The Dow Jones Industrial Average edged higher on Wednesday, seeking to avoid a seventh straight decline. Fed Chief Jerome Powell will speak at the 2022 Community Banking Research Conference in St. Louis at 10:15 a.m. ET. During this time, the The 10-year Treasury yield briefly topped 4% for the first time in over a decade. And several biotech stocks soared on the positive news about Alzheimer’s drugs.
cintas (ETG), Payment (PAYX) and Thor Industries (THO) were the main reporters for the results on Wednesday morning. Cintas rose 3.4% after better than expected results, while Paychex gained 2.7%. Thor Industries rose 2% after beating earnings and sales estimates.
netflix (NFLX) climbed more than 2.55% after Atlantic Equities overweighted the stock. The shares are around 70% off their 52-week high. Leader in electric vehicles You’re here (TSLA) was trading down 1.3% on Wednesday. titans of technology Apple (AAPL) sold more than 4% on iPhone low demand reportswhile Microsoft (MSFT) was down 0.2% after today’s stock market open.
biogenic (IBIB) catapulted 39% higher by learning that an experimental drug to treat Alzheimer’s disease slowed cognitive and functional decline in the early stages of the disease for a large trial of patients. Biogen’s partner in the venture, Eisai, soared more than 60% on the Frankfurt Stock Exchange. And another company working on a drug for Alzheimer’s disease, Eli Lily (THERE IS), saw its shares jump 6.5% after the opening bell.
In the ongoing weakness of stock markets, DoubleVerify (DV), Hostess Brands (TWNK), Neurocrine Biosciences (NBIX), Toro (tax included), Vertex Pharmaceuticals (VRTX) and World wrestling entertainment (WWE) — as well as the Dow Jones stock UnitedHealth (A H) – are among the best stocks to watch. Keep in mind that the deepening of the stock market correction is a time for investors to sit on the sidelines and make watchlists.
DoubleVerify is a IBD classification Stock. Hostess and Toro were featured in this week’s Stock Near A Buy Zone column. Neurocrine Biosciences was Monday Stock of the day. Vertex was a Stock of the day September 12.
Dow Jones Today: Treasury Yields, Oil Prices
After Wednesday’s opening bell, the Dow Jones Industrial Average rose 0.2%, while the S&P 500 rose 0.15%. The tech-heavy Nasdaq Composite lost 0.2% in morning action.
The 10-year Treasury yield briefly rose above 4% on Wednesday morning, marking a new 12-year high, before falling back to 3.82%. The 10-year Treasury yield is heading for its ninth consecutive weekly advance, marking its longest rally since 2004. Meanwhile, US oil prices reversed after early losses. West Texas Intermediate futures rebounded to nearly $80 a barrel after falling to their lowest level of the year on Monday.
Stock market correction
The stock market continued to show weakness on Tuesday, as the Nasdaq composite saw the index pare an early 2.2% gain to a 0.2% gain at the close. Meanwhile, the Dow Jones Industrial Average and S&P 500 hit new lows in the bear market.
Tuesday’s The Big Picture column commented“Even though the major equity indices are showing a sign of strength with a follow-up day in the next few days, it will not be a sign of an aggressive return to the market. Why? Because grow screens still don’t bring in a lot of prospects. Stocks that buck the trend and show strength when the market is falling are tempting to buy. But a weak market eventually takes everything with it. Avoid the temptation to buy stocks that are holding up well. It’s an easy way to get chopped, even if you take small losses.”
Nasdaq’s three-day rally attempt should have investors looking for potential follow-up day, which is when the Nasdaq or S&P 500 rises sharply in higher than previous session volume on day 4 and later of an attempted rally. This gives investors the green light to start buying top-tier stocks overshooting the fair buy points. It should synchronize your portfolio and mindset with the stock market action by gradually committing capital to leading stocks.
Nevertheless, it is important that investors take advantage of this downtime. Now is the perfect opportunity to study market dips and to build a strong watchlist best performing stocks. Many long-term leaders tend to break out on or near the day after the market bottom signal. Missing that first opportunity can be a costly mistake.
Dow Jones stocks to watch: UnitedHealth
Dow Jones UnitedHealth stock continues to hold above its long-term 200-day line. The shares are building a flat base that has a buy point of 553.23, according to IBD MarketSmith graphical analysis. The resilience of the title made it Tuesday’s IBD 50 stock picks to watch. Shares fell 0.9% on Wednesday morning.
UNH stock shows a solid 95 over a perfect 99 IBD Composite Assessment, speak IBD inventory check. Investors can use the IBD Composite Rating to easily assess the quality of a stock’s fundamental and technical metrics.
Top stocks to watch: DoubleVerify, Hostess, Neurocrine, Toro, Vertex, WWE
IBD Ranking Stock DoubleVerify is still below its buy point of 28.07 in a low basis despite Tuesday’s 3.5% rise. According to the leaderboard commentary, DoubleVerify found support near its 50-day line. Shares fell slightly on Wednesday.
Twinkie maker Hostess Brands is in the 5% Buy zone above a 23.23 Buy point on a mug with handle, according to IBD MarketSmith graphical analysis. On the upside, Hostess’ relative strength line is reaching new highs. Keep in mind that the weak market trend should keep you away, but it is one of the main stocks to watch. The stock rose 0.2% on Wednesday.
Wednesday’s IBD 50 Stocks To Watch pick, Neurocrine Biosciences, is still building a flat base that has a buy point of 109.36. Stocks remain below their 50-day line on Wednesday despite rising 0.5%. Despite the stock’s recent weakness, the RS line hit a new high last week, so the stock avoided much of the market decline. Neurocrine was also Monday’s IBD stock of the day.
Toro stock is in a flat bottom and about 6% of a 92.05 point of purchase. Shares are trading just below their 50-day line after Tuesday’s 0.7% drop. The RS range reaches new heights. Shares of Toro traded up nearly 1% on Wednesday.
Vertex Pharmaceuticals is trying to regain its 50-day line after Tuesday’s 2.9% loss. It forms a flat base with a buy point of 306.05. The resilience of the title makes it a great idea to watch. Shares rebounded more than 2% on Wednesday.
World Wrestling Entertainment continues to build a flat base that has an entry of 75.33. The shares attempted to reclaim their 50-day line on Tuesday, but were denied. A decisive recovery from this key level would be bullish for the stock’s basis building outlook. WWE shares rose 0.5% early Wednesday.
Tesla Stock rebounded 2.5% on Tuesday, up for a second straight day. Still, stocks are significantly below their 50-day line after last week’s heavy losses. Tesla stock fell 1.3% on Wednesday morning.
Last week, the stock’s relative strength line hit its highest level since April, but has fallen sharply in recent sessions. The shares are down about 32% from their 52-week high.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones Stocks, Apple shares climbed 0.7% on Tuesday, but are still near recent lows. On the upside, its RS line hit a new high on Tuesday. Apple stock slid more than 4% on Wednesday morning on reports that Apple abandons its plans to increase production of its new iPhones due to lack of demand.
Microsoft lost 0.4% on Tuesday, hitting a new 52-week low. The software giant is more than 32% off its 52-week high. Microsoft shares fell 0.2% early Wednesday.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen to learn more about growth stocks and the Dow Jones Industrial Average.
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