The Dow Jones Industrial Average fell Wednesday, threatening to snap its nine-day win streak, as the stock market seemed ready to take a breather. Meanwhile, investors digested consumer confidence numbers and home sales data. And shipping giant FedEx plunged on a weak earnings report.
After Wednesday's opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 rose 0.1%. The tech-heavy Nasdaq composite gained 0.2% in morning action.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust moved up 0.1%, while the SPDR S&P 500 ETF lost 0.15% early Wednesday.
The yield on the 10-year U.S. Treasury bond sank even lower, to 3.89% in morning action. On Tuesday. the benchmark bounced to 3.92%, just off its lowest level since late July.
Oil prices extended their five-day rebound Wednesday, as West Texas Intermediate futures climbed more than 1%. WTI moved near $75 a barrel. Last week, WTI hit its lowest level since late June before bouncing.
Home Sales, Consumer Confidence Data
Just after the market open, the National Association of Realtors said that existing-home sales for November rose to an annual rate of 3.82 million, topping estimates.
Also, the consumer confidence index jumped to 110.7 in December, up from November's 102.0 reading. The report from the Conference Board reflects prevailing business conditions and likely developments for the months ahead.
FedEx reported fiscal second-quarter earnings and revenue results that fell short of expectations after Tuesday's close. FDX stock sank more than 10% in morning action.
Other key earnings movers include General Mills and Toro. General Mills shares declined 3.8% in early action, while Toro stock surged 13%.
Finally, late Wednesday, Micron Technology will report its quarterly earnings results.
Winning Streak For Dow Jones, Nasdaq
On Tuesday, the Nasdaq composite climbed 0.7%, marking its ninth-straight gain and closing just above the 15,000 level. The S&P 500 and the Dow Jones Industrial Average picked up 0.6% and 0.7%, respectively.
The Dow marked its fifth-straight record close on Tuesday. That's the first time it's done that since the five days ended Aug. 16, 2021, according to Dow Jones Market Data.
Tuesday's Big Picture column commented, "While it's still OK to look for stocks breaking out of bases, it's also a good idea to be patient and wait for pullbacks in some of the big leaders. Base breakouts were plentiful when the stock market uptrend was confirmed in early November, but they're getting harder to find now. And some stocks forming bases now could end up being laggards in their groups."
Now is an important time to read IBD's The Big Picture column amid the continuing stock market gains. Be sure to read how to invest during the ongoing uptrend.
Learn How To Time The Stock Market With IBD's ETF Market Strategy
Best Stocks To Buy And Watch
IBD Leaderboard stock Datadog, Monday.com, IBD SwingTrader issue Netflix and Snowflake — along with Dow Jones stocks American Express, Caterpillar and Visa — are among the best stocks to buy and watch in the current market rally.
Datadog and ELF Beauty are featured in this Stocks Near A Buy Zone column.
Get Real-time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: CAT Eyes Buy Point
Financial leader American Express is extended past a 175.31 buy point in a cup with handle, after a 1.6% rally Tuesday. AXP stock dropped 0.3% early Wednesday.
Heavy machinery giant Caterpillar is rapidly approaching a 293.88 buy trigger following sharp gains in recent weeks. CAT stock moved down 0.2% Wednesday morning.
Payments leader Visa remains in buy range above a 250.06 entry in a cup base, according to IBD MarketSmith pattern recognition. V stock inched higher Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Rally
NFLX Extends Gains
IBD SwingTrader stock Netflix now ranks among the best stocks to buy and watch as it gained another 1.8% Tuesday. The streaming giant broke out past a 482.70 buy point in a cup with handle on Monday. NFLX stock fell 0.9% Wednesday morning.
IBD Leaderboard stock Datadog is breaking out past an alternate handle buy trigger at 120.26 after big gains in recent weeks. DDOG stock lost 0.9% Wednesday.
Monday.com is in buy range past a 185.81 buy point in a cup with handle in the wake of the Dec. 14 breakout, according to IBD MarketSmith. MNDY stock dropped 2% Wednesday.
Artificial intelligence leader Snowflake is in buy range past a cup-with-handle's 192.66 buy point. SNOW stock fell 0.5% Wednesday, about 3% above the buy trigger.
Best Bets In Today's Action
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 |
|---|---|---|---|
| Applied Materials | 145.86 | Alternate entry | |
| Caterpillar | 293.88 | Cup base | |
| Netflix | 482.70 | Cup with handle | |
| Snowflake | 192.66 | Cup with handle |
Source: IBD Data As Of Dec. 20, 2023
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Magnificent Seven: Nvidia, Tesla
Among the so-called "Magnificent Seven" stocks, Tesla moved up 0.8% early Wednesday, while Nvidia gained 0.3%.
Graphics-chip giant Nvidia lost nearly 1% Tuesday, snapping a five-day win streak. NVDA stock is at the top of the buy zone above a 476.09 double-bottom entry.
Tesla stock rallied 2% Tuesday, closing back above an early entry at 252.75. The stock's big double-bottom pattern has a 278.98 buy point.
Dow Jones Leaders: Apple, Microsoft
Two Dow Jones stocks in the Magnificent Seven, Apple and Microsoft, traded higher after today's stock market open.
Apple stock moved up 0.5% Tuesday, as its breakout move looks to stabilize after recent two days of losses. Shares are barely above a cup-with-handle entry at 192.93. Apple shares were up 0.3% Wednesday.
Microsoft stock added to its gains above a 366.78 cup-base buy point during Tuesday's 0.2% rise. And the software giant was up 0.4% Wednesday morning.
Be sure to follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
