The Dow Jones Industrial Average rose, while the other major stock indexes fell Wednesday after the early release of another key inflation reading, the consumer price index. An early loser was Nvidia (NVDA), which reversed lower after nearing a critical level on the stock market today.
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After the opening bell, the Dow Jones Industrial Average rose 0.1%, while the S&P 500 dropped 0.1%. And the tech-focused Nasdaq composite fell 0.3% in morning action.
Early Wednesday, the 10-year Treasury yield held steady at 3.85%. Oil prices rose, with West Texas Intermediate futures trading around $78.60 a barrel.
Among exchange traded funds, the Invesco QQQ Trust (QQQ) fell 0.3%, as the SPDR S&P 500 ETF (SPY) inched lower after the open.
Wake-Up Calls Still Ringing For Nvidia, Google, Meta And More
Stock Market Today: CPI Inflation Report
The Labor Department’s consumer price index rose 0.2% for the month of July, matching estimates, while an annual increase of 2.9% was slightly cooler than the 3.0% estimate. The core CPI, excluding food and energy, climbed 0.2% on the month, with a year-over-year increase of 3.2%. Both matched Econoday forecasts.
Meanwhile, Nvidia reversed from early gains to fall more than 1% Wednesday. Shares approached their key 50-day moving average, an important resistance area to watch, before being turned away.
Nvidia stock had advanced 6.5% Tuesday, rising sharply for a second straight day. Shares regained their 21-day exponential moving average. Last week, the artificial intelligence giant hit its lowest level since mid-May before bouncing.
Elsewhere, Alphabet (GOOGL) sold off more than 2% after Bloomberg reported the U.S. Justice Department is considering an antitrust action against Google, which could potentially break up the search giant.
Meanwhile, a key earnings mover Wednesday morning was UBS (UBS), which jumped 5% in morning trading. UBS stock is approaching a double-bottom entry at 31.45.
Onslaught Of Selling Hammers Nvidia Stock And More. But Rays Of Hope Emerge.
Dow Jones Rises
On Tuesday, the Dow Jones Industrial Average climbed 1%, while the S&P 500 gained 1.7% and tech-heavy Nasdaq composite rose 2.4%.
During Tuesday’s IBD Live show, the IBD Live team discussed the current trading conditions and how investors should handle the stock market today.
Now is an important time to read The Big Picture column amid the ongoing market action. Also, be sure to read how to adjust to changing market conditions, with IBD’s new exposure levels.
Nvidia Cracks Deepen. Don’t Ignore Earlier Wake-Up Calls.
Stock Market Today: Best Stocks To Watch
Among the best companies to watch on the stock market today are Cava (CAVA), Ferrari (RACE), ServiceNow (NOW) and Shake Shack (SHAK).
Also on the list are Dow Jones components Amazon (AMZN), Apple (AAPL), IBM (IBM), Microsoft (MSFT) and UnitedHealth (UNH).
There were no new stocks on IBD MarketSurge‘s “Breaking Out Today” list Tuesday, but there are a handful of stock ideas on the site’s “Near Pivot” list. These are top stocks nearing new buy points, like Costco Wholesale (COST). Costco stock is just below a 896.67 flat-base entry. Shares were down a fraction Wednesday.
To find more stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
Get Real-Time Buy And Sell Alerts On Stock Market Leaders With IBD Leaderboard
Dow Jones: IBM, UnitedHealth
Among Dow Jones components, UnitedHealth is in buy range above a 554.70 buy point in a cup base, according to MarketSurge pattern recognition. Shares edged lower Wednesday morning.
Meanwhile, IBM is approaching its latest entry, a cup-with-handle buy point at 196.26. IBM stock gained 0.2% Wednesday.
Outside the Dow Jones index, Mediterranean restaurant chain Cava bullishly regained its 50-day line last week. That also offers a buying opportunity for more aggressive investors. Shares are building the right side of a new base. Cava stock fell 0.7% early Wednesday. It is an IBD SwingTrader stock.
Shares of automaker Ferrari were trying to find support around their 50-day line. Further, the stock sat about 5% away from a 442.80 buy point out of a flat base. Shares revved 1.4% higher Wednesday morning.
ServiceNow held above a 806.52 handle entry, as it bounces from support at the 50-day line. ServiceNow rose 0.5% early Wednesday.
Shake Shack added a handle to a cup base, placing the new entry at 105.68. And shares gained 0.5% Wednesday morning, heading toward their latest buy trigger.
Find The Best Stocks To Buy And Watch With IBD Stock Screener And IBD Screen Of The Day
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 |
|---|---|---|---|
| Ferrari | (RACE) | 442.80 | Flat base |
| Shake Shack | (SHAK) | 111.29 | Cup base |
| ServiceNow | (NOW) | 806.52 | Handle entry |
| Spotify | (SPOT) | 331.08 | Flat base |
Source: IBD Data as of Aug. 5
Join IBD Experts As They Analyze Leading Stocks In The Stock Market Today On IBD Live
Magnificent Seven Stocks: Tesla
Among Magnificent Seven stocks, Tesla (TSLA) declined 2.2% in morning trading.
Tesla stock bounced 5.2% Tuesday, retaking the 200-day line, but still below the 50-day.
Dow Jones Leaders: Amazon, Apple, Microsoft
Among Dow Jones components in the Magnificent Seven, Amazon, Apple and Microsoft traded mixed after Wednesday’s stock market open.
Amazon shares continue to hold below their long-term 200-day line despite recent gains. The stock rose 0.5% Wednesday morning.
On Tuesday, Apple stock climbed 1.7%, closing further above the 50-day line and extending a win streak to five sessions. Last week, shares triggered the round-trip sell rule from a 199.62 buy point. Apple was down 0.1% Wednesday.
Microsoft shares are back above the 200-day line. And on Wednesday morning, the stock rose 0.2%.
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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