The Dow Jones Industrial Average fell ahead of minutes of the Federal Reserve’s latest policy meeting on Wednesday. Tesla shares rose after Citigroup upgraded the EV giant.
Consumer sentiment, durable goods orders, first-time jobless claims, PMI readings and new home sales are all due in the morning before the Fed releases its Minutes at 2pm ET. The stock market will be closed for the Thanksgiving holiday on Thursday, followed by a shortened trading session on Friday.
Initial jobless claims filed at 8:30 a.m. ET rose to 240,000 from 222,000 the previous week. Meanwhile, durable goods rose 1% in October, topping the Econoday estimate of 0.4%.
Autodesk (ADSK), HP (HPQ) and Nordstrom (JWN) reported earnings on Tuesday Deere (DE) earnings came out Wednesday morning.
Autodesk shares were down 9% in early morning trading, while HPQ shares were down 3.5%. Nordstrom shares fell 9.5%. And Deere shares rose 3% in morning trading.
The electric car giant Tesla ( TSLA ) was up 2% Wednesday morning. Dow Jones technology leaders apple (AAPL) and Microsoft (MSFT) is down after today’s stock market open.
IBD Stock Leaderboard Arista Networks (ANET), QLA (KLAC), Shoals Technologies (SHLS) and Ulta Beauty (ULTA) — also known as Dow Jones Caterpillar (CAT) — is among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard fund and recently IBD Stockholder of the Day. Ulta Beauty was featured in this week’s Stocks Near the Shopping Zone column. Shoals was an IBD 50 Stocks to Watch pick on Thursday.
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Dow Jones today: Oil prices, Treasury yields
The Dow Jones Industrial Average was down 0.1% and the S&P 500 was down 0.1% after the opening bell on Wednesday. The tech-heavy Nasdaq composite was up less than 0.1% in morning action.
China-related stocks showed early strength after news that the State Council announced expected stimulus measures, including a reduction in the reserve requirement ratio for Chinese banks.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) was up 0.1% early Wednesday, while the SPDR S&P 500 ETF ( SPY ) was down 0.1%.
The 10-year Treasury yield fell to 3.73% on Wednesday morning.
Oil stocks were under some pressure on Tuesday as oil prices retreated after rebounding. West Texas Intermediate futures fell more than 3% below $79 a barrel, even after industry data showed U.S. crude inventories fell more sharply than expected last week. Official weekly oil inventory data is due from the EIA at 10:30 a.m. ET.
As gas prices continued to rise, natural gas stocks rose. U.S. natural gas futures rose nearly 7% after Russia warned that it accused Ukraine of stealing pipeline gas and threatened to cut off its last remaining supply line to Europe.
Stock market rally
The stock market posted solid gains on Tuesday. The S&P 500 and Nasdaq each rose 1.4%. The Dow Jones Industrial Average rose 1.2%.
On Tuesday, The Big Picture commented, “While it’s good to put money to work on the current stock market, get exposure on the conservative side with small positions to start with. Just because the stock market is in a confirmed uptrend doesn’t mean 100% should be invested. Given the volatile nature of the market, don’t be afraid to take a 10% profit if you have it.”
Now is an important time to read IBD’s The Big Picture column amid continued stock market volatility.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar
Dow Jones member Caterpillar is close to retrieving the 238 buy points of its trophy base. IBD MarketSmith due to pattern recognition and less than 1% of entry. CAT traded higher on Wednesday, up 0.1%, along with Deere. Shares are still below the buy point.
The CAT fund has an impressive 95 out of a perfect 99 IBD Composite Rating according to the IBD Fund Check.
4 Best Growth Stocks to Watch in Current Stock Market Rally
Best stocks to buy and watch: Arista, KLA, Shoals, Ulta
IBD Leaderboard stock Arista Networks climbed further above the 132.97 buy point of a choppy base after a 1.1% gain on Tuesday. ANET shares rose 0.1% on Wednesday.
KLA is nearing a 392.60 cup-handled buy point on Tuesday’s 2.7% rally. The stock’s relative strength line, a major indicator of performance against the S&P 500, hit a new high last week. KLAC shares were down 0.5% on Wednesday.
Shoals Technologies is still out of buy range, past the 28.57 buy point after Tuesday’s third straight decline. The 5% buy zone peaks on the 30th. Wait for an orderly pullback to the buy line before considering buying the stock. SHLS shares rose 1% on Wednesday.
Ulta Beauty was off the buy list Tuesday, up nearly 2%. In a cup with support, the 5% buy zone past the 426.99 buy point continues to 448.34. Ulta reports its third quarter results on December 1st. Shares were down 0.3% on Wednesday.
Join IBD’s experts as they analyze the leading stocks in the current stock rally on IBD Live
Tesla shares rose 1.2% on Tuesday, snapping a four-day losing streak and sending the stock to its lowest level since Nov. 23, 2020. The stock hit a new 52-week low of 167.54 on Monday. Tesla shares are down about 57% from their 52-week highs and are sharply below their 50- and 200-day moving averages.
Shares of the EV giant rose 2.1% early Wednesday morning after Citigroup raised its price target to 176 from 141.33 after Citigroup upgraded the stock to neutral from sell.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.5% on Tuesday and are still above their recently captured 50-day line. The stock is down nearly 20% from its 52-week high. Shares fell 0.3% on Wednesday as Foxconn workers clashed with police officers. Foxconn is the largest iPhone assembly plant in China.
Microsoft rose 1.2% on Tuesday, adding to Monday’s gains. Shares continue to remain above the 50-day line. The software giant remains more than 30% off its 52-week high. Microsoft shares were down 0.1% on Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter @IBD_SLehtonen For more information on growth stocks and the Dow Jones Industrial Average.
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