On Wednesday, the stock market faced a downturn following weaker-than-expected GDP data before the opening bell. Meanwhile, renowned investor Cathie Wood continued her selling spree of Nvidia shares.
The Dow Jones Industrial Average experienced a 0.4% decline in morning trading, with the S&P 500 also down by 0.3%. The Nasdaq composite, known for its tech-heavy composition, dropped by 0.6% after the opening bell.
In the realm of exchange-traded funds (ETFs), both the Invesco QQQ Trust and the SPDR S&P 500 ETF witnessed declines, with the former dropping by 0.6% and the latter by 0.3%.
The 10-year Treasury yield saw a slight decrease to 4.29%. Meanwhile, oil prices remained close to recent highs, with West Texas Intermediate futures edging lower to around $79 per barrel.
Cathie Wood’s Ark Genomic Revolution ETF sold approximately 6,700 shares of Nvidia stock on Tuesday, totaling approximately $5.2 million based on the closing price. This followed another sale of 2,700 shares of Nvidia on Monday.
In economic news, the Commerce Department released its second estimate of fourth-quarter GDP, which showed a slight dip to 3.2%. This figure was below expectations, as analysts had anticipated it to remain unchanged from the initial reading of 3.3%. Personal consumption expenditures, however, exceeded estimates, rising to 3.0% compared to the projected 2.8%.
Following Wednesday’s market opening, notable earnings movers include Advance Auto Parts, Baidu, eBay, and TJX.
Advance Auto Parts saw its shares climb by 3% during morning trading, while Baidu experienced a 7% drop. eBay rallied more than 7%, and TJX stock rose nearly 1% in early trading.
In Tuesday’s trading session, the Dow Jones Industrial Average dipped by 0.3%, contrasting with a 0.2% rise in the S&P 500. The Nasdaq composite, known for its tech-heavy composition, saw a 0.4% increase.
Tuesday’s Big Picture column highlighted the ongoing strength in the stock market uptrend but noted the scarcity of actionable stocks. Many current market leaders have already surpassed proper entry points, making it challenging to find opportunities. As such, stocks setting up now may potentially lag behind in their respective groups.
Given the evolving market conditions, it’s crucial to stay informed by reading IBD’s The Big Picture column. Additionally, be sure to learn how to adapt to these changes with IBD’s new exposure levels.
Today, some of the top stocks to buy and watch in the stock market include Birkenstock, Lennar, SharkNinja, Toll Brothers, and Weatherford, along with Dow Jones components Disney, Dow, and Procter & Gamble.
Both Disney and Weatherford were highlighted in the “Stocks Near A Buy Zone” column.
For investors seeking daily breakouts, IBD MarketSmith’s “Breaking Out Today” list provides valuable insights. This list showcases MarketSmith Growth 250 stocks that are breaking out past new buy points. Notably, on Tuesday, Qualcomm broke out past a 157.98 flat-base entry.
Additionally, the MarketSmith “Near Pivot” list identifies stocks nearing buy points in bases. For instance, Boot Barn is approaching a 91.57 cup-with-handle entry.
For real-time buy and sell alerts on stock market leaders, investors can turn to IBD Leaderboard.
Dow Jones Stocks:
Disney is currently forming a significant cup-with-handle base with a 112.92 buy point, as per IBD MarketSmith chart analysis. The stock is trading approximately 3% below the new buy point. Disney stock saw a gain of 0.8% on the stock market today.
Consumer products giant Procter & Gamble experienced a 0.6% decline on Tuesday but remains in buy range above a 158.38 buy point in a cup base. P&G stock saw a slight dip of 0.1% early Wednesday.
After last week’s gains, chemicals giant Dow is within buy range past a 55.90 buy point in a flat base. Dow shares saw a decline of 1.4% on Wednesday.