Dow Jones Futures Fall Ahead Of Key Economic Data; FedEx Dives On Earnings

Dow Jones futures fell Wednesday, threatening to snap their nine-day win streak, as the stock market seemed ready to take a breather. Meanwhile, investors awaited consumer confidence numbers and home sales data, due later in the day. And shipping giant FedEx (FDX) plunged on a weak earnings report.




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Ahead of Wednesday’s opening bell, Dow Jones futures fell 0.2% vs. fair value, as did S&P 500 futures. Tech-heavy Nasdaq 100 futures dropped 0.3% in premarket action.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) moved down 0.3%, while the SPDR S&P 500 ETF (SPY) lost 0.2% early Wednesday.

The yield on the 10-year U.S. Treasury bond sank even lower, to 3.87% in premarket action. On Tuesday. the benchmark bounced to 3.92%, just off its lowest level since late July.

Oil prices extended their five-day rebound Wednesday, as West Texas Intermediate futures climbed more than 1%. WTI moved near $75 a barrel. Last week, WTI hit its lowest level since late June before bouncing.

Home Sales, Consumer Confidence Data

Later in the morning, the National Association of Realtors will release existing-home sales numbers at 10 a.m. ET. November sales are expected to edge lower to an annual rate of 3.775 million vs. October’s 3.79 million annual rate.

Also, the consumer confidence index is expected to rise to 103.4 in December, up from November’s 102.0 reading. The report from the Conference Board reflects prevailing business conditions and likely developments for the months ahead. That data is due out at 10 a.m.

FedEx reported fiscal second-quarter earnings and revenue results that fell short of expectations after Tuesday’s close. FDX stock sank more than 10% in morning action.

Other key earnings movers include General Mills (GIS) and Toro (TTC). General Mills shares declined 2.6% in premarket action, while Toro stock rose nearly 1%.

Finally, late Wednesday, Micron Technology (MU) will report its quarterly earnings results.


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Winning Streak For Dow Jones, Nasdaq

On Tuesday, the Nasdaq composite climbed 0.7%, marking its ninth straight gain and closing just above the 15,000 level. The S&P 500 and the Dow Jones Industrial Average picked up 0.6% and 0.7%, respectively.

The Dow marked its fifth-straight record close on Tuesday. That’s the first time it’s done that since the five days ended Aug. 16, 2021, according to Dow Jones Market Data.

Tuesday’s Big Picture column commented, “While it’s still OK to look for stocks breaking out of bases, it’s also a good idea to be patient and wait for pullbacks in some of the big leaders. Base breakouts were plentiful when the stock market uptrend was confirmed in early November, but they’re getting harder to find now. And some stocks forming bases now could end up being laggards in their groups.”

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.


Learn How To Time The Stock Market With IBD’s ETF Market Strategy


Stock Market Today: Best Stocks To Buy And Watch

IBD Leaderboard stock Datadog (DDOG), Monday.com (MNDY), IBD SwingTrader issue Netflix (NFLX) and Snowflake (SNOW) — along with Dow Jones stocks American Express (AXP), Caterpillar (CAT) and Visa (V) — are among the best stocks to buy and watch in the current market rally.

Datadog and ELF Beauty are featured in this Stocks Near A Buy Zone column.


Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard


Dow Jones Stocks To Watch: CAT Eyes Buy Point

Financial leader American Express is extended past a 175.31 buy point in a cup with handle, after a 1.6% rally Tuesday. AXP stock dropped 0.5% early Wednesday.

Heavy machinery giant Caterpillar is rapidly approaching a 293.88 buy trigger following sharp gains in recent weeks. CAT stock moved down 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 inched lower Wednesday.


4 Top Growth Stocks To Watch In The Stock Market Rally


Stocks To Buy And Watch: NFLX Extends Gains

IBD SwingTrader stock Netflix now ranks among the best stocks to buy and watch as it gained another 1.8% Tuesday. The streaming giant broke out past a 482.70 buy point in a cup with handle on Monday. NFLX stock dipped 0.4% 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 0.5% Wednesday.

Monday.com is in buy range past a 185.81 buy point in a cup with handle in the wake of the Dec. 14 breakout, according to IBD MarketSmith. MNDY stock dropped 1.2% Wednesday.

Artificial intelligence leader Snowflake is in buy range past a cup-with-handle’s 192.66 buy point. SNOW stock fell 0.4% Wednesday, about 3% above the buy trigger.

Best Stocks In Today’s Stock Market 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. 20, 2023

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Magnificent Seven Stocks: Nvidia, Tesla

Among the so-called “Magnificent Seven” stocks, Tesla (TSLA) moved down 0.5% early Wednesday, while Nvidia (NVDA) dropped 0.6%.

Graphics-chip giant Nvidia lost nearly 1% Tuesday, snapping a five-day win streak. NVDA stock is at the top of the buy zone above a 476.09 double-bottom entry.

Tesla stock rallied 2% Tuesday, closing back above an early entry at 252.75. The stock’s big double-bottom pattern has a 278.98 buy point.

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 up 0.5% Tuesday, as its breakout move looks to stabilize after recent two days of losses. Shares are barely above a cup-with-handle entry at 192.93. Apple shares were off 0.5% Wednesday.

Microsoft stock added to its gains above a 366.78 cup-base buy point during Tuesday’s 0.2% rise. And the software giant was down 0.3% Wednesday morning.

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

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