Dow Jones ahead of Powell’s speech; AMD and Nvidia move ban on AI chips to China

The Dow Jones Industrial Average fell Wednesday ahead of a discussion involving Fed Chair Jerome Powell at a European Central Bank forum in Portugal. chip giant modern micro devices (AMD) and Nvidia (NVDA) sold off after the Wall Street Journal reported that the Biden administration is considering new restrictions on the export of artificial intelligence chips to China.


Powell is scheduled to join a European Central Bank discussion at 9:30 a.m. ET, which is expected to focus on managing inflation. Later on Wednesday he has a public meeting with the governor of the Bank of Spain.

Two weeks ago, the Federal Reserve refrained from raising interest rates, but signaled that its interest rate is likely to rise again in July and thereafter. As a result, investors are assuming the probability of a rate hike at the upcoming July meeting is over 74%.

early wednesday, AeroVironment (AVAV), General Mills (GIS) and Jefferies (JEF) were the main contributors to income.

AVAV shares are up more than 5%, while General Mills shares are down 3.3% in morning trade. Jefferies shares fell 1% in morning trade.

stock market today

AMD stock is down more than 1%, while Nvidia stock is down 2.2% in early trade. Giant for electric vehicles Tesla (TSLA) gained 0.1% on Wednesday morning after Tuesday's rebound.

Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed after the market open today.

Other stock market leaders in the stock market rally include: alphabet (GOOGL) and Meta platforms (META). Google stock fell 0.9%, while Meta stock fell 0.6% in morning trade.

Chipotle Mexican Grill (CMG), McKesson (MCK), MongoDB (MDB) and Lam Research (LRCX) – as well as Dow Jones shares JPMorgan Chase (JPM), Merck (MRK) and Foreclosure (CRM) – are among the stocks best to keep an eye on as the stock market continues to decline.

Tesla is an IBD Leaderboard stock, Floor & Decor remains an IBD SwingTrader stock, while MongoDB is featured in this week's “Stocks Near A Buy Zone” column.

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Dow Jones today: oil prices, government bond yields

After Wednesday's opening bell, the Dow Jones Industrial Average fell 0.3%, while the S&P 500 lost 0.35%. The tech-heavy Nasdaq Composite fell 0.2% in morning trade.

Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) is down 0.5%, while the SPDR S&P 500 ETF (SPY) is down 0.3% early Wednesday.

The 10-year US Treasury yield fell to 3.74%. The yield recently fluctuated in a range between 3.57% and 3.85%. On Tuesday, the price was higher at 3.76%.

Oil prices rebounded slightly Wednesday morning, still staying near recent lows after Tuesday's losses. West Texas Intermediate futures rose 0.5% to around $68 a barrel.

stock market action

On Tuesday, the Dow Jones Industrial Average rose 0.6% while the S&P 500 gained 1.15%. The tech-heavy Nasdaq Composite rose 1.65%.

Tuesday's Big Picture column said: “The show of strength following the recent decline has been encouraging. The Nasdaq Composite ended the day up 1.7%. The tech-heavy index rose from its 21-day exponential moving average and just barely closed the 10-day moving average.”

Now is an important time to read IBD's The Big Picture column as the stock market remains on the uptrend but is pulling back.

The five best Dow Jones stocks to buy and watch right now

Dow Jones stocks to watch: JPMorgan, Merck, Salesforce

Dow Jones banking leader JPMorgan is about 3% below a flat base buy point of 143.37 after Tuesday's slight gain. Shares are right at their 50-day moving average and edged higher on Wednesday.

Pharma giant Merck forms a flat base with a buy point of 119.65 as the stock rose 0.2% on Tuesday and is still below the 50-day moving average. MRK shares fell 0.1% on Wednesday.

Salesforce was able to stabilize after the slump in earnings that followed. Support at the 50-day moving average is currently being tested. According to IBD leaderboard analysis, the megacap technology sector previously surmounted two alternative entries at 194.01 and 200.10.

For the past few weeks, shares have hit the 20 percent gain zone with an entry at 178.94 cups with handles. CRM stock fell 0.5% on Wednesday morning.

4 top growth stocks to buy and watch in the stock market rally

Best stocks to buy and watch: Chipotle, McKesson, MongoDB, Lam Research

IBD Leaderboard watchlist stock Chipotle is testing support at its 10-week moving average and forming a flat base with a buy point of 2139.88, according to pattern recognition by IBD MarketSmith. An early entry at 2,092.51 is also in play due to a trend line. Chipotle was an IBD Stock of the Day recently. CMG shares rose a fraction on Wednesday morning.

IBD SwingTrader stock McKesson is in buy territory after a 401.53 cup with handle entry. The 5% buy zone goes to 421.61. Shares were slightly lower on Wednesday.

MongoDB is trading tight on the recent earnings-driven gap to the upside and offers a fresh entry. The 3-week tight formation shows a buy point at 398.89 while aggressive investors could use a trendline entry around 386. MDB shares rose 0.2% on Wednesday morning.

Lam Research rose above an early buy point of 615.80 on Monday after rallying 1.9%. And shares surpassed a three-week tight pattern with an entry of 630.72 during Tuesday's rally. LRCX shares lost 1.5% on Wednesday.

Learn how to drive the market with IBD's ETF market strategy

The best stocks to buy and watch as the stock market rallies

These are the top four stocks to buy and keep an eye on in today's stock market, including a Dow Jones leader.

Company Name symbol Right buying point Type of purchase point
ASML (ASML) 683.18 Cup with handle
Foreclosure (CRM) 200.00 consolidation
cloud flare (NETWORK) 66.20 Double bottom
roku (ROKU) 75.45 Cup with handle
Source: IBD data as of June 28, 2023

Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live

Tesla stock

IBD leaderboard stock Tesla rose 3.8% on Tuesday, rebounding after two straight days of losses. Despite the recent losses, Tesla shares remain well outside the buy range beyond the 207.79 buy point as a double bottom.

TSLA stock appeared to add to Tuesday's gains, rising 0.1% on Wednesday.

Dow Jones leaders: Apple, Microsoft

Among the Dow Jones stocks, Apple shares hit another record high on Tuesday, trading at 188.39. Shares continue to hold well above a buy point of 157.38. Early Wednesday, AAPL shares fell 0.1%.

Microsoft shares rebounded 1.8% on Tuesday, recovering from Monday's decline. On June 16, MSFT stock hit an all-time high of 351.47. Over the past few weeks, the stock has entered 20% to 25% profitability from a flat base buy point of 276.76, allowing investors to take at least some profits there. And on Wednesday morning, Microsoft shares were up 0.2%.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen Learn more about growth stocks and the Dow Jones Industrial Average.


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