The Dow Jones Industrial Average fell Wednesday morning after stronger-than-expected retail sales data from the Commerce Department. Investors also digested the retailer’s early earnings reports. Target rose more than 16% on weak earnings results, and Nvidia’s earnings are due after the close.
Among the best stocks to buy and watch is the IBD Leaderboard stock Arista Networks (ANET), IBD’s SwingTrader stock General Motors (GM), GlobalFoundries (GFS), Mobile (MBLY) and Phillips 66 (PSX)— also known as Dow Jones Caterpillar (CAT) — are among the best stocks to buy and watch.
Arista Networks is an IBD Leaders List stock and was the IBD Stock of the Day on Monday. GlobalFoundries was featured in this week’s Stocks Near A Buy Zone column. And Mobileye as an IPO Leader was seen last week.
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Dow Jones Today: Oil Prices, Treasury Yield
After the opening bell on Wednesday, the Dow Jones Industrial Average fell less than 0.1%, while the S&P 500 lost 0.5%. The tech-heavy Nasdaq composite traded down 1.1% in morning action.
Among exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 0.8% early Wednesday, while the SPDR S&P 500 ETF (SPY) fell 0.4%.
The 10-year Treasury yield ticked lower to 3.71%, threatening to extend Tuesday’s decline. Meanwhile, US oil prices erased early losses, as oil continues to vacillate back and forth within its recent trading range. West Texas Intermediate futures were just below $87 a barrel.
Stock Market Rally
On Tuesday, the major stock indexes finished well off their highs. The Nasdaq composite led the way, rising 1.45%, while the Dow Jones and S&P 500 industrials followed with gains of 0.1% and 0.9%, respectively.
The Big Picture said on Tuesday, “The stock market rally continued on Tuesday as Wall Street got more good news on inflation. Even better, some high-growth stocks closed with strong gains, although many high-end stocks closed after Russian reports. missiles landing in Poland.”
Now is an important time to read IBD’s The Big Picture column.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar
Dow Jones member Caterpillar is looking to break out above the 238 cup base buy point, according to MarketSmith’s IBD pattern recognition. CAT shares fell 0.7% on Wednesday.
The CAT 97 stock boasts a perfect 99 IBD Composite Rating, per IBD StockCheck.
4 Top Growth Stocks To Watch In The Currrent Stock Market Rally
Best Stocks To Buy And Watch: Arista, GM, GlobalFoundries, Mobileye, PSX
IBD Leaderboard stock Arista Networks tried to break out above a chopped base buy point of 132.97 amid Tuesday’s 1.1% climb. Shares topped the entry again before closing just below it. ANET stock traded down 1.4% on Wednesday.
Automaker and IBD SwingTrader General Motors stock is back above its cup-to-handle buy point of 40.20. The buy zone tops out at 42.21. GM stock fell 1.5% on Wednesday.
Chip foundry GlobalFoundries is trading in a buy range above a 66.06 buy point in cup base after a 2.4% rise on Tuesday. GFS shares lost 3.6% on Wednesday morning.
The IPO Leader Mobileye continues to try to move decisively above the IPO base buy point of 29.96, according to MarketSmith’s IBD pattern recognition. The 5% chase zone tops out at 31.46. MBLY shares were down 0.3% early Wednesday.
Monday’s IBD 50 Stock Pick to Watch, Phillips 66, is breaking out above a 110.08 cup-to-handle coin buy point. The stock is in the 5% buy zone, which goes up to 115.58. PSX stock was down 0.9% in morning trading.
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Tesla stock advanced 1.8% on Tuesday, continuing to rally from last week’s 52-week low price of 177.12. Still, the stock is more than 50% off its 52-week high and well below its 50- and 200-day moving average lines.
Shares of the EV giant traded down 2% on Wednesday morning.
Dow Jones Leaders: Apple, Microsoft
Among the Dow Jones stocks, Apple shares rose 1.2% on Tuesday, moving further above their 50-day line after last week’s gains. The stock traded down 0.5% on Wednesday.
Microsoft edged higher on Tuesday, still above its recently recaptured 50-day line. The software giant remains about 30% off its 52-week high. Microsoft shares rose 0.1% on Wednesday morning.
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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