Dow Jones futures rose Wednesday morning ahead of the Federal Reserve’s interest-rate hike decision. The 10-year Treasury yield slid following big gains so far this week.
Bitcoin and cryptocurrency stocks were sharply lower again. The price of Bitcoin tumbled around 4%, bobbing just above the $21,000 mark, according to CoinDesk. Coinbase (COIN) and MicroStrategy (MSTR) declined 4% and 6.4%, respectively.
China-based search engine giant Baidu (BIDU) rallied almost 4% ahead of the open, after Reuters reported the company was in talks to sell its stake in video platform iQiyi (IQ). Baidu holds a 53% stake and more than 90% of the company’s shareholder voting rights. The deal could be valued around $7 billion, Reuters said. iQiyi shares dipped 2%.
Electric-vehicle giant Tesla (TSLA) traded up less than 1% Wednesday. Elsewhere, Dow Jones tech leaders Apple (AAPL) and Microsoft (MSFT) were up 0.7% and 1%, respectively, ahead of today’s stock market open.
Amid a stock market correction, Dow Jones leaders Chevron (CVX), as well as Diamondback Energy (FANG), HealthEquity (HQY), Northrop Grumman (NOC), Quanta Services (PWR) and World Wrestling Entertainment (WWE), are among the stocks holding up the best despite the market weakness.
Quanta is an IBD Leaderboard watchlist stock. And WWE was featured in this week’s Stocks Near A Buy Zone column. HealthEquity was Tuesday’s IBD Stock Of The Day.
Federal Reserve Meeting: 4 Key Questions Will Shape Dow Jones Outlook
Dow Jones Today: Treasury Yields, Oil Prices, Fed Decision
Ahead of Wednesday’s open, Dow Jones futures rose 0.85% vs. fair value, with JPMorgan (JPM) leading the early advance. S&P 500 futures gained 1.1%. Nasdaq 100 futures advanced 1.4%. Remember that trading in Dow Jones 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) moved up `%. The SPDR S&P 500 ETF (SPY) rose 0.8% in early trade.
The 10-year Treasury yield ticked lower to 3.36% Wednesday morning following Tuesday’s jump to 3.48%, its highest level since April 2011. Meanwhile, U.S. oil prices remain near recent highs, with West Texas Intermediate trading below $119 a barrel. In early March, WTI briefly topped out above $130 a barrel.
The Fed will conclude its latest two-day policy meeting Wednesday, with an interest rate decision at 2 p.m. ET. Federal Reserve chief Jerome Powell’s post-meeting news conference will occur at 2:30 p.m. Financial markets are pricing in 95% odds of a 0.75-point rate hike, according to CME Group’s FedWatch page.
In other economic data, U.S. retail sales fell 0.3% in May, worse than the expected 0.1% rise, according to Econoday estimates. Meanwhile, the Empire State manufacturing index missed estimates, coming in at -1.2, vs. the expected 5.5 reading.
Stock Market Correction
The stock market finished with sharply mixed action Tuesday, as the Dow Jones Industrial Average declined 0.5%, while the Nasdaq rose 0.2%.
Tuesday’s The Big Picture column commented, “After plunging 10.6% in the prior three sessions, the Nasdaq composite eked out a 0.2% gain in the stock market today. The Nasdaq on Monday undercut its May 20 low, paving the way for a potential test of its September 2020 low of 10,519.”
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: Chevron
Dow Jones leader and energy giant Chevron gave up its flat base’s 174.86 buy point, according to IBD MarketSmith chart analysis, following Tuesday’s 0.1% rise. CVX shares inched lower Wednesday morning.
CVX stock boasts a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. Investors can use the IBD Composite Rating to easily gauge the quality of a stock’s fundamental and technical metrics.
Two Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Diamondback, HealthEquity, Northrop, Quanta, WWE
Energy leader Diamondback Energy is in buy range above a consolidation base’s 148.09 buy point, as the stock rose 1.2% Tuesday to find support around its 50-day line. Keep in mind the weak market environment should keep you on the sidelines. Shares were quiet Wednesday morning. FANG shares edged up 0.3% Wednesday morning.
Tuesday’s IBD Stock Of The Day, HealthEquity, broke out past a cup with handle’s 66.23 buy point, as shares jumped 5.9% Tuesday. Shares were quiet Wednesday morning.
Northrop Grumman is trying to find much-needed support at its 50-day moving average, and is about 5% below its cup-with-handle’s 477.36 buy point. NOC shares were flat Wednesday.
Big Cap 20 stock Quanta Services is tracing a cup with handle’s 138.56 buy point. Shares are at their 50-day line, which is a key support level to watch. Quanta shares were unchanged early Wednesday.
IBD Leaderboard stock World Wrestling Entertainment is holding just above a flat base’s 63.81 buy point, according to IBD MarketSmith chart analysis, as WWE shares edged higher Tuesday. On May 25, the stock staged a strong breakout past the entry. But shares are just above the latest entry in the new wave of market selling. WWE shares dumped 3.1% early Wednesday, despite Morgan Stanley raising its price target from 60 to 75.
Per Leaderboard commentary, the relative strength line for WWE stock is at highs and has been gaining ground since January. The base is first stage, a bonus for the chart.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla stock gained 2.4% Tuesday, snapping a three-day losing streak. Shares looked to add to those gains, trading up about 1% Wednesday morning.
The stock is still sharply below its 50- and 200-day moving averages. Tesla stock traded as high as 1,243.49 on Nov. 4. Shares are about 48% off that record high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.7% Tuesday, but still remain at their lowest level since June 2021. The stock is far below its long-term 200-day line and is about 28% off its 52-week high. AAPL stock traded up 0.7% Wednesday.
Software leader Microsoft gained 0.9% Tuesday, but remains sharply below its 50- and 200-day lines. The stock hit a 52-week low Tuesday and is about 30% off its 52-week high. MSFT shares rose 1% Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
The post Dow Jones Futures Rise Ahead Of Fed Rate Hike Decision As 10-Year Treasury Yield Slides appeared first on Investor’s Business Daily.