Dow Jones Falls on Strong Retail Sales; Target dives on revenue; Nvidia earnings due

The Dow Jones Industrial Average fell Wednesday morning after stronger-than-expected retail sales data from the Commerce Department. Investors also digested a series of early earnings reports from retailers. Target plunged more than 16% on weak earnings results, while Nvidia earnings are due post-close.


One of the best stocks to buy and watch, IBD Leaderboard Stocks Arista Networks (ANET), IBD SwingTrader Shares General engines (GM), GlobalFoundries (GFS), Mobile (MBLY) and Philips 66 (PSX)—as well as the Dow Jones name Caterpillar (CAT) — are among the top stocks to buy and watch.

Arista Networks is an IBD Leaderboard Stock and was Monday’s IBD Stock of the Day. GlobalFoundries was near a buy zone in this week’s Equities section. And Mobileye was the featured IPO Leader last week.

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Dow Jones Today: Oil Prices, Treasury Yields

After Wednesday’s opening bell, the Dow Jones Industrial Average fell 0.15%, while the S&P 500 lost 0.4%. The tech-heavy Nasdaq composite was down 0.8% in morning action.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) fell 0.8% early Wednesday and the SPDR S&P 500 ETF (SPY) fell 0.4%.

The 10-year Treasury yield ticked lower to 3.71%, threatening to extend Tuesday’s decline. Meanwhile, oil prices in the US recouped early losses as oil continues to fluctuate within its recent trading range. West Texas Intermediate futures held just under $87 a barrel.

Stock market rally

On Tuesday, major stock indices closed well from their highs. The Nasdaq composite led the way with gains of 1.45%, while the Dow Jones Industrials and S&P 500 followed with gains of 0.1% and 0.9% respectively.

Tuesday’s Big Picture noted: “The stock market rally continued on Tuesday as Wall Street got more good news on the inflation front. In fact, several top-rated growth stocks closed with strong gains, although many closed well after reports of Russian missiles landing in Poland.”

This is an important time to read IBD’s The Big Picture column.

Five Dow Jones stocks to buy and watch now

Dow Jones Stocks to Buy and Watch: Caterpillar

Dow Jones member Caterpillar attempts to break out past a cup base’s 238 buy point, according to IBD MarketSmith pattern recognition. CAT shares fell 0.7% on Wednesday.

CAT stocks have an impressive 97 out of a perfect 99 IBD Composite Rating, according to the IBD Stock Checkup.

4 Top Growth Stocks to Watch in the Current Stock Market Rally

Top stocks to buy and watch: Arista, GM, GlobalFoundries, Mobileye, PSX

IBD Leaderboard share Arista Networks attempted to break past the 132.97 buy point from a choppy base on Tuesday’s 1.1% climb. Stocks once again topped the entry before closing just below it. ANET shares fell 1.4% on Wednesday.

Automaker and IBD SwingTrader shares of General Motors are back above the 40.20 buy point of the handle cup. The buying area comes out at 42.21. GM shares fell 1.5% on Wednesday.

Chip foundry GlobalFoundries is trading in buy range above a buy point of 66.06 in a cup base following Tuesday’s 2.4% increase. GFS shares lost 3.6% Wednesday morning.

IPO leader Mobileye continues to try resolutely past the 29.96 buy point of an IPO base, according to IBD MarketSmith pattern recognition. The 5% chase zone ends at 31.46. MBLY shares fell 0.3% early Wednesday.

Monday’s IBD 50 Stocks To Watch pick, Phillips 66, breaks out past the 110.08 buy point from a cup-with-handle base. The stock is in the 5% buy zone, rising to 115.58. PSX shares fell 0.9% in morning trading.

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

Tesla stock

Tesla shares rose 1.8% on Tuesday and continued to recover from last week’s 52-week low of 177.12. Still, the stock is more than 50% off its 52-week high and sharply below the 50-day and 200-day moving average lines.

Shares of the EV giant were trading 2% lower on Wednesday morning.

Dow Jones leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares rose 1.2% on Tuesday, moving further above their 50-day line after last week’s gains. The stock was down 0.5% on Wednesday.

Microsoft surged higher on Tuesday, still holding above the recently regained 50-day line. The software giant remains about 30% from its 52-week high. Microsoft shares rose 0.1% on Wednesday morning.

Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.


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