The Dow Jones Industrial Average briefly fell 150 points Wednesday, as Wall Street braced for today's minutes from the latest Federal Reserve policy meeting. Meanwhile, artificial intelligence leader Nvidia (NVDA) dropped ahead of its heavily anticipated earnings results, due later on the stock market today.
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After the opening bell, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 also declined 0.2%. The tech-heavy Nasdaq composite was down 0.6% in morning trading.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) ETF was down 0.6%, as the SPDR S&P 500 ETF (SPY) fell 0.2%.
The 10-year Treasury yield held steady at 4.27%. Further, oil prices continue to slip from their recent highs, as West Texas Intermediate futures lost 0.2%, trading below $77 a barrel.
Stock Market Today: Fed Minutes
Due Wednesday at 2 p.m. ET, the latest minutes from the Federal Reserve board are expected to provide insight into the future path of interest rates. The comments could steer markets in a certain direction, depending on the Fed's findings.
After Wednesday's open, key earnings movers include Analog Devices (ADI), Palo Alto Networks (PANW), SolarEdge Technologies (SEDG), Sprout Social (SPT) and Wingstop (WING).
Analog shares rose 1.7% in morning trading, while Palo Alto stock crumbled 26%. SolarEdge plunged 15%, as Sprout shares faltered 8.7%. Finally, Wingstop shares dropped nearly 4% in early trading.
Elsewhere, Super Micro Computer (SMCI) threatened to extend its heavy losses, falling another 4% in early morning action.
And Amazon (AMZN) shares climbed 0.5% after the the e-commerce giant is joining the 30-stock Dow Jones Industrial Average, replacingWalgreens Boots Alliance (WBA). The change will be effective at the start of trading on Monday, Feb. 26. Walgreens fell nearly 4%.
Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average declined 0.2%, while the S&P 500 dropped 0.6%. The tech-heavy Nasdaq composite ended the session down 0.9%.
Tuesday's Big Picture column commented, "However there was one bearish sign that will upset investors. Volume was higher on both main exchanges, which means an additionaldistribution day was added to the Nasdaq and the S&P 500. It comes after Friday's narrow escape due to lower volume."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
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Best Stocks To Buy And Watch In Stock Market Today
Birkenstock (BIRK), Lennar (LEN), Toll Brothers (TOL) and UiPath (PATH) — plus Dow Jones components Procter & Gamble (PG) and Walmart (WMT) — are among the best stocks to buy and watch in the current market rally.
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Dow Jones Stocks: Walmart Rallies On Earnings
Consumer products giant Procter & Gamble gained 0.6% Tuesday, rising for a third straight day. Shares are back above their 158.38 buy point in a cup base, according to IBD MarketSmith pattern recognition. Procter shares were up 0.8% Wednesday.
Following Tuesday's big gains, discount retail leader Walmart is out of buy range past a 163.57 entry in a cup with handle. Walmart shares dropped 0.8% Wednesday morning.
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Lennar, Toll Brothers Eye Buy Points
Birkenstock is forging a choppy cup base with a 52.12buy point, according toIBD MarketSmith. An early entry at 51.09 is also in play. That could transform into a proper handle. Birkenstock shares gained 2.9% Wednesday morning.
Homebuilder Lennar remains below its flat base's 156.01 buy point amid Tuesday's 0.5% rise. Lennar shares added 1.9% early Wednesday.
Fellow homebuilder Toll Brothers is bouncing from its 50-day line and is approaching a flat base's 105.91 buy point. Toll stock rallied 6.5% Wednesday morning after the company's earnings report.
UiPath dropped 4.6% Tuesday, triggering the 7% loss rule below a 26.53 cup-base entry. UiPath shares fell another 2.5% early Wednesday.
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Best Bets On Stock Market Today
These are four best stocks to watch in today's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| Merck | (MRK) | 119.65 | Cup base |
| DraftKings | (DKNG) | 39.35 | Cup base |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Feb. 12, 2024
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Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia fell 2.1% and Tesla (TSLA) rose 1.2% in morning action Wednesday.
Nvidia stock tumbled more than 4% Tuesday, further from its record high. The AI giant will report its earnings results after the close. Nvidia stock remains sharply past a 505.48 buy point in a flat base after a Jan. 8 breakout move.
Tesla skidded 3.1% Tuesday, giving back a large part of the recent gains. Shares remain off their lowest level since May 2023.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) andMicrosoft (MSFT) traded mixed ahead of Wednesday's stock market open.
Apple is forming a flat base with a buy point at 199.62. But Apple stock must first retake the key 50-day moving average, as it searches for support around its long-term 200-day line. Shares gained 0.3% Wednesday.
Microsoft shares are falling back into buy range past a 384.30 buy point in a flat base, amid a three-day losing streak. The software giant was down 0.9% Wednesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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