The Dow Jones Industrial Average fell 200 points Wednesday morning after much better-than-expected US retail sales data. Meanwhile, tesla (TSLA) shares pulled back lower despite Barclays initiating coverage with an overweight rating and a 275 price target.
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The Commerce Department’s January retail sales rose 3% on the month, above estimates that called for a 1.7% rise after December’s 1.1% drop. Excluding autos, retail sales rose 2.3% for the month versus an estimate of 0.7%. And excluding autos and gasoline, retail sales rose 2.6% month-on-month versus an estimate of 0.6%.
Elsewhere on the economic front, the New York Fed’s Empire State Manufacturing Index came in better than expected, though still in contraction territory at -5.8 versus an expected reading of -18.5, versus falling from January to -32.9. Lastly, the February Housing Market Index will be released at 10 am by the National Association of Home Builders. The report is expected to show homebuilder confidence rising to 37 from 35 in February.
airbnb (ABNB), devon energy (DVN) and tripadvisor (TRIP) reported earnings after the close on Tuesday.
ABNB shares rose around 8%, while Devon shares fell more than 7%. TRIP shares soared more than 8%.
Meanwhile, analog devices (GOING), Biogen (BIIB), kraftheinz (KHC), Roblox (RBLX) and Trading Desk (TTD) reported Wednesday morning.
Analog’s shares rose more than 6% after strong sales and earnings growth in the fiscal first quarter. Biogen lost almost 1%. Kraft shares lost 0.6%, while Trade Desk rose 15%. Roblox skyrocketed more than 18% after his report.
stock market today
Electric vehicle leader Tesla was down 0.5% on Wednesday morning, while tech giants the Dow Jones Apple (AAPL) and Microsoft (MSFT) were modestly lower after the stock market opened today.
dexcom (DXCM), IBD Leaderboard Snowflake (SNOW), Inspire medical systems (INSP) and wing stop (WING), as well as Dow Jones stocks Caterpillar (CAT), JPMorgan Chase (JPM) and Sales force (CRM) – are among the top stocks to buy and watch, amid the recent pullback in the market rally.
Snowflake is an IBD Leaderboard stock. Inspire and Dexcom were recent subjects of EII Stock Of The Day. Salesforce was featured in the Stocks column near a buy zone this week.
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Dow Jones Today: Oil Prices, Treasury Yields
After the opening bell on Wednesday, the Dow Jones Industrial Average fell 0.5% and the S&P 500 was down 0.4%. The Nasdaq technology composite lost 0.2% in morning action.
Among US exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.35% and the SPDR S&P 500 ETF (SPY) was down 0.5% early Wednesday.
The 10-year US Treasury yield rose to 3.76% on Tuesday, recovering from Monday’s losses. Then the 10-year yield rose to 3.78% on Wednesday morning after the retail sales figures.
Oil prices threatened to extend a losing streak to three sessions, falling modestly on Wednesday morning. West Texas Intermediate futures traded below $79 a barrel ahead of the weekly release of oil inventories by the Energy Information Agency.
stock rally
On Tuesday, the Dow Jones Industrial Average lost 0.5% and the S&P 500 inched lower. Meanwhile, the Nasdaq Composite rose 0.6% after reversing heavy losses in the morning.
Tuesday’s The Big Picture column commented: “The prospect of more interest rate hikes, and rates staying high for longer, rocked the stock market for a while on Tuesday as Wall Street weighed the latest report on inflation. But the market’s uptrend showed strength once again as major stock indices pared early losses or reversed higher, closing near session highs.”
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks to Buy and Watch: Caterpillar, JPMorgan, Salesforce
Dow Jones’ top stock Caterpillar is still in the buying range above a flat-bottomed entry of 239.85 as it tries to find support around its 50-day moving average, according to IBD MarketSmith chart analysis. . Shares fell 1.5% on Tuesday, closing just at the 50-day line. CAT shares fell 0.2% on Wednesday morning.
