The Dow Jones Industrial Average fell more than 390 points before paring losses Wednesday morning on the back of a hotter-than-expected inflation report, the Consumer Price Index. The main drivers of profits were Delta Airlines (DAL) and link (fast).
Delta shares plunged 6% after it missed earnings targets. Fastenal fell more than 5% after its results showed early signs of the impact of inflation.
Tesla (TSLA) wiped out sharp losses Wednesday. Elsewhere, technology leaders at Dow Jones apple (AAPL) and Microsoft (MSFT) was lower right after the stock market opened today.
In a volatile stock market environment, Dow Jones leaders Johnson & Johnson (JNJ), merck (MRK) and United Health (United Nations) – well bj wholesale club (BJ), Health Evolution (EVH), Funko (FNKO) and Quanta Services (PWR) – Among the stocks to watch. Keep in mind that the constant volatility in the stock market is a reason to stay on the defensive.
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Northrop and UnitedHealth are IBD Leaderboard shares. Dollar Tree is a stock of IBD SwingTrader. BJ’s is a 50 IBD share. Evolent Health was the stock of the day on Wednesday. Quanta was Thursday’s stockpile for the World Bank. Northrop has appeared in the stock column near the buy zone for this week.
Dow Jones today: Treasury yields, oil prices, and inflation report
After Wednesday’s opening, the Dow Jones Industrial Average sold 1.1%, and the S&P 500 lost 1.1%. The high-tech Nasdaq Composite Index trimmed losses to 1% in morning trade.
Among the exchange-traded funds, the Nasdaq 100 index tracking the Invesco QQQ Trust (QQQ) is down 1%. The SPDR S&P 500 Index (SPY) was down 1.1%.
The 10-year Treasury yield rose to 3.02% on Wednesday morning, looking to halt the two-day slide. Meanwhile, US oil prices extended their recent losses, falling another 1% in early trading, with West Texas Intermediate trading below $95 a barrel. West Texas Intermediate crude briefly fell below $94 a barrel in overnight trading.
The Labor Department’s Consumer Price Index was released early Wednesday. Consumer prices rose 1.3% in June, above estimates for a 1.1% rise. Inflation rose 9.1% in June from a year ago, up from the 8.8% estimate and up from 8.6% in May year over year.
stock market rise
On Tuesday, the Dow Jones Industrial Average was down 0.6%, while the S&P 500 was down 0.9%. The heavy Nasdaq Composite lost 0.95%.
Tuesday’s The Big Picture column commented, “Even if the number of distribution days remains nearly minimal, that doesn’t mean the stock market is doing well. It’s entirely reasonable to think volume is lighter given that institutional investors are reluctant to trade ahead of Wednesday’s consumer inflation. Without these brakes on trading, volume could easily have gone up on Monday and Tuesday, and we’ll be looking at a multi-day distribution now.”
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Four Dow Jones stocks to watch right now
Dow Jones stocks to watch: Johnson & Johnson, Merck, UnitedHealth
Dow Jones leader Johnson & Johnson is still nearly 2% below its double base buy point at 181.84, according to IBD MarketSmith chart analysis. The company announced its earnings on July 19. JNJ share prices were flat on Wednesday morning.
Pharmaceutical giant Merck fell 0.7% on Tuesday, below its flat-base buying point of 95.02. Medical stocks in general, and biotech in particular, have shown increasing strength in the recent stock market move. Merck shares were trading slightly higher early Wednesday.
Health insurance giant and store IBD Leaderboard UnitedHealth remains above the 507.36 double-bottom buying point after Tuesday’s 0.5% decline. Stocks in the buying range. The United Nations releases second-quarter results on Friday morning. The stock was down 1% on Wednesday morning.
UN stock shows a strong 96 out of 99 perfect composite ratings for IBD, for every IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
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Top stocks to watch: BJs, Dollar Tree, Northrop, Quanta
BJ’s Wholesale group of IBD 50 remains in a 5% buying range above 67 cup buying points with a handle despite Tuesday’s 0.8% drop. The stock’s relative strength line has reached new highs, which is a sign of outperformance in the stock market. Shares were down 1% early Wednesday.
Dollar Tree in IBD SwingTrader stock fell below the 166.45 buy point in the handle cup on Tuesday, losing 1.2%. On the positive side, the discount retailer’s RS line is at a new high. Dollar Tree stock shows a solid 97 of the best IBD composite rating of 99 possible, according to an IBD Stock Examination. Dollar Tree stock prices stabilized on Wednesday morning.
IBD Leaderboard Stock Northrop Grumman builds a new flatbed with 492.40 buy points. Shares of the National Oil Corporation rose slightly on Wednesday.
Quanta Services finalizes a handle cup with 138.56 buy points, according to IBD MarketSmith chart analysis. Stocks are about 5% away from the most recent entry after Tuesday’s 2.6% drop. Shares were trading up 1% in morning trading.
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Tesla stock fell 0.5% on Tuesday, extending losses after Monday’s slide of 6.55%. Shares erased heavy losses in morning trading on Wednesday.
The shares fell further below the 50-day line and remained deeply below the 200-day line before the company’s July 20 earnings report date. Tesla stock traded as high as 1,243.49 in November. 4. Stocks are about 44% of this record.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones shares, Apple shares rose 0.7% on Tuesday, reversing part of Monday’s 1.5% decline. Apple regained the 50-day streak last week, but is now testing that key level. Stocks are still well below the long-term 200-day line and 20% off their 52-week high. Apple earnings are scheduled for July 28. Apple shares fell 0.5% on Wednesday.
Microsoft fell 4.1% on Tuesday, dropping its recently restored 50-day streak. The stock has closed about 24% from its 52-week high. The software giant will announce quarterly results on July 26. Microsoft shares lost 1.2% early Wednesday.
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