The Dow fell 150 points on Powell’s rate hike comments; Tesla stock drops on downgrade

The Dow Jones Industrial Average briefly fell more than 150 points on Wednesday morning, as investors digested Federal Reserve Chairman Jerome Powell’s comments on monetary policy ahead of his speech to the House Financial Services Committee. Barclays downgraded Tesla shares.


In prepared remarks WednesdayPowell reiterated that further interest rate increases are likely to lower inflation, saying, “Almost all FOMC participants expect that it will be appropriate to raise interest rates fairly moderately by the end of the year.”

Powell is scheduled to speak before the House of Representatives at 10 a.m. ET. A similar Powell appeared the next day on the Senate Banking Committee. Investors may update rate hike expectations amid upcoming comments.

Investor expectations project a chance of close to 77% for a quarter-point hike at the Federal Reserve’s July meeting, at CME FedWatch tool. This is up from 60% one week ago.

on the earnings front, fedex (FDX) reported after closing on Tuesday. The shipping giant posted mixed results for its late fourth-quarter report on Tuesday to wrap up its 2023 fiscal year. The company said its earnings fell 28% in the fourth quarter, compared to an average of 27% over the previous three quarters. The company’s sales declines accelerated for the third consecutive quarter, and for the third straight period it was absent from the views of Wall Street.

FDX stock cut its losses to just 0.3% in morning trade. Before its earnings results, the stock tried to breach the 235.81 buy point of the fixed base.

stock market today

Giant EV Tesla (TSLA) reversed lower by 2% Wednesday morning in the wake of the analyst’s credit rating downgrade. Dow Jones Tech Giants apple (AAPL) And Microsoft (MSFT) were down after the stock market opened today.

dexcom (DXCM), Chipotle Mexican Grill (CMG), Makison (MCK) And Rocco (ROKU) – as well as Dow Jones shares Boeing (Bachelor’s), c. B. Morgan Chase (JPM) And sales force (CRM) – among the best stocks to buy or watch in an uptrend of the stock market.

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Tesla is the IBD stock leaderboard. Giant Dow Jones, Boeing is an IBD SwingTrader stock and appeared in stocks for the week near the Buy Zone column.

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Dow jones today: oil prices and treasury yields

After the opening bell on Wednesday, the Dow Jones Industrial Average fell 0.2%, while the S&P 500 lost 0.4%. The Nasdaq Composite fell 0.9% in morning trade.

Among the US ETFs, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ(down 0.7%, while the SPDR S&P 500 ETF traded)spy) fell 0.45% early Wednesday.

On Wednesday, the 10-year US Treasury yield rose to 3.78%. The yield has recently been bouncing in a range between 3.57% and 3.85%, settling slightly lower on Tuesday at 3.72%.

Oil prices continued to stabilize somewhat on Wednesday morning, near recent lows. West Texas Intermediate crude futures rose near $72 a barrel, ahead of Thursday’s weekly oil inventories report from the Energy Information Administration.

Stock market action

On Tuesday, the Nasdaq Composite fell less than 0.2% – a positive result after falling as much as 0.9% earlier in the day. The S&P 500 cut its loss to 0.5%. The Dow Jones Industrial Average fell 0.7%.

The Big Picture column warned on Tuesday, “After rising 5.8% in May and nearly 6% so far in June, the Nasdaq looks to be stretched. The index crossed 9% above the 50-day moving average and on Thursday the gap exceeded 10%. It is the biggest stretch since it topped the index in early February.”

Now is an important time to read IBD’s Big Picture column amid the stock market’s continued bullish trend.

The five best Dow stocks to buy and watch right now

Dow Jones Stocks to Buy and Watch: Boeing, JPMorgan, and Salesforce

Aerospace giant Dow Jones and Boeing’s IBD SwingTrader saw the breakout attempt falter on Tuesday, with a 3.5% drop. BA shares fell 0.4% on Wednesday.

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Dow Jones JPMorgan stock is down slightly from 143.37 points to buy on a flat basis after Tuesday’s drop of 0.5%. JPM shares rose 0.2% early Wednesday.

Salesforce has managed to stabilize itself after the following earnings slump. It is now testing support at the 21-day exponential moving average. The megacap technology previously surpassed a pair of new alt entries at 194.01 and 200.10, according to IBD Leaderboard analysis.

In recent weeks, stocks have reached the 20% gain zone of 178.94 handle entry cups, and are now trying to rebound from the support at the 10-week line. CRM stocks rose on Wednesday morning.

4 growth stocks to buy and watch Stock market rise

Best stocks to buy and watch: Dexcom, Chipotle, McKesson, and Roku

Dexcom remains in a buy range after 126.44 points long of the flat base, although it fell 0.1% on Tuesday, according to IBD MarketSmith pattern recognition. The buy zone is up 5%, at 132.76. DXCM stock rose on Wednesday.

IBD Leaderboard Chipotle watch stock is trading tightly after a big advance, creating another entry at 2139.88. Meanwhile, the stock is also falling back to the 10-week line. A decisive bounce from this level will also create a buying opportunity. CMG stock rose 0.3% Wednesday morning.

McKesson stock in IBD SwingTrader is in a buy range after entering the 401.53 cup handle amid a three-day winning streak. Shares rose 0.2% early Wednesday.

Streaming giant Roku is building a cup base with 76.62 buy points. The stock is likely to add a handle, which will show a lower entry at 75.45. Roku stock gained 0.1% early Wednesday.

Learn how to time the market with IBD’s ETF market strategy

Best stocks to buy and watch the stock market rise

These are the top four stocks to buy and watch in the stock market today, including leader Dow Jones.

Company Name Code The right point of purchase Point of purchase type
ASML (ASML) 683.18 mug with handle
sales force (CRM) 200.00 merge
Cloud Flair (network) 66.20 Double bottom
Rocco (ROKU) 76.62 cup base
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Source: IBD data as of June 20, 2023

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

Tesla stock

IBD Leaderboard’s Tesla stock rose 5.4% on Tuesday, hitting new 2023 highs. Shares extended sharply above the 207.79 buy point of the double-bottom base. On Tuesday, they closed 13% from their 52-week high.

TSLA stock threatened to give up part of Tuesday’s gains, and slid 2.2% Wednesday morning after Barclays downgrade from buy to holdwith a price target rising from 220 to 260.

Dow Jones leaders: Apple and Microsoft

Among Dow Jones stocks, Apple stock stayed off its all-time highs on Tuesday, after closing slightly higher. On Friday, shares were trading as high as 186.99. The stock continues to settle sharply above 157.38 buying points. Early Wednesday, AAPL stock was down 0.1%.

Shares of Microsoft fell another 1.25% on Tuesday, falling sharply for the second straight session. Last week, the stock hit a high of 351.47. MSFT stock is in the 20%-25% profit-taking zone from 276.76 flat-base buy points, so investors are getting some profit at least. On Wednesday morning, Microsoft shares fell 0.6%.

Be sure to follow Scott Lehtonen on Twitter at @employee Learn more about developing stocks and the Dow Jones Industrial Average.

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