Dow Jones futures dropped Wednesday ahead of Fed minutes from January’s meeting. Airbnb, CF Industries, Roblox, Shopify and Trade Desk were key earnings movers ahead of the market open, as investors kept a wary eye on developments in the Russia/Ukraine standoff.
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Among the Dow Jones leaders, Apple (AAPL) inched lower and Microsoft (MSFT) traded down 0.1% in today’s stock market. American Express (AXP), a Dow Jones stock to watch, is barely in buy range after last week’s breakout move.
Electric-vehicle leader Tesla (TSLA) turned slightly lower premarket Wednesday, threatening to snap a two-day win streak.
Amid a volatile stock market rally, Northern Oil & Gas (NOG), Deere (DE), Palo Alto Networks (PANW) and Stifel Financial (SF) are among Wednesday’s top stocks to buy and watch. All four stocks are in or near new buy zones.
Microsoft and Tesla are IBD Leaderboard stocks. Northern Oil & Gas was Tuesday’s IBD 50 Stocks To Watch pick. Stifel was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Fed Minutes, Retail Sales
Ahead of the stock market open Wednesday, Dow Jones futures traded down 0.3% vs. fair value, while S&P 500 futures lost 0.4%. Nasdaq 100 futures dropped 0.6% in morning trade. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) eased 0.2% lower, and the SPDR S&P 500 ETF (SPY) moved down 0.2% before Wednesday’s open.
The 10-year Treasury yield ticked down to 2.03% Wednesday morning. On Tuesday, the 10-year Treasury yield closed just below 2.05%.
Oil stocks traded generally higher as oil prices took a modest bounce Wednesday morning. West Texas Intermediate crude rose more than 1% to climb back above $93 a barrel.
Investors are awaiting minutes from the Fed’s January meeting, which are due out at 2 p.m. ET, for more insight into the central bank’s plans for raising interest rates to combat inflation. Meanwhile, retail sales handily topped estimates, surging 3.8% in January compared to estimates for a 2% rise vs. the previous month.
Stock Market Rally Struggles
The stock market posted positive action Monday, as the three major stock indexes ended strongly higher. Amid the recent volatility, now is an important time to read IBD’s The Big Picture column.
Tuesday’s The Big Picture cautioned, “However, with a modicum of outstanding breakouts, few stocks reaching new highs, and many past stock market leaders still locked in repair-and-rebuild mode, the strong rebound on Wall Street does not justify changing the outlook for stocks. Just on Friday, a harsh sell-off signaled skittishness among large fund managers and spurred a change in IBD’s market outlook to “uptrend under pressure” for the fourth time since Nov. 30.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Stock Market Earnings: Airbnb, Roblox
Airbnb (ABNB), CF Industries (CF), Roblox (RBLX), Shopify (SHOP) and Trade Desk (TTD) reported quarterly earnings results ahead of Wednesday’s market open.
Airbnb reported fourth-quarter results late Tuesday that beat on the top and bottom lines. ABNB shares rallied 2% in premarket trade.
Fertilizer supplier CF Industries reported fourth quarter results that came in shy of estimates, but expects a strong outlook into 2023. CF shares declined 5% in premarket trade.
Roblox stock plunged more than 20% premarket Wednesday after missing Wall Street’s estimates for the fourth quarter.
Shopify descended more than 10% despite the company’s better-than-expected results early Wednesday.
Trade Desk dropped more than 4% in the wake of the company’s strong fourth quarter results.
Dow Jones Stocks To Watch: American Express
American Express broke out past what IBD MarketSmith chart analysis plotted as a cup base buy point at 189.13 and is still barely in the 5% buy range that tops out at 198.59. AXP stock traded slightly lower premarket Wednesday.
Bullishly, the stock’s relative strength line is at new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Rally
Stocks To Buy And Watch: Northern, Deere, Palo Alto, Stifel
Tuesday’s IBD 50 Stocks To Watch pick, Northern Oil & Gas, continues to build a cup with handle with a 25.57 buy point, according to IBD MarketSmith chart analysis. NOG shares climbed 0.5% premarket Wednesday.
Deere is just above a cup-with-handle’s 388.20 buy point after Tuesday’s 1.6% gain. The 5% buy zone goes up to 407.61. DE shares were flat premarket Wednesday.
Thursday’s IBD Stock Of The Day, Palo Alto Networks, is moving up the right side of a consolidation with a 572.77 buy point. Shares are just above the 50-day line. PANW shares were flat premarket Wednesday. The cybersecurity leader will report earnings on Feb. 22, so an early breakout move will carry more risk. Investors may want to study up on options buying strategies, a method for reducing risk during earnings season.
IBD Leaderboard stock Stifel Financial regained its 78.70 buy point in a consolidation following Tuesday’s 2.1% rise. Its RS line hit a new high last week. Stifel shares were unchanged premarket Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock traded slightly lower Wednesday morning, still looked to extend a win streak to three sessions. The stock remains above its long-term 200-day line, but is still sharply below the 50-day moving average. There is no proper entry in sight, as the stock continues to consolidate.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 26% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple stock moved back above its 50-day line during Tuesday’s 2.3% climb. A new consolidation shows a buy point at 183.04, but a decisive move above last week’s high of 176.65 could be an early entry for aggressive investors. Apple shares inched lower premarket Wednesday.
Software leader Microsoft rallied 1.85% Tuesday, as the top Dow Jones stock found support around its long-term 200-day line. MSFT stock moved down 0.1% 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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