Banking giant JPMorgan is still in the 5% buy range above a flat bottom buy point of 138.76 after a third straight gain on Tuesday. The 5% buy zone reaches a high of 145.70. JPM shares were down early Wednesday morning. JPM shares show a solid 95 out of a perfect 99 IBD composite rating, according to IBD stock verification. The composite rating is designed to help investors easily find the fastest growing stocks.
In the Stocks Near a Buy Zone column this week, Salesforce is building a cup with a handle that has a buy point of 178.94. The shares lost 0.65% on Tuesday. CRM shares fell a fraction early Wednesday.
Top 4 Growth Stocks to Buy and Watch in the stock rally
Top Stocks to Buy and Watch: Inspire, Snowflake
IBD recent day stock Inspire Medical Systems closed squarely in the 5% buy area past the 262.64 buy point of a flat base amid Tuesday’s 0.3% drop, according to the pattern recognition from IBD MarketSmith. The buy zone reaches a maximum of 275.77. INSP shares show a modest 84 IBD composite rating. INSP shares rose 0.3% on Wednesday.
Background: The company sells an implantable device to treat sleep apnea through electrical stimulation of nerves, a process called neurostimulation.
Snowflake, the recent addition to the IBD leaderboard, nears an early entry at 178.80 as the software leader climbs up the right side of a deep cup base that features a buy point of 205.76. SNOW shares gained 0.8% on Wednesday morning.
Background: The software firm offers a new way for businesses and large organizations to access, organize and analyze their data. To help customers maximize their data analytics investments, Snowflake charges by airtime. Earnings will be posted on March 1st.
Dexcom, Wingstop Eye Latest Purchase Points
Dexcom shares rose 0.3% on Tuesday, extending a winning streak to three sessions and moving higher on the right side of a cup base with a buy point of 125.65. Stocks could also form a handle in the coming weeks, so keep an eye out for a possible lower entry. The stock rose 0.2% on Wednesday.
Background: On February 9, Dexcom reported better-than-expected quarterly results. The pace comes as Dexcom’s new continuous glucose monitor, or CGM, gains traction in the US and Europe. These body-worn devices track blood sugar in real time. The Food and Drug Administration approved Dexcom’s new device, the G7, last year.
Wingstop is breaking above a buy point of 169.04 in a tumbler, ralliing 4.6% on Tuesday. WING shares added 1% on Wednesday.
Background: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. Its international locations include Mexico, Colombia, Panama, Singapore, and the United Kingdom. The company added 40 net stores in the prior quarter. Earnings will be posted on February 22.
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Stocks to Buy and Watch on the Stock Market Rally
Here are the top seven stocks to buy and watch in today’s stock market, including two leaders from the Dow Jones.
| Company Name | Symbol | correct point of purchase | base type |
|---|---|---|---|
| Inspire medical systems | (IN SP) | 262.64 | flat base |
| dress | (VC) | 152.20 | cup bottom |
| Caterpillar | (CAT) | 239.95 | flat base |
| Snowflake | (SNOW) | 205.76 | cup bottom |
| JPMorgan | (JPM) | 138.76 | flat base |
| wing stop | (TO THE) | 169.04 | mug with handle |
Source: EII data as of February 15, 2023
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Tesla Stock
Tesla shares rose 7.5% on Tuesday, snapping a two-day streak. Despite its strong recovery since January 6, stocks are still below the 200-day line. Shares closed Tuesday about 46% below their 52-week high.
Shares appeared to add to Tuesday’s gains but fell back 0.5% on Wednesday morning, even after Barclays began coverage of the EV giant with a higher rating and a 275 price target. .
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.4% on Tuesday, ending a two-day winning streak. Shares are around 15% below their 52-week high and rising on the right side of a new base. Apple shares fell 0.1% on Wednesday.
Microsoft shares rose 0.3% on Tuesday, adding to Monday’s jump. Shares are above their 200-day line and about 14% below their 52-week high after recent gains. MSFT shares were down 0.9% on Wednesday morning.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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