Dow Jones futures and other major stock indexes fell on Wednesday as Wall Street awaited the Federal Reserve’s interest rate decision and comments from Fed Chair Jerome Powell. In the meantime, Amazon (AMZN), modern micro devices (AMD) and Super microcomputer (SMCI) delivered mixed results in the stock market today after reporting its results.
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Dow Jones futures fell 0.2% at fair value premarket, while S&P 500 futures fell 0.3%. Technology-focused Nasdaq 100 futures lost 0.5% before the opening bell.
Early Wednesday, the 10-year Treasury yield fell to 4.68%. Additionally, oil prices fell as West Texas Intermediate futures traded at around $80.50 a barrel.
Among U.S. exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) lost 0.6%, while the SPDR S&P 500 ETF (SPY) lost 0.4%.
Stock market today: Fed meeting
The Federal Reserve’s two-day meeting ends Wednesday with a rate decision at 2 p.m. ET. Fed Chairman Powell is scheduled to speak at 2:30 p.m. ET. The Fed meeting statement and Powell’s comments on Wednesday afternoon are expected to provide clues as to when interest rate cuts might occur, depending on economic data.
Early Wednesday, ADP said private employers added 192,000 jobs in April, above the Econoday estimate of 175,000.
Amazon reported first-quarter earnings and revenue that beat expectations, helped by strong growth in its cloud computing and advertising businesses. Amazon shares rose 1.7% in premarket trading.
AMD met Wall Street’s first-quarter profit target, but sales were somewhat weak. The sales outlook for the current quarter was roughly in line with estimates. AMD shares fell more than 6% on Wednesday morning.
Super Micro beat earnings estimates in its fiscal third quarter, but sales were weak. However, the outlook for the current period was well above expectations. Super Micro shares plunged more than 12% on Wednesday.
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Dow Jones is selling off
On Tuesday, the Dow Jones Industrial Average fell 1.5%, while the S&P 500 fell 1.6%. The tech-heavy Nasdaq composite fell 2%.
Tuesday’s The Big Picture column said: “At the moment, IBD’s invested share remains at 20-40%. It was raised to that level on Friday after the Nasdaq composite rose 2%. But the day’s action fell short of a subsequent day because volume was slightly lower than Thursday.
Now is an important time to read Investor’s Business Daily’s “The Big Picture” column amid the ongoing stock market activity. Be sure to read about how IBD’s new exposure levels can help you adapt to changing market conditions.
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The best stocks to watch in the stock market today
Chipotle Mexican Grill (CMG), NXP Semiconductors (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) – plus Dow Jones component American Express (AXP) – are one of the best companies to keep an eye on on the stock market today.
Texas Roadhouse is featured in this “Stocks Near a Buy Zone” column.
An essential resource for daily breakouts is IBD MarketSurge’s Breaking Out Today list. It shows MarketSurge Growth 250 stocks breaking out past new buy points. Additionally, the MarketSurge Near Pivot list displays stocks that are near buy points in the bases.
For more stock ideas, check out IBD stock lists like IBD 50, Big Cap 20, and Stocks Near a Buy Zone. These features identify bullish patterns and buy points and can be checked daily.
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Dow Jones: American Express
American Express is rebounding from support around its 50-day moving average with heavy volume. The bullish rebound took the software leader into new buy territory as shares climbed above a 231.69 entry in a short consolidation. Shares fell 0.2% on the stock market today.
The 3 top growth stocks to keep an eye on Stock market today
Outside the Dow Jones Index, Chipotle slipped 1.7% on Tuesday, falling back into buy range in a short consolidation past a 3,023.98 buy point, according to IBD MarketSurge. Chipotle shares fell 0.6% before the open on Wednesday.
NXP Semiconductors is breaking out above a double bottom buy point at 251.96. Shares fell 0.5% on Wednesday
Texas Roadhouse, up 1% on Tuesday, is well above the 157.12 buy point and a flat base. And shares were up 0.5% on Wednesday morning.
Tradeweb remains below its 50-day moving average as it forms a flat base with a 108.04 buy point. Shares lost 0.7% on Wednesday.
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Stock market today: Companies to watch
These are four stocks in or near the buy zone of today’s stock market.
| Company Name | symbol | Right buy point | Type of buy point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD data as of April 22, 2024
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The seven great stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) fell 1.7% and 1.6%, respectively, in premarket action on Wednesday.
Nvidia shares slipped 1.5% on Tuesday, ending a three-day winning streak. With the stock back above its 50-day line, consolidation has created a new buy point at 974, while aggressive investors can use 906.13 as an early entry.
Tesla shares plunged 5.6% on Tuesday after The Information reported that the electric vehicle giant laid off two senior executives and plans to lay off hundreds more employees, frustrated by falling sales and the pace of job cuts so far. After rising 15% on Monday, shares remain above their 50-day line.
Dow Jones leaders: Apple, Microsoft
Among the Dow Jones stocks in the Magnificent Seven are Apple (AAPL) and Microsoft (MSFT) was trading mixed ahead of the market open on Wednesday.
Apple shares fell 1.8% on Tuesday, slipping back below their 50-day line. Apple lost 0.2% on the stock market today.
Microsoft shares slipped 3.2% on Tuesday, still below their 50-day line. The software giant is building a new flat base with a 430.82 buy point. Shares rose 0.3% on Wednesday.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen Learn more about growth stocks, the Dow Jones Industrial Average, and the stock market today.
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