Dow Jones futures hovered near the break-even point along with other major indexes Wednesday morning ahead of manufacturing data due from the Federal Reserve. Meanwhile, Tesla stock regained a buy point and is in buy range.
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Ahead of the opening bell, Dow Jones futures inched down slightly vs. fair value. S&P 500 were flat while tech-heavy Nasdaq 100 futures edged slightly higher in morning action.
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Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved up less than 0.1%, while the SPDR S&P 500 ETF (SPY) was flat early Wednesday.
The yield on the 10-year U.S. Treasury bond ticked lower to 3.83% in morning trading. On Tuesday, the benchmark moved down to 3.88%, remaining near its lowest level since late July.
Oil prices took a breather after their recent rebounds, as West Texas Intermediate futures dropped 0.6% Wednesday morning. WTI held above $75 a barrel. On Tuesday, WTI closed at its highest level since late November.
Early Wednesday, the Richmond Fed’s manufacturing index is expected to dip to -6 in December, down slightly from November’s -5 reading. This survey tracks business conditions in the Richmond Fed’s manufacturing sector. That data is due at 10 a.m. ET.
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Further, Tesla (TSLA) moved up 0.6% early Wednesday after rallying 1.6% Tuesday. The move Tuesday put Tesla stock back above an early entry at 252.75 and into a buy zone. The member of the so-called “Magnificent Seven” has a big double-bottom pattern with conventional buy point of 278.98.
Dow Jones Nears New High
The Dow Jones Industrial Average, S&P 500 and Nasdaq composite closed with gains Tuesday ranging from 0.4% to 0.5%. All three indexes have risen for eight straight weeks, and the S&P 500 is closing in quickly on its January 2022 all-time high of 4,818.
Tuesday’s Big Picture column commented, “While stocks breaking out of bases can materially outperform in the early stages of a new uptrend, breakouts from bases can struggle after an extended run for the market.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market gains. Be sure to read how to invest during the ongoing uptrend.
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Best Stocks To Buy And Watch
Magnificent Seven stock Alphabet (GOOGL), IBD Leaderboard stock Datadog (DDOG), Monday.com (MNDY), IBD SwingTrader issue Netflix (NFLX) and Snowflake (SNOW) — along with Dow Jones components Amgen (AMGN), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.
Datadog is featured in this Stocks Near A Buy Zone column.
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Dow Jones: CAT Retakes Buy Point
Drug leader Amgen is nearing a 288.46 official buy point in a flat base despite a slight fall Tuesday. Meanwhile, shares rose above an early entry at 282.73 last week. AMGN stock fell 0.3% early Wednesday.
Heavy machinery giant Caterpillar is again breaking out past a 293.88 buy trigger, with a 1.8% advance Tuesday. CAT stock slipped 0.2% Wednesday morning.
Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock edged lower Wednesday.
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Alphabet In Buy Range
Alphabet is in buy range past a 139.42 buy point in a cup with handle following last week’s breakout move. GOOGL stock inched higher early Wednesday.
IBD SwingTrader stock Netflix ranks among the best stocks to buy and watch, as it rose 0.9% Tuesday. The streaming giant broke out past a 482.70 buy point in a cup with handle last week. NFLX stock added 0.2% Wednesday morning.
IBD Leaderboard stock Datadog is breaking out past an alternate handle buy trigger at 120.26 after big gains in recent weeks. DDOG stock lost a fraction Wednesday.
Monday.com continues to hold just above 185.81 buy point in a cup with handle in the wake of Tuesday’s 0.2% fall, according to IBD MarketSmith. MNDY stock was down slightly Wednesday.
Artificial intelligence leader Snowflake is in buy range past a cup-with-handle’s 192.66 buy point. SNOW stock was unchanged Wednesday, about 3% above the buy trigger.
Best Bets In Today’s Action
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Applied Materials | (AMAT) | 145.86 | Alternate entry |
| Caterpillar | (CAT) | 293.88 | Cup base |
| Netflix | (NFLX) | 482.70 | Cup with handle |
| Snowflake | (SNOW) | 192.66 | Cup with handle |
Source: IBD Data As Of Dec. 27, 2023
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Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT), traded lower ahead of today’s stock market open.
Apple stock moved down 0.3% Tuesday, extending a losing streak to four sessions. Shares are barely above a cup-with-handle entry of 192.93. Apple shares were down 0.1% Wednesday.
Microsoft stock inched higher Tuesday, rising for a third-straight session. Shares remain above a 366.78 cup-base buy point. And the software giant was off a fraction Wednesday morning.
A Magnificent Seven stock outside the Dow, Nvidia (NVDA), gained 0.3% in early trading Wednesday. The graphics-chip giant climbed 0.9% Tuesday, still in a buy zone above a 476.09 double-bottom entry.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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Source: investors.com
