Dow Jones futures fall ahead of production dates; Elon Musk is getting ready for Tesla Investor Day
Dow Jones futures fell on Wednesday, threatening to start March in the red even as the rebound in Chinese markets boosted global trade. Chinese Tesla rival No (NEVER) slipped more than 3% on an earnings slump, while Tesla (TSLA) CEO Elon Musk getting ready for Investor Day at the company’s factory near Austin, Texas.
Two key manufacturing reports for February are due post market open. Researcher Markit provides its final PMI (Purchasing Managers’ Index) for the manufacturing sector. The PMI, which will be released at 9:45 a.m. ET, is expected to come in at 47.8, unchanged from the previous estimate, according to Econoday. Meanwhile, the Institute of Supply Management or ISM index is also expected to remain declining at 48.0. The ISM is due at 10am
On the earnings front money tree (DLTR), first sun (FSLR), cabbage (KSS), lowes (LOW), monster drink (VAT), Rivian Automotive (RIVN), Swarm Technologies (CLOS) And Urban Outfitters (URB) reported.
Dollar Tree shares are down 1% in early trade, while First Solar is up 5.5%. Kohl’s stock plummeted more than 9% while Lowe’s stock trended higher. MNST stock fell 4.7% and Rivian stock slipped nearly 9% on mixed results. Finally, SHLS stock is up 1.9% and Urban stock is up 1.1% in premarket trading.
stock market today
Chinese stocks were among the early leaders of the session after trading strong Production data February indicated an acceleration in the Chinese economy. The Shanghai Composite Index ended 1% higher, while Hong Kong’s Hang Seng Index rose 4.2%. In premarket trading in the US Alibaba (BABA) And baidu (BIDU) each increased by about 6%.
Dow Jones tech giants Apple (AAPL) And Microsoft (MSFT) traded up and down before the market opens.
IBD Leaderboard Watch List Palo Alto Networks (PANW), deer (EN), Great brothers (TOL) And wing stop (WING) – as well as Dow Jones stocks American Express (AXP), Cisco systems (CSCO) And JPMorgan Chase (JPM) — are among the top stocks to watch given the recent stock market weakness.
Palo Alto is a IBD Leaderboard watchlist stock. Deere was a recently chosen IBD Stock of the Day. Cisco Systems and Wingstop were featured in last week’s ‘Stocks Near a Buy Zone’ column.
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Dow Jones Today: Oil Prices, Treasury Yields
Ahead of Wednesday’s market open, Dow Jones futures were down 0.25% from fair value, while S&P 500 futures were down 0.3%. Tech-heavy Nasdaq 100 futures lost 0.3% in morning action.
Among US exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust (QQQ) traded 0.3% lower and the SPDR S&P 500 ETF (SPY) fell 0.25% early Wednesday.
On Tuesday, the US 10-year Treasury yield settled at 3.91%, close to its highest level since November. The 10-year yield then rose to 3.94% on Wednesday.
US oil prices continued to oscillate around the $76 a barrel mark. West Texas Intermediate futures were down 1% ahead of the release of the Energy Information Association’s weekly oil inventory report.
Fight for the stock market rally
On Tuesday, the Dow Jones Industrial Average underperformed, falling 0.7% and the S&P 500 was down 0.3%. The tech-heavy Nasdaq Composite fell just 0.1%.
Tuesday’s Big Picture column commented, “At one point in February, the Nasdaq Composite was up 5.9% for the month. But the monthly gain faded to a 1.1% loss as multiple economic reports reminded Wall Street that inflation is still out there in abundance. The S&P 500 fell 2.6% in February, while the Dow Jones Industrial Average down 4.2%.”
Now is an important time to read IBD’s The Big Picture column amidst the now struggling stock market rally.
Five Dow Jones stocks to buy and watch
Dow Jones Stocks To Buy And Watch: American Express, Cisco, JPMorgan
American Express, featured in this week’s “Stocks Near a Buy Zone” column, is building a huge cup-and-handle base that shows a buy point of 182.25. Shares are just 4% below their buy point as they were up 0.4% on Tuesday. Upbeat, the stock’s line of relative strength is approaching fresh highs, a particularly positive sign ahead of a potential breakout. AXP shares rose a fraction on Wednesday morning.
Banking giant JPMorgan is range-buying above its flat base buy point of 138.76 amid a four-day winning streak, according to chart analysis by IBD MarketSmith. Stocks are also recovering from their key 50-day moving average. JPM shares edged higher on Wednesday.
