Dow Jones Futures Rise On Key Economic Data; Costco Slides On Earnings

Dow Jones futures rose Wednesday morning, along with S&P 500 futures and Nasdaq futures, after key economic data. Retail giant Costco (COST) sold off after its quarterly earnings report.




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Early Wednesday, new durable goods orders from the Commerce Department rose 0.2% in August following July’s sharp 5.2% drop. Orders were expected to fall 0.3%. Excluding volatile transportation, orders rose 0.4%, more than expected.

Key earnings reports overnight include Costco and Paychex (PAYX).

COST stock slid 1.6% in morning trade despite the retail giant’s better-than-expected earnings and sales results. Paychex rose modestly in premarket trading.

Stock Market Today

Electric-vehicle giant Tesla (TSLA) traded up 0.4% Wednesday morning, while Nvidia (NVDA) rose 0.5%. Dow Jones tech icons Apple (AAPL) and Microsoft (MSFT) both climbed, ahead of today’s stock market open.

Airbnb (ABNB), DraftKings (DKNG), IBD Leaderboard stock Meta Platforms (META) and Uber Technologies (UBER) — as well as Dow Jones stocks Amgen (AMGN) and Caterpillar (CAT) — are among the stocks to watch in the ongoing stock market correction.

Dow Jones Today: Oil Prices, Treasury Yields

Ahead of Wednesday’s opening bell, Dow Jones futures rose 0.3% vs. fair value, while S&P 500 futures gained 0.35%. Tech-heavy Nasdaq 100 futures moved up 0.4% vs. fair value.

Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.4%, while the SPDR S&P 500 ETF (SPY) climbed 0.35% early Wednesday.

Early action Wednesday also showed the 10-year U.S. Treasury yield falling to 4.51%, retreating slightly from new long-term highs set on Tuesday.

Oil prices rebounded nearly 2% Wednesday morning, back at their 2023 highs. West Texas Intermediate futures traded at $92 a barrel.


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Stock Market Correction

On Tuesday, the Dow Jones Industrial Average sold off 1.1%, while the S&P 500 declined 1.5%. The tech-heavy Nasdaq composite dived 1.6%. All three major stock indexes hit new correction lows.

Tuesday’s Big Picture column commented, “Wall Street is worried about a lot these days, including the fact that interest rates could stay higher for longer. Fears of a recession have abated, but a stronger-than-expected economic recovery — along with higher oil prices — could fuel sticky inflation.”

Now is an important time to read IBD’s The Big Picture column, with the stock market outlook in a correction. Be sure to read how to handle the ongoing stock market weakness and prepare for a new uptrend.


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Dow Jones Stocks: Amgen, Caterpillar

Drug giant Amgen finished Tuesday back above a 268.24 buy point in a cup with handle, per IBD MarketSmith pattern recognition, with a 0.8% gain. Shares rose 0.4% Wednesday morning.

Dow Jones leader Caterpillar continues to form a flat base with a 293.88 buy point from strong gains dating back to early June. CAT stock slid 1.7% Tuesday, closing further below the 50-day line. Shares gained 0.5% Wednesday morning.


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Stocks To Watch: Airbnb, DraftKings, Meta, Uber

Recent IBD Stock Of The Day, Airbnb, continues to build a cup-with-handle base with a buy point of 151.16. But ABNB stock remains below its 50-day line amid Tuesday’s 1.4% fall. Airbnb shares rose 0.5% Wednesday morning.

DraftKings is building a cup with handle that has a 32.65 buy point, per IBD MarketSmith pattern recognition. Shares are consolidating below their 50-day moving average, a key level to watch. DKNG stock was up 0.9% early Wednesday.

IBD Leaderboard stock and social media giant Meta Platforms is tracing a cup with handle that has a 312.87 buy point. META stock rose 0.3% early Wednesday. Meta’s two-day Connect virtual conference kicks off today. The company will unveil the third generation of its virtual-reality headset.

Uber Technologies continues to consolidate below its key 50-day line, falling 1.4% Tuesday. UBER is forming a flat base with a 49.49 entry. Shares ticked down 0.5% Wednesday.


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Best Stocks In Today’s Stock Market Action

These are four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.

Company NameSymbolCorrect Buy PointType Of Buy Point
Uber Technologies (UBER)143.63Flat base
Caterpillar (CAT)293.88Flat base
Airbnb (ABNB)154.95Cup base
DraftKings (DKNG)32.65Cup with handle
Source: IBD Data As Of Sept. 25, 2023

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Tesla Stock

Tesla stock moved down 1.2% Tuesday, still significantly below its 50-day line. TSLA stock has an official cup-with-handle base with a buy point at 278.98, but shares are about 11% away from that entry.

With Tesla likely to report its third-quarter deliveries on Monday, Wall Street is now predicting the number will undercut the EV giant’s record-setting 466,140 vehicles in the second quarter. Until recently, analysts had forecast Tesla’s third-quarter deliveries would outpace Q2.

On Wednesday morning, TSLA stock rose 0.4%, looking to bounce back from Tuesday’s losses.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple stock sold off 2.3% Tuesday, hitting a new recent low. Shares are sharply below their 50-day line after sharp losses in recent weeks. AAPL stock continues to build a flat base with a 198.23 buy point. Shares gained 0.5% Wednesday morning.

Microsoft shares hit their lowest level since mid-May, sliding 1.7% Tuesday. And on Wednesday morning, the stock rose 0.5% in early trades.

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

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