Dow Jones futures fell on Wednesday morning ahead of tonight’s House vote on the debt ceiling deal. Hot AI stocks C3.ai (artificial intelligence) fell ahead of post-close earnings results.
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At the end of Tuesday, debt ceiling bill passed the House Rules Committee, paving the way for a final vote in the House, scheduled for Wednesday night. The bill appears to be on track to win enough Republican and Democratic votes to pass the House and then the Senate by the June 5 deadline.
On the economic front, the Supply Management Institute’s Chicago PMI is expected to drop to 47 in May from 48.6 in April. Furthermore, Wall Street is expected to report the Department’s JOLTS Labor (Labor Revenue and Job Opportunity Survey) will fall to 9.35 million in April, compared with 9.59 million in March. Both reports will be released at 10 a.m. KST. ET hours.
Key income drivers include Advanced auto parts (AAP), Ambarella (AMBA) And HP (HPQ).
AAP stock fell 27% after it missed earnings estimates, slashing its full-year outlook and cutting its dividend.
Computer vision chip maker Ambarella rise above Wall Street goals for the first fiscal quarter but disappointed with its outlook. AMBA stock plummeted 18% in early morning trading.
Meanwhile, C3.ai fell nearly 8% on Wednesday morning, with highly anticipated earnings results after the close. Since May 3, AI stock is up more than 150%.
Stock market today
Electric vehicle giant Tesla traded 1% lower on Wednesday morning. tech giant Dow Jones Apple (AAPL) And Microsoft (MSFT) are mixed before the stock market opens today.
Network Arista (NET), IBD . Stock Charts ASML (ASML) And Taiwan Semiconductor (TSM) — as well as Dow Jones stock Boeing airplanes (father), Cisco system (CSCO) And Sales force (CRM) — is one of the best stocks to buy and watch in a stock market uptrend.
Arista is a recent IBD shares of the daywhile ASML and Salesforce are Stocks chart IBD. And Cisco was introduced this week Stocks Near Buy Zone column.
Dow Jones today: Oil prices, Treasury yields
Before Wednesday’s opening bell, Dow Jones futures were down 0.4% from fair value, while S&P 500 futures were down 0.5%. Tech-heavy Nasdaq 100 futures fell 0.5% in morning trade.
Between us exchange-traded fundsNasdaq 100 Invesco QQQ Trust tracker (National Assembly member) traded down 0.4%, while the SPDR S&P 500 ETF (spy) also fell 0.4% early Wednesday.
Yields on the 10-year US Treasuries were trading down 3.64% on Wednesday. On Tuesday, 10-year yields fell following the debt ceiling deal at the end of the week.
US oil prices fell on Wednesday morning, extending Tuesday’s decline. West Texas Intermediate futures lost 3% on Wednesday, sending WTI futures below $68 a barrel.
Stock market action
On Tuesday, the Dow Jones Industrial Average lost 0.15%, while the S&P 500 wiped out gains to end the session flat. The Nasdaq composite is up 0.3% to hit a new high in 2023.
Tuesday’s Big Picture Category commented, “There’s no doubt that it’s tempting to buy the top performing stocks, but the four stocks just mentioned are out of the appropriate target range. And the number of stocks stretched continues. increases day by day, which increases the risk profile.”
Now is a great time to read IBD . Big Picture Column following the recent positive change in the market’s outlook.
The five best Dow Jones stocks to buy and watch right now
Dow Jones Stocks to Buy and Watch: Cisco, Boeing, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a 52.66 buy point. Keep an eye out for a potential handle, which will show a previous entry. CSCO stock rose 0.6% on Tuesday, extending its winning streak to three sessions. CSCO stock fell 1% before premarket Wednesday.
Dow Jones aerospace giant Boeing was up 0.5% on Tuesday, closing just below the 50-day moving average. The stock is still forming a flat base with a buy point of 221.43, according to IBD MarketSmith . Pattern Recognition. BA stock rose 0.8% early Wednesday.
Salesforce has recovered past replacements at 194.01 and 200.10 in recent weeks, according to a Charts analysis. Meanwhile, its relative strength line hit a new high on Tuesday, a bullish signal. The stock posted a 20% return from the 178.94 cup-with-handle entry, so investors will have reason to lock in some gains ahead of the company’s first-quarter results after the market closes. on Wednesday.
CRM stock added 0.8% Wednesday morning.
Top 4 growth stocks worth watching Stock market recovers
Best Stocks to Buy and Watch: Arista, ASML, TSMC
Network giant Arista Networks exploded on Tuesday, moving above a 171.54 buy point, according to IBD MarketSmith . Pattern Recognition. ANET stock was down 1.4% Wednesday morning.
IBD Rankings ASML stock remains out of buy range past a 683.28 buy point in cup-with-handle despite a 1% drop on Tuesday. ASML fell slightly on Wednesday morning.
Taiwan Semiconductor foundry fell 1.2% on Tuesday, regaining some of Friday’s profits. Shares remain extended past the 95.92 buy point of the double bottom following Friday’s breakout move. The 5% buy zone goes up to 100.72, so the stock is slightly extended. TSM stock fell 2.3% Wednesday morning.
Learn how to time the market with IBD’s ETF Market Strategy
Best stocks to buy and watch as the stock market recovers
These are the four best stocks to buy and watch on the stock market today, including two that lead the Dow Jones.
| Company name | Icon | Exact point of purchase | Type of point of purchase |
|---|---|---|---|
| ASML | (ASML) | 683.28 | cup with handle |
| Sales force | (CRM) | 200.10 | consolidate |
| Boeing airplanes | (father) | 221.43 | flat sole |
| Network Arista | (NET) | 171.54 | cup base |
Source: IBD Data as of May 30, 2023
Join IBD experts as they analyze the top stocks in the current stock market rally on IBD Live
Tesla shares
Tesla shares rallied 4.1% higher on Tuesday, moving further to the right of the cup base with a 207.89 buy point. More active investors could have used the early entry at 193.06. Shares closed above the long-term 200-day line for the first time since September 21. Shares closed Tuesday down 36% from a 52-week high.
TSLA stock is at risk of giving up some of Tuesday’s gains, falling more than 1% Wednesday morning.
Leading the Dow Jones: Apple, Microsoft
Between Dow Jones stockShares of Apple rose 1.1% on Tuesday, up for the fourth day in a row, and hit a new 52-week high at 178.99. The stock continues to hold firm above the 157.48 buy point and stays out of the buy range up to 165.35. AAPL stock fell slightly in premarket trading Wednesday.
Microsoft stock reversed from fresh highs on Tuesday, closing down 0.5% after trading at a high of 335.74. Stock has reached Profit zone 20%-25% from a flat base buy point 276.86, so investors can make at least some profit here. On Wednesday morning, MSFT stock rose 0.5%.
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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