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Dow Jones futures rose Wednesday morning ahead of economic data and minutes from the Federal Reserve’s latest policy meeting. Software giant Microsoft fell sharply after an analyst downgrade, while Tesla stock looked to bounce after hitting another new low Tuesday.
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Minutes of the Fed’s December meeting come out at 2 p.m. ET Wednesday. The first in a flood of labor-market data will also start that day, with the morning release of the job-openings data for November. Job openings are expected to ease to 10.1 million in November vs. 10.334 million in October. JOLTS are due out at 10 a.m.
Meanwhile, the ISM manufacturing index is expected to fall to 48 in December, down from November’s 49 reading, per Econoday estimates. Readings below 50 signal contraction. The ISM reading is also due out at 10 a.m.
On the earnings front, companies reporting this week include Bed Bath & Beyond (BBBY), Conagra (CAG), Constellation Brands (STZ) and Dow Jones stock Walgreens Boots Alliance (WBA).
Target (TGT) declined more than 1% after a Wells Fargo downgrade from overweight to equal-weight. Electric-vehicle leader Tesla (TSLA) rose 1% Wednesday.
Among the Dow Jones stocks, Apple (AAPL) gained 0.7%, while Microsoft (MSFT) traded down more than 2% after UBS downgraded the stock from buy to neutral ahead of today’s stock market open.
Cardinal Health (CAH), Deere (DE), Medpace (MEDP) and IBD Leaderboard stock Tenaris (TS) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to consider for investor watchlists. Keep in mind the ongoing market weakness should keep investors on the sidelines.
Tenaris is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health was featured in last week’s Stocks Near A Buy Zone column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s opening bell, Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures gained 0.55%. And tech-heavy Nasdaq 100 futures advanced 0.9% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.9% and the SPDR S&P 500 ETF (SPY) moved up 0.5% early Wednesday.
The 10-year Treasury yield tumbled to 3.68% Wednesday morning, threatening to add to Tuesday’s fall to 3.79%.
Meanwhile, oil prices continued lower Wednesday morning, extending Tuesday’s sharp losses. West Texas Intermediate futures dropped more than 3%, falling near $74 a barrel.
Stock Market Correction
On Tuesday, the Nasdaq composite wiped out a 1.4% early gain and closed 0.8% lower. The S&P 500 closed with a 0.4% drop. And the Dow Jones Industrial Average held up much better, down only a fraction. Yet, the index continued to struggle with its 21-day and 50-day lines.
Tuesday’s The Big Picture column commented, “Investors could not rid themselves of 2022’s lingering stench Tuesday as the new year started on Wall Street with a bearish price reversal and the energy sector getting drilled.”
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar is trading just below a 239.95 buy point in a flat base Tuesday, according to IBD MarketSmith pattern recognition. The buy zone goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is just off new highs. Shares inched higher Wednesday.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron broke below its 50-day line Tuesday, with a 3.1% tumble. Despite the losses, shares are building a cup base that has a 189.78 buy point. CVX shares fell another 1.5% Wednesday morning, trading lower with oil prices.
Discount-retailer Walmart is building a cup with handle that has a 154.74 buy point. But shares are below their 50-day line after sharp losses in recent weeks. Walmart shares edged higher Wednesday morning.
4 Top Growth Stocks To Watch In The Current Stock Market Correction
Top Stocks To Watch: Cardinal Health, Deere, Medpace, Tenaris
Cardinal Health, a recent IBD Stock Of The Day, extended a losing streak to six sessions Tuesday and moved further below its 50-day line. line. CAH stock was unchanged Wednesday.
Friday’s IBD Stock Of The Day, Deere, is building a flat base with a 448.50 buy point, as it looks to find support around its 50-day line. DE stock traded flat Wednesday morning.
Medpace finally gave up support at its 50-day line Tuesday, dropping 1.9%. Tuesday’s weakness indicates the medical leader needs more time to consolidate, which is normal with the market trend in a correction. For now, the correct buy point stays at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was inactive Wednesday.
IBD Leaderboard stock Tenaris fell sharply below its flat base’s 35.15 entry Tuesday. TS stock fell another 4% Wednesday morning, on pace to trigger the 7%-8% loss rule if the weakness persists at the market open.
Stocks To Watch In Ongoing Stock Market Correction
These are six top stocks to watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Cardinal Health | (CAH) | 81.67 | Flat base |
| Tenaris | (TS) | 35.15 | Flat base |
| Deere | (DE) | 448.50 | Flat base |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Cup base |
| Walmart | (WMT) | 154.74 | Cup with handle |
Source: IBD Data As Of Jan. 4, 2023
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock dived Tuesday, skidding more than 12% to hit a 52-week low at 104.64. Shares of the EV giant closed at their lowest level since Aug. 13, 2020, about 73% off their 52-week high.
Shares looked to bounce, moving up around 1% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 3.7% Tuesday, hitting a new 52-week low at 124.17, which is also their lowest level since June 2021. The stock is more than 30% off its 52-week high. Shares rose 0.8% Wednesday morning.
Microsoft stock fell 0.1% Tuesday, still below the 50-day line. The software giant is about 30% off its 52-week high. MSFT stock moved down more than 2% early Wednesday after UBS downgraded the stock from buy to neutral, with a lowered price target at 250, down from 300.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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