Dow Jones futures jumped Wednesday morning. Ukrainian President Volodymyr Zelenskyy described peace talks as “more realistic,” accelerating a global market rally launched in China. The Federal Reserve’s interest-rate decision is due out later in the day. Treasury yields held at their highest level since July 2019, while U.S. oil prices remained below $96 a barrel Wednesday.
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Stocks with heavy China exposure — Las Vegas Sands (LVS), Wynn Resorts (WYNN) and Micron Technology (MU) — led the S&P 500 by a wide margin. Among the Dow Jones leaders, Apple (AAPL), Nike (NKE) and Boeing (BA), also highly sensitive to China, topped the industrials in early trade.
Nike jumped 2.8%. Apple and Boeing each rallied more than 2%. Microsoft (MSFT) moved up 1.6% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Tuesday within striking distance of a new buy point.
On the Nasdaq 100, China-based Pinduoduo (PDD) spiked 35%, while JD.com (JD) punched out a 24.1% gain. Electric-vehicle leader Tesla (TSLA) rose more than 2% early Wednesday, looking to add to Tuesday’s strong gains.
Amid the volatile, headline-driven market, Costco (COST), O’Reilly Automotive (ORLY), Regeneron Pharmaceuticals (REGN) and Vertex Pharmaceuticals (VRTX) are among Wednesday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft, Tesla and Vertex are IBD Leaderboard stocks. O’Reilly was Tuesday’s IBD 50 Stocks To Watch pick. And Costco and Regeneron were featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russia-Ukraine Talks, Fed Meeting
Before Wednesday’s market open, Dow Jones futures jumped 1.2% vs. fair value, while S&P 500 futures moved up 1.3%. Nasdaq 100 futures surged 1.8% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 1.8%, and the SPDR S&P 500 ETF (SPY) moved up 1.3% ahead of Wednesday’s open.
Chinese markets rebounded sharply Wednesday, after Chinese Vice-Premier Liu He pledged “substantial measures” to bolster capital markets and economic growth. The Hang Seng Index rebounded 9.1%, its largest one-day percentage increase since late 2008. Baidu (BIDU) soared more than 15% in U.S. premarket trade on Wednesday.
Ukrainian President Zelenskyy said peace talks with Russia were beginning to “sound more realistic” in an address to the nation Tuesday. Meanwhile, Russian Foreign Minister Sergey Lavrov told RBC news that there was “some hope of reaching a compromise.” Talks have begun to revolve around Ukraine adopting a ‘neutral nation’ status, while maintaining its own military.
The 10-year U.S. Treasury yield ticked up to 2.17% Wednesday morning after ending Tuesday at 2.16%, its highest point since July 2019. U.S. oil prices dipped Wednesday morning. The Federal Reserve’s two-day meeting will end Wednesday with an interest-rate decision at 2:00 p.m. ET. Expectations call for the central bank to raise interest rates by a quarter percentage point, which would be the first increase since 2018.
Russia eased its demands on a possible Iran nuclear deal, a move that kept a lid on early oil prices gains. West Texas Intermediate crude traded slightly lower, holding below $96 a barrel.
Stock Market Rally Attempt
The stock market posted strong action Tuesday, as the major stock indexes finished with big gains. But a key element of a follow-through day — higher volume than the previous day — was lacking. So despite the strong gains, the stock market correction is still here.
Tuesday’s The Big Picture column commented, “To be sure, Tuesday’s gains were impressive. But, as we learned only days ago, big gains don’t necessarily signal true market uptrends. Tuesday’s index gains were the largest since March 9, which only took the market lower.” Amid the current volatility, it’s an important time to read and follow IBD’s The Big Picture column.
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
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth shows a 500.10 buy point with a handle entry on a double-bottom base. Shares ended Tuesday within striking distance after the session’s 2.05% rise. UNH shares were up about 1% early Wednesday, eying a potential breakout if the gains holds into the market open. UNH was Monday’s IBD Stock Of The Day.
Bullishly, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Costco, O’Reilly, Regeneron, Vertex
Costco stock now shows a cup with handle with a 545.39 buy point, according to IBD MarketSmith chart analysis. Bullishly, the stock’s relative strength line already hit new highs, a sign of extreme strength especially during periods of significant market weakness. Costco shares were up 1.2% early Wednesday.
Tuesday’s IBD 50 Stocks To Watch pick, O’Reilly Automotive, broke out past a 687.33 buy point in a cup with handle during Tuesday’s 3.1% advance and is in buy range. The 5% buy area tops out at 721.70. ORLY shares added 0.4% early Wednesday.
Regeneron Pharmaceutical decisively cleared an early entry at 645.10 during Monday’s session. Meanwhile, the stock is moving closer to a 673.96 buy point in a flat base. REGN shares were slightly higher Wednesday.
IBD Leaderboard stock Vertex Pharmaceuticals is tracing a flat base with a 255.03 buy point. Per Leaderboard analysis, Vertex Pharmaceuticals was boosted to a half position from a quarter on a solid bounce off the 50-day line in recent sessions. VRTX shares gained 1.2% early Wednesday.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock traded up more than 2% early Wednesday, looking to add to Tuesday’s 4.6% advance. Shares remain sharply below their long-term 200-day moving average.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 36% off that all-time high.
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Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares advanced 3% Tuesday, recovering from Monday’s skid. The stock regained its long-term 200-day line. AAPL shares moved up 1.8% early Wednesday.
Software leader Microsoft jumped 3.9% Tuesday, ending a three-day losing streak. Shares are still far below the 200-day line, as they continue to build a new base. Microsoft rose 1.6% 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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The post Dow Jones Futures Jump On China, And ‘More Realistic’ Russia-Ukraine Talks appeared first on Investor’s Business Daily.
