The Dow Jones Industrial Average dropped 140 points ahead of Wednesday’s Fed decision. Tesla stock reversed lower after trading near record highs. And Academy Sports + Outdoors, Adobe, Alphabet and Goldman Sachs are in or near buy zones in today’s stock market action.
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Among the Dow Jones leaders, Apple (AAPL) rose 0.3%, while Microsoft (MSFT) lost 0.4% in today’s stock market. American Express (AXP), JPMorgan Chase (JPM) and Nike (NKE) continue to trade near new buy points.
Tesla (TSLA) rose 0.4% Wednesday, looking to rebound from Tuesday’s 3% skid.
Among the top stocks to buy and watch, Academy Sports + Outdoors (ASO), Adobe (ADBE), Alphabet (GOOGL) and Goldman Sachs (GS) are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Alphabet is an IBD SwingTrader stock. Goldman was featured in this week’s Stocks Near A Buy Zone story and was Tuesday’s IBD Stock Of The Day.
Dow Jones Today: Fed Decision
Midday Wednesday, the Dow Jones Industrial Average dropped 0.4%. The S&P 500 traded down 0.15%, while the tech-heavy Nasdaq rose less than 0.1% in midday trade.
U.S. Stock Market Today Overview | ||||
|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35962.71 | -89.92 | -0.25 |
| S&P 500 | (0S&P5) | 4625.09 | -5.56 | -0.12 |
| Nasdaq | (0NDQC ) | 15654.48 | +4.88 | +0.03 |
| Russell 2000 | (IWM) | 236.89 | +2.44 | +1.04 |
| IBD 50 | (FFTY) | 50.55 | -0.34 | -0.67 |
Last Update: 10:28 AM ET 11/3/2021 | ||||
Among exchange traded funds, Innovator IBD 50 (FFTY) lost 0.8% Wednesday. Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.1%. And the SPDR S&P 500 ETF (SPY) moved down 0.2%.
The Federal Reserve will release its policy statement at 2 p.m. ET Wednesday. The central bank is expected to announce that it will begin steadily reducing its bond-buying program. Fed chief Jerome Powell follows with a news conference at 2:30 p.m. ET.
Meanwhile, ADP payroll data showed nonfarm private employers added 571,000 workers in October, better than Econoday projections for an addition of 400,000 workers. The Labor Department’s jobs report is due out Friday.
Stock Market ETF Strategy And How To Invest
Stock Market Rally
The stock market rally gained further strength on Tuesday, as the Dow Jones Industrial Average, Nasdaq and S&P 500 notched more all-time highs. The Dow Industrials closed above the 36,000 level for the first time ever.
On Tuesday, The Big Picture commented, “The Nasdaq composite climbed for a seventh straight day and added 0.3%. The S&P 500 rose 0.4%. Moderate as they may have been, index gains showed no letup among buyers. Indexes closed near session highs for a fourth straight day.”
With the Nasdaq at all-time highs and a limited amount of distribution, investors should remain bullish on the positive trend in the market. So, investors should be looking for new buying opportunities to incrementally increase market exposure. And, like always, be disciplined about your purchases. Don’t chase extended stocks and be sure to cut losses after sell signals.
For daily stock market commentary, be sure to check out IBD’s The Big Picture.
Five Best Dow Jones Stocks To Watch Now
Dow Jones Stocks To Buy And Watch: Amex, JPMorgan, Nike
American Express ended Tuesday about 3% below a 178.90 buy point in a cup with handle, according to IBD MarketSmith chart analysis. Shares fell 0.3% Wednesday, falling further beneath the recent entry.
Meanwhile, JPMorgan remains at the top of the 5% buy zone past a 163.93 entry in a cup with handle after a recent bounce off the 50-day moving average. The 5% buy area tops out at 172.13. JPM stock was down 0.5% Wednesday.
Dow Jones retail leader Nike is tracing a cup base with a 174.48 buy point. Be on the lookout for a potential handle to offer a more risk-optimal entry. Shares rallied almost 2% Wednesday.
Stocks To Buy And Watch: Academy, Adobe, Alphabet, Goldman
Academy Sports + Outdoors is breaking out past a cup-with-handle’s 45.53 buy point, climbing over 5% in early trade. Shares are in the 5% buy range that goes up to 47.81.
IBD Leaderboard stock Adobe is forming a cup with handle that shows a 659.29 buy point. Shares rallied 1.65% in midday trade. Per Leaderboard analysis, the new base is a third-stage pattern, which is a later-stage formation. Late-stages bases have less upside and are more likely to fail than earlier-stage patterns.
IBD SwingTrader stock Alphabet is trading just below a new buy point — a 2,925.18 entry in a flat base — according to IBD MarketSmith chart analysis — amid Wednesday’s 0.1% gain. Shares gave up the entry during Monday’s sharp fall.
The IBD Stock Checkup shows that Alphabet stock boasts a 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating identifies stocks with a blend of strong fundamental and technical characteristics.
Goldman Sachs is back below a 420.86 buy point in a flat base after the stock lost 1.3% Wednesday morning. The top Dow Jones stock was featured in this week’s Stocks Near A Buy Zone column.
Join IBD experts as they analyze leading stocks in the new stock market uptrend on IBD Live
Tesla Stock
Tesla stock again turned higher Wednesday, rallying about 0.5% in midday trade. Shares are trading just off Monday’s record highs.
Last week, the EV giant’s shares moved above a $1 trillion valuation milestone on news that Tesla had partnered with Hertz, one of the largest car rental companies in the world, to provide it with 100,000 vehicles by the end of 2022. This week, CEO Elon Musk tweeted that no contract with Hertz has been signed yet. In response, Hertz responded, saying that deliveries have already started.
The stock traded as high as 1,209.75 Monday. TSLA shares are sharply above a 764.55 buy point in a cup with handle, as well as earlier entries at 700.10 and 730. An alternate entry at 900.50 also could be identified.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple stock is forming a new cup base with a 157.36 buy point, according to IBD MarketSmith chart analysis. Shares rose 0.3% Wednesday, on pace to add to Tuesday’s 0.7% rise. The current weakness looks to be tracing a potential handle, which would offer a lower buy point at 153.27.
Software giant Microsoft moved down 0.4% Wednesday, edging lower after Tuesday’s 1.1% rise. On Oct. 18, Microsoft broke out past a flat base’s 305.94 buy point. The 5% buy zone tops out at 321.24, so the stock is now extended. Shares are at record highs.
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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