Dow Jones Rally Amid Key Economic Data; AMD plunges on weak sales outlook

The Dow Jones Industrial Average rebounded on Wednesday morning amid new economic data, while AMD stock fell 6% on a weak sales outlook.


Key earnings drivers on Wednesday include Advanced micro-systems (AMD), Airbnb (ABNB), SVC Health (SVC), Evolutionary Health (EVH), PayPal (PYPL), SolarEdge Technologies (SEDG) and Starbucks (SBUX).

ABNB stock fell 7% on weaker-than-expected earnings. CVS rebounded 3% after beating second-quarter estimates and raising its full-year outlook. Evolent jumped 10% on strong earnings and sales. PayPal jumped 13% after topping views and adding $15 billion to its stock buyback program. SolarEdge plunged 13% after missing revenue targets. And Starbucks was up about 2% in morning trade.

You’re here (TSLA) traded down around 1% early Wednesday. Elsewhere, technology leaders from Dow Jones Apple (AAPL) and Microsoft (MSFT) were downright higher ahead of today’s stock market open.

Against the backdrop of strengthening stock markets, Dow Jones stocks Chevron (CLC) and UnitedHealth (A H) – as good as Energy Cheniere (LNG), Exxon Mobil (XOM), Quantum Services (REP), Ultimate Beauty (ULTA) and Vertex Pharmaceuticals (VRTX) – are among the stocks to watch. Keep in mind that continued equity market volatility is a reason to remain more cautious despite recent signs of strength.

Quanta, UnitedHealth and Vertex are stocks in the IBD ranking. Chevron and Exxon were featured in this week’s Stocks Near A Buy Zone column. Exxon Mobil was the IBD stock of the day on Friday.

Dow Jones Today: Treasury Yields, Oil Prices, Economic Data

After Wednesday’s open, the Dow Jones Industrial Average gained 0.7% and the S&P 500 rose 0.75%. The tech-heavy Nasdaq composite climbed 1.2% in morning trade.

Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) increased by 0.7%. And the SPDR S&P 500 ETF (TO SPY) gained 0.6%.

The 10-year Treasury yield rose to 2.78% on Wednesday morning, adding to Tuesday’s rise of 2.74%. The 10-year Treasury yield rebounded after hitting its lowest level since early April. Meanwhile, U.S. oil prices climbed, with West Texas Intermediate futures rising about 2% to above $96 a barrel. Early Wednesday, OPEC+ agreed to a slight increase in oil productionwhich should have minimal impact on prices.

The final Services Purchasing Managers’ Index for July from researcher Markit came out at 9:45 a.m. ET at 47.3, slightly above estimates. Next, the July services index from the Institute for Supply Management and the June factory orders data from the Commerce Department are due out at 10 a.m. ET. These data points are important to investors as they monitor the state of the US economy.

Stock market rally

On Tuesday, pockets of strength in software, chips, biotech, solar and internet stocks helped the Nasdaq limit its loss to 0.2%, while Dow Jones industrials lagged with a decline by 1.2%.

Tuesday’s The Big Picture column commented: “After a July rally that lifted the S&P 500 and the Dow Jones to their best monthly performance since November 2020, the stock market looks set to rest. This scenario is playing out until present this week, with minor damage as we head into the middle of the week.”

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Five Dow Jones stocks to watch now

Dow Jones stocks to watch: Chevron, UnitedHealth

Dow Jones energy giant Chevron is building the right side of a cup base that has a buy point of 182.50. Be on the lookout for a potential handle to provide lower entry. Chevron stock traded a fraction on Wednesday.

Health insurance giant and IBD Leaderboard UnitedHealth stock remains in the buy range above the 518.80 buy point of its double bottom with handle despite Tuesday’s slight gain, according to the report. chart analysis from IBD MarketSmith. The shares gained 0.4% on Wednesday.

UNH stock shows a solid 94 out of a perfect IBD composite score of 99, according to the IBD inventory check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.

4 growth stocks to watch in the currentrStock market rally

Top stocks to watch: Cheniere, Exxon, Quanta, Ulta, Vertex

Cheniere Energy is in a buy zone after breaking a trendline entry around 140. Now the stock is trying to break above the 146.45 double bottom buy point. The relative strength line has just reached new highs, a positive sign. Shares fell slightly on Wednesday.

Friday’s IBD Exxon Mobil stock recovered the 50-day line last week and broke an aggressive early entry around 93.24. But the energy giant gave up more ground on Tuesday, falling 0.4%. Meanwhile, a cut base entry at 105.67 is also in play. XOM stock was down 0.1% on Wednesday morning.

IBD Leaderboard Quanta Services stock is back at the buy point of 138.56 from a cup base with a handle amid a three-day losing streak, according to IBD MarketSmith’s chart analysis. Quanta’s results are due out Thursday. The stock was up 0.6% on Wednesday.

Ulta Beauty is building a flat base with a buy point of 429.58 but is struggling to decisively retake its 50-day line amid Tuesday’s 0.35% drop. The base comes on the heels of a failed breakout after a cup-with-handle entry at 426.93 in June. ULTA shares lost 4% early Wednesday.

Vertex Pharmaceuticals continues to trade below the 279.23 buy point and the 50-day line of its tumbler with handle on a recent losing streak. The company will release its results on Thursday. Vertex shares rose 0.5% on Wednesday.

Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live

Tesla Stock

Tesla stock rose another 1.1% on Tuesday, extending a winning streak to five sessions. Stocks are at their highest level since early May but are still finding resistance around their 200-day line, which is a key level to watch.

Shares gained about 1% on Wednesday morning.

Dow Jones Leaders: Apple, Microsoft

Among Dow Jones stocks, Apple shares fell 0.9% on Monday but still held above its recently recovered 200-day line. Apple shares rose 0.9% on Wednesday morning.

Microsoft fell 1.15% on Tuesday as the stock continues to digest last week’s big gains. The software giant is still trading below its long-term 200-day line. The stock closed around 20% off its 52-week high. Microsoft rose 0.9% Wednesday morning.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.


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