The Dow Jones Industrial Average rose more than 375 points Wednesday morning after the consumer and housing data. fedex (FDX) f Nike (NKE) stock rose sharply in morning trading after the companies reported their earnings results.
Wednesday morning’s economic data includes Consumer Confidence and Existing Home Sales. December Consumer Confidence will be closely watched after last week’s data showed a surprising slump in consumer spending in November. The index came in above estimates at 108.3 in December vs. November’s reading of 100.2.
Meanwhile, existing home sales fell in November to an annualized rate of 4.09 million versus 4.43 million in October. On Tuesday, housing data came in mixed, with housing beating estimates and new permits missing consensus targets. Homebuilder stocks have shown recent signs of strength, with three names rising in the IBD 50 list in the past week.
FedEx and Nike reported their quarterly earnings results after the close on Tuesday. FedEx stock jumped 6%, while Nike stock jumped as much as 15%. Nike’s strength helped boost Adidas (ADDYY) f foot locker (FL) shares. Adidas jumped nearly 7%, while Foot Locker climbed 3.6%.
Energy giant Dow Jones chevron (CVX) was the best performer on the Dow 30 as a drop in weekly supply data helped push oil prices higher. CVX shares rose more than 1%. Technology pioneers at Dow Jones an Apple (AAPL) and Microsoft (MSFT) was trading higher after the stock market opened today.
electric car giant Tesla (TSLA) fell more than 2% Wednesday morning, as CEO Elon Musk vowed to step out as CEO at social networking site Twitter.
IBD Stock Leaderboard Neurobiological Sciences (NBIX), Kosovo Liberation Army (KLAC), O’Reilly Auto Parts (orly) f United Rentals (URI) – So are the Dow Jones names Amgen (AMGN), Larva (CAT) f Home Depot (HD) – Among the top stocks to consider on investors’ watchlists.
Neurocrine and United Rentals are shares of the IBD Leaderboard. UnitedHealth featured a stock column near the buy zone last week. Caterpillar and United Rentals were two recent companies to today’s IBD inventory.
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Dow jones today: oil prices and treasury yields
After the opening bell on Wednesday, the Dow Jones Industrial Average rose 1%, while the S&P 500 rose 0.7%. The high-tech Nasdaq Composite followed suit with a gain of 0.5% in the morning move.
Among US exchange-traded funds, the Nasdaq 100 Tracking Invesco QQQ Trust (QQQ) rose 0.4% and the SPDR S&P 500 ETF (SPY) rose 0.55% early Wednesday.
The 10-year Treasury yield fell to 3.64% on Wednesday morning, pausing after a surprise move from the Bank of Japan sent global bond markets rally and pushed the US yield up to 3.68% on Tuesday.
Meanwhile, US oil prices traded on Wednesday rose by about 2%, as industry data from the American Petroleum Institute showed that US crude stocks fell by about 3.1 million barrels last week, which was more than expected. Official weekly data from the Energy Information Administration at 10:30 a.m. ET. West Texas Intermediate crude futures rose to nearly $78 a barrel in morning trading.
The stock market is under pressure
On Tuesday, the S&P 500 ended the trading day with a slight gain of 0.1%. The benchmark is stuck below the 50-day moving average, although it is still within walking distance. The Nasdaq Composite Index closed the session essentially flat. The heavy tech index is still down about 33% so far in 2022. It sits 3.5% below the 50-day line and is about 9% below its December 13 peak.
The Big Picture column commented on Tuesday, “Investors should note that although indices rebounded slightly, it was not a decisive move. Since the market has drifted into oversold territory, a more robust rally is desirable.”
Now is an important time to read IBD’s Big Picture column amid the ongoing volatility in the stock market.
Five Dow Jones stocks to buy and watch now
Dow stocks to watch: Amgen, Caterpillar, Home Depot
Drugmaker Amgen is building a new flatbed after a breakthrough in mid-November. But stocks are below the 50-day line after sharp losses in recent weeks. At the moment, the correct buy point is 296.77, but the stock needs to retake 50 days decisively first. AMGN stock fell 0.1% Wednesday.
Dow Jones member Caterpillar continues to trade near 239.95 buy point in a flat base, According to IBD MarketSmith pattern recognition, on the heels of Tuesday’s 1.2% rally. Stocks have found support at the stock’s 21-day exponential moving average in recent days, and the stock’s RSI is heading to new highs. CAT stock rose 1.6% Wednesday.
CAT stock shows a strong 97 out of 99 IBD perfect composite rating, as per an examination of IBD stock.
Home Depot, a home improvement retailer, is about 4% lower than the $329.77 buy point of a mug with a handle after reversing last week’s breakout move. HD shares were trading up 1.3% Wednesday morning.
4 growth stocks to watch in Cursstock market rally
Top stocks to watch: KLA, Neurocrine, O’Reilly, United Rentals
Chip equipment leader KLA held mostly amid market weakness, about 2% below the 392.60 cup handle entry level after Tuesday’s modest loss. KLA shares traded up 0.7% on Wednesday.
Neurocrine stock on the IBD Leaderboard continues to find support at the 50-day level on a two-day winning streak. A strong rebound may be bullish for the immediate outlook of the stock and is likely to lead to the formation of a new base. Meanwhile, a sharp breakout could mean that the stock needs more consolidation. On Wednesday, NBIX stock rose 0.4%.
O’Reilly Auto Parts is also finding much needed support at the 50 day line this week and it remains squarely above the flat 750.98 entry level. A big bounce off the 50-day line may lead to a follow-up entry point, but the uptrend in the market is under pressure at present, which increases the risk of buying stocks. ORLY shares were up 0.4% on Wednesday.
United Rentals remained below 368.04 buy points in a cup with handle pattern. The shares are about 5% below the buy point, and further weakness would result in a 7%-8% loss base. URI stock rose 1% on Wednesday.
Stocks to watch
These are the top five stocks to watch in the stock market today, including three Dow leaders.
|The Company’s name||Code||The right point of purchase||base type|
|Kosovo Liberation Army||(cling on)||392.60||mug with handle|
|United Rentals||(URI)||368.04||mug with handle|
|Home Depot||(HD)||329.77||mug with handle|
Source: IBD data as of December 20, 2022
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Tesla stock fell another 8.05% on Tuesday, hitting a 52-week low and trading at 137.66. Shares rose more than 2% Wednesday morning, reversing higher after hitting a 52-week low of 135.89.
On Tuesday, TSLA stock hit its lowest level since November 2020. Shares closed about 66% off their 52-week high.
Dow Jones leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares fell slightly on Tuesday, paring losses after nearly hitting a new 52-week low, set on June 16 at 129.04. The stock is up about 28% from its 52-week high. Shares traded up 1% on Wednesday.
Microsoft rose 0.6% on Tuesday, as shares held support around the 50-day line after snapping a three-day losing streak. The software giant is still about 30% off its 52-week high. MSFT shares rose 0.2% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @employee Learn more about developing stocks and the Dow Jones Industrial Average.
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