Dow Jones futures jumped Wednesday morning, looking to rebound from Tuesday’s stock market fall. Bitcoin surged more than 8% after President Biden’s executive order on cryptocurrencies. Treasury yields climbed, while U.S. oil prices slid more than 3%. Russia’s ongoing Ukraine invasion, along with the West’s response, remains the key focal point in the stock market today.
X
Before Wednesday’s open, MongoDB (MDB) reported its quarterly results. MDB shares surged more than 11% in early morning trade. The stock ended Tuesday more than 50% off its 52-week high.
Among the Dow Jones leaders, Apple (AAPL) rose 2% and Microsoft (MSFT) rallied 2.2% in today’s stock market. UnitedHealth (UNH), a Dow Jones stock to watch, finished Tuesday within striking distance of a new buy point. Nike (NKE) soared to the head of the Dow, up more than 4% in premarket trade.
IBD 50 stock Zim Integrated Shipping Services (ZIM) bolted more than 9% higher after a sound fourth-quarter revenue and earnings beat. Electric-vehicle leader Tesla (TSLA) rallied almost 3% early Wednesday, looking to add to Tuesday’s 2.5% rebound.
Amid the volatile, headline-driven market, Anthem (ANTM), Costco (COST), Quanta Services (PWR) and Union Pacific (UNP) are among Wednesday’s top stocks to watch. Keep in mind that current stock market conditions should keep investors in cash and on the sidelines.
Microsoft and Tesla are IBD Leaderboard stocks. Quanta was Tuesday’s IBD Stock Of The Day. Costco was Tuesday’s IBD 50 Stocks To Watch pick and was featured in this week’s Stocks Near A Buy Zone column.
Dow Jones Today: Russian Invasion, Oil Prices
Before Wednesday’s market open, Dow Jones futures jumped 1.6% vs. fair value, and S&P 500 future gained 1.7%. Nasdaq 100 futures surged 2.25% vs. fair value. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (QQQ) gained 2.4%, and the SPDR S&P 500 ETF (SPY) moved up 1.9% before Wednesday’s open.
The 10-year Treasury yield climbed to 1.91% Wednesday morning, after closing at 1.87% Tuesday.
U.S. oil prices slid more than 3% Wednesday, as West Texas Intermediate crude traded around $119 a barrel. WTI briefly surged above $130 a barrel on Monday to hit its highest level since September 2008, per Dow Jones Market Data. On Tuesday, President Biden banned imports of Russian oil and natural gas, which could further boost gas prices.
Russia and Ukraine agreed to open evacuation routs for civilians in multiple Ukrainian cities Wednesday morning. However, Russia’s army has reportedly been shelling civilian evacuation routes for four days. Meanwhile, Russian troops continued attempts to encircle Kyiv. Russia’s top diplomat is scheduled to meet with his Ukrainian counterpart in Turkey on Thursday.
Bitcoin Price
The price of Bitcoin surged more than 8% over the last 24 hours, according to CoinDesk. Bitcoin traded around $42,200 in morning trade.
Cryptocurrency exchange Coinbase (COIN) jumped nearly 7% ahead of Wednesday’s open. COIN stock finished Tuesday more than 60% off its 52- week high. Meanwhile, the ProShares Bitcoin Strategy ETF (BITO) climbed 10% ahead of Wednesday’s market open.
President Biden is set to sign an executive order on Wednesday that will attempt to study possible risks, as well as provide a framework for the development of cryptocurrencies and explore the potential for a digital currency issued by a central bank.
“The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate,” the executive order says.
Stock Market Rally Attempt
The stock market posted more disappointing action Tuesday, as the major stock indexes ended with modest to moderate losses. Despite Tuesday’s losses, all three major stock indexes are still above their Feb. 24 intraday lows, which means Wednesday will be Day 10 of the ongoing rally attempt.
Tuesday’s The Big Picture commented, “As noted in Monday’s Big Picture, the Nasdaq has officially met the definition of a garden-variety bear market. That is, the composite has fallen at least 20% from its all-time peak of 16,212. The premier index for growth companies has also given back all of its gains since May 2021.”
If you’re new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines. IBD offers a broad range of growth stock lists, such as Leaderboard and SwingTrader.
Investors also can create watchlists, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Four Dow Jones Stocks To Watch Now
Dow Jones Stocks To Watch: UnitedHealth
Managed care giant UnitedHealth continues to show a 501.03 buy point in a double-bottom base. Shares ended Tuesday about 5% away from their latest entry after piercing their 50-day line. UNH shares moved up 0.7% early Wednesday.
Bullishly, the stock’s relative strength line is near new highs, indicating significant stock market outperformance.
Four Top Growth Stocks To Watch In The Current Stock Market Correction
Stocks To Watch: Anthem, Costco, Quanta Services, Union Pacific
Anthem remains below a flat base’s 470.12 entry after Tuesday’s 0.3% rise. Anthem was a recent IBD Stock Of The Day. Shares were flat Wednesday morning.
Costco stock continues to build a cup base with a 571.59 buy point, according to IBD MarketSmith chart analysis. Keep an eye out for a handle to form, which would lower the risk-optimal entry. Bullishly, the stock’s relative strength line is already at new highs, a sign of extreme strength especially during periods of significant market weakness. Costco shares rallied more than 1% early Wednesday.
Tuesday’s IBD Stock Of The Day, Quanta Services, topped an 113.81 early buy point Tuesday during the session’s 8.2% surge. Meanwhile, the stock continues to move up the right side of a consolidation with a 124.79 buy point. PWR shares inched higher early Wednesday.
IBD Leaderboard stock Union Pacific gave up its 256.21 flat-base entry amid Tuesday’s 3.1% decline. UNP shares were up 0.5% early Wednesday.
Per Leaderboard analysis, Friday’s progress justified a boost in the position size by quarter to a half. The RS line had already been making new highs, which is a sign of a market leader.
Join IBD experts as they analyze leading stocks in the current stock market correction on IBD Live
Tesla Stock
Tesla stock rallied almost 3% early Wednesday, looking to add to Tuesday’s 2.5% rebound. Shares are still below their long-term 200-day moving average.
The stock traded as high as 1,243.49 on Nov. 4, but ended Tuesday about 33% off that all-time high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple is building a double-bottom base with a 176.75 buy point, according to IBD MarketSmith chart analysis. Shares are falling further away from the potential entry following Tuesday’s 1.2% decline. On Tuesday, Apple introduced a lower-priced 5G iPhone and debuted a new high-end Mac computer for creative professionals.
AAPL stock found support at its long-term 200-day line on Feb. 24, but remains below its 50-day moving average. The stock’s relative strength line remains near recent highs in the face of the stock market weakness, signifying that institutions remain hesitant to sell their Apple shares. Apple shares rose 2% Wednesday.
Software leader Microsoft dropped 1.1% Tuesday, briefly hitting its lowest level since July 1. Shares fell further below the 200-day line, as they continue to build a new base. MSFT stock rose 2.2% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
YOU MAY ALSO LIKE:
Top Growth Stocks To Buy And Watch
Learn How To Time The Market With IBD’s ETF Market Strategy
Find The Best Long-Term Investments With IBD Long-Term Leaders
MarketSmith: Research, Charts, Data And Coaching All In One Place
How To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks
