Major stock index futures dropped Wednesday, as the Dow Jones Industrial Average looked to extend its longest winning streak since December. Meanwhile, Shopify (SHOP) and Uber Technologies (UBER) both plunged on the stock market today after reporting earnings. And Tesla stock tumbled after Reuters reported that U.S. prosecutors are examining whether the electric-vehicle maker committed securities or wire fraud by misleading investors about its vehicles’ self-driving capabilities.
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In premarket action, Dow Jones futures dipped 0.2% vs. fair value. Prior to Wednesday, the blue chip index had five straight sessions in the black.
On its own four-day win streak, the S&P 500 was down 0.4% premarket. Tech-focused Nasdaq 100 futures were down 0.6% ahead of the opening bell. The Nasdaq had edged down slightly Tuesday.
Early Wednesday, the 10-year Treasury yield ticked higher to 4.49%. Further, oil prices extended their recent losses as West Texas Intermediate futures traded around $77.40 a barrel.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) sank 0.3%, as the SPDR S&P 500 ETF (SPY) fell 0.1%.
Stock Market Today: Shopify, Uber Earnings
Early Wednesday, Shopify reported first-quarter earnings that topped analyst estimates while revenue edged by views. But Shopify stock plummeted nearly 19% on the e-commerce firm’s outlook for the current June quarter.
Meanwhile, Uber stock plunged nearly 9% ahead of the open after the ride-sharing company posted a surprise first-quarter loss. Analysts had expected a profit.
Other key earnings movers include Arista Networks (ANET), Dutch Bros (BROS), Lyft (LYFT) and Occidental Petroleum (OXY), as well as Reddit (RDDT) and Toast (TOST).
Arista shares jumped more than 5%, while Dutch Bros advanced more than 8%. Lyft stock rallied more than 4%, as Occidental moved down more than 1%. Reddit stock soared nearly 13%. And Toast climbed over 4% in early morning action.
Be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Dow Jones Rises
On Tuesday, the Dow Jones Industrial Average and S&P 500 indexes both moved up 0.1% each, while the tech-heavy Nasdaq composite dipped 0.1%.
Tuesday’s The Big Picture column commented, “Several growth stocks outperformed again Tuesday, leaving stock market bulls feeling pretty good about the nascent rally. IBD raised its invested allocation to 40%-60% Friday after the Nasdaq composite rallied 2% in lower volume for the second Friday in a row.”
On Tuesday’s IBD Live show, the IBD Live team discussed the current trading conditions. David Ryan said it comes down to whether you can find stocks to buy. Right now the market is acting well. If the QQQs hold above the 50-day line it would be a good sign. He’s not concerned about the market swinging to “overbought” signals.
Now is an important time to read Investor’s Business Daily’s The Big Picture column amid the ongoing stock market action. 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
Stock Market Today: Best Stocks To Watch
Chipotle Mexican Grill (CMG), NXP Semiconductor (NXPI), Texas Roadhouse (TXRH) and Tradeweb Markets (TW) — plus Dow Jones components American Express (AXP) and Merck (MRK) — are among the best companies to watch on the stock market today.
Chipotle and Merck featured in this Stocks Near A Buy Zone column.
An essential 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. Notably, Pinterest (PINS) broke out past a cup base’s 41.60 buy point.
Also, the MarketSurge “Near Pivot” list shows stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: American Express Above Buy Point
American Express is bouncing back in heavy volume from support around its 50-day moving average. The bullish rebound has placed the software leader in a new buy area, while shares are just above a 231.69 entry in a short consolidation. Shares were nearly flat on the stock market today.
Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock ticked down 0.2% Wednesday.
4 Top Growth Stocks To Watch In The Stock Market Today
Outside the Dow Jones index, Chipotle fell 0.2% Tuesday, at the top of the buy range past a 3,023.98 entry point in a short consolidation, according to IBD MarketSurge. Chipotle shares edged up ahead of the open on Wednesday.
NXP Semiconductors is in buy range past a double-bottom entry at 251.96. Shares slipped 0.3% Wednesday.
Texas Roadhouse remains extended above its flat base’s 157.12 buy point, despite a 1% fall Tuesday. Shares jumped 4.7% Wednesday morning.
Tradeweb is breaking out past a flat base’s 108.04 buy point. That places the stock in a new buy area. The stock was up 0.5% Wednesday.
Stock Market Today: Companies To Watch
These are four stocks in or near buy zones in today’s stock market.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| American Express | (AXP) | 231.69 | Consolidation |
| Texas Roadhouse | (TXRH) | 157.12 | Flat base |
| Chipotle | (CMG) | 3,023.98 | Consolidation |
| Tradeweb Markets | (TW) | 108.04 | Flat base |
Source: IBD Data As Of May 6, 2024
Join IBD experts as they analyze leading stocks in the stock market today on IBD Live
Magnificent Seven Stocks: Nvidia, Tesla
Magnificent Seven stocks Nvidia (NVDA) and Tesla (TSLA) declined 1.2% and 3.6%, respectively, in Wednesday’s morning action.
Nvidia stock cut losses to 1.7% Tuesday, holding above its 50-day line. Shares continue to build a base that has a 974 buy point. Meanwhile, an early buy trigger is in play at 888.19, which was the high on April 30. The artificial intelligence giant is an IBD Leaderboard stock.
Tesla stock snapped a three-day win streak Tuesday, sliding 3.8%. The stock is holding above its 50-day line following last week’s surge.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks in the Magnificent Seven, Apple (AAPL) and Microsoft (MSFT) traded mixed ahead of Wednesday’s stock market open.
Apple stock rose 0.4% Tuesday, still above its 200-day line and forming the right side of a new base. The stock rose a fraction Wednesday morning.
Microsoft shares dropped 1% Tuesday, finding resistance at their 50-day line. The software giant is building a new flat base that has a 430.82 buy point and the 50-day line will be a key hurdle. And Microsoft stock dipped 0.2% Wednesday.
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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