point of purchase type
ASML (ASML) 683.18 Mug with handle
Selling power (RCMP) 200.00 Consolidation
Cloudy (NET) 66.20 Double bottom
Roku (ROKU) 76.62 cup bottom
Source: IBD data as of June 20, 2023

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

Tesla Stock

IBD Leaderboard Tesla stock rose 5.4% on Tuesday, hitting new highs in 2023. The shares are stretched wide above the 207.79 buy point of a double-bottom base. They closed Tuesday 13% off their 52-week high.

TSLA stock appeared to add to Tuesday’s gains, rising 1.3% on Wednesday morning despite Barclays downgrading from buy to hold, with the price target rising from 220 to 260.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock remains just off all-time highs on Tuesday, after finishing slightly higher. On Friday, shares traded as high as 186.99. The stock continues to hold well above a buy point of 157.38. Early Wednesday, AAPL stock was down 0.2%.

Microsoft shares fell another 1.25% on Tuesday, falling sharply for a second consecutive session. Last week, the stock hit a record high of 351.47. MSFT stock is in the 20%-25% take profit zone from a fixed base buy point of 276.76, so investors are taking at least some profit. And on Wednesday morning, Microsoft shares were down 0.4%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


Top growth stocks to buy and watch

Learn to Time the Market with IBD’s ETF Market Strategy

Find the best long-term investments with IBD’s long-term leaders

MarketSmith: research, charts, data and coaching in one place

How to Research Growth Stocks: Why This IBD Tool Simplifies Finding the Best Stocks

Leave a Comment