On Wednesday morning, the Dow Jones Industrial Average experienced an increase following the release of important economic data. At the same time, Tesla’s stock rebounded as report shows that the company’s German plant had revised its production goals lower. Furthermore, Nvidia’s earnings are scheduled to be released after the markets close.
On Wednesday morning, significant economic information will be unveiled, including S&P Global’s Purchasing Managers’ Index (PMI) for both manufacturing and services sectors. The manufacturing PMI experienced a decline in August, reaching 47.0, which falls short of the estimated 48.8 and is a decrease from July’s reading of 49.0. Additionally, the services PMI dropped to 51.0 in August, down from July’s 52.3.
Finally, new home sales climbed to 714,000 during July, surpassing the estimated 705,000 and showing an increase from June’s figure of 697,000.
In the early Wednesday, Abercrombie & Fitch (ANF), Advance Auto Parts (AAP), Analog Devices (ADI), and Foot Locker (FL), along with Kohl’s (KSS), Peloton Interactive (PTON), Toll Brothers (TOL), and Urban Outfitters (URBN), took the spotlight as significant players impacting earnings.
During morning trading, ANF stock experienced a remarkable surge of 19%, whereas AAP saw a modest increase of almost 1%. Analog Devices faced a decline of nearly 4%, while Foot Locker witnessed a significant plummet of 32%. On the other hand, Kohl’s made notable progress with an advance of over 4%, while Peloton stock underwent a substantial decline of 26% in the initial market activity.
To conclude, Toll Brothers’ shares experienced a 2.5% increase, while URBN stock saw a substantial rise of nearly 3%.
Stock Market Today: Nvidia Earnings
Nvidia (NVDA), the manufacturer of graphics chips, witnessed a 1.8% increase on Wednesday morning prior to the impending release of the company’s earnings report later in the day. Following four consecutive quarters of decreasing earnings, there is anticipation for the adjusted profit to surge to $3.04 per share, accompanied by a 65% rise in revenue to $11.04 billion. Undoubtedly, this earnings report holds the potential to significantly impact the Nasdaq, influencing its trajectory in either direction.
On Wednesday, the electric vehicle behemoth Tesla (TSLA) saw a 0.7% uptick in its trading. Dow Jones technology giants, namely Apple (AAPL) and Microsoft (MSFT), demonstrated gains following the opening of the stock market today.
Additional leaders in the stock market comprise Alphabet (GOOGL) and Meta Platforms (META). During the initial trading period, GOOGL stock exhibited a 1.5% increase, whereas Meta shares achieved a 0.7% gain.
Costco Wholesale (COST), Lululemon (LULU), Arista Networks (ANET), and Oracle (ORCL), along with Dow Jones constituents Boeing (BA) and Visa (V), stand out as notable stocks to monitor amid the current ongoing stock market correction.
Dow Jones Today: Oil Prices, Treasury Yields
At the commencement of trading on Wednesday, the Dow Jones Industrial Average witnessed a 0.2% increase, and the S&P 500 exhibited a gain of 0.7%. In the realm of technology-centric stocks, the Nasdaq composite displayed a notable rise of 1.2% during the morning session.
Among the variety of U.S. exchange-traded funds, the Invesco QQQ Trust (QQQ), tracking the Nasdaq 100, saw an ascent of 1.1%, while the SPDR S&P 500 ETF (SPY) registered a 0.7% advance early on Wednesday.
Furthermore, during the same Wednesday, the 10-year U.S. Treasury yield slightly receded to 4.24%, following its settlement at 4.32% on Tuesday, which was just shy of the highest level recorded since 2007.
The downward trend in West Texas Intermediate (WTI) oil prices seemed poised to continue for a third consecutive session, declining by 1.5% on Wednesday. WTI futures hovered just below the $78.50 per barrel mark during morning trading, anticipating the release of the Energy Information Administration’s weekly inventory report at 10:30 a.m. ET.
Stock Market Action
During Tuesday’s trading session, the Dow Jones Industrial Average experienced a decline of 0.5%, while the S&P 500 underwent a slight dip of 0.3%. Meanwhile, the Nasdaq composite, which has a strong focus on technology stocks, managed to end the day with a marginal increase of 0.1%.
Dow Jones Stocks: Boeing, Visa
Boeing, the prominent player in the aerospace industry, experienced a breakout over recent weeks, surpassing a flat-base entry point at 223.91. Currently, the shares are in the process of testing both their buy point and the 50-day line, showcasing a marginal increase of 0.1% on Tuesday. Subsequently, on Wednesday morning, BA stock faced a slight dip of 0.2%.
In the case of Dow Jones’ leader in payments, Visa, the stock has maintained its position within a favorable purchase range above a flat-base entry point of 235.57. Additionally, a fresh opportunity for entry has emerged as the stock shapes another flat base, offering an entry point of 245.37. Notably, the shares are in the midst of a rebound from the support area around their 50-day line. On Wednesday, V stock demonstrated a gain of 0.4%.
Stocks To Watch: Arista, Lululemon, Costco, Oracle
Leading the way in the realm of AI stocks, Arista Networks is currently making an effort to venture beyond its buy range, extending past the 178.36 buy point within a consolidation pattern. This progress was underscored by a 1.5% increase on Tuesday. Notably, the Relative Strength (RS) line for Arista Networks has reached its most elevated point since late March, signifying significant outperformance in recent weeks. The momentum continued on Wednesday morning, as ANET stock exhibited a modest rise of 0.1%.
Meanwhile, Lululemon finds itself once again testing its pivotal 50-day line after encountering a 1.4% decline on Tuesday. The RS line for LULU stands at its highest level since May, indicative of robust performance over the past few months. However, LULU shares experienced a further decline of 1.8% during the morning trading session. Notably, the company is scheduled to release its second-quarter results on August 31st.
Best Stocks In Stock Market Action
These are four best stocks to buy and watch in today’s stock market, including a Dow Jones.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Oracle | (ORCL) | 127.54 | Flat base |
| Visa | (V) | 235.57 | Flat base |
| SLB | (SLB) | 58.70 | Cup with handle |
| Costco | (COST) | 571.16 | Cup with handle |
Dow Jones: Apple, Microsoft
Within the Dow Jones stock selection, Apple’s stock observed an increase of 0.8% on Tuesday, marking the continuation of a three-session streak of victories. Despite this positive momentum, the stock maintains its position well below the 50-day line due to substantial losses incurred in recent weeks. As trading commenced on Wednesday, AAPL stock recorded a further addition of 1.6%.
Microsoft’s shares are currently hovering close to their recent troughs, indicating the necessity for a more prolonged consolidation period before a fresh buy point materializes. Although the recent upswings signify positivity, the stock is still positioned beneath its 21- and 50-day moving averages, thereby lacking a definitive buy signal. Moving into Wednesday, the stock posted an additional gain of 1.3%.
