The Dow Jones Industrial Average reversed higher Wednesday morning, as Apple stock rallied ahead of its “Far Out” iPhone 14 launch event.
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Key earnings reports Wednesday came from Academy Sports & Outdoors (ASO) and Tesla rival Nio (NIO).
Academy rallied more than 7% after mixed results, while Nio stock reversed from early losses to race more than 7% higher in early trade after reporting a wider-than-expected second-quarter loss and a weak revenue outlook.
Electric-vehicle leader Tesla (TSLA) gained 1.3% Wednesday. Among the Dow Jones industrials, tech titans Apple (AAPL) and Microsoft (MSFT) both rose 0.8% after today’s stock market open.
In the market’s current volatility, Arista Networks (ANET), Costco (COST), Restaurant Brands (QSR) and Ulta Beauty (ULTA) — as well as Dow Jones stock Chevron (CVX) — are among the top issues to buy and watch. Keep in mind the market’s increased volatility is a good reason for investors to be more defensive.
Costco is an IBD Leaderboard stock in the wake of a recent breakout, while Apple stock and Restaurant Brands were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Treasury Yields, Oil Prices
After the opening bell Wednesday, the Dow Jones Industrial Average gained 0.4%, while the S&P 500 rose 0.5%. The tech-heavy Nasdaq composite rose 0.8% in morning trade.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) and the SPDR S&P 500 ETF (SPY) were both squarely higher in early trade.
The 10-year Treasury yield ticked lower to 3.30% early Wednesday, easing after Tuesday’s jump. On Tuesday, the 10-year Treasury yield notched its highest closing level since June 15.
U.S. oil prices hit a recent low Wednesday morning, as West Texas Intermediate futures declined more than 3%. WTI futures traded below $84 a barrel.
Stock Market Rally Under Pressure
On Tuesday, the Nasdaq composite sustained the biggest margin loss of the major indexes. It extended its losing streak to seven trading days as it dipped 0.7%. It is the Nasdaq’s longest losing streak since November 2016, according to Dow Jones Market Data.
Tuesday’s The Big Picture column commented, “It was a bad day for retail, with jewelers, automobile, home furnishings and consumer electronics retailers among the worst performers. Generic drugmakers also struggled.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Five Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: Chevron
Dow Jones stock Chevron dropped 0.5% Tuesday. The stock added a handle to a cup base, moving the correct buy point to 166.93 — according to IBD MarketSmith chart analysis — amid a strong performance by energy stocks so far this year. The stock dropped 2.5% early Wednesday, as oil prices faltered.
CVX stock shows a strong 97 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 Top Growth Stocks To Buy And Watch In The Current Stock Market Rally
Top Stocks To Watch: Arista, Costco, Restaurant Brands, Ulta
Arista Networks has added a handle to a double-bottom base, placing the correct entry at 132.97, according to IBD MarketSmith chart analysis. Arista’s relative strength line is starting to give ground, as the stock stays below its long-term 200-day line. ANET shares were up 0.5% early Wednesday.
IBD Leaderboard stock Costco fell further below its 50-day line Tuesday and is about 6% below its 552.81 buy point from a cup with handle. The stock is close to triggering the 7%-8% loss-cutting sell rule. Shares traded up 0.5% Wednesday.
Restaurant Brands dropped 1.1% Tuesday, falling for a second straight day. Shares are building a cup with handle that has a 61.19 buy point. Restaurant Brands franchises and operates 29,000 Burger King and Tim Hortons restaurants globally. The stock was up 0.4% early Wednesday.
Cosmetics retailer Ulta Beauty remains modestly above a 417.08 buy point in a double-bottom base following Tuesday’s 1.1% rise. The RS line hit a new high Tuesday, as the stock demonstrates abnormal strength in a weak market environment. ULTA shares traded up 0.4% Wednesday morning.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock rallied 1.6% Tuesday, closing right above its 50-day line, which is a potential support level to watch. Shares of the electric-vehicle giant rose 1.3% Wednesday morning.
Tesla stock found resistance at its 200-day line in recent months and is about 34% off its 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares declined 0.8% Tuesday, closing further below support at their 50-day line. The stock is about 13% away from a buy point at 176.25 off a cup with handle. Despite the recent losses, the stock’s relative strength line is holding near new highs, indicating steady stock market outperformance.
Shares rose 0.8% Wednesday morning ahead of the company’s “Far Out” product launch event at 1 p.m. ET. Apple is set to unveil the iPhone 14 line, a fresh slate of smartwatches and new AirPods.
Microsoft fell 1.1% Tuesday, extending a losing streak to seven sessions and falling further below its 50-day line. Shares remain sharply below their long-term 200-day line and about 28% off their 52-week high. The stock gained 0.8% 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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