The Dow Jones Industrial Average and other major stock indexes headed south Wednesday, as blue chip component UnitedHealth plunged on an analyst downgrade. Among the early movers was Target, which tumbled on the stock market today after the company's earnings miss.
After the opening bell, the Dow Jones Industrial Average dropped more than 300 points, or 0.7%. The S&P 500 lost 0.5%. And the tech-heavy Nasdaq composite fell 0.3%. (Click here for the latest report on the stock market today.)
The 10-year Treasury yield rose to 4.54% early Wednesday. And oil prices climbed, as West Texas Intermediate futures traded around $62.85 per barrel.
Among exchange traded funds, the Invesco QQQ Trust moved down 0.4%, while the SPDR S&P 500 ETF fell 0.6% after the open.
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Stock Market Today: UnitedHealth Downgrade
Early Wednesday, UnitedHealth plunged 5% after Wall Street brokerage HSBC downgraded the stock to reduce from hold, lowering the price target to 270 from 490. The embattled health care provider is nearly 50% off its 52-week high.
Target sold off 6% Wednesday after the company posted a major earnings miss and cut its outlook amid a "difficult" environment for first-quarter results.
In other stocks, key earnings movers were Baidu, Lowe's, Palo Alto Networks, Toll Brothers and TJX.
Baidu stock rallied 5% in early action, while Lowe's shares fell 0.7%. Palo Alto shares tumbled 7%. Finally, Toll Brothers shares advanced nearly 2%, while TJX slipped 2% in morning trading.
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Dow Jones Falls
On Tuesday, blue chips on the Dow Jones Industrial Average fell 0.3%, or 114 points, while the S&P 500 and the Nasdaq both declined 0.4%.
Ongoing stock market strength makes now an important time to read IBD's The Big Picture column for how to handle the current market conditions and to track the updated exposure level.
Among the best companies to watch in the current stock market are Birkenstock, Spotify, Robinhood and Axon Enterprise
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com and Microsoft.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Microsoft Above Buy Point
Shares of Dow Jones component Microsoft have shot up over the last few weeks, bullishly retaking their 200-day moving average for the first time since Jan. 29 and clearing a 448.38 buy point in a cup base, according to MarketSurge chart analysis. Microsoft stock dropped 0.5% Wednesday.
Outside the Dow, Birkenstock surged last week, rallying up the right side of a cup base that has a 62.66 buy point. Birkenstock shares lost 0.8% in morning action.
Recent IBD Stock Of The Day and IBD SwingTrader stock Spotify is just out of buy range above a 621.20 double-bottom entry. Spotify shares fell 0.5% early Wednesday.
IBD Leaderboard watch list stock Robinhood has cleared an aggressive alternate entry of 51.07 in recent sessions and is approaching a 66.91 buy point in an abnormally deep cup base, according to IBD MarketSurge chart analysis. Robinhood shares fell 0.5% Wednesday.
Finally, Taser-maker Axon is breaking out past a 715.99 buy point following last week's gains. Axon stock was down 0.3% Wednesday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Wednesday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Microsoft | 448.38 | Cup base | |
| Robinhood | 66.91 | Cup base | |
| Birkenstock | 62.66 | Cup base | |
| Spotify | 621.20 | Double bottom |
Source: IBD Data as of May 20
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Dow Jones Leaders: Amazon, Apple, Nvidia
Magnificent Seven stocks continue to rebound from their recent lows and are now approaching buy points. One of them, Dow Jones component Amazon, is building a cup-with-handle with a 214.84 buy point. Amazon stock lost 1.5% in morning action on Wednesday.
IPhone maker Apple threatened to extend a losing streak to six sessions Wednesday, with a 0.6% morning drop. Shares, however, remain right at their 50-day moving average.
During last week's bullish gains, Nvidia decisively regained its long-term 200-day moving average, which was a key resistance level. And Nvidia stock rose 0.2% Wednesday.
Finally, Tesla gained 0.1% in early action Wednesday, continuing to hold near its recent highs following a powerful rebound since early April. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 28% off its record high of 488.54, reached on Dec. 18.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
