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Dow Jones futures dropped Wednesday morning ahead of this evening’s House vote on the debt-ceiling deal. Hot AI stock C3.ai (AI) tumbled ahead of its earnings results after the close.
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Late Tuesday, the debt-ceiling bill cleared the House Rules Committee, paving the way for a final House vote, expected as soon as Wednesday night. The bill appears on track to gain sufficient Republican and Democratic votes to pass the House and then the Senate by the June 5 deadline.
On the economic front, the Institute for Supply Management’s Chicago PMI is expected to fall to 47 in May vs. April’s 48.6 reading. Further, Wall Street expects the Labor Department’s JOLTS report (Job Opening and Labor Turnover Survey) to fall to 9.35 million in April, compared to March’s 9.59 million. Both reports will be out at 10 a.m. ET.
Key earnings movers include Advance Auto Parts (AAP), Ambarella (AMBA) and HP (HPQ).
AAP stock crashed 27% after missing earnings estimates, while slashing its full-year outlook and cutting its dividend.
Computer-vision chipmaker Ambarella edged above Wall Street’s targets for its fiscal first quarter but disappointed with its outlook. AMBA stock plummeted 18% in early morning trade.
Meanwhile, C3.ai dived nearly 8% Wednesday morning, with its highly anticipated earnings results on deck after the close. Since May 3, AI stock is up more than 150%.
Stock Market Today
Electric-vehicle giant Tesla traded 1% lower Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today’s stock market open.
Arista Networks (ANET), IBD Leaderboard stock ASML (ASML) and Taiwan Semiconductor (TSM) — as well as Dow Jones stocks Boeing (BA), Cisco Systems (CSCO) and Salesforce (CRM) — are among the best stocks to buy and watch in the stock market uptrend.
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.
Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures lost 0.4% vs. fair value, while S&P 500 futures fell 0.5%. Tech-heavy Nasdaq 100 futures dropped 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 declined 0.4% early Wednesday.
The 10-year U.S. Treasury yield on Wednesday traded down to 3.64%. On Tuesday, the 10-year yield tumbled after the weekend’s debt-ceiling deal.
U.S. oil prices dropped Wednesday morning, extending Tuesday’s losses. West Texas Intermediate futures lost 3% Wednesday, sending WTI futures below $68 a barrel.
Stock Market Action
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 hit a new 2023 high.
Tuesday’s Big Picture column commented, “No doubt it’s tempting to buy the strongest performing stocks, but the four stocks just mentioned are far extended from proper entries. And the crop of extended stocks keeps growing by the day, which raises the risk profile.”
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: Cisco, Boeing, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a 52.66 buy point. Keep an eye out for a potential handle, which would show an earlier entry. CSCO stock rallied 0.6% Tuesday, extending a win streak to three sessions. CSCO stock fell 1% Wednesday premarket.
Dow Jones aerospace giant Boeing climbed 0.5% Tuesday, closing just below 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 up 0.8% early Wednesday.
Salesforce rallied past alternative entries at 194.01 and 200.10 in recent weeks, according to Leaderboard analysis. Meanwhile, its relative strength line hit a new high Tuesday, a bullish signal. Shares reached the 20% profit zone from a 178.94 cup-with-handle entry, so investors would be justified to take some profits ahead of the the company’s first-quarter results after the market close Wednesday.
CRM stock rose another 0.8% Wednesday morning.
4 Top Growth Stocks To Watch In The Stock Market Rally
Best Stocks To Buy And Watch: Arista, ASML, TSMC
Networking giant Arista Networks broke out Tuesday, moving above a 171.54 buy point, according to IBD MarketSmith pattern recognition. ANET stock fell 1.4% Wednesday morning.
IBD Leaderboard stock ASML remains out of buy range past a 683.28 buy point in a cup with handle despite Tuesday’s 1% drop. ASML edged lower Wednesday morning.
Chip foundry Taiwan Semiconductor dropped 1.2% Tuesday, giving back a part of Friday’s gains. Shares are still extended past a double-bottom’s 95.92 buy point following Friday’s breakout move. The 5% buy area ran up to 100.72, so the stock is slightly extended. TSM stock declined 2.3% Wednesday morning.
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 |
| Salesforce | (CRM) | 200.10 | Consolidation |
| Boeing | (BA) | 221.43 | Flat base |
| Arista Networks | (ANET) | 171.54 | Cup base |
Source: IBD Data As Of May 30, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock raced 4.1% higher Tuesday, moving further up the right side of a cup base that has a 207.89 buy point. More aggressive investors could have used 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 a part of Tuesday’s gains, moving down more than 1% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 1.1% Tuesday, rising for a fourth straight day and hitting a new 52-week high at 178.99. 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 edged lower in premarket trade Wednesday.
Microsoft shares reversed from new highs Tuesday, closing down 0.5% after trading as high as 335.74. Shares have reached the 20%-25% profit zone from a 276.86 flat-base buy point, so investors could take at least some profits here. On Wednesday morning, MSFT stock was up 0.5%.
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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Top Growth Stocks To Buy And Watch
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