JPM share showing a solid 95 out of 99 perfect IBD Composite Ratings, per IBD inventory check. The Composite Rating is designed to help investors easily find top growth stocks.
Cisco Systems was down 0.6% on Tuesday, further falling below the buy point from a flat base of 50.81. Stocks are attempting to halt their slide around their 50-day moving average and are about 4% below the entry. CSCO shares rose 0.3% on Wednesday.
4 top growth stocks to buy and watch stock market rally
Top stocks to buy and watch: Palo Alto, Wingstop
IBD leaderboard watch Palo Alto Networks stock is building the right side of a base that shows a buy point of 193.01 after rising more than 10% over the past week. PANW stock is down Wednesday morning.
Backstory: Last week, the cybersecurity giant announced strong results for the quarter ended in January, during which earnings hit $1.05 per share, up 81% year over year on revenue jumping 26% to 1.7 billion dollars.
Wingstop is back in the 5% buy zone behind a cup with handle entry of 169.04 which peaks at 177.49 after recent losses. Investors should wait for signs of support before considering buying shares, especially given the deteriorating overall market conditions. WING stock was inactive early Wednesday.
Backstory: The Dallas-based restaurant chain has more than 1,900 locations in the US and international markets, according to Dow Jones Newswires. International locations include Mexico, Colombia, Panama, Singapore and the UK. Wingstop added 61 new locations in the fourth quarter, bringing Wingstop’s total presence to 1,959 restaurants worldwide.
Deere, Toll Eye Latest Buying Points
Deere shares fell 0.6% on Tuesday, further closing below its 50-day moving average. Shares are 6% below a buy point of 448.50 on a flat basis. DE shares rose 0.4% on Wednesday morning.
Backstory: As an industrial pioneer, Deere has shrugged off recession and inflation fears to deliver solid profits. Last year, higher commodity prices made farmers buy both new and upgraded machines. In the fiscal first quarter ended Jan. 29, the tractor maker reported a 124% increase in earnings per share on a 32.2% increase in total sales, beating both estimates. Earnings growth accelerated for the second straight quarter.
The builder Toll Brothers builds a mug with a handle that has a buy point of 63.29. Bullishly, the stock is showing relative strength at new highs after Tuesday’s 1.3% surge. TOL warehouse shows a solid 95 IBD Composite Rating. Toll Brothers shares were up slightly early Wednesday.
Backstory: Last week, luxury homebuilder Toll Brothers beat earnings and sales forecasts while maintaining its full-year guidance. The homebuilder’s financial report comes as a 12-month slide in US existing home prices in January showed signs of slowing.
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Stocks to buy and watch in the stock market rally
These are six top stocks to buy and watch in today’s stock market, including two top Dow Jones stocks.
|Company Name||symbol||Correct purchase point||Type of purchase point|
|Great brothers||(TOL)||63.29||Cup with handle|
|Cisco systems||(CSCO)||50.81||flat base|
|Palo Alto Networks||(PANW)||193.01||consolidation|
|JP Morgan||(JPM)||138.76||flat base|
|wing stop||(WING)||169.04||Cup with handle|
Source: IBD data as of March 1, 2023
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Tesla shares fell 0.9% on Tuesday, giving back a small portion of Monday’s quick gains. On Tuesday, Mexican President Andrés Manuel López Obrador said the company plans to do so build a production facility in the northern Mexican industrial center of Monterrey.
Despite their strong recovery since Jan. 6, shares are still below the 200-day moving average. This key level is emerging as a potential area of resistance. Shares closed around 46% below their 52-week high on Tuesday.
Tesla shares appeared to add to Tuesday’s gains, rising 0.3% on Wednesday morning.
Tesla will hold its investor day after the market close on Wednesday, with Musk teasing plans to unveil his “Master Plan 3” at the event. Analysts say they have few details, and many doubt there will be any new product announcements. According to Musk, his Master Plan 3 is a “pathway to a fully sustainable energy future for the planet.”
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares fell 0.3% on Tuesday to close just above its 200-day moving average. Shares are about 18% off their 52-week high. Apple shares lost 0.1% on Wednesday.
Microsoft shares remain below their 200-day moving average after shedding 0.3% on Tuesday. The stock is more than 20% off its 52-week high after recent declines. MSFT shares were up 0.5% early Wednesday.
Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-rise-ahead-of-manufacturing-data-elon-musk-tesla-investor-day/?src=A00220&yptr=yahoo Dow Jones futures fall ahead of production dates; Elon Musk is getting ready for Tesla Investor Day