The Dow Jones Industrial Average rose on Wednesday ahead of economic data and the minutes of the Federal Reserve’s latest policy meeting. Meanwhile, software giant Microsoft sold off analysts’ ratings by more than 4% as Tesla shares rallied after hitting another new low on Tuesday.
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Minutes of the Fed’s December meeting are released at 2:00 PM ET. The first in a flurry of labor market data is expected with the release of November jobs data from the US Bureau of Labor Statistics at 10 a.m. ET. Jobs are expected to decline to 10.1 million, versus 10.334 million in October.
Meanwhile, the Institute for Supply Management’s manufacturing index is expected to fall to 48 in December from a reading of 49 in November, according to Econoday estimates. Readings below 50 signal contraction. The ISM reading is also due at 10am ET.
The earnings front includes companies reporting this week Bed Bath & Beyond (BBBY), Conagra (CAG), Constellation Brands (STZ) and Dow Jones stocks Walgreens Boots Alliance (WBA).
Target ( TGT ) fell nearly 2% after Wells Fargo was downgraded from overweight to equal weight. Electric car driver Tesla ( TSLA ) fell 2% after Wednesday’s earnings call.
Among the Dow Jones stocks, apple (AAPL) gained 1.5% Microsoft ( MSFT ), fell more than 4% after UBS downgraded the stock from buy to neutral before the stock market opened today.
Cardinal Health (CAH), Deere (DE), Medpace (MEDP) and IBD Leaderboard stocks Tenaris (TS) – also names Dow Jones Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) is among the top stocks to consider for investor watch lists. Note that continued market weakness should keep investors on the sidelines.
Tenaris is an IBD Leaderboard. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in last week’s Stocks Close to Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
The Dow Jones Industrial Average was up 0.2% and the S&P 500 was up 0.5% after the opening bell on Wednesday. And the tech-heavy Nasdaq composite advanced 0.5% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) rose 0.7% and the SPDR S&P 500 ETF ( SPY ) rose 0.5% on Wednesday.
The 10-year Treasury yield fell to 3.68% on Wednesday morning and threatened to fall to 3.79% on Tuesday.
Meanwhile, oil prices continued to fall on Wednesday morning, extending Tuesday’s sharp losses. West Texas Intermediate futures fell more than 3% to close at $74 a barrel.
Stock market correction
On Tuesday, the Nasdaq composite erased 1.4% early gains and closed 0.8% lower. The S&P 500 closed down 0.4%. The Dow Jones Industrial Average ended better, only slightly lower. However, the index continued to struggle with its 21-day and 50-day lines.
On Tuesday, The Big Picture column commented, “Investors couldn’t escape the lingering stench of 2022 as the new year began with Wall Street falling and the energy sector dug in.”
Five Dow Jones Stocks to Watch Now
Dow Jones Stocks to Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar is trading just below the 239.95 buy point on Tuesday’s flat base. According to IBD MarketSmith model recognition. The buy zone rises to the level of 251.95. The relative strength line of stocks, a key technical indicator, is reaching new highs. Shares rose 0.3% on Wednesday.
The CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating according to the IBD Stock Check. The Composite Rating is designed to help investors easily find the best growth stocks.
Energy giant Chevron fell 3.1% on Tuesday, falling below its 50-day line. Despite the losses, the stock is forming a cup base with a buy point of 189.78. CVX shares fell another 1.3% on Wednesday morning, falling with oil prices.
Discount retailer Walmart makes a mug with a handle that has a purchase point of 154.74. But shares are below the 50-day line after sharp losses in recent weeks. Walmart shares fell on Wednesday morning.
4 Best Growth Stocks to Watch on Current Stock Market Correction
Top stocks to watch: Cardinal Health, Deere, Medpace, Tenaris
Cardinal Health, the last IBD stock of the day, extended its losing streak to six sessions on Tuesday and fell below its 50-day line. line. CAH shares fell 0.2% on Wednesday.
Friday’s IBD Stock Of The Day, Deere, is making a flat base with a 448.50 buy point as it looks to find support around its 50-day line. DE shares were up 0.1% on Wednesday morning.
Medpace finally relinquished support at its 50-day line on Tuesday, falling 1.9%. Tuesday’s weakness indicates that the medical leader needs more time to consolidate, which is normal with the market trend in correction. For now, the correct buy point remains at 235.82, but the previous entry at 220.09 is also in play. MEDP shares rose 1.5% on Wednesday.
IBD Leaderboard stock Tenaris fell sharply from Tuesday’s flat base entry of 35.15. TS shares fell another 4% Wednesday morning, triggering a 7%-8% loss streak.
Stocks to Watch in the Ongoing Stock Market Correction
These are the top six stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | The Right Buy Point | Base Type |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | Flat base |
| Tenaris | (TS) | 35.15 | Flat base |
| Deere | (DE) | 448.50 | Flat base |
| Caterpillar | (English) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Cup base |
| Walmart | (WMT) | 154.74 | Mug with handle |
Source: IBD Data as of January 4, 2023
Join IBD experts as they analyze the leading stocks in the current stock market correction on IBD Live
Tesla shares
Tesla shares slid more than 12% to a 52-week low of 104.64 on Tuesday. Shares of the EV giant closed at their lowest level since August 13, 2020, about 73% below their 52-week high.
Shares looked set to bounce, up nearly 2% on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares fell 3.7% on Tuesday to hit a new 52-week low of 124.17, their lowest level since June 2021. Shares are down more than 30% from their 52-week highs. Shares rose 1.5% on Wednesday morning.
Microsoft shares fell 0.1% on Tuesday, still below their 50-day line. The software giant is down nearly 30% from its 52-week high. Shares of MSFT fell 4.3% on Wednesday, lowering its price target to $250 from $300, after UBS downgraded the stock from buy to neutral.
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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