The Dow Jones Industrial Average and other major indexes traded lower Wednesday, after critical employment reports and, later, minutes from the latest Federal Reserve meeting. Nvidia (NVDA) bounced from a key level in morning trading following Tuesday’s plunge.
Ahead of the opening bell, Dow Jones futures fell 0.1% vs. fair value, while S&P 500 futures dropped 0.2%. Tech-heavy Nasdaq 100 futures moved down 0.2% vs. fair value in morning trades.
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Stock Market Sells Off As Nvidia Tumbles; AppLovin, Netflix Also In Focus
Early Wednesday, the 10-year Treasury yield ticked higher to 4.71%. Oil prices continue to hold at their highest levels since mid-October, with West Texas Intermediate futures trading around $74.80 per barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) dipped marginally, as the SPDR S&P 500 ETF (SPY) moved down 0.1% ahead of the open.
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Nvidia stock briefly touched record highs Tuesday before reversing lower and plunging more than 6% Shares gave up a 146.54 buy point out of a double-bottom base.
The artificial intelligence giant bounced 1.2% Wednesday morning, looking to find support at the 50-day line, a key level to watch.
ADP’s employment report showed that private payrolls increased by 122,000 in December, below estimates. They were expected to rise by 134,000 in December, down slightly from November’s 146,000 gain, according to Econoday estimates.
Then, the Labor Department’s weekly unemployment claims are due at 8:30 a.m. ET. Claims are expected to rise to 216,000 vs. 211,000 in the previous week, per Econoday.
Later in the session, Fed minutes from the latest policy meeting are expected at 2 p.m. ET. The minutes are expected to provide insight into Fed Chairman Jerome Powell’s thinking, as well as that of other Fed policymakers, on the path of future interest rates.
Also, the stock market will be closed Thursday in honor of former President Jimmy Carter.
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Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average declined 0.4%, while the S&P 500 lost 1.1% and the Nasdaq sold off 1.9%.
Among the best companies to watch in the current stock market are Boston Scientific (BSX), Fortinet (FTNT), Interactive Brokers (IBKR) Intuitive Surgical (ISRG) and Netflix (NFLX).
Dow Jones components making notable moves were Amazon.com (AMZN), Apple (AAPL), American Express (AXP) and Microsoft (MSFT).
American Express is featured in this Stocks Near A Buy Zone column.
Check out IBD MarketSurge‘s “Breaking Out Today” list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the “Near Pivot” list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones: American Express Nears Buy Point
Dow Jones component American Express is building a flat base that offers a 307.82 buy point, according to MarketSurge pattern recognition. Shares fell 0.4% Wednesday.
Outside the Dow Jones index, Boston Scientific is breaking out past a flat base’s 91.93 entry. Shares moved up 1% Wednesday.
Cybersecurity leader Fortinet is trying to break out past a flat base’s 100.59 buy point. Shares were flat Wednesday morning.
Interactive Brokers is just below a flat base’s 193.42 entry. The stock gained 1% Wednesday.
Intuitive Surgical reversed down 1.9% Tuesday, snapping a three-day win streak. Intuitive stock climbed 0.4% Wednesday.
Streaming giant Netflix edged lower Tuesday, holding above its key 50-day line. It was Tuesday’s IBD Stock Of The Day. Netflix stock moved up 0.2% in premarket action Wednesday.
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Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Interactive Brokers | (IBKR) | 193.42 | Flat base |
| Disney | (DIS) | 118.63 | Cup with handle |
| TSMC | (TSM) | 205.63 | Cup with handle |
| Fortinet | (FTNT) | 100.59 | Flat base |
Source: IBD Data as of Jan. 7
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Tesla Stock
Tesla (TSLA) stock skidded 4.1% Tuesday, still holding above last week’s lows. Shares are more than 19% off their all-time high, which was set on Dec. 18.
The electric-vehicle giant threatened to extend those losses Wednesday, as it fell 1.4% in premarket trading.
Dow Jones Leaders: Amazon, Apple, Microsoft
Besides Nvidia, another Dow Jones component in the Magnificent Seven is Amazon stock, which fell 2.4% Tuesday. Amid its recent move into new highs in mid-December, the e-commerce giant is sharply extended above a 201.20 buy point. It lost 0.6% Wednesday.
Shares of Apple tumbled back into buy range above a flat base’s 237.49 entry during recent sharp losses. They sold off 1.1% Tuesday and fell another 0.6% Wednesday.
Microsoft shares inched down Wednesday morning, but still closed squarely below their 50-day and 200-day lines Tuesday. The software giant is building a cup with handle that has a 456.16 buy point.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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