April 25, 2024

The Dow Jones Industrial Average briefly fell 100 points Wednesday, as Wall Street prepared for the Federal Reserve’s interest rate decision along with Fed Chairman Jerome Powell’s comments. Meanwhile, artificial intelligence leader Super Micro Computer (SMCI) extended its losses after pricing its stock offering on the stock market today.


The Dow Jones Industrial Average dropped 0.1% in morning action, while the S&P 500 inched lower. The tech-heavy Nasdaq composite fell 0.1% after the opening bell.

Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was down 0.1%, while the SPDR S&P 500 ETF (SPY) was off a fraction.

The 10-year Treasury yield ticked lower to 4.29%. Further, oil prices pulled back after Tuesday’s gains, as West Texas Intermediate futures lost 1.5% to trade around $81.50 a barrel.

Late Tuesday, Super Micro priced its stock offering to sell 2 million shares at 875 per share, with proceeds to total $1.75 billion. The company will use the proceeds to support its operations, including the purchase of inventory and other working capital needs, manufacturing capacity expansion and increased R&D investments.

Super Micro stock sold off 3.8% in morning trading, adding to Tuesday’s 9% dive.

Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

Stock Market Today: Fed Decision, Powell

The Federal Reserve’s two-day policy meeting concludes Wednesday with a policy statement at 2 p.m. ET.

The Fed is widely expected to keep its key lending rate unchanged in a range of 5.25% to 5.50%. Futures traders at CME FedWatch think the first rate cut will come at the June meeting. But there’s only a 60% chance at this point. Traders see the fed funds rate at 4.50% to 4.75% by the end of the year.

Subsequently, investors will tune into Fed Chairman Jerome Powell’s discussion on financial conditions. At the January news conference, Powell explained that policymakers “look at more than just the fed funds rate. We look at — broadly — financial conditions.”

Key earnings movers Wednesday morning include General Mills (GIS), Ollie’s Bargain Outlet (OLLI) and PDD (PDD).

General Mills shares rallied 6.7% in morning trading, while Ollie’s dipped 1%. And PDD stock soared more than 14% in early action.

Elsewhere, Chipotle Mexican Grill (CMG) jumped 4.6% after the company said it plans to do a 50-for-1 stock split. Shares hit new highs.

Dow Jones Rises

On Tuesday, the Dow Jones Industrial Average outperformed with a gain of 0.8%, the S&P 500 added 0.6% and the Nasdaq picked up 0.4%. The Russell 2000 came close to a test of its 50-day moving average but ended the day 0.5% higher.

Tuesday’s Big Picture column commented, “Major stock indexes continue to attract buyers even with an elevated distribution day count for the Nasdaq and S&P 500. Distribution days are always worth monitoring in the stock market, especially since the Nasdaq shows five of them since March 4. But while some leaders are showing chinks in their armor, plenty more are holding up just fine.”

Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.

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

Best Stocks To Buy And Watch On Stock Market Today

Arista Networks (ANET), Duolingo (DUOL), Dexcom (DXCM) and DraftKings (DKNG) — plus Dow Jones components Disney (DIS), IBM (IBM) and Procter & Gamble (PG) — are among the best stocks to buy and watch on the stock market today.

Arista and Disney were featured in this Stocks Near A Buy Zone column.

An essential resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There were no new breakouts Tuesday.

Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases, like Arista Networks.

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

Dow Jones Stocks: Disney Retakes Buy Point

Disney is breaking out past a big cup-with-handle base’s 112.92 buy point, according to IBD MarketSurge chart analysis. And shares closed further above their entry Tuesday, with a 0.6% gain. Disney stock rose 0.2% Wednesday morning.

IBM stock remains below a flat base’s 196.90 buy point, despite a 0.9% gain Tuesday. Shares inched lower Wednesday.

Consumer products giant Procter & Gamble inched higher Tuesday, still above a 158.38 buy point in a cup base. P&G stock eased slightly Wednesday.

4 Top Growth Stocks To Watch In The Stock Market Rally

DraftKings Stock Nears Buy Point

Arista shares slipped 0.8% Tuesday, nearing a 292.66 flat-base buy point, according to MarketSurge charts. They are just 2% away from their latest buy trigger. On Wednesday morning, Arista shares rose 1.2%.

IPO Leader Duolingo is approaching a cup-with-handle’s 241.86 entry, and is about 6% away from the buy point. Duolingo shares were up 0.5% Wednesday.

Dexcom shares dropped 0.4% Tuesday, holding above a 132.03 entry in a flat base. Dexcom shares were up 0.8% early Wednesday.

Finally, DraftKings is putting the finishing touches on a flat base that will sport a 45.62 entry. Shares rallied 1.6% Wednesday morning.

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Best Bets On Stock Market Today

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
Disney (DIS) 112.92 Cup with handle
Arista Networks (ANET) 292.66 Flat base
DraftKings (DKNG) 45.62 Flat base
Duolingo (DUOL) 241.86 Cup with handle
Source: IBD Data As Of March 19, 2024

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

Magnificent Seven Stocks: Nvidia, Tesla

Magnificent Seven stocks Nvidia (NVDA) was down 1%, while Tesla (TSLA) climbed 0.4% in Wednesday’s morning action.

Nvidia shares reversed up 1.1% Tuesday, adding to Monday’s gains. Nvidia is an IBD Leaderboard stock.

Tesla stock dropped 1.4% on Tuesday to give back a part of Monday’s big advance. Still, shares are sharply below their 50- and 200-day moving averages and more than 40% off their 52-week high.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded lower after Wednesday’s stock market open.

Apple stock moved up 1.4% Tuesday, closing at its highest level since March 1. Shares remain sharply below their long-term 200-day line. Apple was down 0.5% Wednesday.

Microsoft shares found support at the 50-day line, sending them into new highs last week. That placed the software giant in a new buy area.  Microsoft shares were down 0.1% on the stock market today.

Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.


Top Growth Stocks To Buy And Watch

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Find The Best Long-Term Investments With IBD Long-Term Leaders

Nvidia Partner Rides AI Megatrends To 3,594% Gain — With More To Come

Spot Buy Points And Sell Signals With MarketSurge Pattern Recognition

Source: investors.com

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