The Dow Jones Industrial Average fell 300 points on Wednesday morning after early U.S. election results showed Republicans in favor of a narrow majority in the House, but fell short of expectations. Tesla shares fell as Chief Executive Elon Musk reportedly sold nearly $4 billion worth of Tesla stock in the past few days.
Media giant Dow Jones disney (DIS) plunged 9% on a surprise earnings failure. Disney’s earnings are expected to jump 48% to 56 cents a share on revenue of $21.3 billion. Instead, the company’s earnings fell to 30 cents per share on sales of $20.5 billion.
Parent Facebook Metaplatforms (META) rose 6%, leading the Nasdaq in early trading. The company said it would lay off about 13% of its workforce and cut its 2023 revenue outlook to between $34 billion and $37 billion, down from an earlier forecast of $34 billion to $39 billion.
The main drivers of earnings on Wednesday were Network technologies (ARRY), Disney, Lucid Engines (LCID) and Warren Buffett stock western oil (OXY).
Array shares soared 17%, while Lucid Motors slipped more than 9%. OXY shares lost 3.5% in morning trading.
Electric vehicle giant You’re here (TSLA) was trading down 0.5% on Wednesday morning. Dow Jones Technology Leaders Apple (AAPL) and Microsoft (MSFT) were squarely lower after today’s stock market open.
Among the best stocks to buy and watch, Albemarle (ALB), IBD Ranking Watch List Stock Arista Networks (ANET) and CF Industries (CF) – as well as Dow Jones names Merck (MRK) and UnitedHealth Group (UNH) – are among the best stocks to buy and watch.
Arista Networks is an IBD Leaderboard watchlist stock. Albemarle was featured in this week’s Stocks Near A Buy Zone column, along with three other stock ideas. UnitedHealth was IBD’s stock of the day on Thursday.
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Dow Jones Today: Treasury Yields, Oil Prices
After Wednesday’s opening bell, the Dow Jones Industrial Average fell 0.9%, while the S&P 500 fell 0.85%. The tech-heavy Nasdaq composite lost 1.1% in morning action, with China-based names taking four of the index’s five hardest hit in early trade.
The generally muted response in equities to Tuesday’s still-developing election count could show the results already priced into valuations. It may also suggest that markets are more interested in the next set of key inflation data, due out Thursday morning.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded down 1% early Wednesday, and the SPDR S&P 500 ETF (SPY) fell 0.8%.
The 10-year Treasury yield climbed to 4.16% on Wednesday morning, after Tuesday’s fall to 4.12%.
Meanwhile, US oil prices fell nearly 2%, with West Texas Intermediate futures falling below $88 a barrel. Weekly industry data released late Tuesday showed crude inventories rose more than expected. Official weekly issues are due out at 10:30 a.m. ET.
Last week, WTI futures hit their highest level since mid-October, but have since pulled back.
Stock market rally struggles
On Tuesday, the Dow Jones Industrial Average rebounded 1%, while the S&P 500 gained 0.6%. The tech-heavy Nasdaq composite climbed 0.5%.
Tuesday’s The Big Picture commented: “It’s not easy watching the indices climb with growth stocks that don’t typically participate. The ranking is less than 50% invested, containing only seven names. Be patient and wait for the best chart setups Avoid chasing stocks that are up multiple days in a row If more institutional money continues to pour in from the margin, the (growth) setups shouldn’t be far behind.
Now is an important time to read IBD’s The Big Picture column. Following recent selling, investors should focus more on defending than buying breakouts.
Five Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Merck, UnitedHealth
Dow Jones and IBD 50 member Merck remains out of the buy range past the 93.12 buy point of a double bottom basis, according to IBD MarketSmith pattern recognition. Merck shares edged higher on Wednesday.
Healthcare giant UnitedHealth is trying to retake a buy point of 553.23 on a cup with handle. Shares climbed 1.5% on Tuesday, ending about 10 cents below their last entry. UNH stock fell Wednesday morning.
4 growth stocks to watch in the currentrStock market rally
Top stocks to buy and watch: Albemarle, Arista, CF
Lithium producer Albemarle is trying to break above the buy point of 308.34 by a cup basis. Shares jumped 6.8% on Tuesday, extending a four-session winning streak. ALB stock fell 1.25% early Wednesday.
IBD Leaderboard Arista Networks watchlist stock is trying to break above the buy point of 132.97 from a choppy base. AThe NET action lost more than 3% on Wednesday morning.
CF Industries found support around its 50-day moving average amid Tuesday’s 4.2% rally. Stocks are building a cut base which has a buy point of 119.70, according to IBD MarketSmith pattern recognition. CF stock was down 1.8% on Wednesday.
Join IBD experts as they analyze the top stocks of the current stock market rally on IBD Live
Tesla stock slipped another 2.9% on Tuesday, adding to Monday’s sharp drop. Shares hit a fresh 52-week low and hit their lowest level since May 2021. The stock is more than 50% off its 52-week high and significantly below its 50- and 200-day moving averages.
Shares of the electric vehicle giant were down 0.5% on Wednesday morning. According to regulatory filings, Musk sold 19.5 million shares of Tesla from Nov. 4-8, just after buying Twitter for $44 billion.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares rose 0.4% on Tuesday, up for a second straight day. The stock traded down 0.9% on Wednesday.
Microsoft climbed another 0.4% on Tuesday, extending a winning streak to three sessions. The software giant remains around 35% off its 52-week high. Microsoft shares fell 0.7% on 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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