Dow Jones futures rose Wednesday, as the Federal Aviation Administration restarted all domestic departures after a temporary grounding. Meanwhile, Tesla stock rallied on $775 million expansion plans at its Texas gigafactory.
X
Airline stocks took modest hits following the FAA news. American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL) all lost less than 1%. Southwest Airlines (LUV), still off balance after its holiday-week travel collapse, dropped nearly 2%. Meanwhile, travel site Expedia (EXPE) jumped 2.4%, leading the S&P 500 after an analyst upgrade and price target hike.
With a quiet economic calendar for Wednesday, markets are looking toward Thursday’s first-time jobless claims and inflation data. Year over year, December’s consumer price index prices are expected to be up 6.6%, down from 7.1% in November. Core prices, which exclude and food and energy costs, are seen rising 5.7% year over year, also down slightly from 6% in November.
KB Home (KBH) will report after the close Wednesday. The top homebuilder is above a 34.31 buy point in a short consolidation.
Other companies reporting later this week include Taiwan Semiconductor Manufacturing (TSM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC).
Dow Jones stock Salesforce (CRM) declined nearly 3% after Bernstein downgraded the stock from market perform to underperform, with a lowered 119 price target. Cryptocurrency exchange Coinbase Global (COIN) stumbled 3.5% on a BofA Securities downgrade from neutral to underperform.
Electric-vehicle leader Tesla rose more than 2% Wednesday. Dow Jones tech giants Apple (AAPL) and Microsoft (MSFT) were both modestly higher ahead of today’s stock market open.
Deere (DE), IBD Leaderboard watchlist stock Fluor (FLR), IBD Stock Of The Day Medpace (MEDP) and Rio Tinto (RIO) — as well as Dow Jones names Caterpillar (CAT), Chevron (CVX) and Walmart (WMT) — are among the top stocks to buy and watch with the market testing the strength of a new rally.
Medpace is an IBD Leaderboard stock. Caterpillar and Rio were featured in this week’s recent Stocks Near A Buy Zone column.
Dow Jones Today: Oil Prices, Treasury Yields
Before Wednesday’s opening bell, Dow Jones futures rose 0.3% above fair value. S&P 500 futures gained 0.35%. And tech-heavy Nasdaq 100 futures moved up 0.3% in morning action.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) rose 0.35% and the SPDR S&P 500 ETF (SPY) traded up 0.4% early Wednesday.
The 10-year Treasury yield ticked lower to 3.57% Wednesday morning, set to give up a large part of Tuesday’s gains.
Meanwhile, oil prices moved higher rebound Wednesday after Tuesday’s pause. West Texas Intermediate futures rose less than 1%, approaching $76 a barrel. Weekly supply data from the Energy Information Administration is due out at 10:30 a.m. ET.
Stock Market Rally
On Tuesday, the Dow Jones Industrial Average closed up 0.6%, and the S&P 500 rose 0.7%. The Nasdaq composite outperformed, advancing 1%.
Tuesday’s The Big Picture column commented, “The S&P 500 and Nasdaq composite confirmed a new uptrend Friday with big percentage gains in higher volume. But it’s still a challenging environment for growth stocks. Just look at ELF Beauty (ELF), which reversed sharply lower Monday after a breakout from a flat base Friday. Sellers hit the stock again Tuesday, and ELF broke through its 50-day line.”
Five Dow Jones Stocks To Buy And Watch Now
Dow Jones Stocks To Buy And Watch: Caterpillar, Chevron, Walmart
Dow Jones member Caterpillar closed squarely in buy range above a flat base’s 239.95 buy point following Tuesday’s 1.6% advance, according to IBD MarketSmith pattern recognition. The buy zone, which CAT shares have dodged in and out of since Dec. 21, goes up to 251.95. Bullishly, the stock’s relative strength line, a key technical indicator, is at new highs. Shares edged higher Wednesday.
CAT stock shows a strong 98 out of a perfect 99 IBD Composite Rating, per the IBD Stock Checkup. The Composite Rating is designed to help investors easily find top growth stocks.
Energy giant Chevron is trying to retake its 50-day line, as it continues to build a cup base that has a 189.78 buy point. CVX shares rose 0.3% Wednesday morning, amid the modest rise in oil prices.
Discount retailer Walmart bullishly reclaimed its 50-day line during Friday’s 2.45% jump. It then un-bullishly gave back that support on Monday. Shares are building a cup-with-handle base that has a 154.74 buy point and are about 6% away from the latest entry. Walmart shares edged lower Wednesday morning.
4 Top Growth Stocks To Buy And Watch In The Stock Market Rally
Top Stocks To Buy And Watch: Deere, Fluor, Medpace, Rio
Recent IBD Stock Of The Day, Deere, is building a flat base with a 448.50 buy point. Shares have their eye on the buy point as they rebound from a test of 50-day support and are just 2% away from the entry. Deere shares were unchanged Wednesday morning.
IBD Leaderboard watch list stock Fluor is building a flat base that has a 36.16 buy point, as shares regained their 50-day line Tuesday. FLR stock was flat early Wednesday.
Tuesday’s IBD Stock Of The Day Medpace bullishly reclaimed its 50-day line, moving above an early entry at 220.09. Meanwhile, the stock is building a consolidation with a correct buy point at 235.82. Medpace shares were unchanged Wednesday.
Rio Tinto rose 2% Tuesday, moving further above a 73.45 buy point out of a cup with handle. The buy area runs up to 77.13. Rio shares traded slightly higher Wednesday.
Stocks To Buy And Watch In Stock Market Rally
These are seven top stocks to buy and watch in today’s stock market, including three Dow Jones leaders.
| Company Name | Symbol | Correct Buy Point | Type Of Base |
|---|---|---|---|
| Deere | (DE) | 448.50 | Flat base |
| Fluor | (FLR) | 36.16 | Flat base |
| Rio Tinto | (RIO) | 73.45 | Cup with handle |
| Medpace | (MEDP) | 235.82 | Consolidation |
| Caterpillar | (CAT) | 239.95 | Flat base |
| Chevron | (CVX) | 189.78 | Cup base |
| Walmart | (WMT) | 154.74 | Cup with handle |
Source: IBD Data As Of Jan. 11, 2023
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Tesla Stock
Tesla stock declined 0.8% Tuesday, giving back a large part of Monday’s gains. Shares remain sharply below their 50- and 200-day lines. Last week, shares hit a 52-week low at 101.81. Tesla stock closed Tuesday about 68% off its 52-week high.
Shares of the EV giant looked to recover from Tuesday’s losses, rallying 2.2% Wednesday morning. Tesla plans more than $775 million in expansions at its gigafactory in Austin, Texas, a sign the auto maker is maintaining production growth ambitions in the face of Wall Street concerns over demand for its cars.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares climbed 0.45% Tuesday, rising for a third straight session. Last week, the stock hit a new 52-week low of 124.17. The stock remains around 27% off its 52-week high. AAPL stock traded a fraction higher Wednesday.
Microsoft stock rallied 0.8% Tuesday, extending a win streak to three trading days. The software giant is about 30% off its 52-week high and is still just above its 52-week low of 213.43, reached on Nov. 4. Microsoft shares rose 0.6% early Wednesday.
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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