The Dow Jones Industrial Average rose on Wednesday ahead of the Federal Reserve’s interest rate decision. tech giants the alphabet (GOOGL) and Microsoft (MSFT) reported weaker-than-expected earnings results late Tuesday. Meanwhile, Facebook-parent earnings meta pads (META) is due after closing.
Alphabet, Google’s parent company, reported June quarter earnings and revenue that missed Wall Street’s targets, as YouTube and its cloud computing business fell short of expectations. Shares are up more than 3%. Meanwhile, software leader Microsoft missed analysts’ forecasts for its fiscal fourth quarter, blaming unfavorable exchange rates and weak PC sales. Microsoft shares rose 5%.
Other key factors for Wednesday morning earnings include Chipotle Mexican Grill (CMG), Energy Enphase (ENPH), Shopify (a store), spotify (spot) and Texas Instruments (TXN). Dow Jones shares also moved Boeing (Bachelor) and visa (Fifth).
Chipotle jumped 11%. Enphase easily beat second-quarter estimates and headed higher in the current quarter, with shares up nearly 9%. Shopify is up 4%. Spotify gained 12%. Texas Instruments smashed Wall Street’s Q2 targets and headed higher for the current period, with shares up nearly 5%.
Tesla TSLA stock rose about 2% early Wednesday. Elsewhere, the technology leader at Dow Jones apple (AAPL) is up 0.7% after the stock market open today.
In a volatile stock market environment, Dow Jones stock United Health (United Nations) – well ELF Beauty (dwarf), Quanta Services (PWR), Ulta Beauty (ULTA), Navigation Vira (VRRM) and Vertex Pharmaceuticals (VRTX) – Among the stocks to watch. Keep in mind that the constant volatility in the stock market is a reason to remain more conservative despite recent signs of strength.
UnitedHealth and Vertex are IBD Leaderboard shares. ELF and Ulta appeared in the stock column near the buy zone for this week.
Dow Jones today: Treasury yields, oil prices, Fed decision
After Wednesday’s opening, the Dow Jones Industrial Average was up 0.4%, and the S&P 500 was up 1.1%. The Nasdaq is up 2.15%.
Among the exchange-traded funds, the Nasdaq 100 index tracking the Invesco QQQ Trust (QQQ) is up 1.6%. The SPDR S&P 500 ETF (SPY) was up 1%.
The 10-year Treasury yield rose to 2.81% on Wednesday morning, rebounding from Tuesday’s low. On Tuesday, the 10-year Treasury yield hit its lowest level since April. Meanwhile, US oil prices rebounded, with West Texas Intermediate crude futures up nearly 1% to trade near $96 a barrel.
Wednesday’s two-day Fed meeting concludes with a policy decision at 2 p.m. ET, followed by a press conference with Fed Chair Jerome Powell at 2:30 p.m. Wall Street expects the central bank to raise interest rates aggressively through the end of the year. – Then he turns around and starts chopping them up in six months. A rate hike of 75 basis points is expected.
stock market rise
The Nasdaq led the market lower on Tuesday, selling 1.9%. The Dow Jones and S&P 500 indices were down 0.7% and 1.15%, respectively.
Tuesday’s The Big Picture column commented, “Selling was more concentrated in the Nasdaq Composite Index, which was down 1.9%. But the breadth wasn’t too bad as falling stocks outperformed the advancers by about 3 to 2. The ratio was about the same on the New York Stock Exchange. ., as the losers beat the winners by less than 2 to 1. Volume increased in the Nasdaq, giving the index a day to distribute.”
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Dow Jones earnings: Boeing, Visa
Aircraft maker Boeing shares rose 3% Wednesday morning despite missing second-quarter earnings and sales targets. Boeing continues to see a positive full-year free cash flow outlook.
Visa, the financial leader of Dow Jones, beat third-quarter earnings and revenue estimates. Earnings grew 33% year over year to $1.98 per share. Sales increased 19% to $7.3 billion. FactSet analysts expected earnings of $1.75 per share on sales of $7.076 billion. Visa shares fell less than 1% in morning trading.
Five Dow Jones stocks to watch right now
Dow Jones stocks to watch: UnitedHealth
Health insurance giant UnitedHealth and IBD Leaderboard are up above their double-handle base buy point at 518.80 points after Tuesday’s 0.4% gain, according to IBD MarketSmith chart analysis. Shares rose 0.6% on Wednesday.
UN stock shows 95 solids of Class 99 IBD, per IBD stock check. Investors can use the IBD composite rating to easily gauge the quality of a stock’s fundamental and technical metrics.
4 growth stocks to watch at Cursstock market rise
Top stocks to watch: ELF, Quanta, Ulta, Verra, Vertex
ELF Beauty is about 3% below 33.54 pips in a cup with a handle after the last slide. The RS line reached a new high last week, which is an indication of an outperformance in the stock market. Shares of ELF rose on Wednesday.
Quanta Services finalizes a teacup base with a handle of 138.56 buy points, according to IBD MarketSmith chart analysis. Meanwhile, an early entry at 133.68 is also playing a role. Shares traded 0.2% higher on Wednesday.
Ulta Beauty is building a flat base with 429.58 buying points, but it’s below the 50-day streak after Tuesday’s 4.1% drop. The rule comes on the heels of the failed breakout to enter the cup with handle 426.93 in June. Ulta shares are up nearly 1% on Wednesday.
Verra Mobility is trading about 5% below the handle cup buy point at 16.83 following Tuesday’s 4.3% drop. The RS line of the stock continues to show tremendous strength as it reached a new high last week. Vera shares rose 1% on Wednesday.
Vertex Pharmaceuticals for IBD Leaderboard stock found support around a 279.23-cup handle-buy point amid a two-day winning streak, according to IBD MarketSmith chart analysis. The leading biotech company is in buying territory at 5% which rose to 293.19 amid Tuesday’s 1.6% rise. Vertex stock fell 2% on Wednesday.
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Tesla stock fell 3.6% on Tuesday, falling for a second straight session and retracting part of last week’s 13.4% profit rise. Shares briefly reached their highest level since early May, but are still about 38% from their 52-week high.
Shares rose about 2% on Wednesday morning.
Dow Jones Leaders: Apple and Microsoft
Among Dow Jones stocks, Apple shares fell 0.9% on Tuesday, extending its losing streak into three sessions. Apple is still above the 50-day line after the bullish move in recent weeks. However, stocks are still below the long-term 200-day line, which looms as a resistance level to watch. The stock is about 17% from its 52-week high. Apple shares rose 0.7% on Wednesday.
Microsoft sold 2.7% on Tuesday, dropping further below the 50-day streak. The stock has closed about 28% from its 52-week high. Microsoft traded 5% on Wednesday following the company’s earnings results and guidance.
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