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Dow Jones futures rose Wednesday morning ahead of economic data, with another housing report and a Fed manufacturing index due out. Tesla stock rebounded, looking to retake a small bite of its historic December plunge.
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Wednesday’s economic data includes the pending home sales index and the Richmond Fed manufacturing index. The Richmond Fed isn’t likely to stir much stock action. But November pending home sales could move homebuilder stocks, which have recently shown increasing signs of strength.
Per Econoday estimates, pending home sales are expected to fall another 0.5% in November following October’s 4.6% drop. On Tuesday, home prices fell in October for the fourth straight month, as higher mortgage rates continue to curb demand.
Meanwhile, the index for the Richmond, Va. Federal Reserve’s Fifth District Survey of Manufacturing Activity is expected to post a -6 reading for December, slightly better than November’s -9 reading. The survey gauges manufacturing activity in the region bordered by Maryland, South Carolina and West Virginia.
On the earnings front, chicken egg distribution giant Cal-Maine Foods (CALM) will report Wednesday after the close. CALM stock is in buy range past a 62.74 buy point after strong gains in recent weeks.
EV leader Tesla (TSLA) rose around 2% Wednesday as Baird affirmed its outperform rating on the stock, despite a price target cut, and after Wedbush forecast the automaker would likely miss its fourth-quarter estimates. Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) traded slightly lower ahead of today’s stock market open.
Cardinal Health (CAH), Medpace (MEDP), IBD Leaderboard stock Neurocrine Biosciences (NBIX) and Texas Roadhouse (TXRH) — as well as Dow Jones names Amgen (AMGN), Caterpillar (CAT) and Chevron (CVX) — are among the top stocks to consider for investor watchlists. Keep in mind the recent market weakness should keep investors on the defensive.
Neurocrine is an IBD Leaderboard stock. Caterpillar and Medpace were recent IBD Stock Of The Day companies. And Cardinal Health featured in this 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 moved up 0.2% vs. fair value. S&P 500 futures gained 0.15%. Tech-heavy Nasdaq 100 futures moved up 0.1% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.25% and the SPDR S&P 500 ETF (SPY) moved up 0.3% early Wednesday.
The 10-year Treasury yield swung lower to 3.80% Wednesday morning, with the yield fighting to hold its 50-day line after two weeks of sharp gains. Meanwhile, U.S. oil prices traded modestly lower Wednesday, as West Texas Intermediate futures running into resistance just above $79 a barrel after a two-week advance..
Stock Market Rally Under Pressure
On Tuesday, the Dow Jones Industrial Average edged up 0.1%, while the S&P 500 dropped 0.4%. The tech-heavy Nasdaq composite sold off 1.4%.
Tuesday’s The Big Picture column commented, “The stock market kicked off a shortened week of trading with a mixed performance Tuesday as rising bond yields fueled more selling in the technology sector. Historically, the final trading week of the year is usually a good one for the stock market. But with the market uptrend under pressure, sellers are still dictating the action.”
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Watch: Amgen, Caterpillar, Chevron
Drugmaker Amgen continues to trace a flat base amid a three-week losing streak. And shares are further below their 50-day line after more losses Tuesday. For now, the correct buy point is 296.77, but the stock needs to decisively retake its 50-day first. AMGN stock traded flat Wednesday.
Dow Jones member Caterpillar finished in the 5% chase zone past a 239.95 buy point in a flat base Tuesday, according to IBD MarketSmith pattern recognition. The buy area goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. CAT stock was unchanged 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 decisively moved above its 50-day line during Tuesday’s 1.3% rally, moving up the right side of a flat base that has a 189.78 buy point. CVX stock moved down 0.3% Wednesday morning, falling in line with oil prices.
4 Top Growth Stocks To Watch In The Current Stock Market Rally
Top Stocks To Watch: Cardinal Health, Medpace, Neurocrine, Texas Roadhouse
Cardinal Health, recent IBD Stock Of The Day, is holding close to a 81.67 buy point in a flat base. Shares declined 1.1% Tuesday. CAH stock was flat Wednesday.
Medpace bounced sharply from its 50-day line last week, with a gain of 3.3%. But the stock gave up a big part of those gains during Tuesday’s 2% fall. For now, the correct buy point looms at 235.82, but an earlier entry at 220.09 is also in play. MEDP stock was unchanged Wednesday.
IBD Leaderboard stock Neurocrine slipped 1.15% Tuesday, again testing support around its 50-day level. A recent bounce off that 50-day line was bullish for the stock’s prospects, but now the stock is again testing that key area. NBIX stock was flat Wednesday.
Texas Roadhouse shows a new buy point at 101.85 in a flat base, but is now consolidating below its 50-day line. The restaurant leader will look to recover that key benchmark over the coming sessions, but Tuesday’s 2.2% decline was a cautionary sign. TXRH stock traded unchanged Wednesday morning.
Stocks To Watch
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 |
| Medpace | (MEDP) | 235.82 | Consolidation |
| Texas Roadhouse | (TXRH) | 101.85 | Flat base |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Flat base |
| Amgen | (AMGN) | 296.77 | Flat base |
Source: IBD Data As Of Dec. 28, 2022
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock crumbled another 11.4% Tuesday, extending a losing streak to seven sessions and hitting another 52-week low at 108.76. Shares closed about 73% off their 52-week high.
Shares looked to rebound Wednesday morning, moving up around 2%. TSLA stock is set to plunge 44% for the month of December, its worst monthly performance on record, according to Dow Jones Market Data.
Early Wednesday, Baird cut its price target on the EV giant from 316 to 252, still more than 130% above where shares closed on Tuesday. The note maintained Tesla’s outperform rating and recommended it as a “Best Buy” stock for 2023.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares sold off 1.4% Tuesday, paring losses after hitting a new 52-week low price at 128.72. The stock is around 30% off its 52-week high. Shares lost a fraction Wednesday.
Microsoft stock dropped 0.7% Tuesday, falling further below the 50-day line. The software giant is about 31% off its 52-week high. MSFT stock moved down 0.1% early Wednesday.
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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