Dow Jones futures fell on Wednesday morning ahead of tonight's vote in the House of Representatives on the debt ceiling. Hot AI stock C3.ai (AI) crashed on its earnings results after the market close.
Late Tuesday, the Budget Committee passed the debt ceiling bill, paving the way for a final vote in the House of Representatives, which is expected as early as Wednesday night. The bill appears to be on track to garner enough Republican and Democratic votes to pass the House of Representatives and then the Senate by the June 5 deadline.
As for the economy, the Institute for Supply Management's Chicago PMI is expected to decline to 47 in May, down from 48.6 in April. Additionally, Wall Street expects the Labor Department's Job Opening and Labor Turnover Survey (JOLTS) report to drop to 9.35 million in April, down from 9.59 million in March. Both reports will be released at 10am ET.
Key revenue drivers include: Advance auto parts (AAP), Ambarella (AMBA) and hp (HPQ).
AAP stock plunged 27% after missing earnings estimates while lowering its full-year outlook and cutting the dividend.
Computer vision chip maker Ambarella narrowly beat Wall Street's targets for the fiscal first quarter but disappointed with its outlook. AMBA stock plummeted 18% in early morning trade.
Meanwhile, C3.ai tumbled nearly 8% on Wednesday morning after the much-anticipated post-close earnings results were announced. Since May 3, AI stock is up more than 150%.
stock market today
Electric vehicle giant Tesla was down 1% on Wednesday morning. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were mixed ahead of today's market open.
Arista Networks (ANET), IBD Leaderboard Stock ASML (ASML) and Taiwan Semiconductor (TSM) – as well as Dow Jones shares Boeing (BA), Cisco systems (CSCO) and Foreclosure (CRM) – are among the best stocks to buy and watch in the uptrend of the stock market.
Arista was recently an IBD Stock of the Day, while ASML and Salesforce are among the IBD Leaderboard stocks. And Cisco was featured in this week's “Stocks Near A Buy Zone” column.
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Dow Jones today: oil prices, government bond yields
Ahead of Wednesday's opening bell, Dow Jones futures lost 0.4% from fair value, while S&P 500 futures fell 0.5%. The tech-heavy Nasdaq 100 futures fell 0.5% in morning trade.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) was down 0.4%, while the SPDR S&P 500 ETF (SPY) was also down 0.4% early Wednesday.
The US 10-year Treasury yield fell to 3.64% on Wednesday. On Tuesday, the 10-year Treasury yield plummeted after the weekend's debt ceiling agreement.
US oil prices fell Wednesday morning, extending Tuesday's losses. West Texas Intermediate futures were down 3% on Wednesday, taking WTI futures below $68 a barrel.
stock market action
On Tuesday, the Dow Jones Industrial Average lost 0.15%, while the S&P 500 erased gains to end trade flat. The Nasdaq Composite rose 0.3% to hit a new high in 2023.
Tuesday's Big Picture column said: “There's no doubt that it's tempting to buy the top performing stocks, but the four stocks just mentioned are a long way off the mark. And the number of extended stocks is growing by the day, increasing the risk profile.”
Now is an important time to read IBD's The Big Picture column given the recent positive shift in the market 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 buy point of 52.66. Look for a possible handle that would indicate a previous entry. CSCO stock gained 0.6% on Tuesday, extending its winning streak to three sessions. CSCO stock fell 1% premarket on Wednesday.
Dow Jones aerospace giant Boeing rose 0.5% on Tuesday to close just below its 50-day moving average. Stocks are still forming a flat base with a buy point of 221.43, according to pattern recognition by IBD MarketSmith. BA shares were up 0.8% early Wednesday.
According to leaderboard analysis, Salesforce has surpassed the alternative entries at 194.01 and 200.10 for the past few weeks. Meanwhile, its relative strength line made a new high on Tuesday, a bullish signal. Shares hit the 20 percent gains zone at an entry of 178.94 cups with Henkel, giving investors a leg up on some profits ahead of the company's first-quarter results after market close on Wednesday.
CRM stock rose another 0.8% on Wednesday morning.
The 4 top growth stocks to watch stock market rally
The best stocks to buy and watch: Arista, ASML, TSMC
Network giant Arista Networks broke out Tuesday and crossed a buy point of 171.54, according to pattern recognition by IBD MarketSmith. ANET shares fell 1.4% on Wednesday morning.
IBD leaderboard stock ASML remains outside of buy territory above a buy point of 683.28 in a cup with a handle despite falling 1% on Tuesday. ASML was slightly down on Wednesday morning.
Chipmaker Taiwan Semiconductor fell 1.2% on Tuesday, reversing some of Friday's gains. After Friday's breakout, stocks are still extended past the 95.92 buy point with the double bottom. The 5% buy range reached as far as 100.72, so the stock is slightly extended. TSM shares fell 2.3% on Wednesday morning.
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 watch in today's stock market, including two top performers in the Dow Jones.
|Right buying point
|Type of purchase point
|Cup with handle
Source: IBD data as of May 30, 2023
Join IBD experts as they analyze leading stocks from the current stock market rally on IBD Live
Tesla shares rose 4.1% on Tuesday and continued to move higher to the right of a cup basis with a buy point of 207.89. More aggressive investors could have used an early entry at 193.06. The stock closed above its 200-day long-term moving average for the first time since Sept. 21. Shares closed 36% below their 52-week high on Tuesday.
TSLA stock threatened to give up some of Tuesday's gains, falling more than 1% on Wednesday morning.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.1% on Tuesday, climbing for the fourth straight day to hit a fresh 52-week high at 178.99. The stock continues to hold well above a buy point of 157.48 and is outside of the buy range that extended to 165.35. AAPL shares were down slightly in premarket trading on Wednesday.
Microsoft stock rebounded from fresh highs on Tuesday, closing down 0.5% after trading at a high of 335.74. From a flat base buy point of 276.86, stocks have entered the 20% to 25% profit zone, so investors could at least take some profits here. As of Wednesday morning, MSFT shares were up 0.5%.
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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