The Dow Jones Industrial Average fell Wednesday morning after stronger-than-expected retail sales data from the Commerce Department. Investors also digested a raft of early retailer earnings reports. Target dived more than 16% on weak earnings results, while Nvidia earnings are due out after the close.
Among the top stocks to buy and watch, IBD Leaderboard stock Arista Networks (ANET), IBD SwingTrader stock General Motors (GM), GlobalFoundries (GFS), Mobileye (MBLY) and Phillips 66 (PSX)—as well as Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.
Arista Networks is an IBD Leaderboard stock and was Monday’s IBD Stock Of The Day. GlobalFoundries was featured in this week’s Stocks Near A Buy Zone column. And Mobileye was last week’s featured IPO Leader.
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Dow Jones Today: Oil Prices, Treasury Yields
After Wednesday’s opening bell, the Dow Jones Industrial Average fell less than 0.1%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite traded down 1.1% in morning action.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1.3% early Wednesday, and the SPDR S&P 500 ETF (SPY) fell 0.6%.
The 10-year Treasury yield ticked lower to 3.71%, threatening to extend Tuesday’s fall. Meanwhile, US oil prices erased early losses, as oil continues to vacillate back and forth within its recent trading range. West Texas Intermediate futures held just below $87 a barrel.
Stock market rally
On Tuesday, the major stock indexes finished well off their highs. The Nasdaq composite led the way, rising 1.45%, while the Dow Jones industrials and S&P 500 followed up with gains of 0.1% and 0.9%, respectively.
Tuesday’s The Big Picture commented, “The stock market rally continued Tuesday as Wall Street got more good news on the inflation front. Even better, several top-rated growth stocks closed with strong gains, although many closed off well off highs after reports of Russian Missiles landing in Poland.”
Now is an important time to read IBD’s The Big Picture column.
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar
Dow Jones member Caterpillar is trying to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares fell 0.7% Wednesday.
CAT stock boasts an impressive 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup.
4 Top Growth Stocks To Watch In The Currightent stock market rally
Top Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, PSX
IBD Leaderboard stock Arista Networks tried to break out past a choppy base’s 132.97 buy point amid Tuesday’s 1.1% climb. Shares again topped the entry before closing just below it. ANET stock traded down 1.4% Wednesday.
Automaker and IBD SwingTrader stock General Motors is back above its cup-with-handle’s 40.20 buy point. The buy area tops out at 42.21. GM stock fell 1.5% Wednesday.
Chip foundry GlobalFoundries is trading in buy range above a 66.06 buy point in a cup base following Tuesday’s 2.4% rise. GFS shares lost 3.6% Wednesday morning.
IPO Leader Mobileye continues to try to decisively move past an IPO base’s 29.96 buy point, according to IBD MarketSmith pattern recognition. The 5% chase zone tops out at 31.46. MBLY shares were down 0.3% early Wednesday.
Monday’s IBD 50 Stocks To Watch pick, Phillips 66, is breaking out past a cup-with-handle base’s 110.08 buy point. The stock is in the 5% buy zone, which goes up to 115.58. PSX stock was down 0.9% in morning trade.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla stock advanced 1.8% Tuesday, continuing to rebound from last week’s 52-week low price at 177.12. Still, the stock is more than 50% off its 52-week high and sharply below its 50- and 200-day moving average lines.
Shares of the EV giant traded down 3% Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 1.2% Tuesday, moving further above their 50-day line after last week’s gains. The stock traded down 0.5% Wednesday.
Microsoft edged higher Tuesday, still holding above its recently reclaimed 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares rose 0.1% Wednesday morning.
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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