The Dow Jones industrial average rose on Wednesday ahead of economic data, the release of another housing report and a Fed manufacturing index. Tesla stock made another fresh low before rebounding sharply, looking to recover a small bite from its historic December decline.
Wednesday’s economic data included the pending home sales index and the Richmond Fed manufacturing index. The Richmond Fed is unlikely to trigger much stock action.
But pending home sales in November could move homebuilder stocks, which has shown recently Signs of increased strength. According to Econoday estimates, November is expected to show a 0.5% drop following a 4.6% drop in October.
On Tuesday, Case Shiller reported it Home prices fell in October For the fourth month in a row, high mortgage rates continue to curb demand. The Case Shiller home price index for November is due in late January.
Meanwhile, the survey measures manufacturing activity in the region bordering Maryland, South Carolina and West Virginia for the Federal Reserve’s Fifth District Manufacturing Activity in Richmond, Va.
On the revenue front, chicken egg distribution is a giant Quarter-mine foods (peace) will report on Wednesday after closing. CALM stock is in buy range beyond the 62.74 buy point after strong gains in recent weeks.
Electric vehicle leader Tesla (D.S.L.A) rose Wednesday, rallying more than 6% as Baird reaffirmed its outperform rating on the stock despite a price target cut, and after Wedbush forecast the automaker would miss its fourth-quarter estimates. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) was then heavily traded Today’s stock market Open.
Cardinal health (CAH), Medbase (MEDP), IBD Leaderboard Stock Neurocrine Biosciences (NBIX) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), caterpillar (CAT) and Chevron (CVX) — top stocks to consider for investor watch lists. Remember that recent market weakness should keep investors on the defensive.
Dow Jones today: Oil prices, Treasury yields
After opening hours on Wednesday, the Dow Jones industrial average was up 0.3%, while the S&P 500 was up 0.4%. The tech-heavy Nasdaq composite gained 0.5% in morning action.
The 10-year Treasury yield fell to 3.80% on Wednesday morning, with the yield struggling to hold its 50-day streak after two weeks of sharp gains. Meanwhile, US oil prices traded lower on Wednesday, with West Texas Intermediate futures facing resistance above $79 a barrel after two weeks of gains.
Stock market rally under pressure
On Tuesday, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.4%. The tech-heavy Nasdaq composite was off 1.4%.
Tuesday’s The Big Picture column Commenting, “The stock market began a shortened week of trading with a mixed performance on Tuesday as rising bond yields fueled a sell-off in the technology sector. Historically, the final trading week of the year is generally good for the stock market. But with the market bullish under pressure, sellers are still dictating the action. “
Dow Jones stocks to watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continued to find a flat base amid three weeks of losses. Shares are below their 50-day line after heavy losses on Tuesday. For now, the perfect buy point is 296.77, but the stock must first retrace its decisive 50-day. AMGN stock traded up 0.4% on Wednesday.
Dow Jones member Caterpillar closed on a flat base last Tuesday with a 239.95 buy point in the 5% chase zone. According to IBD MarketSmith model recognition. Buy area goes up to 251.95. The stock’s strength line, a key technical indicator, is at new highs. CAT stock rose 0.1% on Wednesday.
Energy company Chevron moved decisively above its 50-day line during Tuesday’s 1.3% rally, moving to the right of a flat base with a 189.78 buy point. CVX shares fell 0.5% on Wednesday morning, falling in line with oil prices.
Key stocks to watch: Cardinal Health, Medbase, Neurocrine
Cardinal Health, The latest IBD Stock of the Day, near the 81.67 buy point in a flat base. Shares fell 1.1% on Tuesday. CAH stock was slightly higher on Wednesday.
Medpace rallied sharply from its 50-day line last week with a 3.3% gain. But the stock gave up most of those gains during Tuesday’s 2% drop. For now, the perfect buy point is at 235.82, but the previous entry is at 220.09. MEDP shares rose 0.1% on Wednesday.
IBD Leaderboard Shares of Neurocrine fell 1.15% on Tuesday, retesting support at its 50-day level. The 50-day line was bullish on the stock’s prospects, but now the stock is retesting that key area. NBIX stock fell on Wednesday.
Texas Roadhouse is showing a new buy point at 101.85 in a flat base, but is now consolidating below its 50-day line. The restaurant leader will recover from that key benchmark in the coming sessions, but Tuesday’s 2.2% decline is a warning sign. TXRH stock was trading up 0.3% on Wednesday morning.
Stocks to watch
These are the six best stocks to watch in today’s stock market, including three Dow Jones leaders.
|Name of the company||Symbol||Perfect buying point||Basic type|
|Cardinal health||(CAH)||81.67||Flat base|
|Texas Roadhouse||(TXRH)||101.85||Flat base|
Source: IBD data as of December 28, 2022
Tesla stock It fell another 11.4% on Tuesday, extending a losing streak to seven sessions and hitting another 52-week low at 108.76. Shares closed about 73% off their 52-week high.
Shares touched another fresh low at 108.24 on Wednesday morning before reversing higher and moving more than 6% higher. According to Dow Jones Markets data, TSLA stock will fall 44% in December.
Earlier Wednesday, Baird cut its price target on the EV company from 316 to 252, but shares are up 130% from Tuesday’s close. Note Tesla maintains its best rating and is recommended as a “Best Buy” stock for 2023.
Dow Jones Leaders: Apple, Microsoft
in the middle Dow Jones Stocks, Apple shares traded down 1.4% on Tuesday, paring losses after hitting a new 52-week low of 128.72. The stock is about 30% off its 52-week high. Shares rose 0.5% on Wednesday.
Microsoft shares fell 0.7% on Tuesday, falling further below the 50-day line. The software company is about 31% off its 52-week high. MSFT stock rose 0.7% in early Wednesday trading.
Don’t forget to follow Scott Lehtonen on Twitter @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.
You may also like: