Dow Jones futures and the other major indexes rebounded Wednesday, as Wall Street braced for testimony from Fed Chair Jerome Powell. Meanwhile, artificial intelligence leaders Nvidia (NVDA) and Super Micro Computer (SMCI) rallied sharply on the stock market today.
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Dow Jones futures rose 0.3% vs. fair value in morning action, as S&P 500 futures climbed 0.5%. Tech-heavy Nasdaq 100 futures advanced 0.9% before the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was up 0.8%, as the SPDR S&P 500 ETF (SPY) rose 0.5%.
The 10-year Treasury yield ticked higher to 4.14% ahead of Powell’s testimony. Further, oil prices looked to end a two-day losing streak, as West Texas Intermediate futures rose more than 1%, trading near $79 a barrel.
Nvidia stock rallied 1.8% Wednesday morning and is nearing Monday’s record highs, about 70% above a flat base’s 505.48 entry. Nvidia is an IBD Leaderboard stock.
Super Micro stock advanced 3.5% after Argus Research started the stock with a buy rating and a 1,350 price target, a 24% premium to Tuesday’s closing price. Shares were just shy of Monday’s record highs.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Stock Market Today: Powell Testimony
Wednesday’s spotlight will be on Fed chief Powell’s planned 10 a.m. ET testimony before the House Financial Services Committee. He then is to appear in front of the Senate Banking, Housing and Urban Affairs panel on Thursday.
Before that, however, ADP’s employment report and the Labor Department’s Job Openings and Labor Turnover Survey, or JOLTS, are both out early Wednesday.
ADP showed jobs growth of 140,000 in February, missing estimates for growth of 150,000, but still up from January’s 107,000 increase. ADP’s employment report s a precursor to Friday’s jobs report from the Labor Department.
Lastly, the JOLTS report is expected to show a fall in job openings to 8.9 million in January, down from December’s 9.026 million. That data is expected at 10 a.m.
Key earnings movers Wednesday included Abercrombie & Fitch (ANF), CrowdStrike (CRWD), Foot Locker (FL), Nordstrom (JWN), Ross Stores (ROST).
Abercrombie shares slipped 2.1%, while CrowdStrike soared nearly 23% in premarket trades. Foot Locker stock plunged 10.6%, as Nordstrom shares more than 10%. And Ross Stores declined nearly 3%.
Dow Jones Falls
On Tuesday, the Dow Jones Industrial Average and S&P 500 both moved down 1%, while the tech-heavy Nasdaq composite sold off 1.65%.
Tuesday’s Big Picture column commented, “Headed into Tuesday, IBD’s recommended invested percentage was 60% to 80%. It’ll stay there for now, although leaning toward the 60% side probably makes more sense than 80% as distribution days start to proliferate on the Nasdaq.”
Now is an important time to read IBD’s The Big Picture column amid the continuing stock market rally. Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Learn How To Time The Stock Market With IBD’s ETF Market Strategy
Best Stocks To Buy And Watch In Stock Market Today
Duolingo (DUOL), Fifth Third Bancorp (FITB), Fortinet (FTNT) and Weatherford (WFRD) — plus Dow Jones components Disney (DIS), IBM (IBM) and Procter & Gamble (PG) — are among the best stocks to buy and watch on the stock market today.
IBM and Duolingo were featured in this Stocks Near A Buy Zone column.
A great resource for daily breakouts is IBD MarketSurge’s “Breaking Out Today” list. It shows MarketSurge Growth 250 stocks that are breaking out past new buy points. There were no breakouts Tuesday, which made sense given the market weakness.
Meanwhile, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases, like Arch Capital (ACGL). That stock is nearing a 88.77 buy point in a cup with handle.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones Stocks: Disney Attempts Breakout
Disney is trying to break out past a big cup-with-handle base’s 112.92 buy point, according to IBD MarketSurge chart analysis. Disney stock rose a fraction Wednesday, set to move back above the entry.
IBM stock is rapidly nearing a flat base’s 196.90 buy point and is just 3% away from the entry. IBM shares climbed 0.5% Wednesday.
Consumer products giant Procter & Gamble fell 0.15% Tuesday, holding above a 158.38 buy point in a cup base. P&G stock edged down Wednesday.
3 Top Growth Stocks To Watch In The Stock Market Rally
Fifth Third Breaks Out
IPO Leader Duolingo is building the right side of a cup base that has a 245.87 buy point, but is looking to add a handle with sharp losses in recent sessions. Duolingo shares rebounded 1.8% Wednesday.
Fifth Third Bancorp rallied 2.4% Tuesday, breaking out past a 35.73 buy point. Shares were up 0.6% Wednesday.
Cybersecurity leader Fortinet is adding a handle to a long cup base, taking the buy point to 73.91. The stock rose 2.3% early Wednesday.
Oil stock Weatherford is back in buy range above a 102.65 buy point in a cup base. The 5% buy range tops out at 107.78. Weatherford shares advanced 1.9% Wednesday.
Best Bets On Stock Market Today
These are four best stocks to watch in today’s stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Novo Nordisk | (NVO) | 105.69 | Flat base |
| Merck | (MRK) | 119.65 | Cup base |
| DraftKings | (DKNG) | 39.35 | Cup base |
| Spotify | (SPOT) | 202.88 | Flat base |
Source: IBD Data As Of Feb. 28, 2024
Join IBD experts as they analyze leading stocks in the current stock market rally on IBD Live
Magnificent Seven: Tesla
Among Magnificent Seven stocks, Tesla (TSLA) slipped a fraction Wednesday in the wake of Tuesday’s 3.9% skid. Early Wednesday, Morgan Stanley cut its price target on Tesla stock from 345 to 320. The brokerage maintained its overweight rating.
Tesla stock closed Wednesday at its lowest level since Feb. 5, with heavy losses in recent days. Shares remain sharply below their 50- and 200-day lines.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded higher ahead of Wednesday’s stock market open.
Apple stock declined 2.8% Tuesday, sliding further below its long-term 200-day line. Shares were up 0.5% Wednesday morning.
Microsoft shares is again at the top of the buy range past a 384.30 buy point in a flat base, with a 3% slide Tuesday. The software giant gained 0.7% on the stock market today.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
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